Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 238

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 238
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 generation body-worn camera
    products, which contributed to our cloud revenues in the nine months ended September 30, 2025. We expect this trend to continue for
    2025 as the migration from local storage to cloud storage continues in our customer base.

    ●
    Video
    solutions operating segment revenues from extended warranty services were $959,715 and $575,308 for the nine months ended September
    30, 2025 and 2024, respectively, an increase of $384,407 (40%). The increase was primarily driven by a non-recurring catch-up from
    a single customer that settled past-due extended warranty fees related to services provided in fourth quarter of 2024, resulting
    in higher revenue recognized in the current period.

    ●
    Our
    entertainment operating segment generated service revenues totaling $3,911,068 and $3,167,208 for the nine months ended September
    30, 2025 and 2024, respectively, an increase of $743,860 (23.5%). TicketSmarter collects fees on transactions administered through
    the TicketSmarter.com platform for the buying and selling of tickets for live events throughout the country. We expect our entertainment
    operating segment to continue to fluctuate as we look to right-size this segment and work towards profitability. Our entertainment
    segment has focused on cost cutting and overall improvements in gross margin rather than top line revenues, which has resulted in
    a reduction in revenues for ticketing events that did not meet its gross margin goals. The entertainment operating segment has increased
    its use of Google, Facebook and other social media to generate increased ticketing revenues in the third quarter of 2025 compared
    to 2024.

    ●
    Our
    revenue cycle management operating segment generated service revenues totaling $4,144,008 and $4,600,745 for the nine months ended
    September 30, 2025 and 2024, respectively, a decrease of $456,738 (9.9%). Our revenue cycle management operating segment provides
    revenue cycle management solutions and back-office services to healthcare organizations throughout the country. The decrease in revenue
    is due to refinement within one of the recent acquisitions, as they strive to maximize profitability rather than focus on top-line
    revenue.

Total
revenues for the nine months ended September 30, 2025, and 2024 were $14,644,460 and $