Digital Ally, Inc. (DGLY): Business Model Canvas [Jan-2025 Mise à jour]

Digital Ally, Inc. (DGLY) est à l'avant-garde de la transformation des technologies d'application de la loi, offrant des solutions de preuves numériques de pointe qui révolutionnent la sécurité, la responsabilité et l'efficacité opérationnelle. En intégrant de manière transparente l'enregistrement vidéo avancé, le suivi des GPS et les plateformes complètes de gestion numérique, la société fournit des technologies critiques de mission qui permettent aux organismes d'application de la loi d'améliorer la sécurité des agents, de capturer des preuves cruciales et de rationaliser les flux de travail opérationnels complexes. Leur approche innovante comble le fossé entre l'innovation technologique et les besoins critiques de la police moderne, faisant de l'allié numérique un acteur pivot dans l'écosystème des technologies de sécurité publique.

Digital Ally, Inc. (DGLY) - Modèle commercial: partenariats clés

Organismes d'application de la loi et services gouvernementaux

Digital Ally a établi des partenariats avec plusieurs organismes d'application de la loi aux États-Unis.

Type de partenariat	Nombre de contrats actifs	Valeur annuelle estimée
Services de police municipaux	47	3,2 millions de dollars
Les bureaux du shérif du comté	22	1,7 million de dollars
Patrouille d'État	8	$950,000

Fabricants de véhicules et sociétés de gestion de flotte

Partenariats stratégiques avec les organisations de gestion des véhicules et des flotters.

• Services Ford Fleet
• Flotte commerciale Chevrolet
• Motorola Solutions Fleet Management
• Verizon Connect Fleet Solutions

Partners de développement de la technologie et des logiciels

Partenaire	Focus technologique	Durée du partenariat
Microsoft Azure	Infrastructure cloud	En cours depuis 2019
Systèmes Cisco	Sécurité du réseau	En cours depuis 2017

Fournisseurs de services de télécommunications

Partenariats critiques pour la connectivité réseau et la transmission des données.

• AT&T Firstnet
• Verizon Business Solutions
• Réseau de sécurité publique T-Mobile

Distributeurs d'équipements de sécurité et de surveillance

Distributeur	Catégories de produits	Volume de distribution annuel
Solutions Motorola	Caméras corporelles, systèmes en voiture	5 200 unités
Technologies L3Harris	Systèmes vidéo avancés	3 800 unités

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: activités clés

Conception et fabrication de technologies de sécurité de la police et des véhicules

Digital Ally se concentre sur le développement d'une technologie spécialisée d'application de la loi avec les principales spécifications de fabrication suivantes:

Catégorie de produits	Volume de production annuel	Coût unitaire moyen
Caméras corporelles	5 600 unités	399 $ par unité
Systèmes vidéo en voiture	3 200 unités	1 750 $ par unité
Dispositifs de suivi de la flotte	4 100 unités	575 $ par unité

Développement de solutions d'enregistrement vidéo et de suivi

Digital Ally's R&D Investments dans la technologie vidéo:

• Dépenses annuelles de R&D: 2,1 millions de dollars
• Équipe de développement de logiciels: 18 ingénieurs
• Portefeuille de brevets: 12 brevets technologiques actifs

Recherche et innovation dans la gestion des preuves numériques

Domaines d'intervention du développement de la technologie:

Zone d'innovation	Investissement annuel	Calendrier de développement
Analyse vidéo améliorée AI	$680,000	12-18 mois
Stockage de preuves cloud	$450,000	9-12 mois

Marketing et ventes d'équipements spécialisés d'application de la loi

Métriques de performance des ventes:

• Représentants des ventes totales: 22
• Revenus de vente annuelle: 14,3 millions de dollars
• Valeur du contrat moyen: 87 500 $
• Segments de marché primaires: Services de police municipaux, application de la loi de l'État

Services techniques de support et de maintenance des produits

Catégorie de service	Heures de soutien annuelles	Temps de réponse moyen
Maintenance matérielle	4 800 heures	4,2 heures
Support logiciel	3 600 heures	2,7 heures
Services de formation	1 200 heures	N / A

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: Ressources clés

Technologie vidéo et plateformes logicielles propriétaires

Digital Ally est spécialisé dans les technologies d'enregistrement vidéo avancées spécialement conçues pour les secteurs de l'application des lois et de la sécurité publique.

