Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 59

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 59
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|                                                 |     | For the nine months ended  September 30, |       2024 |     |   |       2023 |
|:------------------------------------------------|:----|:-----------------------------------------|-----------:|:----|:--|-----------:|
| Research and development expense                |     | $                                        |  1,244,060 |     | $ |  2,039,361 |
| Selling, advertising and promotional expense    |     |                                          |  1,902,489 |     |   |  5,885,097 |
| General and administrative expense              |     |                                          | 10,462,747 |     |   | 13,845,074 |
| Goodwill and intangible asset impairment charge |     |                                          |  4,830,000 |     |   |          — |
| Total                                           |     | $                                        | 18,439,296 |     | $ | 21,769,532 |

Research and development expense.Our research and development expenses totalled $1,244,060 and $2,039,361 for the nine months ended September 30, 2024 and 2023, respectively which represents a decrease of $795,301 (39%). We have focused on controlling our expenditures on 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 expense 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 totalled $1,902,489 and $5,885,097 for the nine months ended September 30, 2024 and 2023, respectively, a decrease of $3,982,608 (68%). 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 totalled $10,462,747 and $13,845,074 for the nine months ended September 30, 2024 and 2023, respectively. The decrease in general and administrative expenses in the nine months ended September 30, 2024 compared to the same period in