Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 139

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 139
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 recorded debt issuance costs of $188,255 which was fully amortized as of the date the Mortgage was paid in full. The remaining unamortized discount was $-0- and $171,258 as December 31, 2024 and 2023, respectively.During the year ended December 31, 2024 and 2023, the Company amortized $171,258
and $16,997 of debt discount under interest expense, respectively.

| F-28 |

Merchant Cash Advances – Video Solutions Segment

In November 2023, the Company obtained a short-term merchant advance, which totaled $1,050,000, from a single lender to fund operations. These advances included origination fees totaling $50,000 for net proceeds of $1,000,000. The advance is, 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 $1,512,000 to the lender. The loan bears interest at 2.9% per week.

During the year ended December 31, 2024, the Company made repayments totaling $1,551,250 and received additional proceeds of $1,144,000 and recorded additional discount of $980,000. The Company refinanced this loan in April 2024 resulting in the additional proceeds received during the year ended December 31, 2024. The refinancing was deemed to be an extinguishment of debt and a loss on extinguishment of debt was recorded during the year ended December 31, 2024 of $68,827.

As of December 31, 2024 the outstanding principal balance was $1,922,750 which is expected to be repaid in early 2025. The remaining unamortized discount was $-0- and $369,171 as of December 31, 2024 and 2023, respectively.During the year ended December 31, 2024 and 2023, the Company amortized
$1,180,343 and $142,829, of debt discount under interest expense, respectively. During 2024 and 2023, the Company made repayments
totaling $1,551,250 and $162,000, respectively.

Merchant Cash Advances – Entertainment Segment

On March 1, 2024, the Company obtained a short-term merchant advance, which totaled $1,000,000, from a single lender to fund operations