Lenexa, KS, May 05, 2025 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) (the “Company”), which develops, manufactures, and markets advanced video recording products and other critical safety products for a growing variety of industries and organizational functions, including law enforcement, emergency management, fleet safety and event security, today announced a 1-for-20 reverse split (the "Reverse Stock Split") of the Company’s common stock (the "Common Stock"). The Company anticipates that the Com ...

Revenue Performance - Total net revenues for the year ended December 31, 2024, were $19,650,802, a decrease of 30.4% compared to $28,248,344 in 2023[126]. - Video Solutions segment revenue decreased to $5,755,391 in 2024 from $7,471,285 in 2023, while Revenue Cycle Management segment revenue fell to $6,131,650 from $6,713,678[126]. - Entertainment segment revenue dropped significantly to $7,763,761 in 2024 from $14,063,381 in 2023[126]. - Total product revenues for the years ended December 31, 2024, and 2023 were $5,404,317 and $9,347,945, respectively, a decrease of $3,943,628 (42.2%) due to reduced ticket sales and increased competition in video solutions[136]. - The entertainment operating segment generated product revenues of $3,406,928 in 2024, down from $5,044,576 in 2023, attributed to a focus on higher margin events[136]. - Video solutions operating segment revenues decreased from $4,303,369 in 2023 to $1,997,389 in 2024, impacted by increased competition and inventory shortages[136]. - Total service and other revenues for 2024 were $14,246,485, down from $18,900,399 in 2023, a decrease of $4,653,914 (25%) due to declines in entertainment and revenue cycle management segments[137]. Profitability and Loss - Gross profit for the total company was $5,489,332 in 2024, slightly down from $5,762,484 in 2023, with a gross profit margin increase to 28% from 20%[126][130]. - Operating loss for the total company was $(15,201,540) in 2024, an improvement from $(22,240,553) in 2023[126]. - Operating loss improved by $7,039,013 (31.6%) to $15,201,540 for the year ended December 31, 2024, compared to $22,240,553 in 2023, with operating loss as a percentage of revenues improving to 77%[156]. - The company reported a net loss before income tax benefit of $21,715,725 for the year ended December 31, 2024, an improvement of $3,748,224 (15%) from $25,463,949 in 2023[173]. - The basic and diluted loss per share improved to ($5.58) for the year ended December 31, 2024, from ($9.22) in 2023[180]. Expenses and Cost Management - Selling, general and administrative expenses decreased by $7,312,165 (26%) to $20,690,872 in 2024, primarily due to reduced advertising expenses[148]. - Research and development expenses fell by $1,279,073 (49%) to $1,339,673 in 2024, reflecting a strategic cutback in engineering staff and activities[149]. - Selling, advertising, and promotional expenses decreased by $4,993,035 (70%) to $2,144,494 for the year ended December 31, 2024, compared to $7,137,529 in 2023[150]. - General and administrative expenses decreased by $5,870,057 (32%) to $12,376,705 for the year ended December 31, 2024, from $18,246,762 in 2023[151]. - Cost of service revenues as a percentage of service revenues improved to 58% in 2024 from 66% in 2023, indicating better cost management[143]. Inventory and Goodwill - The company recorded a reserve for excess and obsolete inventory in the Video Solutions segment of $2,037,252 in 2024 compared to $4,355,666 in 2023[126]. - Total inventories decreased to $2,586,066 as of December 31, 2024, from $3,845,281 in 2023, with reserves for obsolete and excess inventories at $2,169,655[209]. - Reserves for obsolete and excess inventories represented 46% of the gross inventory balance at December 31, 2024, down from 54% in 2023[209]. - The company recorded a non-cash goodwill impairment charge of $4,322,000 for the revenue cycle management segment and $307,000 for the entertainment segment due to a decline in demand and economic uncertainty[153]. - The company performed an impairment test due to a decline in demand for services and a decrease in stock price, indicating a triggering event[218]. - The company recorded a non-cash impairment charge of $201,000 for a trade name/trademark in the entertainment segment, driven by economic uncertainty and performance decline[223]. - As of December 31, 2024, the company held goodwill of $5,480,966 for the revenue cycle management segment and $6,112,507 for the entertainment segment[221]. Cash Flow and Financing - Cash and cash equivalents decreased to $454,314 as of December 31, 2024, from $778,149 at the end of 2023, reflecting a net decrease of $323,835[182]. - Net cash used in operating activities improved by $4,779,120 to $5,114,718 for the year ended December 31, 2024, compared to $9,893,838 in 2023[182]. - Net cash provided by financing activities was $4,403,334 for the year ended December 31, 2024, down from $7,380,494 in 2023[183]. - The company had $454,314 in cash and cash equivalents and net negative working capital of $19,377,507 as of December 31, 2024[184]. - The company made matching contributions totaling $144,589 for its 401(k) plan for the year ended December 31, 2024, compared to $207,463 in 2023[191]. Other Financial Metrics - Interest income decreased to $69,509 for the year ended December 31, 2024, down from $95,717 in 2023, reflecting a decline in cash and cash equivalents[157]. - The company recorded a gain on the extinguishment of liabilities of $917,935 for the year ended December 31, 2024, compared to $550,867 in 2023[167][168]. - Total lease expense under the company's operating leases was approximately $627,212 during the year ended December 31, 2024[185]. - Total operating lease liabilities amounted to $718,509 as of December 31, 2024[186]. - Outstanding debt obligations totaled $5,102,526 as of December 31, 2024, with current maturities of $4,961,443 due in 2025[188]. - The company has fully reserved all deferred tax assets, increasing the valuation allowance by $4,680,000 to a total of $46,290,000 as of December 31, 2024[229]. - The fair value of the video solutions reporting unit was substantially in excess of its carrying value, while the revenue cycle management and entertainment segments were determined to be impaired[220]. - The weighted average cost of capital used in the most recent impairment test ranged from 18.3% to 21.3%[219]. - Inflation has not materially affected the company, and the entertainment segment is expected to generate higher revenues in the second half of the calendar year[233].

