About Digital Ally

Digital Ally, Inc. (Digital Ally) produces and sells digital video imaging, storage, and disinfectant and related safety products for use in law enforcement, security, and commercial applications in the United States and internationally. Segments The company operates through three segments: Video Solutions, Revenue Cycle Management, and Entertainment. Video Solutions The Video Solutions segment encompasses the company’s law, commercial, and shield divisions. This segment includes both service and product revenues through the company’s subscription models offering cloud and warranty solutions, and hardware sales for video and health safety solutions. The Revenue Cycle Management Segment provides working capital and back-office services to a variety of healthcare organizations throughout the country, as a monthly service fee. The Entertainment Segment acts as an intermediary between ticket buyers and sellers within the company’s secondary ticketing platform, ticketsmarter.com, and the company also acquires tickets from primary sellers to then sell through various platforms. Within its video solutions operating segment the company supplies technology-based products utilizing its portable digital video and audio recording capabilities for the law enforcement and security industries and for the commercial fleet and mass transit markets. The company has the ability to integrate electronic, radio, computer, mechanical, and multi-media technologies to create positive solutions to its customers’ requests. The company’s products include the EVO-HD, DVM-800 and DVM-800 Lite, which are in-car digital video systems for law enforcement and commercial markets; the FirstVu body-worn camera line, consisting of the FirstVu Pro, FirstVu II, and the FirstVu HD; its patented and revolutionary VuLink product which integrates its body-worn cameras with its in-car systems by providing hands-free automatic activation for both law enforcement and commercial markets; the FLT-250, DVM-250, and DVM-250 Plus, which are its commercial line of digital video mirrors that serve as event recorders for the commercial fleet and mass transit markets; and FleetVu and VuLink, which are its cloud-based evidence management systems. The company further diversified and broadened its product offerings in 2020, by introducing two new lines of branded products: the ThermoVu, which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and its Shield disinfectants and cleansers which are for use against viruses and bacteria. The company’s video solutions segment revenue encompasses video recording products and services for its law enforcement and commercial customers and the sale of Shield disinfectant and personal protective products. This segment generates revenues through the company’s subscription models offering cloud and warranty solutions, and hardware sales for video and personal protective safety products and solutions. Revenues for product sales are recognized upon delivery of the product, and revenues from the company’s cloud and warranty subscription plans are deferred over the term of the subscription, typically 3 or 5 years. Revenue Cycle Management The company entered the Revenue Cycle Management business late in the second quarter of 2021 with the formation of its wholly owned subsidiary, Digital Ally Healthcare, Inc. and its majority-owned subsidiary Nobility Healthcare, LLC (Nobility Healthcare). Nobility Healthcare completed its first acquisition on June 30, 2021, when it acquired a private medical billing company, and has since completed three more acquisitions of private medical billing companies, in which the company assists in providing working capital and back-office services to healthcare organizations throughout the country. The company’s assistance consists of insurance and benefit verification, medical treatment documentation and coding, and collections. The company’s revenue cycle management segment consists of its medical billing subsidiaries. Revenues of this segment are recognized after it performs the obligations of its revenue cycle management services. The company’s revenue cycle management services are services, performed and charged monthly, generally based on a contractual percentage of total customer collections, for which it recognizes its net service fees. Entertainment Operating The company has also entered into live entertainment and events ticketing services through the formation of its wholly owned subsidiary, TicketSmarter, Inc. (TicketSmarter) and its completed acquisitions of Goody Tickets, LLC and TicketSmarter, LLC, on September 1, 2021. TicketSmarter provides ticket sales, partnerships, and mainly, ticket resale services through its online ticketing marketplace for live events, TicketSmarter.com. TicketSmarter offers tickets for over 125,000 live events through its platform, for a wide range of events, including concerts, sporting events, theatres, and performing arts, throughout