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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 patent for rear-view mirror technology • Only public company in our market channel
Our Business • Law Enforcement (92% 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 (8% 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 • 2012 revenues were $17.6 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 • Includes 4 Cameras • Integrated Wireless • Dual Simultaneous Recording • Loop + Incident Recording • Advance Replacement Warranty Coverage • And More!
Annual Revenue Composition Commercial Fleet 4% Commercial Fleet 4% Commercial Fleet 8% Commercial Fleet 8% Body-Worn Camera 1% Body-Worn Camera 1% Body-Worn Camera 5% Body-Worn Camera 5% Repair, Service & Accessory 19% Repair, Service & Accessory 19% Repair, Service & Accessory 18% Repair, Service & Accessory 18% LIDAR 3% LIDAR 3% In-Car Video Law Enforcement 73% In-Car Video In-Car Video In-Car Video Law Enforcement 65% LIDAR 4% LIDAR 4% 2012 2013 through Sept. 30
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 FirstVu HD Competition
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 • 2,220,530 total shares outstanding (2,806,169 fully diluted) • Approximately 32% held by insiders (44% fully diluted) • Current market price $9.25 • 2013 annual increase in stock price was 164% • Current market capitalization: $20.5 million • 52 week high/low range $3.16 – $16.63 • 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 • Operating results: • Generated YTD 2013 operating profits through June 30 • Third quarter 2013 negatively impacted by: • US government shutdown and sequester • Delay in launching body-worn camera • Delays in domestic orders caused by patent troll • Delays caused by the DVM-800 product announcement • Fourth quarter: • Expect to issue financials in March 2014 • Domestic law enforcement budgets remain tight • FirstVu body-worn cameras • International market • DVM-800 launched late in Q-4 • Balance sheet at September 30, 2013: • $6.8 million positive working capital • $8.3 million stockholder’s equity • $2.5 million subordinated debt • Negotiating 1 year extension • Does not prevent other senior debt
Why We Are Excited About 2014 & Beyond • We have done the hard part! Right-sizing operations. • New products will dominate! • FirstVu body-worn camera • DVM-800 in-car video • 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