Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 186

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 186
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2023. The Company determines if an allowance for doubtful accounts by regularly evaluating notes receivable and individual customer lease receivables, by considering a customer’s financial condition, credit history, and current economic conditions. The Company recorded an allowance of $ 5,000and $- 0- for the years ended December 31, 2023 and 2022. Other receivables relate to a related party receivable further described in Note 19.

NOTE 5. INVENTORIES

Inventories consisted of the following at December 31, 2023 and 2022:

SCHEDULE OF INVENTORIES

|                                                                    |     |   | December 31, 
         2023 |   |     |   | December 31, 
         2022 |   |
|:-------------------------------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Raw material and component parts– video solutions segment          |     | $ |    3,044,653 |   |     | $ |    4,509,165 |   |
| Work-in-process– video solutions segment                           |     |   |       20,396 |   |     |   |        3,164 |   |
| Finished goods – video solutions segment                           |     |   |    4,623,489 |   |     |   |    6,846,091 |   |
| Finished goods – entertainment segment                             |     |   |      699,204 |   |     |   |      970,527 |   |
| Subtotal                                                           |     |   |    8,387,742 |   |     |   |   12,328,947 |   |
| Reserve for excess and obsolete inventory– video solutions segment |     |   |   (4,355,666 | ) |     |   |   (5,230,261 | ) |
| Reserve for excess and obsolete inventory – entertainment segment  |     |   |     (186,795 | ) |     |   |     (259,280 | ) |
| Total inventories                                                  |     | $ |    3,845,281 |   |     | $ |    6,839,406 |   |

Finished goods inventory includes units held by potential customers and sales agents for test and evaluation purposes. The cost of such units totaled $ 42,797and $ 171,