Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 285

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 285
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 December 31, 2024 primarily because of the recurring operating losses.

We
have further determined to continue providing a full valuation reserve on our net deferred tax assets as of September 30, 2025.

We
had approximately $159,965,000 of federal net operating loss carryforwards and $1,796,111 of research and development tax credit carryforwards
as of September 30, 2025 and December 31, 2024 available to offset future net taxable income.

44

Net
Income (Loss)

As
a result of the above, we reported net income (loss) of $(963,342) and $(5,470,712) for the three months ended September 30, 2025 and
2024, respectively, an improvement of $4,507,370 (82.4%).

Net
Income Attributable to Noncontrolling Interests of 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 $58,525 and a net loss of $2,000,206 for the three
months ended September 30, 2025 and 2024, respectively.

Net
Loss Attributable to Common Stockholders

As
a result of the above, we reported a net income (loss) of $(1,021,867) and $(3,470,506) for the three months ended September 30, 2025
and 2024, respectively, an improvement of $2,448,639 (70.6%).

Basic
and Diluted Loss per Share

The
basic and diluted loss per share was $0.59 and $1,817.02 for the three months ended September 30, 2025 and 2024, respectively. Basic
loss per share is based upon the weighted average number of common shares outstanding during the period. For the three months ended September
30, 2025 and 2024, all shares issuable upon conversion of convertible debt and the exercise of outstanding stock options and warrants
were antidilutive, and, therefore, not