Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 89

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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 a result, the noncontrolling shareholders or minority interest is allocated
49% of the income/loss of Nobility Healthcare which is reflected in the condensed consolidated statement of income (loss) as “net
income (loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported net income attributable to noncontrolling
interests of consolidated subsidiary of $3,611 and $12,248 for the three months ended March 31, 2025 and 2024, respectively.

Net Loss Attributable to Common Stockholders

As a result of the above, we reported
a net income (loss) of $4,263,471 and $(3,931,020) for the three months ended March 31, 2025 and 2024, respectively, an improvement of
$8,194,491 (208%).

52

Basic and Diluted Income/(Loss) per Share

The basic and diluted income/(loss)
per share was $1.41 and ($27.48) for the three months ended March 31, 2025 and 2024, respectively, for the reasons previously noted. All
outstanding stock options and Common Stock purchase warrants were considered antidilutive and therefore excluded from the calculation
of diluted income (loss) per share for the three months ended March 31, 2025 and 2024 because all potentially dilutive securities were
excluded from the computation because of their exercise price being higher than the market value of our Common Stock in 2025 and the net
loss reported for 2024.

Liquidity and Capital Resources

Overall:

Management’s Liquidity
Plan. We have experienced net losses and cash outflows from operating activities since inception. Based upon our current operating
forecast, we anticipate that we will need to restore positive operating cash flows and/or raise additional capital in the short-term to
fund operations, meet our customary payment obligations and otherwise execute our business plan over the next 12 months. We are continuously
in discussions to raise additional capital, which may include a variety of equity and debt instruments; however, there can be no assurance
that our capital raising initiatives will be successful. Our recurring losses and level of cash used in operations, along with uncertainties
concerning our ability to raise additional capital, raise substantial doubt about our ability to continue as a going concern.

Cash, cash equivalents:
As of March 31, 2025, we had cash and cash equivalents with an aggregate balance of $3,762