Lenexa, Kansas, June 24, 2024 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ:DGLY) (the "Company"), a leading provider of video solutions which develops, manufactures, and markets advanced video recording products and other critical safety products for law enforcement, emergency management, fleet safety and event security, today announced the pricing of a private placement with certain institutional investors. The aggregate gross cash proceeds are expected to be approximately $2.9 million, before deducting ...

Financial Performance - Overall gross profits for Q1 2024 were $1,523,699, a slight decrease of $21,093 (1%) compared to $1,544,792 in Q1 2023[2] - Total revenues decreased by $2,167,839 (28%) to $5,529,351 in Q1 2024 from $7,697,190 in Q1 2023[2] - Service revenues in the entertainment segment fell by $1,223,646 (44%) in Q1 2024 compared to Q1 2023, contributing to the overall revenue decline[2] - The entertainment segment generated revenues of $2,376,460 in Q1 2024, a decrease of $1,639,776 (41%) compared to $4,016,236 in Q1 2023[2] - The revenue cycle management segment's gross profits decreased by $312,203 (40%) to $463,731 in Q1 2024 from $775,934 in Q1 2023[7] - Total revenue for the three months ended March 31, 2024, was $5,529,351, a decrease of 28.2% compared to $7,697,190 for the same period in 2023[22] - Gross profit for the quarter was $1,523,699, slightly down from $1,544,792 in the previous year, reflecting a gross margin of approximately 27.6%[23] - Operating loss for the quarter was $(3,639,034), an improvement from $(6,172,806) in the same quarter last year[23] - Net loss attributable to common stockholders was $(3,931,020), compared to $(6,105,818) for the same period in 2023, indicating a reduction in losses[23] - The company reported a basic net loss per share of $(1.37) for the quarter, an improvement from $(2.22) in the same period last year[23] Expenses and Liabilities - Selling, general and administrative expenses decreased by $2,554,865 (33%) to $5,162,733 in Q1 2024 from $7,717,598 in Q1 2023[4] - Research and development expenses for the quarter were $487,466, down 47.9% from $934,939 in the same quarter last year[23] - Total current liabilities rose to $24,697,173, up from $22,548,437 at the end of 2023, marking an increase of 9.5%[20] Cash and Assets - Cash and cash equivalents increased to $927,861 as of March 31, 2024, from $680,549 at the end of 2023, representing a growth of 36.3%[20] - Total assets decreased to $45,164,195 from $47,028,809 at the end of 2023, a decline of 4.0%[20] Business Developments - Kustom Entertainment and Clover Leaf are progressing towards a business combination, with a focus on producing events and enhancing ticketing technologies[3] - The proposed Business Combination between Clover Leaf and Kustom Entertainment is expected to provide significant benefits, although actual results may differ due to various risks and uncertainties[13] - Clover Leaf reported losses in fiscal years 2023 and 2022, raising concerns about its ability to achieve consistent profitability in the current economic environment[13] - The company aims to increase revenues and margins while expanding its market share both domestically and internationally, particularly in developing markets[13] - Kustom Entertainment's ability to deliver new product offerings as scheduled in 2024 is critical for revenue growth, with performance expectations tied to market acceptance[13] Risks and Challenges - The company faces competition from larger, established firms, which may impact its market position and profitability[13] - Risks related to funding from government sources for law enforcement agencies could affect sales and revenue generation[13] - The seasonal nature of Kustom Entertainment's operations may lead to fluctuations in financial performance across different quarters[14] - The company is dependent on key personnel and third-party distributors, which poses risks to its operational stability[14] - The completion of the Business Combination is subject to various conditions, including stockholder approval and regulatory approvals, which may delay or prevent the transaction[15] - The potential for extraordinary events, such as pandemics or natural disasters, could adversely affect Kustom Entertainment's business and financial results[14]

