Digital Ally’s new Healthcare business unit announces its
To acquirelocation expected at generatee about $ 1.0 million in annual revenues
LENEXA, KANSAS, July 7, 2021 (GLOBE NEWSWIRE) – Digital Ally, Inc. (NASDAQ: DGLY) (the âCompanyâ) announces that its new healthcare business unit, Digital Ally Healthcare (âDigital Healthcareâ), has acquired a medical billing company located in the Mid-West with annual sales of approximately $ 1.0 million. This privately held company has a long history of providing revenue cycle management (RCM) services to over 40 physician clients in various specialties including orthopedics, pediatrics, internal medicine and cardiology. Digital Healthcare completed the acquisition through its joint venture with Nobility, LLC, an eight-year RCM company serving the medical industry.
The purchase price was $ 1,200,000 with approximately 70% paid in cash at closing and the balance by way of a earn-out promissory note bearing interest at 3% payable over 30 months. The earnout note is subject to adjustment based on future revenues and customer loyalty of the acquired company. This acquisition is one of two target acquisitions previously announced by Digital Healthcare and launches the operations of the recently formed joint venture. The second target acquisition is the subject of a letter of intent and due diligence is progressing.
âWe are delighted with our first acquisition. As we reported in June, we have capitalized our healthcare business with $ 13.5 million to make strategic acquisitions of private RCM companies that will provide recurring revenue and consistent profits. The First Acquisition is a seasoned company with a stable and diverse client portfolio and a track record of success. In accordance with our business plan, we will implement cost reductions and economies of scale to increase profit margins after the completion of the integration of the RCM company into our healthcare business, âsaid Stan Ross, CEO of Digital Ally.
âAs noted in our previous press release announcing the creation of Digital Healthcare, this is further expansion into the healthcare market alongside our Shield health protection product line. Digital Healthcare is implementing a roll up strategy by targeting the acquisition of accretive private RCM companies. Through our joint venture, we plan to provide superior RCM services for maximum customer retention following the completion of the acquisitions, while implementing appropriate cost reductions to increase profit margins, âcontinued Ross.
About Digital Ally
Digital allyÂ® specializes in the design and manufacture of the highest quality video recording equipment and video analysis software. Digital Ally is pushing the boundaries of technology in areas such as law enforcement, emergency management, fleet security, and event security. Digital Ally’s complete product solutions include vehicle and body cameras, flexible software storage, automatic recording technology and various critical security products. In addition, Digital Ally has launched the Shield line of health protection products, including Shield cleaners, a highly effective but safe to use disinfectant and sanitizer against SARS-CoV-2, a non-contact thermometer / device to entrance controlled, an electrostatic sprayer for fast and efficient disinfection of large areas and a variety of personal protective equipment, including face masks, gloves and disinfectant wipes. Its newly formed Digital Healthcare subsidiary was created to capitalize on various opportunities in the healthcare segment that create synergies with the rest of the Digital Ally business. Digital Healthcare’s initial entry into this segment is a revenue cycle management company serving the medical industry.
For news and additional information, please visit www.digitalallyinc.com or follow Digital Ally Inc.’s other social media channels here:
Facebook I Instagram I Linkedin I Twitter
This press release (the âPress Releaseâ) from Digital Ally, Inc. (the âCompanyâ, âweâ, âusâ or âourâ) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the âSecurities Actâ), and Section 21E of the Securities Exchange Act of 1934, as amended (the âExchange Actâ). The words “believe”, “expect”, “anticipate”, “intend”, “estimate”, “can”, “should”, “could”, “will”, “will”, ” looking forward â,â continue â, and other expressions which are predictions or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. These forward-looking statements are based in large part on our expectations or forecasts of future events, may be affected by inaccurate assumptions, and are subject to various business risks and known and unknown uncertainties, a number of which are beyond our control. Therefore, actual results could differ materially from the forward-looking statements contained in this document, and readers are cautioned not to place undue reliance on such forward-looking statements.
We assume no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A wide variety of factors could cause or contribute to such differences and could adversely affect revenues, profitability, cash flow and capital requirements. There can be no assurance that any forward-looking statements contained in this document will occur or prove to be correct.
Factors that could cause or contribute to our actual results differing materially from those discussed here or that could adversely affect our share price include, but are not limited to: (1) our losses in recent years, including during fiscal years 2020 and 2019; (2) economic and other risks to our business due to the effects of the COVID-19 pandemic, including the impacts on our customers, suppliers and commercial and law enforcement employees and on our ability to mobilize capital if necessary; (3) our ability to increase our revenues, increase our margins and return to constant profitability in the current economic and competitive environment; (4) our operation in developing new markets and uncertainty about the market acceptance of our technology, new products and our ability to develop the Digital Ally Healthcare subsidiary and make profitable and rigorous RCM acquisitions; (5) the availability of funding from federal, state and local governments to facilitate the budgets of law enforcement agencies, including the timing, amount and restrictions of such funding; (6) our ability to deliver our new product offerings as planned in 2020, such as the Shieldâ¢ disinfectants / sanitizers and ThermoVUâ¢ temperature control systems, whether these new products are performing as intended or advertised and whether they will help increase our revenues; (7) whether we will be able to increase domestic and international sales of our products in the future; (8) our ability to maintain or expand our market share for our products in the national and international markets in which we compete, including by increasing our international revenues; (9) our ability to manufacture our products profitably; (10) competition from larger, more established companies with much greater economic and human resources; (11) our ability to attract and retain quality employees; (12) risks associated with transactions with government entities as clients; (13) our expenditure of significant resources in anticipation of sales due to our long sales cycle and the possibility of not receiving any income in return; (14) characterization of our market by new products and rapid technological development; (15) our reliance on sales of our EVO-HD, DVM-800, FirstVu HD and DVM-250 products; (16) that shareholders may lose all or part of their investment if we are not able to compete in our markets and return to profitability; (17) defects in our products which could affect our ability to sell our products or could result in litigation and other significant costs; (18) our dependence on key personnel; (19) our reliance on third party distributors and sales representatives for part of our marketability; (20) our dependence on a few manufacturers and suppliers for the components of our products and our dependence on domestic and foreign manufacturers for some of our products; (21) our ability to protect technology through patents and to protect our technology and proprietary information, such as trade secrets, by other similar means; (22) our ability to generate more recurring cloud and service revenues; (23) risks associated with our license agreements; (24) our revenues and operating results may fluctuate unexpectedly from quarter to quarter; (25) sufficient voting power by coalitions of a few of our most important shareholders, including directors and officers, to make corporate governance decisions that could have a significant effect on us and others shareholders; (26) the sale of substantial quantities of our common shares, with a par value of $ 0.001 per share (the âcommon sharesâ), which may have a depressive effect on the market price of the outstanding shares of our common shares ; (27) the possible issuance of ordinary shares subject to options and warrants which may dilute the interests of shareholders; (28) our non-payment of dividends and the absence of plans to pay dividends in the future; (29) the future sale of a substantial number of shares of our common shares which could lower the trading price of our common shares, reduce our value and make it more difficult to raise capital; (30) our additional securities available for issuance, which, if issued, could adversely affect the rights of holders of our common shares; (31) the likely high volatility in our share price due to a number of factors, including relatively limited public float; (32) whether this technology will have a significant impact on our long-term revenues; and (33) indemnification of our officers and directors.