Core Points - Digital Ally, Inc. received a delinquency notification from Nasdaq due to non-compliance with Listing Rule 5250(c)(1) related to the delayed filing of its Annual Report for the year ended December 31, 2024 [1] - The company is required to present its views regarding this deficiency to Nasdaq by April 30, 2025, and is working to file the Annual Report as soon as possible [2] - The notification does not have an immediate effect on the listing of the company's securities on Nasdaq [1] Company Overview - Digital Ally operates in various sectors including video solution technology, health protection products, healthcare revenue cycle management, ticket brokering, marketing, event production, and jet chartering [3] - The company aims to acquire organizations that exhibit positive earnings, growth potential, innovation, and organizational synergies [3]

Core Insights - Digital Ally, Inc. is advancing its position in the video technology sector with a focus on innovation and leadership aimed at enhancing security and efficiency in various applications [1][3] - The company has been granted six new patents in the past year, which cover a range of technologies and applications, reinforcing its intellectual property portfolio [2][3] Patent Details - The newly issued patents include technologies for redundant mobile video recording, breath analysis systems, tracking and analysis of drivers in fleets, managing multiple data recording devices, portable video systems, and automatic recording triggers [8] Subsidiary Operations - TicketSmarter, a subsidiary of Digital Ally, provides primary and secondary ticketing for over 125,000 live events and is the official resale partner for numerous collegiate conferences and universities [5] - Kustom Entertainment, another subsidiary, specializes in managing and promoting events and integrates TicketSmarter's ticketing platform with established relationships in the entertainment industry [6]

