Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 100

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 100
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 $1,742,000 of research and development tax credit carryforwards as of June
30, 2025 and December 31, 2024 available to offset future net taxable income.

Net Income (Loss)

As a result of the above,
we reported net income (loss) of $(4,489,204) and $(5,010,551) for the three months ended June 30, 2025 and 2024, respectively, an improvement
of $521,347 (10.4%).

Net Income Attributable to Noncontrolling Interests
of Consolidated Subsidiary

The Company has a 51% equity
interest in its consolidated subsidiary, Nobility Healthcare. As 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 $55,997 and $73,310 for the three months ended June 30, 2025 and 2024, respectively.

51

Net Loss Attributable to Common Stockholders

As a result of the above,
we reported a net income (loss) of $(4,545,201) and $(5,083,861) for the three months ended June 30, 2025 and 2024, respectively, an improvement
of $538,660 (10.6%).

Basic and Diluted Loss per Share

The basic and diluted loss
per share was $(3.21) and ($3,479.71) for the three months ended June 30, 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 loss per share for the three months ended June 30, 2025 and 2024 because of their exercise price being higher than
the market value of our Common Stock  and the net loss reported for 2025 and 2024.

Comparison of the Six Months Ended June
30, 2025 and 2024

Summary Financial Data

Summarized financial information
for the Company’s reportable business segments is provided for the six months ended June 30, 2025, and 2024:

    Six Months Ended June