Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 47

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 47
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 $759,625 (30%). Overall cost of goods sold for services as a percentage of service revenues for the three months ended September 30, 2024, and 2023 were 54% and 59%, respectively. Cost of service revenues by operating shipment is as follows:

| Cost of Service Revenues: |     | For                    
 the three months ended 
 September 30,          
 2024                   |           |     | 2023 |           |
|:--------------------------|:----|:-----------------------|----------:|:----|:-----|----------:|
| Video Solutions           |     | $                      |   269,962 |     | $    |   382,430 |
| Revenue Cycle Management  |     |                        |   935,070 |     |      | 1,011,429 |
| Entertainment             |     |                        |   559,143 |     |      | 1,129,941 |
| Total Cost of Service     
 Revenues                  |     | $                      | 1,764,175 |     | $    | 2,523,800 |

| 30 |

The decrease in cost of service revenues for our video solutions segment reflects our staffing reductions implemented during 2024 in order to right-size our operations commensurate with our service revenues in the three months ended September 30, 2024 compared to the three months ended September 30, 2023. Cost of service revenues as a percentage of service revenues for the video solutions segment decreased to 30% for the three months ended September 30, 2024 as compared to 47% for the three months ended September 30, 2023.

Cost of service revenues as a percentage of service revenues for the revenue cycle management operating segment remained consistent at 58% for the three months ended September 30, 2024 as compared to 62% for the three months ended September 30, 2023.

The decrease in entertainment operating segment cost of service revenues is commensurate with the decrease in service revenues in the three months ended September 30, 2024, compared to the three months ended September 30, 2023. Cost of service revenues as a percentage of service revenues for the entertainment segment was 74% for the three months ended September 30, 2024 as compared to 63% for the three months ended September 30, 2023.

Gross Profit

Overall gross profit for the three months ended September