Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 271

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 271
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52,538.

The remaining unamortized discount was $ 52,538and $ 369,171as September 30, 2024 and December 31, 2023, respectively.

Merchant Cash Advances – Entertainment Segment

On March 1, 2024, the Company obtained a short-term merchant advance, which totalled $ 1,000,000, from a single lender to fund operations. These advances included origination and issuance fees totalling $ 85,000for net proceeds of $ 915,000. The advance is, for the most part, is secured by expected future sales transactions of the Company with expected payments on a weekly basis. The Company will repay an aggregate of $ 1,425,000to the lender. The loan bears interest at an 40.4523% annual effective rate based on latest debt modification. During the three and nine months ended September 30, 2024, the Company made repayments totalling $803,850and $ 855,749, respectively.

The Company modified/amended the underlying loan agreement twice during the three months ended September 30, 2024, resulting in additional proceeds totalling $ 393,836. The modifications were both deemed to be extinguishments of debt resulting in a $ 310,505total loss on the extinguishment of debt during the three and nine months ended September 30, 2024. As of September 30, 2024 the outstanding balance was $ 1,101,569which is expected to be repaid in 2024. See Note 16. Subsequent Events for an update to this matter.

The remaining unamortized discount was $ 263,417and $- 0- as September 30, 2024 and December 31, 2023, respectively.

The Company entered into the original agreement on March 1, 2024. On July 13, 2024, the Company entered into a letter agreement with the Purchaser, amending the terms of the note agreement, and on September 12, 2024, the Company entered into a second letter agreement further amending the terms of the note agreement

On July 13, 2024, the Company entered into a Letter Agreement with the note holder, which modified the note payable by increasing the principal amount of the note payable from $ 1,425,000to $ 1,725,000; provided, however, that if the Borrowers repay the Note