Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 170

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 170
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   |         7,340,459 |
|                                   |     | $                 |         7,972,956 |     | $ |         4,867,181 |     | $ |          2,562,510 |     | $ |        10,277,627 |

|                                   |     | December 31, 2022 | December 31, 2021 |     |   | Additions/Reclass |     |   | Recognized Revenue |     |   | December 31, 2022 |
|:----------------------------------|:----|:------------------|------------------:|:----|:--|------------------:|:----|:--|-------------------:|:----|:--|------------------:|
| Contract liabilities, current     |     | $                 |         1,665,519 |     | $ |         1,478,479 |     | $ |            989,124 |     | $ |         2,154,874 |
| Contract liabilities, non-current |     |                   |         2,687,786 |     |   |         4,560,600 |     |   |          1,430,304 |     |   |         5,818,082 |
|                                   |     | $                 |         4,353,305 |     | $ |         6,039,079 |     | $ |          2,419,428 |     | $ |         7,972,956 |

Sales returns and allowances aggregated $ 117,713and $ 118,026for the years ended December 31, 2023 and 2022, respectively. 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 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 financial statements 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