Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 180

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 180
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 reduce the risk in most cases to supplier problems that could result in significant production delays. The Company has not historically experienced significant supply disruptions from any of its principal vendors and does not anticipate future supply disruptions. The Company acquires most of its components on a purchase order basis and does not have long-term contracts with its suppliers.

NOTE 3. ACCOUNTS RECEIVABLE - ALLOWANCE FOR DOUBTFUL ACCOUNTS

The allowance for doubtful accounts receivable was comprised of the following for the years ended December 31, 2023 and 2022:

SCHEDULE OF ALLOWANCE FOR DOUBTFUL ACCOUNTS

|                                             |     |   | December 31, 2023 |   |     |   | December 31, 2022 |   |
|:--------------------------------------------|:----|:--|------------------:|:--|:----|:--|------------------:|:--|
| Beginning balance                           |     | $ |           152,736 |   |     | $ |           113,234 |   |
| Provision for bad debts                     |     |   |            84,446 |   |     |   |           126,018 |   |
| Charge-offs to allowance, net of recoveries |     |   |           (36,514 | ) |     |   |           (86,516 | ) |
| Ending balance                              |     | $ |           200,668 |   |     | $ |           152,736 |   |

| F-19 |

NOTE 4. OTHER RECEIVABLES

Other receivables were the following at December 31, 2023 and December 31, 2022:

SCHEDULE OF OTHER RECEIVABLES

|                         |     |   | December 31, 
         2023 |     |   | December 31, 
         2022 |
|:------------------------|:----|:--|-------------:|:----|:--|-------------:|
| Notes receivable        |     | $ |      150,154 |     | $ |    1,598,340 |
| Lease receivable, net   |     |   |    2,940,261 |     |   |    2,339,799 |
| Other                   |     |   |       17,219 |     |   |      138,383 |
| Total other receivables |     | $ |    3,