Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 26

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
 Nobility Healthcare, LLC. Since the
Company consolidates the financial statements of all wholly-owned and majority owned subsidiaries, the noncontrolling owners’ share
of each subsidiary’s results of operations are deducted and reported as net income attributable to noncontrolling interest in the
Condensed Consolidated Statements of Operations. The Company owns a 51% equity interest in its consolidated subsidiary, Nobility Healthcare. As a result, the noncontrolling
shareholders or minority interest is allocated 49% of the income/loss of Nobility Healthcare which is reflected in the statement of income
(loss) as “net income (loss) attributable to noncontrolling interests of consolidated subsidiary.

New
Accounting Standards

Recently
Adopted Accounting Standard Updates. - ASU 2023-07, Improvements to Reportable Segment Disclosures, which requires companies
to disclose significant segment expenses provided to the chief operating decision maker (“CODM”) and a description of other
segment items. Additionally, all existing annual disclosures must be provided on an interim basis. This ASU is effective for annual periods
beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This ASU is required to
be applied retrospectively to all prior periods presented in the condensed consolidated financial statements. The Company adopted ASU
2023-07 in 2024 and applied the amendment retrospectively to all periods presented in the Company’s condensed consolidated financial
statements. See Note 17, Operating Segments, for more information.

Recently
Issued Accounting Pronouncements. - ASU 2023-09, Improvements to Income Tax Disclosures, requires improved disclosures related
to the rate reconciliation and income taxes paid. This ASU requires companies to reconcile the income tax expense attributable to continuing
operations to the U.S. statutory federal income tax rate applied to pre-tax income from continuing operations. Additionally, this ASU
requires companies to disclose the total amount of income taxes paid during the period. This ASU is effective for annual periods beginning
after December 15, 2024, with early adoption permitted. The guidance is required to be applied on a prospective basis with the option
to apply retrospectively to all prior periods presented in the consolidated financial statements. The Company has evaluated the impact and determined there was no impact to the condensed consolidated financial statements
as of September 30, 2025.

    11

ASU
2024-03, Disaggregation of