Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 260

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 260
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 disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

| F-61 |

In December 2023, the FASB issued Accounting Standards Update No. 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures” (“ASU 2023-09”), which modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation, (2) the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and (3) income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose their income tax payments to international, federal, state and local jurisdictions, among other changes. The guidance is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

NOTE 2. INVENTORIES

Inventories consisted of the following at September 30, 2024 and December 31, 2023:

SCHEDULE OF INVENTORIES

|                                                                    |     |   | September 30, 2024 |   |     |   | December 31, 2023 |   |
|:-------------------------------------------------------------------|:----|:--|-------------------:|:--|:----|:--|------------------:|:--|
| Raw material and component parts– video solutions segment          |     | $ |          2,638,063 |   |     | $ |         3,044,653 |   |
| Work-in-process– video solutions segment                           |     |   |             11,565 |   |     |   |            20,396 |   |
| Finished goods – video solutions segment                           |     |   |          3,533,839 |   |     |   |         4,623,489 |   |
| Finished goods – entertainment segment                             |     |   |            364,641 |   |     |   |