Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 266

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 2
Chunk 266
---
. The significant components of selling, general and administrative expenses are as follows:

    Three Months ended June 30, 

    2025  
    2024 
  
    Research and development expense 
    $183,811  
    $545,776 
  
    Selling, advertising and promotional expense 
     283,137  
     728,906 
  
    General and administrative expense 
     2,995,500  
     2,881,931 

    Total 
    $3,462,448  
    $4,156,613 

49

Research and development
expense. Our research and development expenses totaled $183,811 and $545,776 for the three months ended June 30, 2025 and 2024,
respectively which represents a decrease of $361,965 (66.3%). We have focused on controlling our expenditures for bringing new products
to market, including updates and improvements to current products in response to our decline in revenues. The decrease in research and
development expenses reflects the large cut-back in our engineering staff and research activities in order to right-size our expenses in
this area with our revenues.

Selling, advertising
and promotional expenses. Selling, advertising and promotional expense totaled $283,137 and $728,906 for the three months ended
June 30, 2025 and 2024, respectively, a decrease of $445,769 (61.2%). The decrease in selling, advertising and promotional expenses reflects
the large cut-back in selling staff and promotional and advertising activities in order to right-size our expenses in this area with our
revenues. In addition, the decrease is attributable to the reduction in new sponsorships being entered into by the Company and its subsidiary
TicketSmarter.

General and administrative
expense. General and administrative expenses totaled $2,995,500 and $2,881,931 for the three months ended June 30, 2025 and 2024,
respectively which represents a slight increase of $113,569 (3.9%). The increase in general and administrative expenses in the three months
ended June 30, 2025 compared to the same period in 2024 is primarily attributable to a substantial increase legal and professional expenses
for the three months ended June 30, 2025 compared to the same period in 2024 due to the failed merger with CloverLeaf and various capital
raises we have undertaken which was offset by a decrease in