What changed in this filing

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Item 1. Business

2024-04-01 compared with 2023-03-31 · 183 added, 128 removed, 361 unchanged (46% of the section changed)

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From that date until November 30, 2004, when we entered into a

Plan of Merger with Digital Ally, Inc., a Nevada corporation which was formerly known as Trophy Tech Corporation (the “Predecessor Registrant”), we had not conducted any operations and were a closely-held company.

Plan of Merger with Digital Ally, Inc., a Nevada corporation which was formerly known as Trophy Tech Corporation (the “Predecessor

Registrant”), we had not conducted any operations and were a closely-held company.

In conjunction with the merger, we were renamed

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we file such reports with, or furnish such reports to, the SEC.

Our filings with the SEC are available to the public through the SEC’s website at www.sec.gov.

Our filings with the SEC are available to the public through the SEC’s

website at www.sec.gov.

August 23, 2022 (the “Effective Time”), the Predecessor Registrant merged with and into its wholly owned subsidiary, DGLY

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each to serve in the same capacity and for the same term as such person served with the Predecessor Registrant immediately before the

For the purposes of this Annual

Report on Form 10-K, unless the context otherwise requires, (i) the term “our,” or “us” refers to the Predecessor

Registrant and its subsidiaries with respect to the period prior to the Effective Time and to the Registrant and its subsidiaries with

respect to the period on and after the Effective Time;

(ii) as of any period prior to the Effective Time, references to the “directors”

mean the directors of the Predecessor Registrant, and, as of any period at and after the Effective Time, the directors of the Registrant,

(iii) as of any period prior to the Effective Time, references to “stockholders” mean the holders of Predecessor Common Stock,

and, as of any period at and after the Effective Time, the holders of Registrant Common Stock, and (iv) as of any period prior to the

Effective Time, references to “Common Stock” means the Predecessor Common Stock, and, as of any period at and after the Effective

Time, Registrant Common Stock.

the purposes of this Annual Report on Form 10-K, unless the context otherwise requires, (i) the term “our,” or “us”

refers to the Predecessor Registrant and its subsidiaries with respect to the period prior to the Effective Time and to the Registrant

and its subsidiaries with respect to the period on and after the Effective Time;

(ii) as of any period prior to the Effective Time, references

to the “directors” mean the directors of the Predecessor Registrant, and, as of any period at and after the Effective Time,

the directors of the Registrant, (iii) as of any period prior to the Effective Time, references to “stockholders” mean the

holders of Predecessor Common Stock, and, as of any period at and after the Effective Time, the holders of Registrant Common Stock, and

(iv) as of any period prior to the Effective Time, references to “Common Stock” means the Predecessor Common Stock, and,

as of any period at and after the Effective Time, Registrant Common Stock.

business of the Registrant, Digital Ally, Inc.

(with its wholly-owned subsidiaries, Digital Ally International, Inc., Shield Products,

LLC, Digital Ally Healthcare, LLC, TicketSmarter, Inc., Worldwide Reinsurance, Ltd., Digital Connect, Inc., BirdVu Jets, Inc., Kustom

440, Inc., and its majority-owned subsidiary Nobility Healthcare, LLC, collectively, “Digital Ally,” “Digital,”

LLC, Digital Ally Healthcare, LLC (“Digital Ally Healthcare”), TicketSmarter, Inc.

(“TicketSmarter”), Worldwide

Reinsurance, Ltd., Digital Connect, Inc., BirdVu Jets, Inc., Kustom 440 (“Kustom 440”), Inc., Kustom Entertainment, Inc.

(“Kustom”), and its majority-owned subsidiary Nobility Healthcare, LLC, collectively, “Digital Ally,” “Digital,”

and the “Company”), is divided into three reportable operating segments:

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Cycle Management Operating Segment

We entered the revenue cycle management

business late in the second quarter of 2021 with the formation of our 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 we assist in providing working capital and back-office services to healthcare organizations throughout the country.

Our assistance

consists of insurance and benefit verification, medical treatment documentation and coding, and collections.

