Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 120

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 120
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             4,906 |   |     |   |            20,396 |   |
| Finished goods – video solutions segment                           |     |   |         1,655,317 |   |     |   |         4,623,489 |   |
| Finished goods – entertainment segment                             |     |   |           505,694 |   |     |   |           699,204 |   |
| Subtotal                                                           |     |   |         4,755,721 |   |     |   |         8,387,742 |   |
| Reserve for excess and obsolete inventory– video solutions segment |     |   |        (2,037,252 | ) |     |   |        (4,355,666 | ) |
| Reserve for excess and obsolete inventory – entertainment segment  |     |   |          (132,403 | ) |     |   |          (186,795 | ) |
| Total inventories                                                  |     | $ |         2,586,066 |   |     | $ |         3,845,281 |   |

Finished goods inventory includes units held by potential customers and sales agents for test and evaluation purposes. The cost of such units totaled $36,080 and $42,797 as of December 31, 2024 and 2023, respectively.

NOTE 6. PREPAID EXPENSES

Prepaid expenses were the following at December 31, 2024 and 2023:

SCHEDULE OF PREPAID EXPENSE

|                        |     |   | December 31, 2024 |     |   | December 31, 2023 |
|:-----------------------|:----|:--|------------------:|:----|:--|------------------:|
| Prepaid inventory      |     | $ |         1,158,867 |     | $ |         5,318,939 |
| Prepaid advertising    |     |   |           334,882 |     |   |           612,292 |
| Other                  |     |   |           373,509 |     |   |           435,137 |
| Total prepaid expenses |     | $ |         1,867,258 |     | $ |         6,366,368 |

| F-20 |

NOTE 7. PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consisted of the following at December 31,