Catégorie de technologie	Produit spécifique	Caractéristiques clés
Systèmes de caméras corporelles	Firstvu HD	Enregistrement HD 1080p, suivi GPS, activation automatique
Systèmes vidéo en voiture	Vulrinque	Connectivité sans fil intégrée, gestion des preuves

Propriété intellectuelle et brevets

Points forts du portefeuille de brevets:

• 7 brevets actifs liés aux technologies d'enregistrement vidéo numérique
• Applications de brevet couvrant les systèmes de gestion des preuves basés sur le cloud
• Algorithmes logiciels propriétaires pour la synchronisation vidéo

Ingénierie et expertise technique

Équipe d'ingénierie	Niveau de qualification	Spécialisation
Personnel d'ingénierie total	23 professionnels	Développement de logiciels et de matériel
Titulaires de diplômes avancés	12 employés	Informatique et électronique

Installations de fabrication

Digital Ally maintient une usine de fabrication située à Kansas City, Kansas.

• Taille de l'installation: 35 000 pieds carrés
• Capacité de production annuelle: environ 50 000 unités d'enregistrement vidéo
• Processus de fabrication certifié ISO 9001: 2015

Relations solides avec la communauté des forces de l'ordre

Segment de clientèle	Nombre de clients actifs	Couverture géographique
Services de police locaux	187 départements	32 États américains
Agences d'application de la loi de l'État	14 agences	Couverture nationale

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: propositions de valeur

Solutions de capture de preuves numériques de haute qualité

Digital Ally offre Caméra du corps Firstvu HD avec les spécifications suivantes:

Fonctionnalité	Spécifications techniques
Résolution	1080p HD
Capacité de stockage	64 Go de mémoire interne
Durée de vie de la batterie	Jusqu'à 12 heures d'enregistrement continu
Transfert de données	Téléchargement de nuages ​​sans fil

Technologies améliorées de la sécurité et de la responsabilité des officiers

Les technologies de sécurité de l'Ally numérique comprennent:

• Documentation des incidents en temps réel
• Déclenchement automatique des événements
• Preuves vidéo imprévues

Systèmes de suivi vidéo et GPS en temps réel

Produit	Fonctionnalités de suivi GPS
Vulrinque	Suivi de plusieurs véhicules
Précision GPS	± 3 mètres précision
Mettre à jour la fréquence	Toutes les 5 secondes

Plates-formes complètes de gestion des preuves numériques

Alliés numériques Preuves.com La plate-forme fournit:

• Sécurisation de stockage cloud
• Capacités de recherche avancées
• Conformité aux normes de sécurité CJIS

Équipement de sécurité et de surveillance innovants

Produit	Innovation clé
Systèmes vidéo WatchGuard	Analyse vidéo propulsée par l'IA
Patrouille	Rapports automatisés des incidents

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: relations avec les clients

Engagement de l'équipe de vente directe

Au quatrième trimestre 2023, Digital Ally maintient une équipe de vente directe de 12 professionnels axés sur les marchés de l'application des lois et de la sécurité publique.

Canal de vente	Nombre de comptes actifs	Valeur du contrat moyen
Application de la loi	127	$84,500
Agences municipales	43	$62,300

Assistance technique et service client

Digital Ally fournit un support technique à travers:

• Hotline de support client 24/7
• Canaux d'assistance par e-mail
• Système de billetterie en ligne

Support de formation et de mise en œuvre

Les services de formation comprennent:

• Programmes de formation sur place
• Séances de formation virtuelle
• Manuels utilisateurs complets

Type de formation	Heures fournies chaque année	Coût par session
Formation sur place	312	$1,750
Formation virtuelle	528	$850

Solutions personnalisées pour les besoins d'agence spécifiques

Les services de personnalisation comprennent:

• Configuration matérielle
• Intégration logicielle
• Solutions de montage spécialisées

Approche de partenariat à long terme avec les clients

Mesures de partenariat clés à partir de 2024:

Métrique de partenariat	Valeur
Taux de rétention de la clientèle moyen	87.3%
Taux d'achat répété	64.5%
Durée moyenne des relations avec le client	4,2 ans

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: canaux

Force de vente directe

En 2024, Digital Ally maintient une équipe de vente spécialisée axée sur les marchés de l'application des lois et de la sécurité publique.

