Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 274

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 274
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 (net of eliminations): 

    Video Solutions 
    $11,113,519  
    $16,876,673 
  
    Revenue Cycle Management 
     4,538,676  
     1,969,225 
  
    Entertainment 
     4,712,364  
     6,037,666 
  
    Corporate 
     4,711,482  
     7,379,605 
  
    Total Identifiable Assets 
    $25,076,041  
    $32,263,169 

39

The
segment net revenues reported 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.

Results
of Operations

Revenues

Revenues
by Type and by Operating Segment

Our
operating segments generate two types of revenue:

Product
revenues primarily include video solutions operating segment hardware sales of in-car and body-worn cameras. Additionally, product
revenues also include the sale of tickets by our entertainment operating segment that have been purchased or received through our sponsorships
and partnerships and held in inventory by our entertainment segment until their sale. Our entertainment sector also generates product
revenue through our production of live events and concerts including our annual Country Stampede music festival.

Service
and other revenues consist of cloud and warranty services revenues from our subscription plan and storage offerings of our video
solutions segment. Our entertainment operating segment’s secondary ticketing marketplace revenues are included in service revenue.
We recognize service revenue from sales generated through its secondary ticketing marketplace as we collect net services fees on secondary
ticketing marketplace transactions. Lastly, our revenue cycle management segment revenues are included in the service revenues for services
provided to medical providers throughout the country.

The
following table presents revenues by type and segment:

    Three Months Ended September 30, 

    2025  
    2024  
    % Change 
  
    Product revenues: 

    Video solutions 
    $229,629  
    $306,245  
     (25.0)%
  
    Entertainment 
     434,793