Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 10

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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ited Condensed Consolidated Financial Statements.

5

DIGITAL
ALLY, INC.

CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE
MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Unaudited)

    2025  
    2024 
  
    Cash Flows from Operating Activities: 

    Net loss 
    $(1,185,464) 
    $(14,424,531)
  
    Adjustments to reconcile net loss to net cash flows used in operating activities: 

    Depreciation and amortization 
     1,276,460  
     1,578,246 
  
    Provision for doubtful accounts receivable 
     (110,982) 
     (24,441)
  
    Provision for doubtful subscriptions receivable 
     (2,356) 
     20,000 
  
    Provision for inventory obsolescence 
     (402,771) 
     (476,441)
  
    Stock based compensation 
     32,450  
     73,678 
  
    Non-cash interest expense 
     751,570  
     1,792,040 
  
    Gain on extinguishment of liabilities 
     (2,243,991) 
     (691,730)
  
    Change in fair value of warrant derivative liability 
     (3,373,919) 
     (2,178,965)
  
    Goodwill and intangible asset impairment charge 
     —  
     4,830,000 
  
    Loss on extinguishment of debt 
     —  
     379,332 
  
    Loss on disposal of intangible assets 
     —  
     (5,582)
  
    Loss on sale of property, plant and equipment 
     —  
     (389,522)
  
    Change in operating assets and liabilities: 

    (Increase) decrease in: 

    Accounts receivable – trade 
     158,245  
     (809,519)
  
    Subscriptions receivable 
     1,914,499  
     (572,279)
  
    Other receivables 
     154,275  
     — 
  
    Inventories 
     366,295  
     2,037,604 
  
    Prepaid expenses