Caractéristique de l'équipe de vente	Informations détaillées
Nombre de représentants des ventes directes	7-10 professionnels dévoués
Couverture géographique	États-Unis à l'échelle nationale
Cycle de vente moyen	45 à 60 jours pour l'équipement d'application de la loi

Site Web en ligne et plateforme de commerce électronique

Digital Ally exploite un canal de vente numérique complet.

• Site Web: www.digitalally.com
• Trafic Web annuel: environ 125 000 visiteurs uniques
• Catalogue de produits en ligne: 37 gammes de produits distinctes

Salons et conférences de l'application des lois

Type d'événement	Participation annuelle	Portée estimée
Conférences nationales d'application de la loi	6-8 conférences	3 500 à 4 200 clients potentiels
Expositions régionales de sécurité publique	12-15 expositions	2 000 à 2,500 interactions directes

Réseaux d'approvisionnement du gouvernement

L'allié numérique entretient des relations de l'approvisionnement gouvernemental stratégiques.

• Contrat de planification GSA actif: oui
• Plateformes d'achat fédérales: 4 réseaux primaires
• Contrats du gouvernement d'État et local: 23 accords actifs

Distributeurs de la technologie et des équipements de sécurité

Canal de distribution	Nombre de partenaires	Volume de distribution annuel
Distributeurs d'équipements de sécurité nationale	12 partenaires principaux	2,7 millions de dollars de distribution annuelle
Revendeurs d'équipement d'application de la loi	28 revendeurs certifiés	4,3 millions de dollars de ventes annuelles

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: segments de clientèle

Agences d'application de la loi locales et étatiques

Depuis 2024, Digital Ally dessert environ 500 agences locales et étatiques chargées de l'application des lois à travers les États-Unis.

Type d'agence	Nombre de clients	Valeur du contrat annuel moyen
Départements de shérif du comté	187	$75,000
Services de police d'État	42	$125,000

Services de sécurité du gouvernement fédéral

Digital Ally fournit des solutions technologiques à 15 services de sécurité fédéraux, avec une valeur totale de contrat de 3,2 millions de dollars en 2024.

• Département de sécurité intérieure
• Bureau fédéral d'enquête
• Service des maréchaux américains

Services de police municipaux

La société dessert 328 services de police municipaux du pays, avec un déploiement moyen de caméras corporelles et de systèmes vidéo en voiture.

Taille de la ville	Nombre de départements	Taux de pénétration
Grandes villes (plus de 500 000 habitants)	42	85%
Villes moyennes (100 000 à 500 000)	186	65%

Organisations de patrouille routière

Digital Ally fournit des solutions technologiques à 37 organisations de patrouille d'État d'État, avec une valeur de contrat totale de 2,7 millions de dollars en 2024.

Des entreprises de sécurité privées et des opérateurs de flotte de véhicules

La société a étendu sa clientèle à 124 sociétés de sécurité privées et opérateurs de flotte, générant 1,5 million de dollars de revenus.

• Services de sécurité d'entreprise
• Sociétés de transport
• Cabinets d'enquête privés

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: Structure des coûts

Frais de recherche et de développement

Pour l'exercice 2023, Digital Ally, Inc. a déclaré des frais de recherche et de développement de 1 279 000 $.

Exercice fiscal	Dépenses de R&D ($)
2022	1,156,000
2023	1,279,000

Coûts de fabrication et de production

Les coûts de fabrication totaux pour l'allié numérique en 2023 étaient de 3 642 000 $, notamment:

• Coûts de matériel direct: 1 845 000 $
• Coûts de main-d'œuvre directs: 912 000 $
• Fabrication des frais généraux: 885 000 $

Dépenses de vente et de marketing

Les frais de vente et de marketing de Digital Ally pour 2023 ont totalisé 2 134 000 $.

Catégorie de dépenses	Montant ($)
Personnel de vente	1,245,000
Campagnes marketing	589,000
Publicité	300,000

Maintenance des infrastructures technologiques

Les coûts d'infrastructure technologique et de maintenance pour 2023 étaient de 1 456 000 $.

• Services cloud: 412 000 $
• Maintenance matérielle: 378 000 $
• Licence de logiciel: 666 000 $

Personnel et frais généraux opérationnels

Le personnel total et les frais généraux opérationnels pour 2023 s'élevaient à 5 789 000 $.

