Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 195

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 195
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553,193
    )

    Non-operating (expenses) income:

    Interest expense

    (1,733,690
    )
  
    Change in fair value of derivative liabilities

    (351,710
    )
  
    Gain on the extinguishment of liabilities

    682,345

    Other non-operating income (loss), net

    2,429

    Total non-operating income (loss)

    (1,400,626
    )

    Loss before income tax benefit (provision)

    $
    (8,953,819
    )

    Depreciation and amortization 
    expense
     
    $
    387,724

    $
    637,847

    $
    53,429

    $
    —

    $
    1,079,000

    Total identifiable assets, net of 
    eliminations
     
    $
    22,998,670

    $
    6,315,677

    $
    1,904,280

    $
    12,108,588

    $
    43,327,215

The segment net revenues reported
above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income,
which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating
expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property,
plant and equipment, accounts receivable, inventories, and other assets.

Note
18. SUBSEQUENT EVENTS 

On July 31, 2025, the Company
received notification of partial compliance (the “Letter) from Nasdaq regarding the deficiencies identified in Note 9 – Commitments
and Contingencies. The Letter advised the Company that the Nasdaq Hearings Panel found that the Company had regained compliance with Listing
Rules regarding the Bid Price Rule and the Periodic Report Rule, and the Equity Rule as required by the Panel’s decision dated May
1, 2025.

The Letter noted that in
the Panel’s May 1, 2025 decision, should the company fail to maintain compliance with any listing rule prior to September 2, 2025,
it will remain subject to delisting. In addition, the Letter advised the Company that if the Company remains in compliance with all continued
listing requirements through September 2, 2025,