Company Summary

Overview

Digital Ally, Inc. is a diversified technology and service company with operations across three main segments:

• Video Solutions
• Revenue Cycle Management
• Entertainment

Business Segments & Products

1. Video Solutions Segment

• Produces digital video imaging, storage, disinfectant, and safety products.
• Primary users include law enforcement, security, and commercial fleets.
• Key products:
  • In-car digital video systems: EVO-HD, DVM-800, DVM-800 Lite (for law enforcement and commercial markets).
  • Body-worn cameras: FirstVu Pro, FirstVu II, FirstVu HD.
  • Integration system: VuLink (auto-activation features linking body-worn and in-car systems).
  • Cloud-based evidence management: EVO Web Portal, FleetVu Manager.
  • Commercial products: EVO Fleet, DVM-250, DVM-250 Plus, FLT-250 (for commercial fleets such as taxis and ambulances).
  • Temperature and disinfectant products: ThermoVu and Shield disinfectants.
• Revenue (2024): $5,755,391 (down from $7,471,285 in 2023).
• Gross profit (2024): $2,722,894.
• Operating loss (2024): $1,199,855.
• The segment faces strong competition from firms like WatchGuard, Panasonic, Axon, Lytx, and others.
• Major technological focus includes auto-activation, cloud evidence management, and AI-based telematics.

2. Revenue Cycle Management Segment

• Provides working capital and back-office services for healthcare providers:
  • Insurance verification
  • Medical documentation and coding
  • Collections
• Started operations in Q2 2021, through subsidiaries Digital Ally Healthcare, Inc. and Nobility Healthcare, LLC.
• Acquisitions of multiple private medical billing companies.
• Revenue (2024): $6,131,650 (down from $6,713,678 in 2023).
• Gross profit (2024): $2,365,314.
• Operating loss (2024): $3,818,614.
• Revenue recognition based on contractual percentages of collections.
• Market involves large healthcare organizations across various specialties; competition includes internal in-house teams and other third-party providers.

3. Entertainment Segment

• Operates online ticketing and event promotion:
  • Runs TicketSmarter.com offering tickets for over 125,000 live events across the USA.
  • Acts as a resale marketplace with partnerships with 35+ collegiate conferences, 300+ universities and numerous venues.
• Produces live events, including the Country Stampede music festival.
• Revenue (2024): $7,763,761 (down from $14,063,381 in 2023).
• Gross profit (2024): $401,124.
• Operating loss (2024): $4,804,853.
• Revenue mainly from ticket sales and third-party service fees.
• Major competitors are various online ticketing and event production companies.

Financial Highlights

• Total revenue (2024): $19,650,802 (decreased from $28,248,344 in 2023)
• Net loss (2024): $21,715,725 (improved from $25,463,949 in 2023)
• Gross profit (2024): $5,489,332 (slight decrease from $5,762,484 in 2023)
• Operating loss (2024): $15,201,540 (improved from $22,240,553 in 2023)
• Emphasis on shifting from product sales to subscription and service models.
• Employees: Approximately 31 full-time employees as of December 31, 2024.
• Market cap (most recent Q2 2024): The market value of stock held by non-affiliates was about $7.7 million (based on stock price of $2.40, as of June 30, 2024).
• Shares Outstanding (May 2, 2025): 115,601,371 shares of common stock.

Other Information

• The company is publicly traded on NASDAQ under the ticker DGLY.
• The company operates out of Overland Park, Kansas.
• The company has engaged in several capital raising activities, including an underwritten public offering in February 2025, raising net proceeds of approximately $13.48 million.
• The company faced significant legal proceedings affecting certain segments, notably a lawsuit related to the company’s former partner Culp McAuley, which resulted in a judgment against Culp McAuley and affiliated parties.

Summary

Digital Ally, Inc. develops and sells digital video recording hardware and cloud-based evidence management solutions primarily for law enforcement, security, and commercial fleets. It also operates a ticketing and event promotion business, and provides revenue cycle management services to healthcare organizations. The company has a modest workforce, reported significant net losses, but continues to pursue growth through product innovation, service transition, and capital raising efforts.