Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 55

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 55
---
 operating segments together with our video solutions operating segment and its expected margins from our EVO-HD, DVM-800, VuLink, FirstVu Pro, FirstVu II, and our cloud evidence storage and management offering, provided that they gain traction in the marketplace. In addition, if revenues from the video solutions segment increase, we will seek to further improve our margins from this segment through expansion and increased efficiency utilizing fixed manufacturing overhead components. We plan to continue our initiative to more efficiently management of our supply chain through outsourcing production, quantity purchases and more effective purchasing practices.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $9,122,273 and $6,374,192 for the three months ended September 30, 2024 and 2023, respectively, an increase of $2,748,081 (43%). The increase was primarily attributable to the goodwill and intangible asset impairment charge recorded during the 2024 period offset by a reduction in new sponsorships being entered into by the Company. Our selling, general and administrative expenses as a percentage of sales increased to 225% for the three months ended September 30, 2024 compared to 101% in the same period in 2023. The significant components of selling, general and administrative expenses are as follows:

|                                        |     | For                    
 the three months ended 
 September              
 30,                    |      2024 |     |   |      2023 |
|:---------------------------------------|:----|:-----------------------|----------:|:----|:--|----------:|
| Research                               
 and development expense                |     | $                      |   210,818 |     | $ |   564,146 |
| Selling,                               
 advertising and promotional expense    |     |                        |   414,727 |     |   | 1,932,982 |
| General                                
 and administrative expense             |     |                        | 3,666,728 |     |   | 3,877,064 |
| Goodwill                               
 and intangible asset impairment charge |     |                        | 4,830,000 |     |   |         — |
| Total                                  |     | $                      | 9,122,273 |     | $ | 6,374,192 |

| 31 |

Research and development expense.Our research and development expenses totalled $210,818 and $564,146 for the three months ended September 30, 2024 and 2023, respectively