Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 9

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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    Cash Flows from Operating Activities: 

    Net loss 
    $(222,122) 
    $(8,953,819)
  
    Adjustments to reconcile net loss to net cash flows used in operating activities: 

    Depreciation and amortization 
     876,821  
     1,079,000 
  
    Provision for doubtful accounts receivable 
     (94,999) 
     38,724 
  
    Provision for doubtful subscriptions receivable 
     50,000  
     20,000 
  
    Provision for inventory obsolescence 
     (507,961) 
     (407,460)
  
    Stock based compensation 
     23,565  
     101,467 
  
    Non-cash interest expense 
     685,158  
     1,255,168 
  
    Gain on extinguishment of liabilities 
     (2,230,716) 
     (682,345)
  
    Change in fair value of warrant derivative liability 
     (3,373,080) 
     351,710 
  
    Loss on extinguishment of debt 
     —  
     68,827 
  
    Loss on disposal of intangible assets 
     —  
     (5,582)
  
    Loss on sale of property, plant and equipment 
     —  
     41,661 
  
    Change in operating assets and liabilities: 

    (Increase) decrease in: 

    Accounts receivable – trade 
     434,586  
     (284,767)
  
    Subscriptions receivable 
     1,283,234  
     (458,199)
  
    Other receivables 
     153,827  

    Inventories 
     627,921  
     2,075,608 
  
    Prepaid expenses 
     (101,626) 
     (235,109)
  
    Operating lease right of use assets 
     (1,026,213) 
     110,099 
  
    Other assets 
     558,867  
     698,456 
  
    Increase (decrease) in: 

    Accounts payable 
     (4,592,345) 
     2,307,612 
  
    Accrued expenses 
     (543,728)