Acquisition expected to generate approximately $3.5 million in annual revenues and a combined Unit anticipated annual revenue run-rate of approximately $7.5 million
Lenexa, KS, Jan. 24, 2022 (GLOBE NEWSWIRE) -- Digital Ally, Inc. (NASDAQ: DGLY) (the “Company”), today announced that its new healthcare subsidiary, Nobility Healthcare, LLC, has acquired a third billing company with an annual revenue run rate of approximately $3.5 million. This closely-held company was founded several years ago and provides revenue cycle management (RCM) and other services for over 180 dental practices located throughout the United States. This acquisition represents a new vertical for Nobility Healthcare because the target’s focuses on providing insurance claim reimbursement billing, verification, and related services to dentists and dental practices rather than medical providers, as is the case with the Nobility Healthcare’s previous acquisitions. This latest purchase gives Nobility Healthcare an anticipated annual revenue run-rate of approximately $7.5 million.
The purchase price was $2,100,000 with approximately 64% paid in cash at the closing and the balance through an earn-out promissory note bearing interest at 3% annually payable over 37 months. The earnout note is subject to adjustment based on future revenues and client retention of the acquired company.
“We are excited with the rapid progress of our new healthcare subsidiary, which is already producing positive cash flow. It continues to implement a roll up strategy by targeting the acquisition of accretive privately owned RCM companies. As we explained in June, we capitalized the subsidiary with $13.5 million to make strategic acquisitions of privately held RCM companies that will provide recurring revenues and consistent profits. Nobility Healthcare has used a portion of these funds to make the cash payments required in its first three acquisitions, as well as to provide working capital. This latest purchase is an established company with a stable, diverse and growing client portfolio and establishes a new vertical in the dental practice arena. Consistent with our business plan, we expect to provide superior RCM services for maximum client retention after completion of the acquisition while we implement cost reductions and economies of scale to expand profit margins with the RCM company’s integration into our healthcare subsidiary,” stated Stan Ross, CEO of Digital Ally.
About Digital Ally
Digital Ally, Inc. through its subsidiaries, is engaged in vehicle and body cameras, flexible software storage, automatic recording technology and various critical safety products; Shield™ Health Protection Products line, including all natural cleansers, a non-contact temperature-screening device, an electrostatic sprayer and a variety of personal protective equipment. With its recent formation of Digital Ally Healthcare, Inc., a medical records company and acquisition of TicketSmarter®, LLC, a national ticket broker, Digital Ally continues to add organizations that demonstrate the common traits of positive earnings, growth potential and organizational synergies.
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Contact Information
Stanton Ross, CEO
Tom Heckman, CFO
Digital Ally, Inc.
913-814-7774
info@digitalallyinc.com
This Press Release (the “Release”) of Digital Ally, Inc. (the “Company”, “we”, “us”, or “our”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may,” “should,” “could,” “will,” “plan,” “future,” “continue,” and other expressions that are predictions of or indicate future events and trends and that do not relate to historical matters identify forward-looking statements. These forward-looking statements are based largely on our expectations or forecasts of future events, can 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 undertake 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 impact revenues, profitability, cash flows and capital needs. There can be no assurance that the forward-looking statements contained in this document will, in fact, transpire or prove to be accurate.
Factors that could cause or contribute to our actual results differing materially from those discussed herein or for our stock price to be adversely affected include, but are not limited to: (1) our losses in recent years, including during fiscal 2020 and 2019; (2) economic and other risks for our business from the effects of the COVID-19 pandemic, including the impacts on our law-enforcement and commercial customers, suppliers and employees and on our ability to raise capital as required; (3) our ability to increase revenues, increase our margins and return to consistent profitability in the current economic and competitive environment; (4) our operation in developing new markets and uncertainty as to market acceptance of our technology, new products and our ability to grow the Digital Ally Healthcare subsidiary and effect profitable and well-diligenced 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 on such funding; (6) our ability to deliver our new product offerings as scheduled in 2020, such as the Shield™ disinfectant/sanitizers products and ThermoVU™ temperature screening systems, whether such new products perform as planned or advertised and whether they will help increase our revenues; (7) whether we will be able to increase the sales, domestically and internationally, for our products in the future; (8) our ability to maintain or expand our share of the market for our products in the domestic and international markets in which we compete, including increasing our international revenues; (9) our ability to produce our products in a cost-effective manner; (10) competition from larger, more established companies with far greater economic and human resources; (11) our ability to attract and retain quality employees; (12) risks related to dealing with governmental entities as customers; (13) our expenditure of significant resources in anticipation of sales due to our lengthy sales cycle and the potential to receive no revenue in return; (14) characterization of our market by new products and rapid technological change; (15) our dependence on sales of our EVO-HD, DVM-800, FirstVu HD and DVM-250 products; (16) that stockholders may lose all or part of their investment if we are unable to compete in our markets and return to profitability; (17) defects in our products that could impair 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 marketing capability; (20) our dependence on a few manufacturers and suppliers for components of our products and our dependence on domestic and foreign manufacturers for certain of our products; (21) our ability to protect technology through patents and to protect our proprietary technology and information, such as trade secrets, through other similar means; (22) our ability to generate more recurring cloud and service revenues; (23) risks related to our license arrangements; (24) our revenues and operating results may fluctuate unexpectedly from quarter to quarter; (25) sufficient voting power by coalitions of a few of our larger stockholders, including directors and officers, to make corporate governance decisions that could have a significant effect on us and the other stockholders; (26) the sale of substantial amounts of our common stock, par value $0.001 per share (the “Common Stock”), that may have a depressive effect on the market price of the outstanding shares of our Common Stock; (27) the possible issuance of Common Stock subject to options and warrants that may dilute the interest of stockholders; (28) our nonpayment of dividends and lack of plans to pay dividends in the future; (29) future sale of a substantial number of shares of our Common Stock that could depress the trading price of our Common Stock, lower our value and make it more difficult for us to raise capital; (30) our additional securities available for issuance, which, if issued, could adversely affect the rights of the holders of our Common Stock; (31) the likely high volatility of our stock price due to a number of factors, including a relatively limited public float; (32) whether such technology will have a significant impact on our revenues in the long-term; and (33) indemnification of our officers and directors.
