Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 247

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 247
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flows from operating activities since inception. Based upon our current
operating forecast, we anticipate that we will need to restore positive operating cash flows and/or raise additional capital in the short-term
to fund operations, meet our customary payment obligations and otherwise execute our business plan over the next 12 months. We are continuously
in discussions 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 September 30, 2025, we had cash and cash equivalents with an aggregate balance of $793,360, an increase from
a balance of $454,314 at December 31, 2024. Summarized immediately below and discussed in more detail in the subsequent subsections are
the main elements of the $339,046 net increase in cash during the nine months ended September 30, 2025:

    ●
    Operating
    activities:
    Net
    cash used in operating activities was $8,996,431 and $4,086,023 for the nine months ended September 30, 2025 and 2024, respectively,
    a deterioration of $4,910,410. The decline in operating cash flows primarily reflects the repayment of accounts payable (funded by
    proceeds from our February 2025 public equity offering), higher noncash gains from changes in the fair value of warrant derivative
    liabilities and from liability and debt extinguishments, which reduced noncash add-backs to operating cash flow, and unfavorable
    changes in operating assets and liabilities period over period.

    ●
    Investing
    activities:
    Net
    cash provided by (used in) investing activities was $(349,319) and $392,523 for the nine months ended September 30, 2025 and 2024,
    respectively. During the nine months ended September 30, 2025, we made expenditures for the purchase of property plant and equipment
    and also for patents. During the nine months ended September 30, 2024, we sold our building and collected $550,644 in net proceeds.

    ●
    Financing
    activities:
    Net
    cash provided by financing activities was $9,684,796 and $3