Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 104

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 104
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 $2,245,596 and $3,666,728 for the three months ended
September 30, 2025 and 2024, respectively which represents a decrease of $1,421,132 (38.8%). The decrease in general and administrative
expenses in the three months ended September 30, 2025 compared to the same period in 2024 is primarily attributable to a substantial
decrease in legal and professional expenses for the three months ended September 30, 2025 compared to the same period in 2024 due to
the failed merger with CloverLeaf in the 2024 period and various capital raises we have undertaken in 2024. We also implemented decreases
in administrative salaries and reductions in headcount during the 2025 period in order to right-size our expenses across all operating
segments with our revenues.

Operating
Loss

For
the reasons previously stated, our operating loss was $1,121,782 and $7,382,299 for the three months ended September 30, 2025 and 2024,
respectively, an improvement in our operating loss of $6,260,517 (84.8%). Operating loss as a percentage of revenues improved to 24.7%
in 2025 as compared to 182% in 2024.

Interest
Income

Interest
income increased to $17,887 for the three months ended September 30, 2025, from $13,775 in 2024, which reflects our overall increase
in our cash and cash equivalent levels in 2025 compared to 2024 due to funds generated in the February 2025 public equity offering and
the net proceeds from our September 2025 senior convertible note issuance.

Interest
Expense

We
incurred interest expenses of $90,697 and $771,846 during the three months ended September 30, 2025 and 2024, respectively. The large
decrease is attributable to the Company paying off most of its interest-bearing debt in late 2024 and early 2025 including the $3.6 million
of senior secured promissory notes that were paid off with proceeds from the February 2025 public equity offering.

Other
income (expense)

Other
income (expense) increased to $217,136 for the three months ended September 30, 2025 from $8,920 for the comparable 2024 period, primarily
due to weather insurance proceeds that we received related to the 202