Revenue Performance - Total net revenues for Q1 2024 were $5,529,351, a decrease of 28.2% compared to $7,697,190 in Q1 2023[186] - Video Solutions segment revenue decreased to $1,718,293 in Q1 2024 from $1,899,364 in Q1 2023, reflecting a decline of 9.5%[186] - Revenue Cycle Management segment revenue fell to $1,434,598 in Q1 2024 from $1,781,590 in Q1 2023, a decrease of 19.5%[186] - Entertainment segment revenue decreased significantly to $2,376,460 in Q1 2024 from $4,016,236 in Q1 2023, a decline of 40.9%[186] - Total revenues for the three months ended March 31, 2024, were $5,529,351, a decrease of $2,167,839 (28%) compared to $7,697,190 in 2023[197] - Product revenues decreased by $887,964 (36%) to $1,565,846 for the three months ended March 31, 2024, from $2,453,810 in 2023[195] - Service and other revenues decreased by $1,279,875 (24%) to $3,963,505 for the three months ended March 31, 2024, from $5,243,380 in 2023[196] Profitability and Loss - Total operating loss for Q1 2024 was $3,639,034, an improvement from a loss of $6,172,806 in Q1 2023[186] - The company reported a net loss of $3,943,268 for Q1 2024, compared to a net loss of $5,979,579 in Q1 2023[189] - Operating loss decreased by $2,533,772 (41%) to $3,639,034 in Q1 2024 from $6,172,806 in Q1 2023, with operating loss as a percentage of revenues improving to 66%[208] - Net loss attributable to common stockholders was $3,931,020 in Q1 2024, a decrease of $2,174,798 (36%) from $6,105,818 in Q1 2023[220] Efficiency and Cost Management - Gross profit margin for Q1 2024 was 27.6%, compared to 20.1% in Q1 2023, indicating improved efficiency[189] - Gross profit margin improved to 28% in Q1 2024 from 20% in Q1 2023, driven by a reduction in cost of revenue from 80% to 72%[197] - Operating loss decreased to (66)% of total revenues in Q1 2024, compared to (80)% in Q1 2023[197] - Cost of service revenue decreased by $1,413,039 (37%) to $2,438,259 in Q1 2024, with service revenues as a percentage of service revenues improving from 73% to 62%[201] - Selling, general and administrative expenses decreased by $2,554,865 (33%) to $5,162,732 in Q1 2024 from $7,717,598 in Q1 2023[205] - Research and development expenses totaled $487,466 in Q1 2024, down $447,473 (48%) from $934,939 in Q1 2023, focusing on new body-worn camera products[205] Assets and Liabilities - Identifiable assets decreased to $45,164,195 as of March 31, 2024, down from $47,028,809 as of December 31, 2023[186] - Debt obligations increased to $7,278,860 as of March 31, 2024, compared to $6,113,750 as of December 31, 2023, reflecting a significant rise in financial leverage[226] - Total undiscounted minimum future lease payments amount to $1,159,779, with total operating lease liability at $975,678 as of March 31, 2024[226] - Debt obligations maturing in 2024 are $2,402,188, with long-term debt obligations totaling $4,875,831 as of March 31, 2024[226] Inventory and Reserves - Reserves for obsolete and excess inventories were $4,486,389 as of March 31, 2024, slightly down from $4,542,461 at the end of 2023[200] - The reserve for excess and obsolete inventory represented 59% of the gross inventory balance at March 31, 2024, up from 54% at December 31, 2023[242] - Total inventories decreased to $3,148,689 as of March 31, 2024, from $3,845,281 at December 31, 2023, indicating a reduction in stock levels[242] - Finished goods balances decreased by 12% to $4,670,553 as of March 31, 2024, from $5,322,693 at December 31, 2023[242] Cash Flow and Capital Needs - Cash, cash equivalents, and restricted cash increased to $1,025,461 as of March 31, 2024, up from $778,149 at December 31, 2023[224] - Net cash used in operating activities decreased to $918,545 in Q1 2024 from $1,216,876 in Q1 2023, a decrease of $298,331[225] - The company anticipates needing to restore positive operating cash flows and/or raise additional capital in the short term to fund operations[222] Other Financial Metrics - Interest expenses rose to $648,567 in Q1 2024 from $5,664 in Q1 2023, primarily due to interest charges and amortization of debt[210] - Gain on extinguishment of liabilities increased to $682,345 in Q1 2024 from $0 in Q1 2023, reflecting improved negotiation of payables[213] - The company's warranty reserves increased to $20,529,000 as of March 31, 2024, compared to $17,699,000 as of December 31, 2023, due to newer products gaining a longer history of claims[251] Strategic Developments - The company has diversified its product offerings with the introduction of ThermoVu™ and Shield™ lines in 2020[179] - The revenue cycle management segment has completed four acquisitions since its formation in 2021, enhancing its service capabilities[181] - Historical bad debts for the video solutions segment were negligible, with less than $258,000 charged off as uncollectible on cumulative revenues of $248.0 million since 2006[238] - The company has fully reserved all of its deferred tax assets, increasing the valuation allowance by $7,410,000 to a total of $41,610,000 as of December 31, 2023[256] - The company has no recorded liability as of March 31, 2024, representing uncertain tax positions[257] - Inflation has not materially affected the company during the past fiscal year, and the Entertainment Segment is expected to generate higher revenues in the second half of the calendar year[260]

