Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 285

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 2
Chunk 285
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%).

Basic and Diluted Loss per Share

The basic and diluted
loss per share was $0.54 and ($6,234.36) for the six months ended June 30, 2025 and 2024, respectively, for reasons previously
noted. All outstanding stock options and Common Stock purchase warrants were considered antidilutive and therefore excluded from the
calculation of diluted income (loss) per share for the six months ended June 30, 2025 and 2024. Such potentially dilutive securities
were excluded from the computation because of their exercise price being higher than the market value of our Common Stock
and the net loss reported for 2025 and 2024.

Liquidity and Capital Resources

Overall:

Management’s Liquidity
Plan. We have experienced net losses and cash outflows 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.

60

Cash, cash equivalents:
As of June 30, 2025, we had cash and cash equivalents with an aggregate balance of $622,820, 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
$168,506 net increase in cash during the six months ended June 30, 2025:

    ●
    Operating activities:
    Net cash used in operating activities was $8,644,106 and $3,408,757 for the six months ended June 30, 2025 and 2024, respectively, a deterioration of $5,235,349. The decrease is attributable to the repayment of accounts payable from proceeds of our February 2025 public equity offering, an increase in noncash gains from the change in fair value of warrant derivative liabilities, the extinguishment of liabilities and debt and cash used by the change in operating assets