Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 125

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 125
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     — 
  
    Commercial Extension of Credit- Entertainment Segment 
     —  
     100,000 
  
    Merchant Advances – Video Solutions Segment 
     —  
     1,922,750 
  
    Senior Secured Promissory Notes 
     —  
     3,600,000 
  
    Unamortized debt issuance costs 
     —  
     (664,719)
  
    Debt obligations 
     743,654  
     5,102,526 
  
    Less: current maturities of debt obligations 
     603,444  
     4,961,443 

    Debt obligations, long-term 
    $140,210  
    $141,083 

Debt obligations mature on an annual basis as follows
as of March 31, 2025:

 SCHEDULE OF MATURITY OF DEBT OBLIGATIONS

    March 31, 2025 
  
    2025 (April 1, 2025 to December 31, 2025) 
    $603,444 
  
    2026 
     3,542 
  
    2027 
     3,676 
  
    2028 
     3,817 
  
    2029 and thereafter 
     129,175 

    Total 
    $743,654 

2020 Small Business Administration Notes.

On May 12, 2020, the Company received
$150,000 in loan funding from the SBA under the Economic Injury Disaster Loan (“EIDL”) program administered by the SBA, which
program was expanded pursuant to the recently enacted CARES Act. The EIDL is evidenced by a secured promissory note, dated May 8, 2020,
in the original principal amount of $150,000 with the SBA, the lender.

Under the terms of the note issued
under the EIDL program, interest accrues on the outstanding principal at the rate of 3.75% per annum. The term of such note is thirty
years, though it may be payable sooner upon an event of default under such note. Monthly principal and interest payments began in November
2022, after being deferred for thirty months after the date of disbursement and total $731 per month thereafter. Such note may be prepaid
in part or in full, at any time, without penalty. The Company granted the SBA