Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 275

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 275
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2023:

SCHEDULE OF ACCRUED EXPENSES

|                                      |     |   | September 30, 2024 |     |   | December 31, 2023 |
|:-------------------------------------|:----|:--|-------------------:|:----|:--|------------------:|
| Accrued warranty expense             |     | $ |             11,615 |     | $ |            17,699 |
| Accrued litigation costs             |     |   |          2,040,292 |     |   |         2,040,292 |
| Accrued payroll and related fringes  |     |   |            585,030 |     |   |           367,826 |
| Accrued sales returns and allowances |     |   |             93,170 |     |   |           117,713 |
| Accrued taxes                        |     |   |            116,463 |     |   |           150,981 |
| Accrued interest - related party     |     |   |            385,390 |     |   |            95,031 |
| Customer deposits                    |     |   |            227,885 |     |   |           219,462 |
| Other                                |     |   |            136,835 |     |   |           260,326 |
| Total accrued expenses               |     | $ |          3,596,680 |     | $ |         3,269,330 |

| F-69 |

Accrued warranty expense was comprised of the following for the nine months ended September 30, 2024:

SCHEDULE OF ACCRUED WARRANTY EXPENSE

| Beginning balance                   |     | $ |  17,699 |   |
| Provision for warranty expense      |     |   |  38,898 |   |
| Charges applied to warranty reserve |     |   | (44,982 | ) |
| Ending balance                      |     | $ |  11,615 |   |

NOTE 6. INCOME TAXES

The effective tax rate for the three and nine months ended September 30, 2024 and 2023 varied from the expected statutory rate due to the Company continuing to provide a 100% valuation allowance on net deferred tax assets. The Company determined that it was appropriate to continue the full valuation allowance on net deferred tax assets as of September 30, 202