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Digital Ally Inc. (DGLY+0.50%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports total revenue of $4,051,711 for the three months ended September 30, 2024, a decrease from $6,337,699 in the same period of the previous year. The decrease is attributed to lower product and service revenues across its operating segments.
Product revenue decreased to $803,945 from $2,095,237, primarily due to reduced sales in the entertainment segment and decreased demand in the video solutions segment.
Service and other revenues fell to $3,247,766 from $4,242,462, with notable declines in the entertainment segment's service fees.
The company reported a gross profit of $1,739,974, up from $1,226,149 in the previous year, due to improved cost management and reduced cost of sales.
Selling, general, and administrative expenses increased to $9,122,273 from $6,374,192, primarily due to a goodwill and intangible asset impairment charge of $4,830,000.
Digital Ally reported an operating loss of $7,382,299, compared to an operating loss of $5,148,043 in the previous year.
The company recorded a net loss of $5,470,712 for the quarter, up from a net loss of $3,679,043 in the previous year.
Digital Ally's liquidity remains a concern, with cash and cash equivalents at $415,131 and net negative working capital of $13,181,861 as of September 30, 2024.
Management has outlined plans to restore positive operating cash flows and is pursuing additional capital to support ongoing operations.
The report highlights the company's continued efforts to manage costs and improve profitability across its operating segments, including video solutions, revenue cycle management, and entertainment.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Digital Ally Inc. quarterly 10-Q report dated December 30, 2024. To report an error, please email earnings@qz.com.