Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 12

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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The following is a summary of the Company’s
Significant Accounting Policies:

Basis of Presentation:

The unaudited condensed consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial
information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information
and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
Operating results for the three-month period ended March 31, 2025 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2025.

The balance sheet as of December
31, 2024 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required
by generally accepted accounting principles in the United States for complete financial statements.

For further information, refer
to the audited consolidated financial statements and footnotes included in the Company’s annual report on Form 10-K for the year
ended December 31, 2024.

Basis of Consolidation:

The accompanying condensed consolidated
financial statements include the consolidated accounts of Digital Ally, its wholly-owned subsidiaries, Digital Ally International, Inc.,
Shield Products, LLC, Digital Ally Healthcare, LLC, TicketSmarter, Inc., Worldwide Reinsurance, Ltd., Digital Connect, Inc., BirdVu Jets,
Inc., Kustom 440, Inc., and its majority-owned subsidiary Nobility Healthcare, LLC. All intercompany balances and transactions have been
eliminated during consolidation.

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The Company formed Digital Ally
International, Inc. during August 2009 to facilitate the export sales of its products. The Company formed Shield Products, LLC in May
2020 to facilitate the sales of its Shield™ line of disinfectant/cleanser products and ThermoVu™ line of temperature monitoring
equipment. The Company formed Nobility Healthcare, LLC (“Nobility Healthcare”) in June 2021 to facilitate the operations of
its revenue cycle management solutions and back-office services for healthcare organizations. The Company formed TicketSmarter, Inc. upon
its acquisition of Goody Tickets, LLC and TicketSmarter, LLC, to facilitate its global ticketing operations. The Company formed Worldwide
Reinsurance Ltd., which is a captive insurance company domiciled in