Core Viewpoint - Digital Ally, Inc. has successfully closed a public offering, raising approximately $15.0 million in gross proceeds before expenses [1]. Group 1: Offering Details - The offering consisted of 100,000,000 Common Units, each including one share of Common Stock or one Pre-Funded Warrant, along with Series A and Series B Registered Common Warrants [2]. - The public offering price per Common Unit was set at $0.15, while the Pre-Funded Units were priced at $0.149 [2]. - The Series A Warrant has an exercise price of $0.1875 and expires five years after stockholder approval, while the Series B Warrant has an exercise price of $0.30 and expires 2.5 years after stockholder approval [2]. Group 2: Over-Allotment Option - Aegis Capital Corp. was granted a 45-day option to purchase additional shares and warrants, allowing for up to 15.0% of the number of shares sold in the offering [3]. - On February 14, 2025, Aegis exercised its over-allotment option for 15,000,000 Series A Warrants and 15,000,000 Series B Warrants [3]. Group 3: Legal and Regulatory Information - The offering was conducted under a registration statement on Form S-1, which was declared effective by the SEC on February 12, 2025 [4]. - A final prospectus detailing the terms of the offering will be filed with the SEC and made available on their website [4]. Group 4: Company Overview - Digital Ally, Inc. specializes in video solution technology and safety products across various sectors, including law enforcement and emergency management [6]. - The company is focused on growth through innovation and organizational synergies, continuously adding organizations with positive earnings and growth potential [6].

Core Viewpoint - Digital Ally, Inc. has announced a public offering expected to generate approximately $15.0 million in gross proceeds, aimed at supporting its operations and growth initiatives [1][4]. Group 1: Offering Details - The offering consists of 100,000,000 Common Units, each including one share of Common Stock or one Pre-Funded Warrant, along with Series A and Series B Registered Common Warrants [2]. - The public offering price per Common Unit is set at $0.15, with Pre-Funded Units priced at $0.149 [2]. - The Series A Warrants have an exercise price of $0.1875 and expire five years after stockholder approval, while Series B Warrants have an exercise price of $0.300 and expire 2.5 years after stockholder approval [2]. Group 2: Underwriting and Closing - Aegis Capital Corp. is the sole book-running manager for the offering, with a 45-day option to purchase additional shares and warrants to cover over-allotments [3][5]. - The transaction is expected to close on or about February 14, 2025, pending customary closing conditions [4]. Group 3: Use of Proceeds - The net proceeds from the offering, along with existing cash, will be utilized for general corporate purposes and working capital [4]. Group 4: Company Overview - Digital Ally, Inc. specializes in video solution technology and safety products across various sectors, including law enforcement and emergency management [1][8]. - The company is focused on growth through innovation and strategic acquisitions of organizations with positive earnings and growth potential [8].

Revenue Performance - Total net revenues for Q3 2024 were $4,051,711, a decrease of 36% compared to $6,337,699 in Q3 2023[442] - Video Solutions segment revenue decreased to $1,196,362 in Q3 2024 from $1,797,348 in Q3 2023, representing a decline of 33.5%[442] - Revenue Cycle Management segment revenue slightly decreased to $1,601,792 in Q3 2024 from $1,636,543 in Q3 2023, a decline of 2.1%[442] - Entertainment segment revenue decreased significantly to $1,253,557 in Q3 2024 from $2,903,808 in Q3 2023, a decline of 56.7%[442] - Total revenue for the three months ended September 30, 2024, was $4,051,711, a decrease from $6,337,699 in the same period of 2023, representing a decline of approximately 36%[451] Profitability and Loss - Total gross profit for Q3 2024 was $1,739,974, compared to $1,226,149 in Q3 2023, an increase of 42%[442] - The company reported an operating loss of $7,382,299 for Q3 2024, compared to an operating loss of $5,148,043 in Q3 2023[442] - The company experienced a net loss of $5,470,712 on revenues of $4,051,711 for Q3 2024[445] - Gross profit for the same period was $1,739,974, with a gross profit margin of 42.9%, significantly up from 19.3% in September 2023[451] - Operating loss for the three months ended September 30, 2024, was $(7,382,299), compared to $(5,148,043) in the same period of 2023, reflecting a worsening of approximately 43%[451] - Net loss attributable to common stockholders for the three months ended September 30, 2024, was $(5,470,712), compared to $(3,679,043) in September 2023, indicating an increase in loss of approximately 49%[451] Expenses - Total selling, general, and administrative expenses increased to $9,122,273, compared to $6,374,192 in September 2023, marking an increase of approximately 43%[451] - Research and development expenses accounted for 5% of total revenue in September 2024, down from 9% in September 2023[453] - Selling, advertising, and promotional expenses were 10% of total revenue in September 2024, a decrease from 30% in the same period of 2023[453] Asset and Liabilities - Identifiable assets as of September 30, 2024, were $32,263,169, down from $47,028,809 as of December 31, 2023[444] - The company has no off-balance sheet debt or significant relationships with unconsolidated entities that may materially affect financial conditions[446] Impairments and Derivatives - The company reported a significant goodwill and intangible asset impairment charge of 119% of total revenue for the three months ended September 30, 2024[453] - The change in fair value of derivative liabilities was reported at 62% of total revenue for the three months ended September 30, 2024[453] Product Development - The company has diversified its product offerings with the introduction of ThermoVu™ and Shield™ lines in 2020[435] - The revenue cycle management segment has completed four acquisitions since its formation in 2021, enhancing its service capabilities[438]