the country. The company’s entertainment operating segment consists of ticketing services provided through TicketSmarter and its online platform, TicketSmarter.com. Revenues of this segment include ticketing service charges generally determined as a percentage of the face value of the underlying ticket and ticket sales from the company’s ticket inventory which are recognized when the underlying tickets are sold. Video Operating Segment Products and Services Through its video operating segment, the company supplies technology-based products utilizing its portable digital video and audio recording capabilities for the law enforcement and security industries and for the commercial fleet and mass transit markets. The company has the ability to integrate electronic, radio, computer, mechanical, and multi-media technologies to create positive solutions to its customers’ requests. The company’s products include: the EVO-HD, DVM-800 and DVM-800 Lite, which are in-car digital video systems for law enforcement and commercial markets; the FirstVu body-worn camera line, consisting of the FirstVu Pro, FirstVu, and the FirstVu HD; its patented and revolutionary VuLink product integrates its body-worn cameras with its in-car systems by providing hands-free automatic activation for both law enforcement and commercial markets; the FLT-250, DVM-250, and DVM-250 Plus, which are its commercial line of digital video mirrors that serve as event recorders for the commercial fleet and mass transit markets; and FleetVu and VuLink, which are its cloud-based evidence management systems. The company further diversified and broadened its product offerings in 2020, by introducing two new lines of branded products: the ThermoVu, which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold; and is Shield disinfectants and cleansers which are for use against viruses and bacteria. In-Car Digital Video Mirror System for Law Enforcement – EVO-HD, DVM-800 and DVM-800 Lite In-car video systems for patrol cars are a necessity and have generally become standard. Systems are primarily digital based systems with cameras mounted on the windshield and the recording device generally in the trunk, headliner, dashboard, console or under the seat of the vehicle. The company launched its in-car digital video platform under the name EVO-HD during the second quarter of 2019. The EVO-HD is a revolutionary in-car system that delivers versatility and reliability for law enforcement. With built-in, patented auto-activation technology, EVO-HD captures multiple recording angles in sync from a FirstVu PRO or FirstVu HD body-worn camera and up to four HD in-car cameras – all from a single trigger. The EVO-HD maximizes space and offers top-end reliability when paired with remote service capabilities. An internal cell modem will allow for connectivity to the VuVault.net cloud, powered by Amazon Web Services (AWS) and real time metadata when in the field. The company offers the DVM-800, a continuation in the family of highly successful digital video mirrored (DVM) systems developed by the company. The DVM-800 is a time-tested, compact, powerful and easy-to-use solution designed for law enforcement. The DVM-800 system has built-in road and driver facing cameras and can record up to two external HD cameras. The DVM-800 is compatible with the patented VuLink auto-activation technology and can be paired with a FirstVu HD body-worn camera. The company also offers the DVM-800 Lite, an entry level system is a self-contained video recorder, microphone and digital storage system that is integrated into a rear-view mirror and is designed for law enforcement. The system can record up to two internal HD cameras. In-Car Digital Video Event Recorder System – DVM-250 Plus and FLT-250 for Commercial Fleets Digital Ally provides commercial fleets and commercial fleet managers with the digital video tools that they need to increase driver safety, track assets in real-time and minimize the company’s liability risk while enabling fleet managers to operate the fleet at an optimal level. The company markets a product designed to address these commercial fleet markets with its DVM-250 Plus and FLT-250 event recorders that provide various types of commercial fleets with features and capabilities that are fully-customizable and consistent with their specific application and inherent risks. The DVM-250 Plus is a part of the DVM family and is designed for commercial fleets featuring built-in digital audio and video recording technology and other features to provide commercial fleet managers unmatched driver and asset management – all while aiming to deliver the return on investment that matters most: the safety and security of drivers and passengers. The DVM-250 Plus is designed to capture events, such as wrecks and erratic driving or other abnormal occurrences, for evidentiary or training purposes. The commercial fleet markets may find the company’s units attractive from both a