Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 45

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 45
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 corporate acquisitions including the recent purchases in the revenue cycle management and entertainment operating segments. We reported a net loss of $5,470,712 on revenues of $4,051,711 for the third quarter of 2024.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet debt, nor did we have any transactions, arrangements, obligations (including contingent obligations) or other relationships with any unconsolidated entities or other persons that may have a material current or future effect on financial conditions, changes in the financial conditions, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenue or expenses other than the following:

We are a party to operating leases and license agreements that represent commitments for future payments and we have issued purchase orders in the ordinary course of business that represent commitments to future payments for goods and services.

| 26 |

For the Three Months Ended September 30, 2024 and 2023

Results of Operations

Summarized immediately below and discussed in more detail in the subsequent subsections is an analysis of our operating results for the three months ended September 30, 2024 and 2023, represented as a percentage of total revenues for each such quarter:

|                                                    |     |                                  For 
 the three months ended September 30, |       |    |     |      |       |    |
|                                                    |     |                                 2024 |       |    |     | 2023 |       |    |
| Revenue                                            |     |                                      |   100 | %  |     |      |   100 | %  |
| Cost of revenue                                    |     |                                      |    57 | %  |     |      |    81 | %  |
| Gross profit                                       |     |                                      |    43 | %  |     |      |    19 | %  |
| Selling, general and administrative expenses:      |     |                                      |       |    |     |      |       |    |
| Research and development expense                   |     |                                      |     5 | %  |     |      |     9 | %  |
| Selling, advertising and promotional expense       |     |                                      |    10 | %  |     |      |    30 | %  |
| General and administrative expense                 |     |                                      |    91 | %  |     |      |    61 | %  |
| Goodwill and intangible asset impairment charge    |