Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 282

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 282
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    Research and development expense 
    $137,755  
    $210,818 
  
    Selling, advertising and promotional expense 
     110,006  
     414,727 
  
    General and administrative expense 
     2,245,596  
     3,666,728 
  
    Goodwill and intangible asset impairment charge 
     —  
     4,830,000 

    Total 
    $2,493,357  
    $9,122,273 

Research
and development expense. Our research and development expenses totaled $137,755 and $210,818 for the three months ended September
30, 2025 and 2024, respectively which represents a decrease of $73,063 (34.7%). The decrease in research and development expense reflects
a narrower project portfolio and a reallocation of resources toward sustaining engineering and targeted enhancements, including reductions
in engineering headcount and third-party development spend.

Selling,
advertising and promotional expenses. Selling, advertising and promotional expense totaled $110,006 and $414,727 for the three
months ended September 30, 2025 and 2024, respectively, a decrease of $304,721 (73.5%). Selling, advertising, and promotional expenses
decreased due to significant reductions in sales staffing and in promotional and advertising activities, undertaken to right-size these
expenses to current revenue levels. Additionally, the decline reflects fewer new sponsorship agreements at the Company and its subsidiary,
TicketSmarter.

General
and administrative expense. General and administrative expenses totaled $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