Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 117

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 117
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, advertising and promotional expense 
     501,184  
     1,902,489 
  
    General and administrative expense 
     7,624,817  
     10,462,747 
  
    Goodwill and intangible asset impairment charge 
     —  
     4,830,000 

    Total 
    $8,531,984  
    $18,439,296 

Research
and development expense. Our research and development expenses totaled $405,983 and $1,244,060 for the nine months ended September
30, 2025 and 2024, respectively which represents a decrease of $838,077 (67.4%). The decrease in research and development expense reflects
a narrower project portfolio and a reallocation of resources toward sustaining engineering and targeted enhancements, including reductions
in engineering headcount and third-party development spend.

Selling,
advertising and promotional expenses. Selling, advertising and promotional expense totaled $501,184 and $1,902,489 for the nine
months ended September 30, 2025 and 2024, respectively, a decrease of $1,401,305 (73.7%). The decrease in selling, advertising and promotional
expenses is due to significant reductions in sales staffing and in promotional and advertising activities, undertaken to right-size these
expenses to current revenue levels. Additionally, the decline reflects fewer new sponsorship agreements at the Company and its subsidiary,
TicketSmarter.

General
and administrative expense. General and administrative expenses totaled $7,624,817 and $10,462,747 for the nine months ended
September 30, 2025 and 2024, respectively which represents a decrease of $2,837,930 (27.1%). The decrease in general and administrative
expenses in the nine months ended September 30, 2025 compared to the same period in 2024 is primarily attributable to a decrease in administrative
salaries and reductions in headcount in order to right-size our expenses in this area with our revenues. The decrease in general and
administrative expenses was also attributable to a substantial decrease in legal and professional expenses for the nine months ended
September 30, 2025 compared to the same period in 2024 due to the failed merger with CloverLeaf and various capital raises we have undertaken
in the 2024 period.

Operating
Loss

For
the reasons previously stated, our operating loss was $6,191,535 and $14,