Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 84

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 84
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 the same period in 2024. The significant components of selling, general and administrative expenses are as follows:

    Three Months ended March 31, 

    2025  
    2024 
  
    Research and development expense 
    $84,417  
    $487,466 
  
    Selling, advertising and promotional expense 
     108,041  
     761,118 
  
    General and administrative expense 
     2,383,721  
     3,914,149 

    Total 
    $2,576,179  
    $5,162,733 

49

Research and development
expense. Our research and development expenses totaled $84,417 and $487,466 for the three months ended March 31, 2025 and 2024,
respectively which represents a decrease of $403,049 (83%). We have focused on controlling our expenditures on bringing new products to
market, including updates and improvements to current products in response to our decline in revenues. The decrease in research and development
expense reflects the large cut-back in our engineering staff and research activities in order to right-size our expenses in this area
with our revenues.

Selling, advertising and
promotional expenses. Selling, advertising and promotional expense totaled $108,041 and $761,118 for the three months ended March
31, 2025 and 2024, respectively, a decrease of $653,077 (86%). The decrease in selling, advertising and promotional expenses reflects
the large cut-back in selling staff and promotional and advertising activities in order to right-size our expenses in this area with our
revenues. In addition, the decrease is attributable to the reduction in new sponsorships being entered into by the Company and its subsidiary
TicketSmarter.

General and administrative
expense. General and administrative expenses totaled $2,383,721 and $3,914,149 for the three months ended March 31, 2025 and 2024,
respectively which represents a decrease of $1,530,428 (39%). The decrease in general and administrative expenses in the three months
ended March 31, 2025 compared to the same period in 2024 is primarily attributable to a decrease in administrative salaries and reductions
in headcount in order to right-size our expenses in this area with our revenues. The decrease in general and administrative expenses was
offset by a substantial increase legal and professional expenses for the three months ended March