Catégorie aérienne	Montant ($)
Rémunération des dirigeants	1,234,000
Salaires des employés	3,456,000
Frais administratifs	1,099,000

Digital Ally, Inc. (DGLY) - Modèle d'entreprise: Strots de revenus

Ventes matérielles de systèmes vidéo

Au quatrième trimestre 2023, Digital Ally a déclaré un chiffre d'affaires de vente de matériel de 2,1 millions de dollars des systèmes vidéo d'application de la loi et de sécurité publique.

Catégorie de produits	Revenus annuels (2023)	Prix ​​unitaire moyen
Caméras corporelles	1,3 million de dollars	799 $ par unité
Systèmes vidéo en voiture	0,8 million de dollars	3 500 $ par système

Frais de licence de logiciel et d'abonnement

Digital Ally a généré 1,5 million de dollars de revenus récurrents liés aux logiciels en 2023.

• Abonnements de stockage cloud: 650 000 $
• Logiciel de gestion des preuves: 450 000 $
• Licence de plateforme d'analyse: 400 000 $

Contrats de support technique et de maintenance

Les revenus annuels de soutien technique ont totalisé 750 000 $ en 2023.

Type de contrat	Revenus annuels	Valeur du contrat moyen
Support standard	$450,000	5 000 $ par contrat
Entretien premium	$300,000	12 000 $ par contrat

Développement de solutions personnalisées

Les projets de développement personnalisés ont généré 900 000 $ de revenus en 2023.

Contrats d'approvisionnement gouvernementaux et institutionnels

Les revenus du contrat du gouvernement ont atteint 4,2 millions de dollars en 2023.

Type de contrat	Valeur totale du contrat	Nombre de contrats
Organismes d'application de la loi	3,1 millions de dollars	17 contrats
Contrats municipaux	1,1 million de dollars	8 contrats

Digital Ally, Inc. (DGLY) - Canvas Business Model: Value Propositions

You're looking at the core value Digital Ally, Inc. delivers across its distinct business lines as of late 2025. The company is clearly pushing its subscription model, which is reflected in the deferred revenue figures.

For the quarter ending September 30, 2025, Digital Ally, Inc. reported total revenue of $4.54 million, with service and other revenue making up $3.87 million of that total, signaling the importance of recurring revenue streams. The trailing twelve months revenue ending September 30, 2025, stood at $19.10 million.

Integrated in-car and body-worn video for law enforcement

This value proposition centers on providing a complete evidence capture ecosystem. The focus is on hardware sales and the associated recurring service revenue. The company is building on its existing platform with new hardware, such as the EVO-CORE in-car camera solution, which is slated to ship in January 2026. The push for a subscription-based sales model continues to be a key management focus.

Cloud-based evidence management and data storage solutions

The value here is secure, scalable evidence handling, evidenced by the deferred revenue figure, which supports the subscription component of the video solutions. As of the latest reports, deferred revenue was approximately $8.9 million, which backs the recurring revenue commitment through 2028. The evidence management solution, EVO Web Portal, is noted as being hosted on the highly secured GovCloud platform powered by Amazon Web Services.

Revenue cycle management to optimize medical billing for clients

This segment provides working capital and back-office services to healthcare organizations on a monthly service fee basis. While specific 2025 revenue contribution for this segment isn't broken out in the latest quarterly report, the company operates this as one of its three reportable segments. The overall operating loss for the company in Q3 2025 was $1.12 million, an improvement of 84.8% compared to Q3 2024, suggesting cost discipline across all operations, including this segment.

Event ticketing and production via TicketSmarter and Kustom Entertainment

The Entertainment Segment, which includes TicketSmarter, Inc., is focused on live events. Kustom Entertainment has announced the lineup for the 2026 Country Stampede Music Festival, scheduled for June 25-27, 2026. This production aspect is a key value delivery for this segment.

Safety products like ThermoVu and Shield disinfectants

This falls under the Video Solutions Segment, which includes disinfectant and related safety products. The Shield Health Protection Products line includes disinfectants and sanitizers. The product revenue for the entire Video Solutions segment in Q3 2025 was $0.66 million.

Here's a quick look at the financial context supporting these value propositions as of September 30, 2025:

Metric	Amount (as of 9/30/2025)
Total Stockholders' Equity	$7.52 million
Current Liabilities	$9.80 million
Q3 2025 Net Loss Attributable to Common Stockholders	$1.02 million
Deferred Revenue (Video Solutions Support)	~$8.9 million
Body Worn Camera Market Size (Global Estimate)	Over USD 2.12 billion

The company's focus on its subscription model is a clear strategic action, aiming to convert hardware sales into more predictable revenue streams, as seen by the $3.87 million in service/other revenue in the quarter.

