Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 224

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 224
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31, 2023 and 2022.

On August 1, 2022, Mr. Hoffmann resigned as a member of the Board, effective immediately. He remains as a principal owner and manager of Nobility, LLC.

| F-40 |

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, contributed cash in the amount of $ 2,325,000to TicketSmarter to support TicketSmarter’s operations. On October 2, 2023 an additional $ 375,000was contributed 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 annum with repayment beginning January 2, 2024. As of December 31, 2023, the entire TicketSmarter Related Party note is $ 2,700,000, is classified as current, with an accrued interest balance of $ 95,031. The use of proceeds of the TicketSmarter Related Party Note was to resolve numerous outstanding payables at a discounted rate, the discount received is recognized as a gain on extinguishment of liabilities on the statement of operations. Additionally, these negotiations relieved TicketSmarter of numerous future obligations following fiscal year 2023.

NOTE 20. NET LOSS PER SHARE

The calculation of the weighted average number of shares outstanding and loss per share outstanding for the years ended December 31, 2023 and 2022 are as follows:

SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND LOSS PER SHARE OUTSTANDING

|                                                                                                                                   |     | Year ended December 31, 
 2023                    |        2023 |   |     | 2022 |        2022 |   |
|:----------------------------------------------------------------------------------------------------------------------------------|:----|:------------------------|------------:|:--|:----|:-----|------------:|:--|
| Numerator for basic and diluted loss per share – Net loss attributable to common stockholders                                     |     | $                       | (25,688,547 | ) |     | $    | (21,666,691 | ) |
| Denominator for basic loss per share – weighted average shares outstanding                                                        |     |                         |   2,784,894 |   |     |      |   2,548,549