Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 92

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 92
---
444)

    Debt obligations, long-term 
    $140,210 

Debt obligations mature on an annual basis as follows
as of March 31, 2025:

     March 31, 2025 
  
    2025 (April 1, 2025 to December 31, 2025) 
    $603,444 
  
    2026 
     3,542 
  
    2027 
     3,677 
  
    2028 
     3,817 
  
    2029 and thereafter 
     129,175 

    Total 
    $743,654 

54

Litigation.

From time to time, we are notified
that we may be a party to a lawsuit or that a claim is being made against us. It is our policy to not disclose the specifics of any claim
or threatened lawsuit until the summons and complaint are actually served on us. After carefully assessing the claim, and assuming we
determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against
us. We record a liability when losses are deemed probable and reasonably estimable. When losses are deemed reasonably possible but not
probable, we determine whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim,
if material for disclosure. In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our
historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of our prevailing,
the availability of insurance, and the severity of any potential loss. We re-evaluate and update accruals as matters progress over time.

While the ultimate resolution
is unknown, we do not expect that these lawsuits will individually, or in the aggregate, have a material adverse effect to our results
of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance
that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance
or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating
results, financial condition or cash flows. See Note 9, “Commitments and Contingencies,” to the condensed consolidated financial
statements of this Quarterly Report on Form 10-Q for information on our litigation.