Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 181

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 181
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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 on a note receivable issued by the Company during 2022. The Company entered into a promissory note, through its entertainment segment, as part of a co-marketing agreement, with a principal amount of $ 3,000,000. Principal payment, since its inception, on this promissory note totaled $ 2,849,846as of December 31, 2023, resulting in a remaining balance of $ 150,154maturing December 31, 2023. Lease receivable increased by $ 0.6million primarily due to increased sales under the Company’s subscription model during 2023. The Company determines if an allowance for doubtful accounts by regularly evaluating notes receivable and individual customer lease receivables, by considering a customer’s financial condition, credit history, and current economic conditions. The Company recorded an allowance of $ 5,000and $- 0- for the years ended December 31, 2023 and 2022. Other receivables relate to a related party receivable further described in Note 19.

NOTE 5. INVENTORIES

Inventories consisted of the following at December 31, 2023 and 2022:

SCHEDULE OF INVENTORIES

|                                                                    |     |   | December 31, 
         2023 |   |     |   | December 31, 
         2022 |   |
|:-------------------------------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Raw material and component parts- video solutions segment          |     | $ |    3,044,653 |   |     | $ |    4,509,165 |   |
| Work-in-process- video solutions segment                           |     |   |       20,396 |   |     |   |        3,164 |   |
| Finished goods - video solutions segment                           |     |   |    4,623,489 |   |     |   |    6,846,091 |   |
| Finished goods - entertainment segment                             |     |   |      699,204 |   |     |   |      970,527 |   |