Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 151

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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 corporate administrative activities, is also to be reported in the segment information. Therefore, its operations
are eliminated in consolidation and is not considered a separate business segment for financial reporting purposes.

The
Company adopted ASU 2023-07 in 2024 and applied the amendment retrospectively to all periods presented in the Company’s condensed
consolidated financial statements. See Note 17, Operating Segments, for more information.

Non-Controlling
Interests

Non-controlling
interests in the Company’s Condensed Consolidated Financial Statements represent the interest in subsidiaries held by venture partners.
The venture partners hold noncontrolling interests in the Company’s consolidated subsidiary Nobility Healthcare, LLC. Since the
Company consolidates the financial statements of all wholly-owned and majority owned subsidiaries, the noncontrolling owners’ share
of each subsidiary’s results of operations are deducted and reported as net income attributable to noncontrolling interest in the
Condensed Consolidated Statements of Operations. The Company owns a 51% equity interest in its consolidated subsidiary, Nobility Healthcare. As a result, the noncontrolling
shareholders or minority interest is allocated 49% of the income/loss of Nobility Healthcare which is reflected in the statement of income
(loss) as “net income (loss) attributable to noncontrolling interests of consolidated subsidiary.

New
Accounting Standards

Recently
Adopted Accounting Standard Updates. - ASU 2023-07, Improvements to Reportable Segment Disclosures, which requires companies
to disclose significant segment expenses provided to the chief operating decision maker (“CODM”) and a description of other
segment items. Additionally, all existing annual disclosures must be provided on an interim basis. This ASU is effective for annual periods
beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This ASU is required to
be applied retrospectively to all prior periods presented in the condensed consolidated financial statements. The Company adopted ASU
2023-07 in 2024 and applied the amendment retrospectively to all periods presented in the Company’s condensed consolidated financial
statements. See Note 17, Operating Segments, for more information.

Recently
Issued Accounting Pronouncements. - ASU 2023-09, Improvements to Income Tax Disclosures, requires improved disclosures related
to the rate reconciliation and income taxes paid. This ASU requires companies to reconcile the income tax expense attributable to continuing
operations to the U.S.