Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 122

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 122
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 going concern.

Cash,
cash equivalents: As of September 30, 2025, we had cash and cash equivalents with an aggregate balance of $793,360, an increase from
a balance of $454,314 at December 31, 2024. Summarized immediately below and discussed in more detail in the subsequent subsections are
the main elements of the $339,046 net increase in cash during the nine months ended September 30, 2025:

    ●
    Operating
    activities:
    Net
    cash used in operating activities was $8,996,431 and $4,086,023 for the nine months ended September 30, 2025 and 2024, respectively,
    a deterioration of $4,910,410. The decline in operating cash flows primarily reflects the repayment of accounts payable (funded by
    proceeds from our February 2025 public equity offering), higher noncash gains from changes in the fair value of warrant derivative
    liabilities and from liability and debt extinguishments, which reduced noncash add-backs to operating cash flow, and unfavorable
    changes in operating assets and liabilities period over period.

    ●
    Investing
    activities:
    Net
    cash provided by (used in) investing activities was $(349,319) and $392,523 for the nine months ended September 30, 2025 and 2024,
    respectively. During the nine months ended September 30, 2025, we made expenditures for the purchase of property plant and equipment
    and also for patents. During the nine months ended September 30, 2024, we sold our building and collected $550,644 in net proceeds.

    ●
    Financing
    activities:
    Net
    cash provided by financing activities was $9,684,796 and $3,330,482 for the nine months ended September 30, 2025 and 2024, respectively.
    During 2025, we completed several financing transactions: (i) a February 2025 public equity offering of common stock with detachable
    warrants generating $14,308,300 in net cash proceeds, (ii) issuance of an unsecured promissory note providing $600,000 in net cash
    proceeds, and (iii) issuance of a senior secured convertible note with detachable warrants providing $610,000 in net cash proceeds.
    These were partially offset by repayments on outstanding borrowings, including senior secured promiss