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 BusinessLaw 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
• 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 Video Body-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
In-Car Video Body-Worn Camera
• 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.
Our Law Enforcement Competitors
913-814-7774 | www.digitalallyinc.com | [email protected]
New Digital Video Systems
• Up To 8 Cameras; Unique Back-Up Camera• Integrated Wireless• Intelligent Dual Simultaneous Recording• Loop + Incident Recording• Advance Replacement
Warranty Coverage• And More!
DVM-800Feature-Rich
In-Car Video with
5-Year Warranty
for Under $4000 + Current & Future Trade-In Credits
New Digital Video Systems
In-Car VideoLaw Enforcement
67%
Annual Revenue Composition
In-Car VideoLaw Enforcement
71%
CommercialFleet7% Body-Worn
Camera3%
Repair, Service& Accessory
20%
LIDAR 3%
CommercialFleet8% Body-Worn
Camera4%
Repair, Service& Accessory
17%
LIDAR 2%
CommercialFleet7% Body-Worn
Camera3%
LIDAR 3%LIDAR 2%In-Car Video In-Car Video
Repair, Service& Accessory
20%
CommercialFleet6% Body-Worn
Camera4%
Repair, Service& Accessory
17%
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
• 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
FirstVu HDAhead of the Competition
New Digital Video Systems
• 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
VuLinkRevolutionizes Body Cam –
In-Car Video Connectivity
New Video System Feature
New Digital Video Systems
• Real-time remote situational awareness during incidents
• Only requires Wi-Fi hotspot• Supports numerous devices• High quality, 30 frames/sec.
Live Streaming
New Video System Feature
• Streamlines review process• Secure, logs usage• Add incident information• GPS tagging• Device control• Storage & battery monitoring
Mobile App
New Digital Video Systems FirstVu HD Competition
New Storage Solution
• 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
Cloud StorageSubscription-based
New Digital Video Systems
• Up To 8 Cameras• Simultaneous Continuous
Loop and Event Recording• 32GB Internal + Up To 32GB
Removable Memory• Wireless System Updates• Live Streaming Video Option
DVM-250/250Plus
Commercial Fleet Recorder Update
• Expanded Reporting• Easier User Permission
Management• Enhanced Player & More
Management Software
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
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