Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 44

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 44
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 the specific customer and the competitive landscape.

Product revenues by operating segment is as follows:

| Product Revenues:        |     | For                    
 the three months ended 
 September 30,          
 2024                   |         |     | 2023 |           |
|:-------------------------|:----|:-----------------------|--------:|:----|:-----|----------:|
| Video Solutions          |     | $                      | 306,245 |     | $    |   977,193 |
| Revenue Cycle Management |     |                        |       — |     |      |         — |
| Entertainment            |     |                        | 497,700 |     |      | 1,118,044 |
| Total Product Revenues   |     | $                      | 803,945 |     | $    | 2,095,237 |

Product revenues for the three months ended September 30, 2024 and 2023 were $803,945 and $2,095,237 respectively, a decrease of $1,291,292 (62%), due to the following factors:

| ● | Revenues                                                                                                                                  
 generated by the entertainment operating segment began with the Company’s September 2021 acquisition of TicketSmarter. The                
 entertainment operating segment generated $497,700 in product revenues for the three months ended September 30, 2024, compared to         
 $1,118,044 for the three months ended September 30, 2023, a decrease of $620,344 (55%). Product revenue relates to the timing of          
 the first Kustom 440 music festival in 2023 that did not recur in 2024, the initial Country Stampede music festival in 2024, as well      
 as the resale of tickets purchased for live events, including sporting events, concerts, and theatre, then sold through various platforms 
 to customers. The decrease in revenues is attributable to a reduction in scope of primary ticket sales by TicketSmarter as                
 it focuses on higher margin events to improve its gross margins.                                                                          |

| 28 |

| ● | The                                                                                                                                     
 Company’s video segment operating segment generated revenues totalling $306,245 during the three months ended September 30,             
 2024 compared to $977,193 for the three months ended September 30, 2023, a decrease of $670,948 (69%). In general, our video solutions  
 operating segment has experienced pressure on its product revenues as our in-car and body-worn systems are facing increased