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

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 ASU requires companies to reconcile the income tax expense attributable to continuing operations to the U.S.
statutory federal income tax rate applied to pre-tax income from continuing operations. Additionally, this ASU requires companies to disclose
the total amount of income taxes paid during the period. This ASU is effective for annual periods beginning after December 15, 2024, with
early adoption permitted. The guidance is required to be applied on a prospective basis with the option to apply retrospectively to all
prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact to the Company’s
condensed consolidated financial statements.

    13

ASU 2024-03, Disaggregation
of Income Statement Expenses, requires disaggregated disclosures in the notes to the consolidated financial statements of certain
categories of expenses that are included in expense line items on the Consolidated Statement of Income. This ASU is effective for annual
periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with early adoption permitted.
The guidance is required to be applied on a prospective basis with the option to apply retrospectively to all prior periods presented
in the consolidated financial statements. The Company is currently evaluating the impact to the Company’s condensed consolidated
financial statements.

ASU 2024-04, Induced
Conversions of Convertible Debt Instruments, clarifies the requirement for determining whether certain settlements of
convertible debt instruments should be accounted for as induced conversions or extinguishments. This ASU is effective for annual
periods beginning after December 15, 2025. Early adoption is permitted and can be applied either on a prospective basis or
retrospective basis. The Company is currently evaluating the impact of this ASU to the Company’s condensed consolidated
financial statements, however the Company does not anticipate this guidance having a material impact to the condensed consolidated
financial statements.

The other recent accounting
pronouncements issued by the Financial Accounting Standards Board (“FASB”) are not expected to have a significant impact on
the Company’s consolidated financial statements and related disclosures.

Going Concern Matters and Management’s
Plans

The accompanying condensed
consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company incurred substantial operating losses in the years ended December 31, 2024
and year to date June 30, 2025 primarily due to reduced