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

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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 INVENTORIES

Inventories consisted of the following
at March 31, 2025 and December 31, 2024:

 SCHEDULE OF INVENTORIES

    March 31, 2025  
    December 31,
                                                                                2024 
  
    Raw material and component parts– video solutions segment 
    $2,590,526  
    $2,589,804 
  
    Work-in-process– video solutions segment 
     71,592  
     4,906 
  
    Finished goods – video solutions segment 
     1,301,474  
     1,655,317 
  
    Finished goods – entertainment segment 
     174,061  
     505,694 
  
    Subtotal 
     4,137,653  
     4,755,721 
  
    Reserve for excess and obsolete inventory– video solutions segment 
     (1,600,459) 
     (2,037,252)
  
    Reserve for excess and obsolete inventory – entertainment segment 
     (48,083) 
     (132,403)
  
    Total inventories 
    $2,489,111  
    $2,586,066 

NOTE 3. PREPAID EXPENSES

Prepaid expenses were the following
at March 31, 2025 and December 31, 2024:

 SCHEDULE OF PREPAID EXPENSE

    March 31, 2025  
    December 31, 2024 
  
    Prepaid inventory 
    $1,292,352  
    $1,158,867 
  
    Prepaid advertising 
     133,549  
     334,882 
  
    Prepaid commissions 
     131,992  
     131,992 
  
    Prepaid common stock offering  
     828,000  
     — 
  
    Other 
     482,458  
     241,517 
  
    Total prepaid expenses 
    $2,868,351  
    $1,867,258 

    16

NOTE 4. GOODWILL AND OTHER INTANGIBLE ASSETS

Intangible assets consisted of the following as of
March 31, 2025 and December 31, 2024:

 SCHEDULE OF INTANGIBLE ASSETS

    March 31, 2025