Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 22

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 chief operating decision maker (“CODM”) and a description of other segment items. Additionally,
all existing annual disclosures must be provided on an interim basis. This ASU is effective for annual periods beginning after December
15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This ASU is required to be applied retrospectively
to all prior periods presented in the condensed consolidated financial statements. The Company adopted ASU 2023-07 in 2024 and applied
the amendment retrospectively to all periods presented in the Company’s condensed consolidated financial statements. See Note 17,
Operating Segments, for more information.

Recently Issued Accounting
Pronouncements. - ASU 2023-09, Improvements to Income Tax Disclosures, requires improved disclosures related to the rate reconciliation
and income taxes paid. This ASU requires companies to reconcile the income tax expense attributable to continuing operations to the U.S.
statutory federal income tax rate applied to pre-tax income from continuing operations. Additionally, this ASU requires companies to disclose
the total amount of income taxes paid during the period. This ASU is effective for annual periods beginning after December 15, 2024, with
early adoption permitted. The guidance is required to be applied on a prospective basis with the option to apply retrospectively to all
prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact to the Company’s
condensed consolidated financial statements.

ASU 2024-03, Disaggregation
of Income Statement Expenses, requires disaggregated disclosures in the notes to the consolidated financial statements of certain
categories of expenses that are included in expense line items on the Consolidated Statement of Income. This ASU is effective for annual
periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted.
The guidance is required to be applied on a prospective basis with the option to apply retrospectively to all prior periods presented
in the consolidated financial statements. The Company is currently evaluating the impact to the Company’s condensed consolidated
financial statements.

ASU 2024-04, Induced Conversions
of Convertible Debt Instruments, clarifies the requirement for determining whether certain settlements of convertible debt instruments
should be accounted for as induced conversions or extinguishments. This ASU is effective for annual periods beginning after December 15,
2025. Early adoption is permitted and can be applied either on a prospective basis or retrospective