Digital Ally, Inc. (DGLY) - Canvas Business Model: Customer Relationships

You're looking at how Digital Ally, Inc. (DGLY) connects with and keeps its customers as of late 2025. The relationship strategy clearly segments between the core Video Solutions market and the Entertainment segment via TicketSmarter.

Dedicated sales team for government and commercial fleets

Digital Ally, Inc. focuses its sales efforts on law enforcement, the U.S. Military, and commercial fleets. This customer base spans all 50 states and more than 30 foreign countries. Management noted a successful restructuring of the law enforcement products sales organization, which contributed to operating loss improvement by $6.26 million year-over-year in Q3 2025. Sales to government entities are often facilitated through established purchasing channels.

• GSA Contract Number: GS-07F-095C
• NPPGov contracts serve Law Enforcement and Fire/Rescue members
• Texas DIR Contract Number: DIR-TSO-4176

Here's a look at the reach and structure supporting these customer relationships:

Customer Segment Focus	Geographic Reach	Key Sales Mechanism	Q3 2025 Revenue Contribution Context
Law Enforcement & U.S. Military	All 50 states and over 30 foreign countries	Direct Sales & State Contracts (GSA, NPPGov)	Market remains challenging with state/local budget headwinds
Commercial Fleets	All 50 states	Direct Sales using specialized products like FleetVu Manager	Focus on subscription model supports recurring revenue from this segment

Subscription-based service model for recurring revenue

The shift toward a subscription-based sales model is a key operational focus for Digital Ally, Inc., cited as a driver for improved operating leverage. This model builds predictable, recurring revenue streams, which is critical for financial stability. As of the first quarter of 2025, the company highlighted "in excess of $10M" in deferred revenue specifically tied to these subscriptions. For context, total revenue in Q3 2025 was $4.50M.

Direct customer support for video solution maintenance

The company emphasizes providing the 'ultimate customer experience' through multi-disciplined support staff. While specific support metrics for late 2025 aren't public, the financial results show that service revenue was up in Q1 2025, contrasting with a significant year-over-year decrease in video product sales for that quarter. This suggests that maintenance and service contracts are a stabilizing element of the customer relationship.

Automated online platform for TicketSmarter transactions

The Entertainment segment, operating as TicketSmarter, Inc., is an automated online platform. This subsidiary offers access to 48 million tickets for more than 125,000 live events. Customer relationships here are managed through high-volume, transaction-based interactions on TicketSmarter.com. Compensation is generally determined as a percentage of the underlying ticket's face value.

The Entertainment segment contributed $5.04 million in product revenue for the year ended December 31, 2023.

Digital Ally, Inc. (DGLY) - Canvas Business Model: Channels

You're looking at how Digital Ally, Inc. gets its products and services to market as of late 2025. The channels are a mix of direct sales for their core tech, online platforms, and service-based delivery.

Here's a look at the revenue distribution across the segments that map to these channels, based on the latest reported figures for the nine months ended September 30, 2025, and the third quarter of 2025.

Business Segment/Channel Proxy	Q3 2025 Revenue	Nine Months 2025 Revenue	FY 2023 Revenue
Product Revenue (Video Solutions/Direct Sales Proxy)	$0.66 million	Not explicitly broken out for nine months	Not explicitly broken out for FY 2023
Service and Other Revenue (RCM/Ticketing Proxy)	$3.87 million	Not explicitly broken out for nine months	Not explicitly broken out for FY 2023
Total Revenue (All Channels)	$4.54 million	$14.64 million	$28,248,344

The direct sales force targets law enforcement and government agencies for the Video Solutions segment. For the third quarter of 2025, the product revenue component, which includes Shield and ThermoVu sales, was $0.66 million, compared to service and other revenue of $3.87 million for the same period.

The online e-commerce platform for Shield and ThermoVu products is part of the overall product sales channel. The company reported a firm backlog of over $2 million in product sales as of the first quarter of 2025, which required supply chain recovery for fulfillment.

For TicketSmarter.com, which falls under the Entertainment segment, management refocused the operation to shed sponsorships that did not provide gross margin. This resulted in lower revenues but improved profits in the first quarter of 2025. Historically, the Entertainment segment generated service and product revenues totaling $14,063,381 for the year ended December 31, 2023.