Through our expertise and

experience in this field, we aim to maximize our customers’ service revenues collected, leading to substantial improvements in their

operating margins and cash flows.

entered the revenue cycle management business late in the second quarter of 2021 with the formation of our 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 we assist in providing working capital and back-office services to healthcare

organizations throughout the country.

Our assistance consists of insurance and benefit verification, medical treatment documentation

and coding, and collections.

Through our expertise and experience in this field, we aim to maximize our customers’ service revenues

collected, leading to substantial improvements in their operating margins and cash flows.

revenue cycle management segment consists of our medical billing subsidiaries.

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Operating Segment

have also entered into live entertainment and events ticketing services through the formation of our 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.

also provide live entertainment and events ticketing services through the formation of our wholly owned subsidiary, TicketSmarter, Inc.

(“TicketSmarter”) and its completed acquisitions of Goody Tickets, LLC and TicketSmarter, LLC, on September 1, 2021.

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.

entertainment operating segment consists of ticketing services provided through TicketSmarter and its online platform, TicketSmarter.com.

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.

entertainment operating segment consists of entertainment 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 our ticket inventory which are recognized when the underlying tickets are sold.

Ticketing direct expenses include

Entertainment direct expenses include

the cost of tickets purchased for resale by the Company and held as inventory, credit card fees, ticketing platform expenses, website

maintenance fees, along with other administrative costs.

Video Operating Segment Products and Services

our video operating segment we supply technology-based products utilizing our portable digital video and audio recording capabilities

for the law enforcement and security industries and for the commercial fleet and mass transit markets.

We have the ability to integrate

electronic, radio, computer, mechanical, and multi-media technologies to create positive solutions to our customers’ requests.

June 1, 2023, the Company, entered into an Agreement and Plan of Merger (the “CLOE Merger Agreement”) with Clover Leaf Capital

Corp., a Delaware corporation (“Clover Leaf”), CL Merger Sub, Inc., a Nevada corporation and a wholly owned subsidiary of

Clover Leaf (“Merger Sub”), Yntegra Capital Investments LLC, a Delaware limited liability company (“Yntegra”),

in the capacity as the representative from and after the effective time for the stockholders of Clover Leaf in accordance with the terms

and conditions of the CLOE Merger Agreement (the “Sponsor” or the “Purchaser Representative”), and Kustom, with

a focus and mission to own and produce events, festivals, and entertainment alongside its evolving primary and secondary ticketing technologies.

to the CLOE Merger Agreement, subject to the terms and conditions set forth therein upon the consummation of the transactions contemplated

by the CLOE Merger Agreement (the “Closing”), Merger Sub will merge with and into Kustom (the “Merger” and, together

with the other transactions contemplated by the Merger Agreement, the “Business Combination”), with Kustom continuing as

the surviving corporation in the Merger and a wholly owned subsidiary of Clover Leaf.

In the Merger, all of the issued and outstanding

capital stock of Kustom immediately prior to the effective time shall no longer be outstanding and shall automatically be cancelled and

shall cease to exist in exchange for the right for the Company to receive the Merger Consideration (as defined below).

Upon consummation

of the Business Combination, Clover Leaf will change its name to “Kustom Entertainment, Inc.”

aggregate merger consideration to be paid pursuant to the CLOE Merger Agreement to the Company as of immediately prior to the effective

time will be an amount equal to (the “Merger Consideration”) (i) $125 million, minus (ii) the estimated consolidated indebtedness

of Kustom as of the Closing (“Closing Indebtedness”).

The Merger Consideration to be paid to the Company will be paid solely

by the delivery of new shares of Clover Leaf Class A Common Stock, each valued at $11.14 per share (the “Merger Consideration Shares”).

The Closing Indebtedness (and the resulting Merger Consideration) is based solely on estimates determined shortly prior to the Closing

and is not subject to any post-Closing true-up or adjustment.

is comprised of TicketSmarter and Kustom 440, both currently wholly owned subsidiaries.

Both TicketSmarter and Kustom 440 will combine

their management teams and focus on concerts, entertainment and garnering additional ticketing partnerships in 2024 and beyond.

