Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 63

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 $(1,446,883) 
    $(642,219) 
    $(24,031) 
    $(1,525,901) 
    $(3,639,034)

    Non-operating (expenses) income: 

    Interest expense 

     (648,567)
  
    Change in fair value of derivative liabilities 

     (348,891)
  
    Gain on the extinguishment of liabilities 

     682,345 
  
    Other non-operating income (loss), net 

     10,879 
  
    Total non-operating income (loss) 

     (304,234)

    Loss before income tax benefit (provision) 

    $(3,943,268)

    Depreciation and amortization  expense 
    $198,028  
    $326,248  
    $26,715  
    $—  
    $550,991 

    Total identifiable assets, net of  eliminations 
    $24,172,478  
    $6,482,510  
    $1,989,068  
    $12,520,139  
    $45,164,195 

    38

The segment net revenues reported
above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income,
which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating
expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property,
plant and equipment, accounts receivable, inventories, and other assets.

Note 18. SUBSEQUENT EVENTS

Special Shareholder Meeting

On Tuesday, May 6, 2025, the Company
held its special meeting of stockholders. Set forth below are each of the three proposals that were voted on at the Special Meeting and
the stockholder votes on each such proposal, as certified by the inspector of elections for the Special Meeting. These proposals are described
in further detail in the Definitive Proxy Statement on Schedule 14A that the Company filed with the SEC on March 4, 2025.

Proposal One: Approval of an
amendment to our Articles of Incorporation to increase the number of authorized shares of our capital stock that we may issue from
210,000,000 shares to 5,010,000,000 shares, of