Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 176

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 176
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 Company minimizes this risk by placing its cash deposits with major financial institutions. At December 31, 2023 and 2022, the uninsured balance amounted to $ 29,700and $ 2,495,189, respectively. The Company uses primarily a network of unaffiliated distributors for international sales and an employee-based direct sales force for domestic sales. No international distributor individually exceeded 10% of total revenues. No one individual customer receivable balance exceeded 10% of total accounts receivable as of December 31, 2023.

The Company’s video solutions segment purchases finished circuit boards and other proprietary component parts from suppliers located in the United States and on a limited basis from Asia. Although the Company obtains certain of these components from single source suppliers, it generally owns all tooling and management has located alternative suppliers to reduce the risk in most cases to supplier problems that could result in significant production delays. The Company has not historically experienced significant supply disruptions from any of its principal vendors and does not anticipate future supply disruptions. The Company acquires most of its components on a purchase order basis and does not have long-term contracts with its suppliers.

NOTE 3. ACCOUNTS RECEIVABLE – ALLOWANCE FOR DOUBTFUL ACCOUNTS

The allowance for doubtful accounts receivable was comprised of the following for the years ended December 31, 2023 and 2022:

SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

|                                             |     |   | December 31, 2023 |   |     |   | December 31, 2022 |   |
|:--------------------------------------------|:----|:--|------------------:|:--|:----|:--|------------------:|:--|
| Beginning balance                           |     | $ |           152,736 |   |     | $ |           113,234 |   |
| Provision for bad debts                     |     |   |            84,446 |   |     |   |           126,018 |   |
| Charge-offs to allowance, net of recoveries |     |   |           (36,514 | ) |     |   |           (86,516 | ) |
| Ending balance                              |     | $ |           200,668 |   |     | $ |           152,736 |   |

| F-19 |

NOTE 4. OTHER RECEIVABLES

Other receivables were the following at December 31, 2023 and December