Summary by Moomoo AI
Digital Ally reported Q2 2024 revenue of $5.6M, down 32% from $8.3M in Q2 2023, with a net loss of $5.0M. The decline was primarily driven by lower product sales in the video solutions segment and reduced service revenues in the entertainment segment. Gross profit margin deteriorated to 4.3% from 33.1% year-over-year.The company's operating expenses decreased 46% to $4.2M, mainly due to reduced sponsorship spending and administrative costs. The video solutions segment saw a 46% drop in product revenues to $0.6M, while the entertainment segment's service revenues fell 68% to $0.9M. The revenue cycle management segment remained relatively stable with $1.6M in service revenues.Management highlighted ongoing liquidity concerns, with negative working capital of $13.4M as of June 30, 2024. The company is actively pursuing additional capital raising initiatives and implementing cost reduction measures, including inventory management and operational efficiency improvements. Digital Ally also completed a private placement in June 2024, raising $2.9M in gross proceeds.
