Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 90

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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,608, an increase from a balance of $454,314
at December 31, 2024. Summarized immediately below and discussed in more detail in the subsequent subsections are the main elements of
the $3,308,294 net increase in cash during the three months ended March 31, 2025:

    ●
    Operating activities:
    Net cash used in operating activities was $5,754,761 and $918,545 for the three months ended March 31, 2025 and 2024, respectively, a deterioration of $4,836,216. The decrease is attributable to the repayment of accounts payable from proceeds of our February 2025 public equity offering, an increase in noncash gains from the change in fair value of warrant derivative liabilities, the extinguishment of liabilities and debt and cash used by the change in operating assets and liabilities during the three months ended March 31, 2025 compared to the same period in 2024.

    ●
    Investing activities:
    Net cash provided by (used in) investing activities was $(85,447) and $160,830 for the three months ended March 31, 2025 and 2024, respectively. During the three months ended March 31, 2025, we made expenditures for the purchase of property plant and equipment and also for patents.

    ●
    Financing activities:
    Net cash provided by financing activities was $9,148,502 and $1,005,027 for the three months ended March 31, 2025 and 2024, respectively. During 2025, we most notably issued Common Stock in a February 2025 public equity with detachable warrants resulting in $14,308,300 in net cash proceeds and issued an unsecured promissory note raising $600,000 in net cash proceeds. The cash proceeds were partially offset by payments on outstanding loans including the payments on senior secured promissory notes and merchant advances.

The net result of these activities
was an increase in cash of $3,308,294 to $3,762,608 for the three months ended March 31, 2025.

53

Commitments:

We had $3,762,608 of cash and
cash equivalents and net positive working capital of $3,385,051 as of March 31, 2025. Accounts receivable and other receivables balances
represented $4,923,191 of our net working capital at March 31,