Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 302

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 302
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 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 September 30, 2025:

Lease
commitments. Total lease expense under the Company’s operating leases was approximately $546,797 during the nine months
ended September 30, 2025.

The
following sets forth the operating lease right of use assets and liabilities as of September 30, 2025:

    Assets: 

    Operating lease right of use assets, net 
    $1,496,418 
  
    Prepayment of rent 
     138,843 

    Total operating lease right of use asset 
    $1,635,261 
  
    Liabilities: 

    Operating lease obligations-current portion 
     248,012 
  
    Operating lease obligations-less current portion 
     1,248,406 
  
    Total operating lease obligations 
    $1,496,418 

Following
are the minimum lease payments for each year and in total.

    Year ending December 31: 

    2025 (October 1, 2025 through December 31, 2025) 
    $52,738 
  
    2026 
     381,251 
  
    2027 
     448,051 
  
    2028 
     364,652 
  
    2029 and thereafter 
     489,231 
  
    Total undiscounted minimum future lease payments 
     1,735,923 
  
    Imputed interest 
     (239,505)
  
    Total operating lease liability 
    $1,496,418 

Debt
obligations - We have the following outstanding debt as of September 30, 2025 which require future principal payments:

    September 30, 2025 
  
    Economic injury disaster loan (EIDL) 
    $141,948 
  
    Unsecured Promissory note – Entertainment Segment 
     550,000 
  
    Senior Secured Promissory Notes 
     806,451 
  
    Unamortized debt issuance costs 
     (494,668)
  
    Debt obligations 
     1,003,731 
  
    Less: current maturities of debt