feature and a cost perspective compared to other providers. Due to the company’s marketing efforts, commercial fleets are beginning to adopt this technology, and in particular, the ambulance and taxi-cab markets. In the first quarter of 2021, Digital Ally released the FLT-250, offering the same great features of the DVM-250 Plus in a new compact, non-mirrored form factor that allows for multiple mounting options in any vehicle type for commercial fleets. Digital Ally offers a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos and telematics information. Within the suite, there are powerful mapping and reporting tools that are intended to optimize efficiency, serve as training tools for teams on safety, and, ultimately, generate a significant return on investment for the organization. The company expects the EVO-HD to become the platform for a new family of in-car video solution products for the commercial markets. The innovative EVO-HD technology is expected to replace the in-car mirror-based systems with a miniaturized system that can be custom-mounted in the vehicle, while offering numerous hardware configurations to meet the varied needs and requirements of the company’s commercial customers. In its commercial market application, the EVO-HD can support up to four HD cameras, with two cameras having pre-event and ECA capabilities to allow customers to review entire shifts. An internal cell modem will allow for connectivity to the FleetVu Manager cloud-based system for commercial fleet tracking and monitoring, which is powered by AWS and real time metadata when in the field. Body-Worn Digital Video System – FirstVu Pro, FirstVu II, and FirstVu HD for Law Enforcement and Private Security During 2021, Digital Ally launched two next generation body-worn cameras and docking stations, refreshing the company’s complete ecosystem of evidence recording devices. The latest body worn camera launched by the company is the FirstVu Pro, the company’s flagship product in its family of next generation of technology. The light weight, one-piece unit captures full HD video and audio, while offering industry leading features, such as live streaming, a full-color touchscreen display, an advanced image sensor with IR LEDs, proprietary image distortion reduction, IP67 rated resisting dust and wind and is water submersible for 30 minutes at a depth of 3 feet. It is also MIL-STD-810G compliant capable of handling drops, shock, and vibration, and will function flawlessly in a wide temperature range. In addition to the FirstVu Pro, Digital Ally also added the FirstVu II to its family of next generation technology. The FirstVu II is a one-piece device offering industry leading technology, such as an articulating camera head, a full-color display, an advanced image sensor, and GPS. It can be used in law enforcement, private and event security and commercial segments. Digital Ally still carries the FirstVu HD, the two-piece body-worn camera, which allows for multiple mounting options while minimizing space and weight. It can be used in law enforcement, private and event security and commercial segments. This system is also a derivative of the company’s in-car video systems, but is much smaller and lighter and more rugged and water-resistant to handle a hostile outdoor environment. The FirstVu HD can be used in many applications in addition to law enforcement and private security and is designed specifically to be clipped to an individual’s pocket or other outer clothing. The unit is self-contained and requires no external battery or storage devices. The company’s FirstVU HD integrates with its in-car video systems through its patented VuLink system allowing for automatic activation of both systems. With the newly introduced body-worn cameras, Digital Ally also introduced two new QuickVu docking stations compatible with the FirstVu PRO and FirstVu II body-worn cameras. The QuickVu docking stations provide a comprehensive and elegant solution for storing and charging body cameras while uploading video evidence to the cloud. QuickVu also allows for rapid reviewing of footage right from the interactive touchscreen display, and is available in eight or twenty-four individual docking bays. For docking with the FirstVu HD body-worn cameras, Digital Ally offers a 12-bay docking station and Mini-Docks. The 12-bay docking station includes a 1TB local memory hard drive which simultaneously upload 4 hours of video from 12 FirstVu HD cameras within a 15-minute shift change and push configuration updates. The Mini-Dock is a single unit, portable smart dock that uploads video evidence to VuVault from a FirstVu HD body camera. Auto-activation and Interconnectivity Between In-car Video Systems and Body-worn Camera Products – VuLink for Law Enforcement Recognizing a critical limitation in law enforcement camera technology, the company pioneered the development of its VuLink ecosystem that provides intuitive auto-activation functionality, as