Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 150

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 150
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, which remain as set forth pursuant to the Articles of Incorporation. No fractional
shares of Common Stock were issued in connection with the Reverse Stock Split. Stockholders who otherwise were entitled to receive fractional
shares of Common Stock were automatically entitled to receive an additional fraction of a share of Common Stock to round up to the next
whole share, at a participant level. The Reverse Stock Split also had a proportionate effect on all other options and warrants of the
Company outstanding as of the effective date of the Reverse Stock Split. The Reverse Stock Split was effective as of the time of this
filing.

Noncontrolling Interests

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 operations as “net income
(loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported net
(loss) 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.

NOTE 13. RELATED PARTY TRANSACTIONS

Transactions with Managing Member of Nobility
Healthcare

The Company accrued reimbursable
expenses payable to Nobility, LLC totaling $271,487 and $245,716 as of March 31, 2025 and December 31, 2024, respectively. Total management
fees accrued and payable in accordance with the operating agreement totaled $9,321 and $38,625 as of March 31, 2025 and December 31, 2024,
respectively. The company recorded management fee expense of $9,321 and $12,379 for the three months ended March 31, 2025 and 2024, respectively.

Transactions with Related Party of TicketSmarter

On September 22, 2023, a trust,
the beneficiaries of which are TicketSmarter’s Chief Executive Officer and his spouse, made a loan in the amount of $2,325,000 to
TicketSmarter to support TicketSmarter’s operations. On October 2, 2023 an additional $375,000 was advanced to Ticketsmarter. The
transaction was recorded as a related party note payable (the “TicketSmarter Related Party Note”). The TicketSmarter Related
Party Note bears interest of 13.25% per