Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 87

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 87
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 therefore excluded from the calculation of diluted loss per share for the years ended December 31, 2023 and 2022 because all potentially dilutive securities during 2023 had exercise prices in excess of the market value of the company’s common stock and because of the net loss reported for 2023.

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Liquidity and Capital Resources

Overall:

Management’s Liquidity Plan.We have experienced net losses and cash outflows from operating activities since inception. Based upon our current operating forecast, we anticipate that we will need to restore positive operating cash flows and/or raise additional capital in the short-term to fund operations, meet our customary payment obligations and otherwise execute our business plan over the next 12 months. We are continuously in discussions to raise additional capital, which may include a variety of equity and debt instruments; however, there can be no assurance that our capital raising initiatives will be successful. Our recurring losses and level of cash used in operations, along with uncertainties concerning our ability to raise additional capital, raise substantial doubt about our ability to continue as a going concern.

Cash, cash equivalents:As of September 30, 2024, we had cash and cash equivalents with an aggregate balance of $415,131, a decrease from a balance of $778,149 (including restricted cash) at December 31, 2023. Summarized immediately below and discussed in more detail in the subsequent subsections are the main elements of the $363,018 net decrease in cash during the nine months ended September 30, 2024:

| ● | Operating   
 activities: | $4,086,023                                                                                                                                 
 of net cash used in operating activities. Net cash used in operating activities was $4,086,023 and $5,842,158 for the nine months          
 ended September 30, 2024 and 2023, respectively, a decrease of $1,756,136. The decrease is attributable to the improved net loss           
 and the usage of cash for operating assets and liabilities during the nine months ended September 30, 2024 compared to the same period     
 in 2023.                                                                                                                                   |
| ● | Investing   
 activities: | $392,523                                                                                                                                   
 of net cash provided by investing activities. Cash provided by (used in) investing activities was $392,523 and $(197,241) for the          
 nine months ended September 30, 2024 and 2023, respectively. During the nine months ended September 30, 2024, we made