Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 10

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 the assets, continued the business and assumed the rights and obligations of the Predecessor Registrant immediately prior
to the Merger. Under the Nevada Revised Statutes, shareholder approval was not required in connection with the Merger Agreement or the
transactions contemplated thereby.

At the Effective Time, pursuant to the Merger Agreement, (i) each outstanding share of Predecessor Registrant’s
common stock, par value $0.001 per share (the “Predecessor Common Stock”) automatically converted into one share of common
stock, par value $0.001 per share, of the Registrant (“Registrant Common Stock”), (ii) each outstanding option, right or warrant
to acquire shares of Predecessor Common Stock converted into an option, right or warrant, as applicable, to acquire an equal number of
shares of Registrant Common Stock under the same terms and conditions as the original options, rights or warrants, and (iii) the directors
and executive officers of the Predecessor Registrant were appointed as directors and executive officers, as applicable, of the Registrant,
each to serve in the same capacity and for the same term as such person served with the Predecessor Registrant immediately before the
Merger.

The business of the Registrant,
Digital Ally, Inc. (with its wholly-owned subsidiaries, Digital Ally International, Inc., Shield Products, LLC, Digital Ally Healthcare,
LLC (“Digital Ally Healthcare”), TicketSmarter, Inc. (“TicketSmarter”), Worldwide Reinsurance, Ltd., Digital Connect,
Inc., BirdVu Jets, Inc., Kustom 440, Inc. (“Kustom 440”), Kustom Entertainment, Inc., and its majority-owned subsidiary Nobility
Healthcare, LLC, collectively, “Digital Ally,” “Digital,” and the “Company”), is divided into three
reportable operating segments: 1) the Video Solutions Segment, 2) the Revenue Cycle Management Segment and 3) the Ticketing Segment. The
Video Solutions Segment is our legacy business that produces digital video imaging, storage products, disinfectant and related safety
products for use in law enforcement, security and commercial applications. This segment includes both service and product revenues through
our subscription models offering cloud and warranty solutions, and hardware sales for video and health safety solutions. The Revenue Cycle
Management Segment provides working capital and back-office services to a variety of healthcare organizations throughout the country,
as a monthly service fee. The Ticketing Segment acts as an intermediary between ticket buyers and sellers within our secondary