Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 111

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 111
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 and
its subsidiary TicketSmarter.

57

General and administrative
expense. General and administrative expenses totaled $5,379,221 and $6,796,019 for the six months ended June 30, 2025 and 2024,
respectively which represents a decrease of $1,416,798 (20.8%). The decrease in general and administrative expenses in the six months
ended June 30, 2025 compared to the same period in 2024 is primarily attributable to a decrease in administrative salaries and reductions
in headcount in order to right-size our expenses in this area with our revenues. The decrease in general and administrative expenses was
offset by a substantial increase legal and professional expenses for the six months ended June 30, 2025 compared to the same period in
2024 due to the failed merger with CloverLeaf and various capital raises we have undertaken.

Operating Loss

For the reasons previously
stated, our operating loss was $5,069,753 and $7,553,193 for the six months ended June 30, 2025 and 2024, respectively, an improvement
of $2,483,440 (32.9%). Operating loss as a percentage of revenues improved to 50.2% in 2025 as compared to 67.8% in 2024.

Interest Income

Interest income increased
to $77,921 for the six months ended June 30, 2025, from $49,289 in 2024, which reflects our overall increase in our cash and cash equivalent
levels in 2025 compared to 2024 due to funds generated in the February 2025 public equity offering.

Interest Expense

We incurred interest expenses
of $869,553 and $1,733,690 during the six months ended June 30, 2025 and 2024, respectively. The large decrease is attributable to the Company
paying off most of its interest-bearing debt in late 2024 and early 2025 including the senior secured promissory notes that were paid
off with proceeds from the February 2025 public equity offering.

Other income (expense)

Other income (expense) decreased
to $35,467 for the six months ended June 30, 2025, from $58,046 during the six months ended June 30, 2024, which reflects income related
to a warehouse sublease within the corporate headquarters during early 2024 which ceased upon the sale of the