Operating expenses increased 35 % to $ 3,827,165 in the first quarter of 2009 , compared with $ 2,825,054 in the year-earlier quarter . The majority of this increase was related to research and development expenses , which rose 159 % from prior-year levels due to the Company 's continuing efforts to develop new products and line extensions for its current products . Digital Ally currently has active research and development projects involving several new products designed for the motorcycle , school bus , mass transit , taxi cab and other markets . First quarter expenses were also impacted by additional costs related to the final development of the DVM-750 , which is now being produced and shipped to customers . For the three months ended March 31 , 2009 , the Company reported an operating loss of ( $ 1,967,625 ) , compared with operating income of $ 2,495,840 in the first quarter of 2008 .