Core Insights - Kustom Entertainment, Inc. has announced the lineup for the 2025 Country Stampede Festival, scheduled for June 26-28, 2025, at Azura Amphitheater in Bonner Springs, Kansas, featuring major country music artists [1][2] - The festival is expected to sell out, following a record-breaking ticket sales period during Black Friday through Cyber Monday [3] - A Battle of the Bands competition has been launched, allowing regional bands to compete for a performance slot at the festival [4][5] Event Details - The festival will feature performances from artists such as Luke Bryan, Miranda Lambert, and Cole Swindell, along with local talent on the Platinum Club Stage [2] - Tickets are currently available for purchase, with various options including Superfan Pit Passes and Camping Packages [6] Company Background - Kustom Entertainment, a subsidiary of Digital Ally, Inc., specializes in producing live entertainment experiences and the Country Stampede Festival is one of its flagship events [7]

Core Insights - Digital Ally, Inc. is advancing its position in the video technology sector with innovative solutions aimed at enhancing security and efficiency [1] - The company has signed approximately 160 new subscription contracts in 2024, indicating strong demand for its FirstVu PRO body-worn cameras and EVO-HD in-car video solutions [2] - Digital Ally is addressing operational delays, including over $1,500,000 in backordered products, and expects to fulfill these backorders within the next 120 days [3] Product Developments - The company plans to unveil advancements in its video solutions, including the FirstVu PRO Utility integrated on body cameras, which will feature multiple advanced capabilities requested by customers [4] - Continuous updates to the EVO-Web platform are being released, with the latest version V2.3 focusing on bug fixes and new features to meet client needs [4] Leadership Commitment - CEO Stan Ross emphasized the company's unwavering commitment to innovation and excellence, aiming to meet current and future partner needs [5]

Core Points - Clover Leaf Capital Corp. (CLOE) is convening a special meeting of stockholders on September 27, 2024, to vote on a proposed business combination with Kustom Entertainment, Inc. [1] - The meeting will be held at 10:00 a.m. Eastern Time and will be accessible via live webcast [2] - The deadline for holders of Clover Leaf's Class A common stock to submit shares for redemption in connection with the business combination has been extended to September 25, 2024 [2] Company Overview - Clover Leaf Capital Corp. is a special purpose acquisition company (SPAC) formed to effect a merger or similar business combination with one or more businesses [9] - Kustom Entertainment, Inc. is a wholly-owned subsidiary of Digital Ally, which oversees TicketSmarter, Kustom 440, and BirdVu Jets [5][8] - TicketSmarter provides tickets for over 125,000 live events and is the official ticket resale partner for numerous collegiate conferences and universities [6] Business Combination Details - The business combination involves an Agreement and Plan of Merger among Clover Leaf, its subsidiary Merger Sub, Yntegra Capital Investments LLC, and Digital Ally [1] - Following the business combination, the management teams of TicketSmarter, Kustom 440, and BirdVu Jets will be combined to focus on concerts and entertainment partnerships [8]