Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 49

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 49
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 |     |                                      |       |    |     |      |       |    |
| Basic                                                 |     |                                    $ | (0.91 | )  |     |    $ | (1.32 | )  |
| Diluted                                               |     |                                    $ | (0.91 | )  |     |    $ | (1.32 | )  |

Revenues

Revenues by Type and by Operating Segment

Our operating segments generate two types of revenues:

Product revenuesprimarily includes video operating segment hardware sales of in-car and body-worn cameras, along with sales of our ThermoVu TMunits, disinfectants, and personal protective equipment. Additionally, product revenues also include the sale of tickets by our entertainment operating segment that have been purchased or received through our sponsorships and partnerships and held in inventory by our entertainment segment until their sale.

Service and other revenuesconsist of cloud and warranty services revenues from our subscription plan and storage offerings of our video solutions segment. Our entertainment operating segments’ secondary ticketing marketplace revenues are included in service revenue. We recognize service revenue from sales generated through its secondary ticketing marketplace as we collect net services fees on secondary ticketing marketplace transactions. Lastly, our revenue cycle management segment revenues are included in the service revenues for services provided to medical providers throughout the country.

| 27 |

Our video operating segment sells our products and services to customers in the following manner:

| ● | Sales                                                                                                                               
 to domestic customers are made directly to the end customer (typically a law enforcement agency or a commercial customer) through   
 our sales force, comprised of our employees. Revenue is recorded when the product is shipped to the end customer.                   |
| ● | Sales                                                                                                                               
 to international customers are made through independent distributors who purchase products from us at a wholesale price and sell    
 to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin 
 as compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and    
 all related risks and rewards of ownership. Revenue is recorded when the product is shipped to the distributor consistent with the  
 terms of the distribution agreement.                                                                                                |
| ● | Repair                                                                                                                              
 parts and services for domestic and international customers are generally handled by our inside customer service employees. Revenue 
 is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer.                     |

Our revenue cycle management operating segment sells its services to customers in the following manner: