DIGITAL ALLY, INC. ANNOUNCES FIRST QUARTER OPERATING RESULTS

Core Insights - Digital Ally, Inc. reported earnings per share of $1.41 for the first quarter of 2025, a significant turnaround from a net loss of ($27.48) per share in the prior year [1][5]. Financial Performance - Total revenue decreased by 19% to $4.4 million compared to $5.5 million in the first quarter of 2024 [5]. - Gross profit margin improved to 35.8% of revenue, up from 27.6% in the prior-year period [5]. - Selling, general and administrative expenses declined by 50.1% from year-earlier levels [5]. - The company reported an operating loss of $974,680, which is an improvement of $2,664,354 or 73.2% compared to the first quarter of 2024 [5]. - Non-operating gains amounted to $5,241,762, representing an improvement of $5,545,996 from the first quarter of 2024 [5]. - Net income attributable to common stockholders improved to $4,263,471, compared to a net loss of ($3,931,020) in the previous year [5]. - Total working capital improved to a positive $3,385,051 as of March 31, 2025, compared to a deficit of $(19,377,507) as of December 31, 2024 [5]. - Total stockholders' equity improved to $11,569,375 as of March 31, 2025, compared to a deficit of $(9,013,430) as of December 31, 2024 [5]. Strategic Initiatives - The company has focused on reducing overhead expenses, decreasing headcount, and emphasizing a subscription-based sales model for its video solutions segment [3]. - A successful restructuring of the law enforcement products sales organization has contributed to improved financial performance [3]. - The company completed a $14.3 million public equity offering in the first quarter of 2025, enhancing liquidity and exceeding the minimum equity threshold for Nasdaq listing [3]. Future Outlook - The company anticipates improved revenues and operating profits in its entertainment segment as it approaches the Country Stampede Music Festival scheduled for June 26-28, 2025 [3]. - Despite challenges in the law enforcement products market, the company is optimistic about its ability to respond to industry changes and maintain sustainable profitability [3].