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Who We Are. Public since 2007 and on NASDAQ exchange (DGLY) Provide audio/video recording equipment to law enforcement agencies (dashboard cameras) First to provide full digital “solid state” systems which replaced VHS and early-stage digital systems
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Who We Are • Public since 2007 and on NASDAQ exchange (DGLY) • Provide audio/video recording equipment to law • enforcement agencies (dashboard cameras) • First to provide full digital “solid state” systems • which replaced VHS and early-stage digital systems • Received multiple patents for rear-view mirror and • other supported technology • Only public company in our market channel
Our Business • Law Enforcement (94% of our business) • In-Car Video • Body-Worn Cameras • LIDAR Speed Detection • Customers Include: City, State, County and Federal • Law Enforcement Agencies, Military, International • and Domestic • Commercial Fleet (6% of our business) • Incident Recorders • Body-Worn Cameras • Customers Include: Ambulance, Fire, Paratransit, • Taxicab, Mass Transit, etc.
Our History • Began shipping in March 2006 • Generated 9 consecutive quarters of revenue • and earnings growth • 2008 revenues peaked at $33 million • 2013 revenues were $17.8 million • Economic recession hit our customers in 2008 • and the customers and market are still recovering • Management right-sized operations
In-Car Video Body-Worn Camera Our Law Enforcement Competitors • We are the only public company in our market channel • Dominated by smaller non-public entities or small • divisions of large public companies • Several bankruptcies have cleared up the market • In-Car VideoBody-Worn Camera • Watchguard Video – Texas-based • non-public entity • Coban Technologies – Texas-based • non-public entity • Panasonic – Small division of • public company • MobileVision – Small division of • L3 Communications • All of these provide in-car video solutions • and private-label their body-worn cameras. None have LIDAR. • Taser International – Arizona- • based public company • VieVu – Washington-based non- • public company that private • labels to others • Many other smaller and larger • companies developing body- • worn systems • Taser International – Arizona- • based public company • VieVu – Washington-based non- • public company that private • labels to others • Many other smaller and larger • companies developing body- • worn systems • Watchguard Video – Texas-based • non-public entity • Coban Technologies – Texas-based • non-public entity • Panasonic – Small division of • public company • MobileVision – Small division of • L3 Communications • All of these provide in-car video solutions • and private-label their body-worn cameras. None have LIDAR.
913-814-7774 | www.digitalallyinc.com | corporate@digitalallyinc.com
New Digital Video Systems New Digital Video Systems DVM-800 • Feature-Rich • In-Car Video with • 5-Year Warranty • for Under $4000 + Current & Future Trade-In Credits • Up To 8 Cameras; Unique Back-Up Camera • Integrated Wireless • Intelligent Dual Simultaneous Recording • Loop + Incident Recording • Advance Replacement Warranty Coverage • And More!
Annual Revenue Composition Commercial Fleet 7% Commercial Fleet 7% Commercial Fleet 8% Commercial Fleet 6% Body-Worn Camera 3% Body-Worn Camera 4% Body-Worn Camera 3% Body-Worn Camera 4% Repair, Service & Accessory 20% Repair, Service & Accessory 17% Repair, Service & Accessory 17% Repair, Service & Accessory 20% LIDAR 2% LIDAR 2% In-Car Video Law Enforcement 67% In-Car Video In-Car Video In-Car Video Law Enforcement 71% LIDAR 3% LIDAR 3% 2013 1st Quarter 2014
Approximately 70,000 vehicles are replaced each year • Most agencies also have non-automobile patrols (motorcycle, • boat, bicycle, etc.) • Almost 2,000 Coast Guard Boats and Cutters alone • International market is larger and less developed than domestic
New Digital Video Systems FirstVu HD • Ahead of the Competition • Smaller & Lighter • User-Replaceable Battery Lasts a Full Shift • 720p HD Video with Different Quality Options • Wide Field of View • Enhanced Low-Light Sensitivity • Multiple Mounting Options • Pre-Event Recording • Recording Security & More
New Digital Video Systems New Video System Feature VuLink • Revolutionizes Body Cam – In-Car Video Connectivity • Simultaneously Starts Recordings on Both Systems • Utilizes Automatic In-Car Recording Triggers • Eliminates Distraction, the Need to Continuously Record & User Error • Can Link Recordings from Both Systems in the Back-Office Software
New Digital Video Systems New Video System Feature Live Streaming • Real-time remote situational awareness during incidents • Only requires Wi-Fi hotspot • Supports numerous devices • High quality, 30 frames/sec. Mobile App • Streamlines review process • Secure, logs usage • Add incident information • GPS tagging • Device control • Storage & battery monitoring
New Digital Video Systems FirstVu HD Competition
New Storage Solution Cloud Storage • Subscription-based • Offered as alternative to servers (which will also continue to be sold) • Perfect for departments with no IT personnel • Provides off-site evidence backup • Lower up-front cost for customer • Provides consistent, long term income and loyalty
New Digital Video Systems Commercial Fleet Recorder Update DVM-250/250Plus • Up To 8 Cameras • Simultaneous Continuous Loop and Event Recording • 32GB Internal + Up To 32GB Removable Memory • Wireless System Updates • Live Streaming Video Option Management Software • Expanded Reporting • Easier User Permission Management • Enhanced Player & More
Financial Metrix • 2,295,553 total shares outstanding (2,999,067 fully diluted) • Approximately 38% held by insiders • Current market price $4.40 • 2013 annual increase in stock price was 164% • Current market capitalization: $10.0 million • 52 week high/low range $4.00 – $17.47 • Volatility caused by: • Restoration of profits • Excitement regarding new body-worn camera market • Health of domestic customers • Stability of US Government and grant funding • Potential of commercial fleet market • Patent issues
Financial Metrix • Total Q1-2014 Revenue – 18% increase over Q4-2013 • 59.4% Gross Profit Margin in Q1-2014 improved over • 49.9% in Q4-2013 • SG&A Expense declined 14% in Q1-2014 compared to • Q4-2013 • $546,000 Operating Loss in Q1-2014 improved over • $1,573,000 loss in Q4-2013 • DVM-800 represents 27% of total Revenue in Q4-2013 • $2.0 million secured convertible note issued in Q1-2014 • Cash balances at $1,375,000 at March 31, 2014 • Working Capital balances of $8,254,000 at March 31, 2014 • Stockholders Equity balance of $6,314,000 at • March 31, 2014 • New Products and Patents
Why We Are Excited About 2014 & Beyond • We have done the hard part! Right-sizing operations. • New products will dominate! • FirstVu HD body-worn camera • DVM-800 in-car video • VuLink (patent pending) • Domestic law enforcement market stabilized • Budgets and funding is the issue • Courts and juries demanding video evidence • Liability protection is proven • Our product suite is second to none • International law enforcement market is improving • Market potential is vast • Customers are adopting our solution • Commercial fleet market is diversifying our revenue base • Gaining traction in all markets • Our product is proven and preferred