Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 200

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 200
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2023 and December 31, 2022 was 4.5years and 3.3years, respectively.

The discount rate implicit within the Company’s operating leases was not generally determinable, and therefore, the Company determined the discount rate based on its incremental borrowing rate on the information available at commencement date. As of commencement date, the operating lease liabilities reflect a weighted average discount rate of 8%.

The following sets forth the operating lease right of use assets and liabilities as of December 31, 2023:

SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES

| Assets:                                          |     |   |           |
|:-------------------------------------------------|:----|:--|----------:|
| Operating lease right of use assets              |     | $ | 1,053,159 |
| Liabilities:                                     |     |   |           |
| Operating lease obligations-current portion      |     |   |   279,538 |
| Operating lease obligations-less current portion |     |   |   827,836 |
| Total operating lease obligations                |     | $ | 1,107,374 |

| F-31 |

Following are the minimum lease payments for each year and in total.

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS

| Year ending December 31:                         
 2024                                             |     |   |   358,424 |   |
|:-------------------------------------------------|:----|:--|----------:|:--|
| 2025                                             |     |   |   311,849 |   |
| 2026                                             |     |   |   293,300 |   |
| 2027                                             |     |   |   117,492 |   |
| Thereafter                                       |     |   |   235,020 |   |
| Total undiscounted minimum future lease payments |     |   | 1,316,085 |   |
| Imputed interest                                 |     |   |  (208,711 | ) |
| Total operating lease liability                  |     | $ | 1,107,374 |   |

NOTE 15. COMMITMENTS AND CONTINGENCIES

Litigation.

From time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us. It is our policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on us. After carefully assessing the claim,