Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 284

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 284
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iation and Amortization |     | $                                        |    499,246 |   |     | $    |    565,585 |   |     | $                                       |   1,578,246 |   |     | $    |   1,656,627 |   |

| F-81 |

|                               |     |   |  September 
   30, 2024 |     |   |   December 
   31, 2023 |
|:------------------------------|:----|:--|-----------:|:----|:--|-----------:|
| Assets (net of eliminations): |     |   |            |     |   |            |
| Video Solutions               |     | $ | 16,876,673 |     | $ | 26,396,559 |
| Revenue Cycle Management      |     |   |  1,969,225 |     |   |  2,260,376 |
| Entertainment                 |     |   |  6,037,666 |     |   |  6,324,211 |
| Corporate                     |     |   |  7,379,605 |     |   | 12,047,663 |
| Total Identifiable Assets     |     | $ | 32,263,169 |     | $ | 47,028,809 |

The segments recorded noncash items effecting the gross profit and operating income (loss) through the established inventory reserves based on estimates of excess and/or obsolete current and non-current inventory. The Company recorded a reserve for excess and obsolete inventory in the video solutions segment of $ 4,144,749and a reserve for the entertainment segment of $ 78,241as of September 30, 2024.

The segment net revenues reported above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income, which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property, plant and equipment, accounts receivable, inventories, and other assets.

NOTE 15. RELATED PARTY TRANSACTIONS

Transactions with Managing Member of Nobility Healthcare

The Company accrued reimbursable expenses payable to Nobility, LLC totalling $ 294,715and $ 404,483as of September 30, 2024 and $