Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 186

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 186
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 31, 2025 and 2024, respectively. During the three months ended March 31, 2025, we made expenditures for the purchase of property plant and equipment and also for patents.

    ●
    Financing activities:
    Net cash provided by financing activities was $9,148,502 and $1,005,027 for the three months ended March 31, 2025 and 2024, respectively. During 2025, we most notably issued Common Stock in a February 2025 public equity with detachable warrants resulting in $14,308,300 in net cash proceeds and issued an unsecured promissory note raising $600,000 in net cash proceeds. The cash proceeds were partially offset by payments on outstanding loans including the payments on senior secured promissory notes and merchant advances.

The net result of these activities
was an increase in cash of $3,308,294 to $3,762,608 for the three months ended March 31, 2025.

53

Commitments:

We had $3,762,608 of cash and
cash equivalents and net positive working capital of $3,385,051 as of March 31, 2025. Accounts receivable and other receivables balances
represented $4,923,191 of our net working capital at March 31, 2025. We intend to collect our outstanding receivables on a timely basis
and reduce the overall level during 2025, which would help to provide positive cash flow to support our operations during 2025 and beyond.
Inventory represents $2,489,111 of our net working capital at March 31, 2025. We are actively managing the level of inventory and our
goal is to reduce such level during 2025 by our sales activities, the decrease of which should provide additional cash flow to help support
our operations during 2025 and beyond.

Capital Expenditures:

We had the following material
commitments for capital expenditures at March 31, 2025:

Lease commitments. Total
lease expense under the Company’s operating leases was approximately $223,580 during the three months ended March 31, 2025.

The following sets forth the operating
lease right of use assets and liabilities as of March 31, 2025:

    Assets: 

    Operating lease right of use assets 
    $680,628 

    Liabilities: 

    Operating lease obligations-current portion 
     162,234