Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 110

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 110
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 General and Administrative Expenses

Selling, general and administrative
expenses were $6,038,627 and $9,317,023 for the six months ended June 30, 2025 and 2024, respectively, a decrease of $3,278,396 (35%).
The decrease was primarily attributable to the reduction in new advertising sponsorships being entered into by the Company and large reductions
in selling, general and administrative head count as the Company right-sized its operations across all operating segments. Our selling,
general and administrative expenses as a percentage of sales increased to 60% for the six months ended June 30, 2025 compared to 84% in
the same period in 2024. The significant components of selling, general and administrative expenses are as follows:

    Six Months ended June 30, 

    2025  
    2024 
  
    Research and development expense 
    $268,228  
    $1,033,242 
  
    Selling, advertising and promotional expense 
     391,178  
     1,487,762 
  
    General and administrative expense 
     5,379,221  
     6,796,019 

    Total 
    $6,038,627  
    $9,317,023 

Research and development
expense. Our research and development expenses totaled $268,228 and $1,033,242 for the six months ended June 30, 2025 and 2024,
respectively which represents a decrease of $765,014 (74%). We have focused on controlling our expenditures for bringing new products
to market, including updates and improvements to current products in response to our decline in revenues. The decrease in research and
development expenses reflects the large cut-back in our engineering staff and research activities in order to right-size our expenses in
this area with our revenues.

Selling, advertising
and promotional expenses. Selling, advertising and promotional expense totaled $391,178 and $1,487,762 for the six months ended
June 30, 2025 and 2024, respectively, a decrease of $1,096,584 (73.7%). The decrease in selling, advertising and promotional expenses
reflects the large cut-back in selling staff and promotional and advertising activities in order to right-size our expenses in this area
with our revenues. In addition, the decrease is attributable to the reduction in new sponsorships being entered into by the Company