Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 274

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 2
Chunk 274
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, comprised of our employees. Revenue is recorded when the product is shipped to the end customer.

    ●
    Sales to international customers are made through independent distributors who purchase products from us at a wholesale price and sell to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin as compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and all related risks and rewards of ownership. Revenue is recorded when the product is shipped to the distributor consistent with the terms of the distribution agreement.

    ●
    Repair parts and services for domestic and international customers are generally handled by our inside customer service employees. Revenue is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer.

53

Our revenue cycle management operating segment
sells its services to customers in the following manner:

    ●
    Our revenue cycle management operating segment generates service revenues through relationships with medium to large healthcare organizations, in which the underlying service revenue is recognized upon execution of services. Service revenues are generally determined as a percentage of the dollar amount of medical billings collected by the customer. 

Our entertainment operating segment sells our
products and services to customers in the following manner:

    ●
    Our entertainment operating segment generates product revenues from the sale of tickets directly to consumers for a particular event that the entertainment operating segment has previously purchased and held in inventory for ultimate resale to the end consumer. Our entertainment segment also generates product revenues from the sale of tickets, merchandise, parking and concessions at live events that it sponsors such as the annual Country Stampede music festival. Service sales through TicketSmarter are driven largely in part to the usage of the TicketSmarter.com marketplace by buyers and sellers, in which the Company collects service fees for each transaction completed through this platform 

We may discount our prices
on specific orders based upon the size of the order, the specific customer and the competitive landscape.

Product revenues by operating
segment are as follows:

    Six Months Ended June 30, 

    2025  
    2024 
  
    Product Revenues: 

    Video Solutions 
    $492,364  
    $1,342,127 
  
    Revenue Cycle Management 
     —  
     — 
  
    Entertainment 
     2,445,416  
     2,431,320 
  
    Total Product Revenues 
    $2,937,780  
    $3,773