Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 30

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 30
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 and thereafter 
     129,175 

    Total 
    $743,654 

2020 Small Business Administration Notes.

On May 12, 2020, the Company received
$150,000 in loan funding from the SBA under the Economic Injury Disaster Loan (“EIDL”) program administered by the SBA, which
program was expanded pursuant to the recently enacted CARES Act. The EIDL is evidenced by a secured promissory note, dated May 8, 2020,
in the original principal amount of $150,000 with the SBA, the lender.

Under the terms of the note issued
under the EIDL program, interest accrues on the outstanding principal at the rate of 3.75% per annum. The term of such note is thirty
years, though it may be payable sooner upon an event of default under such note. Monthly principal and interest payments began in November
2022, after being deferred for thirty months after the date of disbursement and total $731 per month thereafter. Such note may be prepaid
in part or in full, at any time, without penalty. The Company granted the SBA a continuing interest in and to any and all collateral,
including but not limited to tangible and intangible personal property.

Unsecured Promissory Note

On February 1, 2025, the Company’s
Entertainment Segment entered into a $600,000 unsecured promissory note with a third party. The promissory note bears an interest rate
of 10.0% per annum, compounded monthly. Payments of principal and interest were originally due on May 5, 2025. The parties agreed to extend
the term for payments of principal and interest until June 4, 2025.

    20

2024 Commercial Extension of Credit

On January 22, 2024, the Company’s
Entertainment segment entered into an extension of credit in the form of a loan to use in marketing and operating its business in accordance
with the Ticket Solution Agreement. The Lender, Ticket Evolution, Inc., agreed to extend, subject to the conditions hereof, and Borrower
agreed to take, an advance for a sum of $75,000 with monthly advances of $100,000.

The advances made are recoupable
from client service fees with no more than $25,000 being recouped in any one week. The Company paid the remaining balance in full during
the three months ended March