Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 13

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 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. Our entertainment sector generates product revenue through our production of live events and concerts
including our annual Country Stampede music festival. The Entertainment Segment also acts as an intermediary between ticket buyers and
sellers within our secondary ticketing platform, Ticketsmarter.com, and we also acquire tickets from primary sellers to then sell through
various platforms. The accounting guidance on Segment Reporting establishes standards for reporting information regarding operating segments
in annual financial statements and requires selected information of those segments to be presented in financial statements. Such required
segment information is included in Note 17.

Reverse Stock Splits

On May 6, 2025, the Company,
acting pursuant to authority received at an annual meeting of its stockholders on December 17, 2024, filed with the Secretary of State
of the State of Nevada a certificate of amendment (the “Charter Amendment”) to its articles of incorporation, as amended (the
“Articles of Incorporation”), which effected a one-for-twenty reverse stock split (the “Reverse Stock Split”)
of all of the Company’s outstanding shares of common stock, par value $0.001 per share (the “Common Stock”). Pursuant
to the Charter Amendment, the Reverse Stock Split became effective as of 5:30 p.m. Eastern Time on May 6, 2025. As a result of the Reverse
Stock Split, every twenty (20) shares of Common Stock were exchanged for one (1) share of Common Stock. The Common Stock began trading
on the Nasdaq Capital Market on a split-adjusted basis at the start of trading on May 7, 2025. The Reverse Stock Split did not affect
the total number of shares of capital stock, including the Common Stock, that the Company is authorized to issue, which remain as set
forth pursuant to the Articles of Incorporation. No fractional shares of Common Stock were issued in connection with the Reverse Stock
Split. Stockholders who otherwise were entitled to receive fractional shares of Common Stock were automatically entitled to receive an
additional fraction of a share of Common Stock to round up to the next whole share, at a participant level. The Reverse Stock Split also
had a proportionate effect on all other options and warrants of the