well as coordination between multiple recording devices. The United States Patent and Trademark Office (the USPTO) has recognized these pioneering efforts by granting the company multiple patents with claims covering a variety of triggers, including emergency lights and sirens, extreme acceleration or braking, g-force or any 12-volt relay. Additionally, the awarded patent claims cover automatic coordination between multiple recording devices. EVO Web and FleetVu Manager EVO Web is a web-based software, powered by and hosted on the AWS GovCloud platform, that enables police departments and security agencies to manage digital video evidence quickly and easily. EVO Web is capable of playing back, reviewing, downloading, archiving, unit configuration and management, running customizable reports and maintaining a chain of custody logs. AWS is the most secure cloud platform on the market with features that go beyond simply storing and reviewing video evidence. AWS GovCloud platform is trusted by the Department of Justice, Defense Digital Services for the US Air Force, U.S. Department of Treasury, and U.S. Department of Homeland Security. The company’s products that are compatible with EVO Web include: FirstVu Pro, FirstVu II, FirstVu HD, QuickVu, EVO-HD, DVM-800 and DVM-800 Lite. FleetVu Manager is a web-based software that provides commercial fleet managers with the tools to increase driver safety, track assets in real-time and minimize their companies’ liability risks. FleetVu Manager is able to generate driver reports, identify at risk behaviors before an incident takes place, and enable commercial fleet managers to manage the entire fleet through a single, easy to use platform. The company’s products compatible with FleetVu Manager include: DVM-250 and FLT-250. Shield Heath Protection Products The company’s Shield brand offers a variety of products to help keep you safe, including Shield Cleansers, ThermoVu, Shield Electrostatic Sprayer, Shied Disinfectant, and a variety of personal protection equipment, including masks, gloves and sanitizer wipes. Shield Cleansers is a full line of safe and effective hypochlorous acid (HOCl) based products - and is free of toxic bleach, ammonia, methanol, ethanol, and alcohol ingredients. Shield Disinfectant is EPA approved and has shown effectiveness against SARS-COV-2, the virus that causes the novel COVID-19 disease. Other products in the Shield brand include animal wellness products, wound care, and household cleaning solutions. ThermoVu is a non-contact temperature-screening instrument that measures temperature through the wrist and controls entry to facilities when temperature measurements exceed pre-determined parameters. ThermoVu has optional features, such as facial recognition to improve facility security by restricting access based on temperature and/or facial recognition reasons. ThermoVu provides an instant pass/fail audible tone with its temperature display and controls access to facilities based on such results. Shield Electrostatic Sprayer is a compact and lightweight disinfecting sprayer utilizing electrostatic induction. The charged particles repel each other and affix to surfaces more evenly, eliminating large droplets for better disinfecting coverage. It is ideal for use in office buildings, schools, and other populated areas. The company has been distributing other personal protective equipment and supplies, since the second quarter of 2021, such as masks and gloves to supplement its Shield brand of products to health care workers, as well as other consumers, consisting of vinyl and nitrile gloves, level 3 and N95 NIOSH certified face masks, and disposable wipes. Revenue Management Operating Segment Products and Services Through its revenue cycle management segment, the company provides assistance in providing working capital and back-office services to healthcare organizations throughout the country. The company’s RCM operating segment services consist of insurance and benefit verification, medical treatment documentation and coding, and collections. Through its expertise and experience in this field, the company maximizes its customers’ service revenues collected, leading to substantial improvements in their operating margins and cash flows. The company generally receives a service fee based on a percentage of the service revenues collected by its customers. Entertainment Operating Segment Products and Services Through its entertainment segment, the company provides customers with access to the online live event ticketing marketplace through its online platform - TicketSmarter.com. Offering over 48 million tickets for sale for over 125,000 live events, TicketSmarter is a national ticket marketplace offering tickets for live events featuring sports, concerts and theatre. TicketSmarter is the official ticket resale partner of more than 35 collegiate conferences, over 300 universities, and hundreds of events and venues. The company’s entertainment