Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 261

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 261
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 for the most part, secured by expected future sales transactions of the Company with expected payments on a weekly basis. The Company will repay an aggregate of $ 1,512,000to the lender. The loan bears interest at 2.9% per week.

During the nine months ended September 30, 2024, the Company made repayments totalling $ 1,382,500and received additional proceeds of $ 1,144,000. The Company refinanced this loan in April 2024 resulting in the additional proceeds received during the nine months ended September 30, 2024. The refinancing was deemed to be an extinguishment of debt and a loss on extinguishment of debt was recorded during the nine months ended September 30, 2024 of $ 68,827.

As of September 30, 2024 the outstanding principal balance was $ 2,091,500which is expected to be repaid in 2024 and early 2025. As of September 30, 2024 the remaining discount balance was $ 52,538.

The remaining unamortized discount was $ 52,538and $ 369,171as September 30, 2024 and December 31, 2023, respectively.

Merchant Cash Advances – Entertainment Segment

On March 1, 2024, the Company obtained a short-term merchant advance, which totalled $ 1,000,000, from a single lender to fund operations. These advances included origination and issuance fees totalling $ 85,000for net proceeds of $ 915,000. The advance is, for the most part, is secured by expected future sales transactions of the Company with expected payments on a weekly basis. The Company will repay an aggregate of $ 1,425,000to the lender. The loan bears interest at an 40.4523% annual effective rate based on latest debt modification. During the three and nine months ended September 30, 2024, the Company made repayments totalling $803,850and $ 855,749, respectively.

The Company modified/amended the underlying loan agreement twice during the three months ended September 30, 2024, resulting in additional proceeds totalling $ 393,836. The modifications were both deemed to be extinguishments of debt resulting in a $ 310,505total loss on the extinguishment of debt during the three and nine months ended September 30, 2024. As of September 30