Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 183

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 183
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 the three months ended June
30, 2025 and 2024, respectively and $59,608 and $61,063 for the six months ended June 30, 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 $42,082 and $245,716 as of June 30, 2025 and December 31, 2024, respectively. Total management
fees accrued and payable in accordance with the operating agreement totaled $20,933 and $38,625 as of June 30, 2025 and December 31, 2024,
respectively. The company recorded management fee expense of $30,255 and $22,403 for the six months ended June 30, 2025 and 2024, respectively.

Transactions with Related Party of TicketSmarter

On September 22, 2023, a
trust, the beneficiaries of which are an officer of TicketSmarter’s  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 annum with repayment beginning January 2, 2024. As of December 31, 2024 the entire TicketSmarter Related Party note balance
totaled $2,700,000,
and was classified as current, with an accrued interest balance of $488,711.
The use of proceeds of the TicketSmarter Related Party Note was to resolve numerous outstanding payables at a discounted rate, the
discount received to resolve such outstanding payables is recognized as a gain on extinguishment of liabilities on the condensed
consolidated statement of operations. Additionally, these negotiations relieved TicketSmarter of numerous future obligations
following fiscal year 2023.

On August 19, 2024, the parties
agreed to amend the note whereby the repayment dates were extended to begin on January 2, 2025 and continue at $54,000 for 50 consecutive
weeks plus interest. The parties did not change any other provisions or terms of the note.