Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 47

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 47
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 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 December 31, 2024, we had cash and cash equivalents with an aggregate balance of $454,314, a decrease from a balance of $778,149 (including restricted cash) at December 31, 2023. Summarized immediately below and discussed in more detail in the subsequent subsections are the main elements of the $323,835 net decrease in cash during the year ended December 31, 2024:

| ● | Operating activities: | Net cash used in operating activities was $5,114,718 and $9,893,838 for                                                                  
 the years ended December 31, 2024 and 2023, respectively, an improvement of $4,779,120. The decrease is attributable to the improved net 
 loss, an increase in noncash expenses such as non-cash interest expense and cash provided the change in operating assets and liabilities 
 during the year ended December 31, 2024 compared to the same period in 2023.                                                             |
| ● | Investing activities: | Net cash provided by (used in) investing activities was $387,549 and $(240,706)                                                          
 for the years ended December 31, 2024 and 2023, respectively. During the year ended December 31, 2024, we made expenditures or received  
 cash for the following: (i) sold our corporate headquarters building for $5,900,000 and received net cash of $425,653 after paying off   
 the building loan and various other deductions (ii) the acquisition of Country Stampede; and (iii) received proceeds from the sale of    
 our aircraft.                                                                                                                            |

| 27 |

| ● | Financing activities: | Net cash provided by financing activities was $4,403,334 and $7,380,494                                                                   
 for the years ended December 31, 2024 and 2023, respectively. During 2024, we most notably refinanced a loan resulting in proceeds of     
 $1,144,000, obtained an additional merchant advance providing proceeds of $1,511,826, obtained $1,475,000 in new commercial extension