Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 265

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 265
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   |     | $                  |  1,266,073 |   |

NOTE 5. ACCRUED EXPENSES

Accrued expenses consisted of the following at September 30, 2024 and December 31, 2023:

SCHEDULE OF ACCRUED EXPENSES

|                                      |     |   | September 30, 2024 |     |   | December 31, 2023 |
|:-------------------------------------|:----|:--|-------------------:|:----|:--|------------------:|
| Accrued warranty expense             |     | $ |             11,615 |     | $ |            17,699 |
| Accrued litigation costs             |     |   |          2,040,292 |     |   |         2,040,292 |
| Accrued payroll and related fringes  |     |   |            585,030 |     |   |           367,826 |
| Accrued sales returns and allowances |     |   |             93,170 |     |   |           117,713 |
| Accrued taxes                        |     |   |            116,463 |     |   |           150,981 |
| Accrued interest - related party     |     |   |            385,390 |     |   |            95,031 |
| Customer deposits                    |     |   |            227,885 |     |   |           219,462 |
| Other                                |     |   |            136,835 |     |   |           260,326 |
| Total accrued expenses               |     | $ |          3,596,680 |     | $ |         3,269,330 |

| F-69 |

Accrued warranty expense was comprised of the following for the nine months ended September 30, 2024:

SCHEDULE OF ACCRUED WARRANTY EXPENSE

| Beginning balance                   |     | $ |  17,699 |   |
| Provision for warranty expense      |     |   |  38,898 |   |
| Charges applied to warranty reserve |     |   | (44,982 | ) |
| Ending balance                      |     | $ |  11,615 |   |

NOTE 6. INCOME TAXES

The effective tax rate for the three and nine months ended September 30, 2024 and 2023 varied