Direct-to-client sales for Revenue Cycle Management services are represented in the Service and Other Revenue. For the year ended December 31, 2023, the Revenue Cycle Management operating segment generated service revenues of $6,713,678.

Event production and venue partnerships, like the Country Stampede Music Festival, are managed through the Entertainment segment. Management anticipates this segment will continue to improve its revenues and operating profits, with the next major event planned for June 25-27, 2026.

The company's overall revenue for the trailing twelve months ending September 30, 2025, was $19.10 million.

• Total stockholders' equity improved to $7.52 million as of September 30, 2025, from a deficit at the end of 2024.
• Selling, general and administrative (SG&A) expenses fell 72.7% year-over-year to $2.5 million in Q3 2025.
• The company closed a $14.3 million public equity offering in 2025.

Finance: draft 13-week cash view by Friday.

Digital Ally, Inc. (DGLY) - Canvas Business Model: Customer Segments

You're looking at the customer base for Digital Ally, Inc. (DGLY) as of late 2025, which is structured across three primary operating segments: Video Solutions, Revenue Cycle Management, and Entertainment. The data reflects a company actively managing cost structures while serving these distinct groups.

The core customer base for the Video Solutions segment includes law enforcement and emergency management agencies, along with commercial fleets and security organizations. This segment faced headwinds, as evidenced by product revenue declining 29.4% to $438,132 in the second quarter ending June 30, 2025. Still, the company secured at least seven notable contracts in mid-2025, collectively expected to generate revenues exceeding $800,000, reinforcing demand for its technology across multiple sectors. Furthermore, the backlog for this segment was successfully lowered to $1.7 million from $2.2 million at the end of the first quarter of 2025, showing improved fulfillment capability for these agencies.

For medical and dental practices needing billing services, the Revenue Cycle Management Segment provided service revenue of $1.4 million in the second quarter of 2025. This segment provides working capital and back-office services to healthcare organizations on a monthly service fee basis.

The Entertainment Segment serves both general consumers purchasing event tickets via TicketSmarter and attendees of owned/produced festivals. The service revenue from this segment grew 27.1% to $1.1 million in the second quarter of 2025. It is important to note that the Country Stampede Music Festival, an owned event, contributed to larger losses in Q2 2025, causing gross margin to deteriorate to -11.2% for that quarter.

Here's a quick look at the revenue contribution by segment for the quarter ending June 30, 2025, based on the available data:

Customer Segment Focus	Reportable Segment	Q2 2025 Revenue Amount
Law enforcement, emergency management, commercial fleets, security	Video Solutions (Product Revenue)	$438,132
Medical and dental practices (billing services)	Revenue Cycle Management (Service Revenue)	$1.4 million
General consumers (ticket purchasing) & Event attendees (festivals)	Entertainment (Service Revenue)	$1.1 million

The overall company performance reflects the mix of these segments. Total revenue for the third quarter ending September 30, 2025, was $4.5 million, a 12% increase year-over-year. This compares to total revenue of $5.63 million reported for the second quarter ending June 30, 2025.

The TicketSmarter acquisition, which targets general consumers, was completed in 2021 for a purchase price of $14.1 million. Prior to the impact of COVID-19, the combined TicketSmarter and Goody Tickets businesses had annual revenues exceeding $20 million.

You should track the following operational metrics that directly relate to these customer groups:

• Backlog reduction from $2.2 million (end of Q1 2025) to $1.7 million (mid-June 2025).
• New contracts secured in mid-2025 valued at over $800,000.
• Entertainment segment profit increased in Q1 2025 due to shedding uneconomical sponsorships.
• The company reported a net income of $4.2 million in Q1 2025, a significant turnaround from a $3.9 million loss in Q1 2024.

Finance: draft Q4 2025 segment revenue forecast by next Tuesday.

Digital Ally, Inc. (DGLY) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Digital Ally, Inc. (DGLY) model as of late 2025, post-restructuring. The focus has clearly shifted to cost discipline, which is evident in the Selling, General, and Administrative (SG&A) line.

Significant Selling, General, and Administrative (SG&A) expenses saw a massive reduction. For the third quarter ending September 30, 2025, SG&A expenses were reported at $2.50M. This represents a year-over-year decline of 72.7% compared to the $9.1 million recorded in Q3 2024. This reduction stems from substantial decreases in overhead expenses and reduced headcount, part of a successful restructuring of the law enforcement products sales organization.

