Fri, May 17, 8:57 PM (302 days ago)
Digital Ally, Inc. (DGLY) reported its financial results for the quarter ending March 31, 2024. The company experienced a net loss of $3.94 million on total revenues of $5.53 million, reflecting a 28% decrease in revenue compared to the same quarter in 2023. The decline in revenue was attributed to lower sales in both the Video Solutions and Entertainment segments. Gross profit remained relatively stable at $1.52 million, representing a gross margin of 28%, up from 20% in the prior year. Operating expenses decreased by 33% to $5.16 million, primarily due to reduced selling, advertising, and promotional expenses. Despite the reduction in operating expenses, the company reported an operating loss of $3.64 million, a 41% improvement from the $6.17 million loss in the same quarter of 2023. Interest expense increased significantly to $648,567 due to new debt issuances. The company had $1.03 million in cash and cash equivalents at the end of the quarter, with net cash used in operating activities totaling $918,545. Digital Ally's management highlighted the need to restore positive cash flows and raise additional capital to fund operations and meet payment obligations over the next 12 months. The company is actively managing inventory levels and intends to reduce outstanding receivables to improve cash flow. Overall, while Digital Ally has made strides in reducing its operating losses, it continues to face challenges in revenue generation and cash flow management, necessitating further capital raising efforts and operational improvements.