440 and TicketSmarter will use their existing sponsorships and sports property partnerships to develop alternative entertainment options

for consumers.

combined company will be known as Kustom Entertainment and will operate under the same management team as Kustom which is currently

led by Stanton E.

Ross, the current CEO of the Company.

The transaction contemplates an equity value of $125 million for Kustom.

combined company is expected to have an implied initial pro forma equity value of approximately $222.2 million, with the proposed

Business Combination expected to provide approximately $18.1 million in gross proceeds from the cash held in trust by Clover Leaf, assuming

no redemptions.

Additionally, the Company will distribute to its shareholders 20% of the Merger Consideration Shares obtained in Kustom

immediately following the closing of the Merger and intends to distribute the balance of such Merger Consideration Shares following a

six-month lock-up period.

transaction has been approved by the board of directors of the Company (the “Board” or “Board of Directors”)

and the board of directors of Clover Leaf and is subject to approval by the stockholders of Clover Leaf and other customary closing conditions.

The Company, as the sole holder of Kustom common stock, has approved the transaction.

to the plan to consummate the Business Combination, the Company no longer expects to pursue a separation of Kustom into its own independent

publicly traded company via spin-off, as announced on December 8, 2022.

October 2023, Kustom Entertainment and Clover Leaf announced the filing of a Registration Statement on Form S-4 by Clover Leaf with the

Securities and Exchange Commission (the “SEC”) on October 4, 2023, relating to the previously announced proposed Business

December 2023, Kustom Entertainment and Clover Leaf announced the filing of the Amendment No.

1 to the Registration Statement on Form

S-4 by Clover Leaf with the SEC on December 8, 2023, relating to the previously announced proposed Business Combination.

February 2024, Kustom Entertainment and Clover Leaf announced the filing of the Amendment No.

2 to the Registration Statement on Form

S-4 by Clover Leaf with the SEC on February 5, 2024, relating to the previously announced proposed Business Combination.

Video Solutions Operating Segment Products and Services

our video solutions operating segment we supply technology-based products utilizing our portable digital video and audio recording

capabilities for the law enforcement and security industries and for the commercial fleet and mass transit markets.

ability to integrate electronic, radio, computer, mechanical, and multi-media technologies to create positive solutions to our

customers’ requests.

Our products include:

the EVO-HD, DVM-800 and DVM-800 Lite, which are in-car digital video systems for law enforcement and commercial

the FirstVu body-worn camera line, consisting of the FirstVu Pro, FirstVu, and the FirstVu HD;

our patented and revolutionary

VuLink product integrates our body-worn cameras with our 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 our 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 our cloud-based evidence

management systems.

We further diversified and broadened our product offerings in 2020, by introducing two new lines of branded products:

(1) 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 (2) our Shield™ disinfectants and cleansers which are for

use against viruses and bacteria.

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

our patented and revolutionary VuLink product integrates our body-worn cameras with our in-car systems by providing hands-free

automatic activation for both law enforcement and commercial markets;

the EVO Fleet, FLT-250, DVM-250, and DVM-250 Plus, which are

our commercial line of digital video products that serve as “event recorders” for the commercial fleet and mass transit

and FleetVu and VuLink, which are our cloud-based evidence management systems.

We further diversified and broadened our

product offerings in 2020, by introducing two new lines of branded products:

(1) 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 (2) our Shield™ disinfectants and cleansers which are for use against viruses and bacteria.

Digital Video Mirror System for Law Enforcement – EVO-HD, DVM-800 and DVM-800 Lite

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The system can record up to two internal HD cameras.

Digital Video “Event Recorder” System – DVM-250 Plus and FLT-250 for Commercial Fleets

Digital Video “Event Recorder” System – EVO Fleet, DVM-250 Plus and FLT-250 for Commercial Fleets

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

We market a product designed to address these commercial fleet markets with our 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.

We market a product designed to address these commercial fleet markets with our EVO Fleet, 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.

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:

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

our units attractive from both a feature and a cost perspective compared to other providers.

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 our units attractive from both a feature and a cost perspective compared to other providers.