For hardware and product manufacturing, the Cost of Goods Sold (COGS) is managed through efforts to improve gross margin. In the first quarter of 2025, the overall gross margin percentage improved to 36% from 28% in the prior year period, partly due to paring down video segment overhead that hits COGS.

The overall operating cost structure for Q3 2025 resulted in an operating loss of $(1,121,782). Here's a look at the key financial outcomes related to costs and operational performance for that quarter:

Metric	Q3 2025 Amount (USD)	Year-over-Year Change Context
SG&A Expenses	$2.50M	Down 72.7% from Q3 2024
Operating Loss	$(1,121,782)	Improved by $6,260,517 (84.8%) vs Q3 2024
Net Loss Attributable to Common Stockholders	$(1,021,867)	Improved from a larger loss in Q3 2024
Stockholders' Equity (as of 9/30/2025)	$7.52M	Up from a deficit of $(9.01)M at 12/31/24
Working Capital (as of 9/30/2025)	$(0.12)M deficit	Improved from a deficit of $(19.4)M at year-end 2024 (Q1 data)

Regarding Research and Development (R&D) for new video technology, the company announced the EVO-CORE in-car solution, which includes voice commands and real-time transcription, expected to ship in January 2026. Specific R&D spending for Q3 2025 isn't detailed, but the focus on new product deployment is a forward-looking cost driver.

For the Operating costs for the Revenue Cycle Management and Entertainment segments, management noted refocusing the TicketSmarter business (part of Entertainment) into economical sponsorships. The company also has a Shield Health Protection Products line. While segment-specific operating costs aren't itemized, the overall overhead reduction impacts these areas.

Legal and compliance costs were a significant factor driving the need for capital, specifically related to maintaining the Nasdaq listing. The company regained Nasdaq compliance for minimum bid price and equity on October 17, 2025. This was supported by a $14.3M public equity offering closed in 2025, which helped raise stockholders' equity to $7.52M as of September 30, 2025, from a deficit of $(9.01)M at the end of 2024. The company also implemented reverse stock splits to meet the minimum bid price requirement. The company announced it had secured six patents in February 2025.

You should review the Q3 10-Q for the precise breakdown of R&D and segment operating expenses, as the public summaries focus on the major P&L lines like SG&A and the resulting operating loss. Finance: draft 13-week cash view by Friday.

Digital Ally, Inc. (DGLY) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers for how Digital Ally, Inc. is bringing in cash as of late 2025. It's a mix of hardware, recurring fees, and ticketing commissions, which is typical for a company spanning multiple distinct business lines. Here's the quick math on the latest reported quarter.

Q3 2025 total revenue was $4.50 million. This figure represents a 12% increase year-over-year from Q3 2024's total revenue of $4.1 million.

The revenue streams are segmented across the Video Solutions, Revenue Cycle Management, and Entertainment segments. The most recent detailed breakdown available for Q3 2025 shows a clear split between product sales and recurring/service-based revenue.

• Product sales of video systems and safety equipment
• Service and subscription revenue from cloud storage and software
• Revenue Cycle Management fees from medical billing services
• Ticket sales and booking fees from TicketSmarter

For the third quarter ending September 30, 2025, the split between product revenue and service/other revenue was quite distinct, showing a continued shift toward service-based income. The total revenue for the quarter was reported as $4.54 million.

Here is the breakdown of the reported revenue components for Q3 2025:

Revenue Stream Component	Q3 2025 Amount (Millions USD)
Product revenue (Video systems and safety equipment sales)	$0.66 million
Service and other revenue (Includes cloud, software, RCM, and Entertainment)	$3.87 million
Total Revenue (Reported)	$4.54 million

The Service and other revenue stream, totaling $3.87 million, encompasses the other required components: service and subscription revenue from cloud storage and warranty solutions within Video Solutions, monthly service fees from the Revenue Cycle Management Segment, and ticket sales/booking fees from the Entertainment Segment (TicketSmarter). This service component made up approximately 85.24% of the total Q3 2025 revenue ($3.87M / $4.54M).

The Product revenue, which covers the initial sale of digital video imaging and safety products, was $0.66 million for the quarter. This product component represented about 14.54% of the total Q3 2025 revenue. Management noted a focus on the subscription-based sales model, which aligns with the larger service revenue figure.

For the first nine months of 2025, the cumulative revenue totaled $14.64 million, with an operating loss of $6.19 million for the same period.

Finance: draft 13-week cash view by Friday.