Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 15

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 acting as a principal or agent in the
transaction. The determination is based upon the evaluation of control over the event ticket, including the right to sell the ticket,
prior to its transfer to the ticket buyer.

The Company sells tickets held
in inventory, which consists of one performance obligation, being to transfer control of an event ticket to the buyer upon confirmation
of the order. The Company acts as the principal in these transactions as the ticket is owned by the Company at the time of the sale, therefore
controlling the ticket prior to transferring to the customer. In these transactions, revenue is recorded on a gross basis based on the
value of the ticket and is recognized when an order is confirmed. Payment is typically due upon delivery of the ticket.

The Company also acts as an intermediary
between buyers and sellers through online secondary marketplace. Revenues derived from this marketplace primarily consist of service fees
from ticketing operations, and consists of one primary performance obligation, which is facilitating the transaction between the buyer
and seller, being satisfied at the time the order has been confirmed. As the Company does not control the ticket prior to the transfer,
the Company acts as an agent in these transactions. Revenue is recognized on a net basis, net of the amount due to the seller when an
order is confirmed, the seller is then obligated to deliver the tickets to the buyer per the seller’s listing. Payment is due at
the time of sale.

Other

Deferred revenue include payments received in advance of performance under the contract and are reported separately as current liabilities
and non-current liabilities in the Condensed Consolidated Balance Sheets. Such amounts consist of extended warranty contracts, prepaid
cloud services and prepaid installation services and are generally recognized as the respective performance obligations are satisfied.
During the three months ended March 31, 2025, the Company recognized revenue of $1,196,046 related to its deferred revenue Total deferred revenue consist of the following:

 SCHEDULE
OF DEFERRED REVENUES

    March 31, 2025 

    December 31,
                                                                                2024  
    Additions/
                                                                                Reclass  
    Recognized
                                                                                Revenue  
    March 31,
                                                                                2025 
  
    Deferred revenue, current 
    $4,215,401  
    $432,622  
    $460,449  
    $4,187,574 
  
    Deferred revenue, non-current 
     6,317,472  
     106,101