Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 161

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 161
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 of the fiscal third quarter of 2024 management concluded that the carrying
amount of a trade name/trademark related to the entertainment segment exceeded its estimated fair value and we recorded a non-cash impairment
charge of $201,000, which was included in goodwill and intangible asset impairment charge on our Condensed Consolidated Statements of
Operations for the year ended December 31, 2024. The charge was primarily driven by the split-off transaction not being completed when
and as expected and our recent revenue and operating performance of the related business given a decline in demand and overall economic
uncertainty. The remaining balance for this trade name/trademark was $699,000 as of September 30, 2025 and December 31, 2024.

NOTE
5. DEBT OBLIGATIONS

Debt
obligations are comprised of the following:

SCHEDULE OF DEBT OBLIGATIONS

    September 30, 2025  
    December 31, 2024 
  
    Economic injury disaster loan (EIDL) 
    $141,948  
    $144,495 
  
    Unsecured Promissory note – Entertainment Segment 
     550,000  
     — 
  
    Secured convertible note 
     —  
     — 
  
    Commercial Extension of Credit- Entertainment Segment 
     —  
     100,000 
  
    Merchant Advances – Video Solutions Segment 
     —  
     1,922,750 
  
    Senior Secured Promissory Notes 
     806,451  
     3,600,000 
  
    Unamortized debt issuance costs 
     (494,668) 
     (664,719)
  
    Debt obligations 
     1,003,731  
     5,102,526 
  
    Less: current maturities of debt obligations 
     865,292  
     4,961,443 

    Debt obligations, long-term 
    $138,439  
    $141,083 

Debt
obligations mature on an annual basis as follows as of September 30, 2025:

SCHEDULE OF MATURITY OF DEBT OBLIGATIONS

    September
                                            30,
    2025

    2025
    (October 1, 2025 to December 31, 2025)
     
    $