Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 49

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 49
---
angible asset impairment charge recorded during the 2024 period offset by a reduction in new sponsorships being entered into by the Company. Our selling, general and administrative expenses as a percentage of sales increased to 225% for the three months ended September 30, 2024 compared to 101% in the same period in 2023. The significant components of selling, general and administrative expenses are as follows:

|                                        |     | For                    
 the three months ended 
 September              
 30,                    |      2024 |     |   |      2023 |
|:---------------------------------------|:----|:-----------------------|----------:|:----|:--|----------:|
| Research                               
 and development expense                |     | $                      |   210,818 |     | $ |   564,146 |
| Selling,                               
 advertising and promotional expense    |     |                        |   414,727 |     |   | 1,932,982 |
| General                                
 and administrative expense             |     |                        | 3,666,728 |     |   | 3,877,064 |
| Goodwill                               
 and intangible asset impairment charge |     |                        | 4,830,000 |     |   |         — |
| Total                                  |     | $                      | 9,122,273 |     | $ | 6,374,192 |

| 31 |

Research and development expense.Our research and development expenses totalled $210,818 and $564,146 for the three months ended September 30, 2024 and 2023, respectively which represents a decrease of $353,328 (63%). 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 $414,727 and $1,932,982 for the three months ended September 30, 2024 and 2023, respectively, a decrease of $1,518,255 (79%). 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