Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 32

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 32
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 above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income, which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property, plant and equipment, accounts receivable, inventories, and other assets.

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Off-Balance Sheet Arrangements

We do not have any off-balance sheet debt, nor did we have any transactions, arrangements, obligations (including contingent obligations) or other relationships with any unconsolidated entities or other persons that may have a material current or future effect on financial conditions, changes in the financial conditions, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenue or expenses.

We are a party to operating leases and license agreements that represent commitments for future payments (described in Note 15, “Commitments and Contingencies,” to our consolidated financial statements) and we have issued purchase orders in the ordinary course of business that represent commitments to future payments for goods and services.

For the Years Ended December 31, 2024 and 2023

Results of Operations

Summarized immediately below and discussed in more detail in the subsequent sub-sections is an analysis of our operating results for the years ended December 31, 2024 and 2023, represented as a percentage of total revenues for each respective year:

|                                                                                           |     | Years Ended December 31, |       |    |     |      |       |    |
|                                                                                           |     |                     2024 |       |    |     | 2023 |       |    |
| Revenue                                                                                   |     |                          |   100 | %  |     |      |   100 | %  |
| Cost of revenue                                                                           |     |                          |    72 | %  |     |      |    80 | %  |
| Gross profit                                                                              |     |                          |    28 | %  |     |      |    20 | %  |
| Selling, general and administrative expenses:                                             |     |                          |       |    |     |      |       |    |
| Research and development expense                                                          |     |                          |     7 | %  |     |      |     9 | %  |
| Selling, advertising and promotional expense                                              |     |                          |    11 | %