Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 255

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 255
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          2,450,459 |     | $ | (2,033,814         | ) |     | $ |         10,694,272 |

|                                   |     | September 30, 2023 | December 31, 2022 |     |   | Additions/ Reclass |     |   | Recognized Revenue |   |     |   | September 30, 2023 |
|:----------------------------------|:----|:-------------------|------------------:|:----|:--|-------------------:|:----|:--|:-------------------|:--|:----|:--|-------------------:|
| Contract liabilities, current     |     | $                  |         2,154,874 |     | $ |          2,133,969 |     | $ | (1,536,860         | ) |     | $ |          2,751,983 |
| Contract liabilities, non-current |     |                    |         5,818,082 |     |   |          1,943,313 |     |   | (626,848           | ) |     |   |          7,134,547 |
|                                   |     | $                  |         7,972,956 |     | $ |          4,077,282 |     | $ | (2,163,708         | ) |     | $ |          9,886,530 |

Sales returns and allowances aggregated $ 86,370and $ 117,713for the nine months ended September 30, 2024 and September 30, 2023, 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 recognition of revenue, inventory valuation reserve, fair value of assets and