Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 218

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 218
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ers” for the commercial fleet and mass transit markets; and FleetVu and VuLink, which
are our cloud-based evidence management systems. We further diversified and broadened our product offerings in 2020, by introducing two
new lines of branded products: (1) the ThermoVu™ which is a line of self-contained temperature monitoring stations that provides
alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and (2) our Shield™ disinfectants
and cleansers which are for use against viruses and bacteria.

Our
video solutions segment revenue encompasses video recording products and services for our law enforcement and commercial customers and
the sale of Shield disinfectant and personal protective products. This segment generates revenue through our subscription models offering
cloud and warranty solutions, and hardware sales for video and personal protective safety products and solutions. Revenues for product
sales are recognized upon delivery of the product, and revenues from our cloud and warranty subscription plans are deferred over the
term of the subscription, typically 3 or 5 years.

Revenue
Cycle Management Operating Segment – We entered the revenue cycle management business late in the second quarter of 2021 with
the formation of our wholly owned subsidiary, Digital Ally Healthcare, Inc., and its majority-owned subsidiary Nobility Healthcare. Nobility
Healthcare completed its first acquisition in June 2021, when it acquired a private medical billing company, and has since completed
three additional acquisitions of private medical billing companies, in which we will assist in providing working capital and back-office
services to healthcare organizations throughout the country. Our assistance consists of insurance and benefit verification, medical treatment
documentation and coding, and collections. Through our expertise and experience in this field, we maximize our customers’ service
revenues collected, leading to substantial improvements in their operating margins and cash flows.

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Our
revenue cycle management segment consists of our medical billing subsidiaries. Revenues of this segment are recognized after we fulfil
the obligations of our revenue cycle management services. Our revenue cycle management services are services, performed and charged monthly,
generally based on a contractual percentage of total customer collections, for which we recognize our net service fees.

Entertainment
Operating Segment - We also entered the live entertainment and events ticketing services through the formation of our wholly owned
subsidiary, TicketSmarter and its completed acquisitions of Goody Tickets, LLC and TicketSmarter, LLC, on September 1, 2021. TicketSmarter
provides ticket sales, partnerships, and mainly