Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 184

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 184
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 rate for both 2025 and 2024 varied from the
expected statutory rate due to our continuing to provide a 100% valuation allowance on net deferred tax assets. We determined that it
was appropriate to continue the full valuation allowance on net deferred tax assets as of March 31, 2025 and December 31, 2024 primarily
because of the recurring operating losses.

We have further determined to
continue providing a full valuation reserve on our net deferred tax assets as of March 31, 2025.

We had approximately $159,280,000
of federal net operating loss carryforwards and $1,742,000 of research and development tax credit carryforwards as of March 31, 2025 and
December 31, 2024 available to offset future net taxable income.

Net Income (Loss)

As a result of the above, we reported
a net income (loss) of $4,267,082 and $(3,943,268) for the three months ended March 31, 2025 and 2024, respectively, an improvement of
$8,210,350 (208%).

Net Income Attributable to Noncontrolling Interests
of Consolidated Subsidiary

The Company owns a 51% equity
interest in its consolidated subsidiary, Nobility Healthcare. As a result, the noncontrolling shareholders or minority interest is allocated
49% of the income/loss of Nobility Healthcare which is reflected in the condensed consolidated statement of income (loss) as “net
income (loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported net income attributable to noncontrolling
interests of consolidated subsidiary of $3,611 and $12,248 for the three months ended March 31, 2025 and 2024, respectively.

Net Loss Attributable to Common Stockholders

As a result of the above, we reported
a net income (loss) of $4,263,471 and $(3,931,020) for the three months ended March 31, 2025 and 2024, respectively, an improvement of
$8,194,491 (208%).

52

Basic and Diluted Income/(Loss) per Share

The basic and diluted income/(loss)
per share was $1.41 and ($27.48) for the three months ended March 31, 2025 and 2024, respectively, for the reasons previously noted. All
outstanding stock