OVERLAND PARK, Kan., May 09, 2024 (GLOBE NEWSWIRE) -- TicketSmarter is excited to announce its new Free Tickets for Life Sweepstakes which selects one lucky winner per month to receive free tickets to live events each year for life. Winners will receive a $2,000 voucher to select tickets to any live event in the TicketSmarter inventory which includes festivals like Coachella and Bonnaroo, Adele's Las Vegas residency, and even the Super Bowl or World Series. They will also receive a one-time award of a $750 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to __________. Commission file number: 001-33899 DIGITALALLY, INC. (Exact name of registrant as specified in its charter) | Nevada | 20-0064269 | | --- | --- | | ...

Penny growth stocks are all the rage for investors seeking explosive returns. With the market cycle potentially shifting and the Federal Reserve poised to cut interest rates up to three times this year, now could be an opportune time to grab some neglected penny stocks before they take off.While recessions have historically occurred more frequently in post-election years, I’m optimistic we can avoid an economic downturn in the near term given the continued labor market strength. Even if a recession were to ...

Expanding entertainment company is redefining online ticketing with innovative design and transparent pricing KANSAS CITY, March 18, 2024 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ:DGLY) – Kustom Entertainment, Inc. ("Kustom Entertainment"), a premier live event marketing and concert production company and current subsidiary of Digital Ally Inc. ("Digital Ally"), proudly unveils Kustom Tickets, an advanced online ticketing platform designed to offer users a seamless and enjoyable ticket-buying experienc ...

Large Order was Purchased as part of the Company's Subscription Purchasing Program and Puts its Video Solutions in Near-Airport Locations Across the Country Lenexa, KS, March 07, 2024 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ:DGLY) (the "Company"), which develops, manufactures, and markets advanced video recording products and other critical safety products for law enforcement, emergency management, fleet safety and event security, today announced a notable order for 405 EVO Fleets by The Parking Spot, ...

Growing entertainment company adds historic and impactful festival, as it gains momentum leading into 2024 festival season KANSAS CITY, March 05, 2024 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ:DGLY) – Kustom Entertainment, Inc. ("Kustom Entertainment"), a premier live event marketing and concert production company and current subsidiary of Digital Ally Inc. ("Digital Ally") (NASDAQ:DGLY), is thrilled to announce the recent acquisition of the renowned Country Stampede Music Festival. This strategic move ...

OVERLAND PARK, Kan., Jan. 29, 2024 (GLOBE NEWSWIRE) -- Super Bowl LVIII is set with the San Francisco 49ers taking on the defending champion Kansas City Chiefs in Las Vegas, Nev., and ticket prices are starting at more than $7,000 according to TicketSmarter. The game will be played on Feb. 11 at Allegiant Stadium, home of the Las Vegas Raiders. The least expensive tickets are listed at $7,182 for two seats in the 300 level. For the 100 level, you can expect to pay nearly double with tickets in most sections ...