Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 121

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 121
---
 Consolidated Subsidiary

The
Company has a 51% equity interest in its consolidated subsidiary, Nobility Healthcare. As a result, the noncontrolling shareholders or
minority interest is allocated 49% of the income/loss of Nobility Healthcare which is reflected in the condensed consolidated statement
of income (loss) as “net income (loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported
net income attributable to noncontrolling interests of consolidated subsidiary of $118,133 and a net loss of $1,939,143 for the nine
months ended September 30, 2025 and 2024, respectively.

Net
Loss Attributable to Common Stockholders

As
a result of the above, we reported a net loss of $(1,303,597) and $(12,485,388) for the nine months ended September 30, 2025 and 2024,
respectively, an improvement of $11,181,791 (89.6%).

Basic
and Diluted Loss per Share

The
basic and diluted loss per share was $1.40 and $7,793.63 for the nine months ended September 30, 2025 and 2024, respectively, for reasons
previously noted. All outstanding stock options and Common Stock purchase warrants were considered antidilutive and therefore excluded
from the calculation of diluted income (loss) per share for the nine months ended September 30, 2025 and 2024. Such potentially dilutive
securities were excluded from the computation because of their exercise price being higher than the market value of our Common Stock
and the net loss reported for 2025 and 2024.

Liquidity
and Capital Resources

Overall:

Management’s
Liquidity Plan. We have experienced net losses and cash outflows from operating activities since inception. Based upon our current
operating forecast, we anticipate that we will need to restore positive operating cash flows and/or raise additional capital in the short-term
to fund operations, meet our customary payment obligations and otherwise execute our business plan over the next 12 months. We are continuously
in discussions to raise additional capital, which may include a variety of equity and debt instruments; however, there can be no assurance
that our capital raising initiatives will be successful. Our recurring losses and level of cash used in operations, along with uncertainties
concerning our ability to raise additional capital, raise substantial doubt about our ability to continue as a