Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 303

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 303
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 obligations 
     (865,292)

    Debt obligations, long-term 
    $138,439 

Debt
obligations mature on an annual basis as follows as of September 30, 2025:

    September 30, 2025 
  
    2025 (July 1, 2025 to December 31, 2025) 
    $628,811 
  
    2026 
     237,379 
  
    2027 
     3,677 
  
    2028 
     3,817 
  
    2029 and thereafter 
     130,047 

    Total 
    $1,003,731 

52

Litigation.

From
time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us. It is our policy to not disclose
the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on us. After carefully assessing
the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend
any lawsuit filed against us. We record a liability when losses are deemed probable and reasonably estimable. When losses are deemed
reasonably possible but not probable, we determine whether it is possible to provide an estimate of the amount of the loss or range of
possible losses for the claim, if material for disclosure. In evaluating matters for accrual and disclosure purposes, we take into consideration
factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood
of our prevailing, the availability of insurance, and the severity of any potential loss. We re-evaluate and update accruals as matters
progress over time.

While
the ultimate resolution is unknown, we do not expect that these lawsuits will individually, or in the aggregate, have a material adverse
effect to our results of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain
and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters
will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a
material adverse effect on our operating results, financial condition or cash flows. See Note 9, “Commitments and Contingencies,”
to the condensed consolidated financial statements of this Quarterly