Due to our marketing efforts, commercial

fleets are beginning to adopt this technology, and in particular, the ambulance and taxi-cab markets.

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.

We believe that, due to

non-mirror-based aspect of this product, the FLT-250 will become more attractive for our potential customers, as it is a much simpler

plug and play option compared to mirror-based products.

FLT-250 offers 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.

The non-mirror-based aspect of this product, allowed the FLT-250 to become more attractive

for our potential customers, as it is a much simpler plug and play option compared to mirror-based products.

the fourth quarter of 2022, Digital Ally released the EVO Fleet, offering a full-featured solution utilizing the latest in telematics

technology, including immediate driver-assist feedback by recognizing pedestrians, distracted or drowsy driving, and lane shifting.

believe that, due to the new technology, including the A.I.

interface, live tracking capabilities, up to four streams of video, and video

on command, this product will become a very prominent product in the market and for our current and potential customers.

Ally offers a suite of data management web-based tools to assist fleet managers in the organization, archival, and management of videos

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serve as training tools for teams on safety, and, ultimately, generate a significant return on investment for the organization.

We expect 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 current in-car mirror-based systems with a miniaturized system that can be custom-mounted in the vehicle, while offering

EVO-HD has become the platform for a new family of in-car video solution products for the commercial markets.

The innovative EVO-HD technology

replaces the current 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 our commercial customers.

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Digital Video System – FirstVu Pro, FirstVu II, and FirstVu HD for Law Enforcement and Private Security

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

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.

It is also MIL-STD-810G compliant

capable of handling drops, shock, and vibration, and will function flawlessly in a wide temperature range.

addition to the FirstVu Pro, Digital Ally also added the FirstVu II to its family of next generation technology.

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Web and FleetVu Manager

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.

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.

Our products that are compatible with EVO Web include:

FirstVu Pro, FirstVu II, FirstVu HD,

QuickVu, EVO-HD, DVM-800 and DVM-800 Lite.

Our products that

are compatible with EVO Web include:

FirstVu Pro, FirstVu II, FirstVu HD, QuickVu, EVO-HD, DVM-800 and DVM-800 Lite.

Manager is a web-based software that provides commercial fleet managers with the tools to increase driver safety, track assets in real-time

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products compatible with FleetVu Manager include:

DVM-250 and FLT-250.

EVO Fleet, DVM-250 Plus and FLT-250.

Heath Protection Products

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Shield Cleansers, ThermoVu,

Shield Electrostatic Sprayer, Shied Disinfectant, and a variety of personal protection equipment including masks, gloves and sanitizer

Shied Disinfectant, and a variety of personal protection equipment including masks, gloves and sanitizer wipes.

Cleansers is a full line of safe and effective hypochlorous acid (HOCl) based products - and is free of toxic bleach, ammonia, methanol,

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its temperature display and controls access to facilities based on such results.

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.

Company has been distributing other personal protective equipment and supplies, since the second quarter of 2021, such as masks and gloves

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level 3 and N95 NIOSH certified face masks, and disposable wipes.

Revenue Management Operating Segment Products and Services

Revenue Cycle Management Operating Segment Products and Services

our revenue cycle management segment, we provide assistance in providing working capital and back-office services to healthcare organizations

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of more than 35 collegiate conferences, over 300 universities, and hundreds of events and venues.

in late 2022, Kustom 440 is another piece of the entertainment segment of the Company, whose mission it is to attract, manage and promote

concerts, sports and private events.

Kustom 440 offers the production and promotion of live music events in third-party venues throughout

These services begin with the logistical matters of an event, including artist booking and research, ticketing, staging,

on-site operations, vendor sourcing, and day of production.

These events range in size from small corporate events to full stadium multi-day

entertainment operating segment primarily receives compensation for its services generally determined as a percentage of the face-value

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We believe there are many potential private uses of our product offerings.

to have sales in the commercial fleet and ambulance service provider market, confirming that our DVM-250 Plus and FLT-250 products and

FleetVu Manager can become a significant revenue producer for us.

Additionally, our body-worn cameras have applications in law enforcement,

along with private and event security, as well as commercial segments.

