Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 291

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 291
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,911,068  
     3,167,208 
  
    Total Service and Other Revenues 
    $11,042,258  
    $10,619,905 

Service
and other revenues for the nine months ended September 30, 2025 and 2024 were $11,042,258 and $10,619,905, respectively, an increase
of $422,353 (3.8%), due to the following factors:

    ●
    Cloud
    revenues generated by the video solutions operating segment were $1,903,807 and $1,964,038 for the nine months ended September 30,
    2025 and 2024, respectively, a slight decrease of $60,231 (3.1%). We continue to experience increased interest in our cloud solutions
    for law enforcement primarily due to the deployment of our cloud-based EVO-HD in-car system and our next generation body-worn camera
    products, which contributed to our cloud revenues in the nine months ended September 30, 2025. We expect this trend to continue for
    2025 as the migration from local storage to cloud storage continues in our customer base.

    ●
    Video
    solutions operating segment revenues from extended warranty services were $959,715 and $575,308 for the nine months ended September
    30, 2025 and 2024, respectively, an increase of $384,407 (40%). The increase was primarily driven by a non-recurring catch-up from
    a single customer that settled past-due extended warranty fees related to services provided in fourth quarter of 2024, resulting
    in higher revenue recognized in the current period.

    ●
    Our
    entertainment operating segment generated service revenues totaling $3,911,068 and $3,167,208 for the nine months ended September
    30, 2025 and 2024, respectively, an increase of $743,860 (23.5%). TicketSmarter collects fees on transactions administered through
    the TicketSmarter.com platform for the buying and selling of tickets for live events throughout the country. We expect our entertainment
    operating segment to continue to fluctuate as we look to right-size this segment and work towards profitability. Our entertainment
    segment has focused on cost cutting and overall improvements in gross margin rather than top line revenues, which has resulted in
    a reduction in revenues for ticketing events that did not meet