Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 16

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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     735,597  
     5,687,976 

    $10,532,873  
    $538,723  
    $1,196,046  
    $9,875,550 

    10

    December 31, 2024 

    December 31,
                                                                                2023  
    Additions/
                                                                                Reclass  
    Recognized
                                                                                Revenue  
    December 31,
                                                                                2024 
  
    Deferred revenue, current 
    $2,937,168  
    $2,799,956  
    $1,521,723  
    $4,215,401 
  
    Deferred revenue, non-current 
     7,340,459  
     1,814,351  
     2,837,338  
     6,317,472 

    $10,277,627  
    $4,614,307  
    $4,359,061  
    $10,532,873 

Sales returns
and allowances aggregated $71,446 for
the three months ended March 31, 2025. Obligations for estimated sales returns and allowances are recognized
at the time of sales on an accrual basis. The accrual is determined based upon historical return rates adjusted for known changes in
key variables affecting these return rates.

Use of Estimates:

The preparation of the condensed
consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the condensed consolidated balance sheets and the reported amount of revenues and expenses during the reporting
period. Actual results could differ from those estimates. Management utilizes various other estimates, including but not limited to, determining
the estimated lives of long-lived assets, determining the potential impairment of long-lived assets, the fair value of warrants, options,
the recognition of revenue, inventory valuation reserve, allowances for doubtful accounts and other receivables, incremental borrowing
rate on leases, the valuation allowance for deferred tax assets and other legal claims and contingencies. The results of any changes in
accounting estimates are reflected in the condensed consolidated financial statements in the period in which the changes become evident.
Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period that they are determined
to be necessary