With the recent acquisitions we completed in 2021, we hope to

utilize the connections we now have to live events, stadiums, and arenas, as well as new medical connections.

to have sales in the commercial fleet and ambulance service provider market, confirming that our EVO Fleet, DVM-250 Plus and FLT-250

products and FleetVu Manager can become a significant revenue producer for us.

Additionally, our body-worn cameras have applications

in law enforcement, along with private and event security, as well as commercial segments.

With the recent acquisitions we completed

in 2021 and 2022, we hope to utilize the connections we now have to live events, stadiums, and arenas, as well as new medical connections.

and Industry Overview – Revenue Cycle Management Operating Segment

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including radiology, oncology, orthopedics, pediatrics, internal medicine, and cardiology.

We continue to investigate ways to expand our

market reach, although can make no assurances in that regard.

We continue to investigate ways to expand

our market reach, although can make no assurances in that regard.

and Industry Overview – Entertainment Operating Segment

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We will buy inventory of

event ticket to then sell tickets through various platforms, including our own.

Our resale services refer to the sale of tickets by a

holder, who originally obtained the tickets directly from a venue or entity, through our platform in which we then collect services fees

on the transaction.

event tickets to then sell tickets through various platforms, including our own.

Our resale services refer to the sale of tickets by

a holder, who originally obtained the tickets directly from a venue or entity, through our platform in which we then collect services

fees on the transaction.

This is commonly referred to as secondary ticketing.

We work 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.

We also currently

partner with more than 35 collegiate conferences, over 300 universities, and hundreds of events and venues.

We work 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.

offer production and promotion of live music events in third-party venues throughout the country.

These services begin with the logistical

matters of an event, including artist booking and research, ticketing, staging, on-site operations, vendor sourcing, and day of production.

- Video Solutions Operating Segment

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We continue to build our brand

and recognition, through the numerous partnerships and sponsorships throughout the country, in attempt to become a preferred platform

for consumers.

and recognition, through numerous partnerships and sponsorships throughout the country, in attempt to become a preferred platform for

The event production portion of this segment faces strong competition ranging from small festival production companies to

large concert production companies and venues.

Reinsurance Ltd.

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(“Worldwide Re”), a Bermuda incorporated

captive insurance company that will provide primarily liability insurance coverage to the Company for which insurance may not be currently

captive insurance company that provided primarily liability insurance coverage to the Company for which insurance may not be currently

available or economically feasible in today’s insurance marketplace.

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products utilizing our technologies.

have entered into supply and distribution agreements with several companies that produce certain of our products, including our DVM-250

and DVM-800 products.

These supply and distribution agreements contain certain confidentiality provisions that protect our proprietary

technology, as well as that of the third-party manufacturers.

have entered into supply and distribution agreements with several companies that produce certain of our products, including our FirstVu

Pro & FirstVu II body cameras, QuickVu docking stations, EVO Fleet, DVM-250 and DVM-800 products.

These supply and distribution agreements

contain certain confidentiality provisions that protect our proprietary technology, as well as that of the third-party manufacturers.

addition to seeking patent protection, we rely on trade secrets, know-how and continuing technological advancement to seek to achieve

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depend heavily on any proprietary technology or patents.

of December 31, 2022, Digital Ally, and its subsidiaries, had approximately 201 full-time employees spread throughout the

country, representing the core values and objectives of the Company.

These employees are spread amongst our operating segments as

of December 31, 2023, Digital Ally, and its subsidiaries, had approximately 170 full-time employees spread throughout the country, representing

the core values and objectives of the Company.

These employees are spread amongst our operating segments as follows:

Employee headcount:

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Our revenue cycle management operating segment has no direct employees.

Nobility Healthcare, our minority interest partner provides

all human capital resources to manage and operate the Company’s revenue cycle management operating segment.

Nobility Healthcare, our minority interest partner provides all

human capital resources to manage and operate the Company’s revenue cycle management operating segment.

employees are our most important assets and they set the foundation for our ability to achieve our strategic objectives.

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employees to select the options that meet their needs.

Staff Comments.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business