Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 29

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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 a trade name/trademark related
to the entertainment segment exceeded its estimated fair value and we recorded a non-cash impairment charge of $201,000, which was included
in goodwill and intangible asset impairment charge on our Condensed Consolidated Statements of Operations for the year ended December
31, 2024. The charge was primarily driven by the split-off transaction not being completed when and as expected and our recent revenue
and operating performance of the related business given a decline in demand and overall economic uncertainty. The remaining balance for
this trade name/trademark was $699,000 as of March 31, 2025 and December 31, 2024.

    19

NOTE 5. DEBT OBLIGATIONS

Debt obligations is comprised of the following:

 SCHEDULE OF DEBT OBLIGATIONS

    March 31,
                                                                                2025  
    December 31,
                                                                                2024 
  
    Economic injury disaster loan (EIDL) 
    $143,654  
    $144,495 
  
    Unsecured Promissory note – Entertainment Segment 
     600,000  
     — 
  
    Commercial Extension of Credit- Entertainment Segment 
     —  
     100,000 
  
    Merchant Advances – Video Solutions Segment 
     —  
     1,922,750 
  
    Senior Secured Promissory Notes 
     —  
     3,600,000 
  
    Unamortized debt issuance costs 
     —  
     (664,719)
  
    Debt obligations 
     743,654  
     5,102,526 
  
    Less: current maturities of debt obligations 
     603,444  
     4,961,443 

    Debt obligations, long-term 
    $140,210  
    $141,083 

Debt obligations mature on an annual basis as follows
as of March 31, 2025:

 SCHEDULE OF MATURITY OF DEBT OBLIGATIONS

    March 31, 2025 
  
    2025 (April 1, 2025 to December 31, 2025) 
    $603,444 
  
    2026 
     3,542 
  
    2027 
     3,676 
  
    2028 
     3,817 
  
    2029