Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 13

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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80 

    Restricted common stock forfeitures 
    $—  
    $51 

    Commercial extension of credit repaid through accrued revenue – Entertainment segment 
    $—  
    $825,000 

    ROU and lease liability recorded on extension (termination) of lease 
    $—  
    $470,489 

    Assets acquired in business acquisitions 
    $—  
    $605,000 

    Goodwill acquired in business acquisitions 
    $—  
    $225,959 

    Liabilities assumed in business acquisitions 
    $—  
    $288,000 

    Adjustments of accounts payable with the sale proceeds of property, plant and equipment 
    $—  
    $549,356 

    Deemed capital contribution related to modification of notes payable - related party 
    $1,871,994  
    $— 

    Fair value of warrants issued with sale of shares 
    $6,748,425  
    $2,075,300 

    Transition of warrant derivative liability to equity upon exercise of warrants 
    $7,928,030  
    $— 

    Fair value of detachable warrants issued with senior secured convertible notes issuance 
    $319,417  
    $— 

    Issuance of common stock upon exercise of pre-funded warrants 
    $—  
     573 

    Reduction in proceeds from sale of building for loan, prepaid rent, and other accrued expenses 
    $—  
     5,474,347 

    Payments to vendors directly from proceeds of sale of common stock 
    $—  
     334,703 

See
Notes to Unaudited Condensed Consolidated Financial Statements.

6

DIGITAL
ALLY, INC.

NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

NOTE
1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature
of Business:

Digital
Ally, Inc. was originally incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc. and had no operations until 2004. On November
30, 2004, Vegas Petra, Inc. entered into a Plan of Merger with Digital Ally, Inc., at which time the merged entity was renamed Digital
Ally, Inc. (such merged entity, the “Predecessor Registr