operating segment primarily receives compensation for its services generally determined as a percentage of the face-value of the tickets being purchased. The company’s entertainment operating segment also provides customers with access to tickets which it has purchased or received in return for its sponsorship or partnership from the venue, event or owner. Market and Industry– Video Solutions The company’s video solutions segment has historically had a primary market of domestic and international law enforcement agencies. The company has since expanded its scope by pursuing the commercial fleet vehicle and mass transit markets. Additionally, the company has expanded into event security services where it provides the hardware and software to supplement private security for NASCAR races, football and other sporting events, concerts and other events where people gather. The company continues to further expand its focus on private security, homeland security, mass transit, healthcare, general retail, educational, general consumer and other commercial markets. In that regard, the company has several installations involving private security on cruise ships and similar markets. There are many potential private uses of the company’s product offerings. The company continues to have sales in the commercial fleet and ambulance service provider market, confirming that its DVM-250 Plus and FLT-250 products and FleetVu Manager can become a significant revenue producer for it. Additionally, the company’s body-worn cameras have applications in law enforcement, along with private and event security, as well as commercial segments. With the recent acquisitions the company completed in 2021, it hopes to utilize the connections it has to live events, stadiums, and arenas, as well as new medical connections. Market and Industry– Revenue Cycle Management The company’s revenue cycle management segment consists of end-to-end revenue cycle management services that focuses on claim reimbursement billing, verification, and related services to medical providers throughout the country. The company offers agreements with customers in which it provides its services and bill the customers monthly for its services. The company’s market includes many diverse specialties, including radiology, oncology, orthopedics, pediatrics, internal medicine, and cardiology. The company continues to investigate ways to expand its market reach, although can make no assurances in that regard. Market and Industry– Entertainment The company’s entertainment segment refers to the sale of event tickets primarily through its online and mobile platforms. The company will buy inventory of event ticket to then sell tickets through various platforms, including its own. The company’s resale services refer to the sale of tickets by a holder, who originally obtained the tickets directly from a venue or entity, through its platform in which it then collects services fees on the transaction. This is commonly referred to as secondary ticketing. The company works directly with consumers looking to buy or sell event tickets for particular shows, concerts, games, and other events, allowing a simple and effective platform to move tickets. The company is partner with more than 35 collegiate conferences, over 300 universities, and hundreds of events and venues. Competition - Video Solutions The company’s primary competitors in the in-car video systems market include L-3 Mobile-Vision, Inc., Coban Technologies, Inc., Enforcement Video, LLC d/b/a WatchGuard Video (WatchGuard), Kustom Signals, Panasonic System Communications Company, International Police Technologies, Inc. and a number of other competitors who sell, or may in the future sell, in-car video systems to law enforcement agencies. The company’s primary competitors in the body-worn camera market include Axon Enterprises, Inc. (Axon), Reveal Media, WatchGuard, and VieVU, Inc., which was acquired by Axon in 2018. The company’s primary competitors in the commercial fleet sector include Lytx, Inc. and SmartDrive Systems, among others. Intellectual Property – Video Solutions The company has filed for patent protection in the United States and certain other countries to cover certain design aspects of its products. The company issued several patents in recent years, including a patent on its VuLink product that provides automatic triggering of its body-worn camera and its in-car video systems. The company has entered into supply and distribution agreements with several companies that produce certain of its products, including its DVM-250 and DVM-800 products. These supply and distribution agreements contain certain confidentiality provisions that protect the company’s proprietary technology, as well as that of the third-party manufacturers. Research and Development The company’s research and development expenses totaled $2,290,293 for the year ended December 31, 2022. History Digital Ally, Inc. was founded in 2004.