Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 233

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 233
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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 and liabilities during the six months ended June 30, 2025 compared to the same period in 2024.

    ●
    Investing activities:
    Net cash provided by (used in) investing activities was $(313,041) and $36,504 for the six months ended June 30, 2025 and 2024, respectively. During the six months ended June 30, 2025, we made expenditures for the purchase of property plant and equipment and also for patents.  During the six months ended June 30, 2024, we sold our building and collected $550,644 in net proceeds.

    ●
    Financing activities:
    Net cash provided by financing activities was $9,125,653 and $3,208,817 for the six months ended June 30, 2025 and 2024, respectively. During 2025, we most notably issued Common Stock in the February 2025 public equity with detachable warrants resulting in $14,308,300 in net cash proceeds and issued an unsecured promissory note raising $600,000 in net cash proceeds. The cash proceeds were partially offset by payments on outstanding loans including the payments on senior secured promissory notes and merchant advances.

The net result of these activities
was an increase in cash of $168,506 to $622,820 for the six months ended June 30, 2025.

Commitments:

We have $622,820 of cash and
cash equivalents and net positive working capital of $119,506 as of June 30, 2025. Accounts receivable and other receivables balances
represented $4,613,334 of our net working capital at June 30, 2025. We intend to collect our outstanding receivables on a timely basis
and reduce the overall level during 2025, which would help to provide positive cash flow to support our operations during 2025 and beyond.
Inventory represents $2,466,106 of our net working capital at June 30, 2025. We are actively managing the level of inventory, and our goal
is to reduce such level during 2025 by our sales activities, the decrease of which should provide