Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 46

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 46
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1,742,000 of research and development tax credit carryforwards as of December 31, 2024 available to offset future net taxable income.

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Net Loss

As a result of the above, we reported a net loss of $21,715,725 and $25,463,949
for the years ended December 31, 2024 and 2023, respectively, an improvement of $3,748,224 (15%).

Net Income Attributable to Noncontrolling Interests of Consolidated Subsidiary

The Company owns 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 statement of income (loss) as “net income (loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported net income (loss) attributable to noncontrolling interests of consolidated subsidiary of $(1,871,578) and $224,598 for the years ended December 31, 2024 and 2023, respectively.

Net Loss Attributable to Common Stockholders

As a result of the above, we reported a net loss of $19,844,147 and $25,688,547
for the years ended December 31, 2024 and 2023, respectively, an improvement of $5,844,400 (23%).

Basic and Diluted Income/(Loss) per Share

The basic and diluted income/(loss) per share was ($5.58) and ($9.22) for
the years ended December 31, 2024 and 2023, respectively, for the reasons previously noted. All outstanding stock options and common stock
purchase warrants were considered antidilutive and therefore excluded from the calculation of diluted loss per share for the years ended
December 31, 2024 and 2023 because all potentially dilutive securities were excluded from the computation because of the net loss reported
for both 2024 and 2023.

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