Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 188

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 188
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 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 31, 2022:

SCHEDULE OF OTHER RECEIVABLES

|                         |     |   | December 31, 
         2023 |     |   | December 31, 
         2022 |
|:------------------------|:----|:--|-------------:|:----|:--|-------------:|
| Notes receivable        |     | $ |      150,154 |     | $ |    1,598,340 |
| Lease receivable, net   |     |   |    2,940,261 |     |   |    2,339,799 |
| Other                   |     |   |       17,219 |     |   |      138,383 |
| Total other receivables |     | $ |    3,107,634 |     | $ |    4,076,522 |

Notes receivable decreased by over $ 1.4million at December 31, 2023 compared to December 31, 2022, primarily due to payments