Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 178

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 178
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|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Raw material and component parts– video solutions segment          |     | $ |    3,044,653 |   |     | $ |    4,509,165 |   |
| Work-in-process– video solutions segment                           |     |   |       20,396 |   |     |   |        3,164 |   |
| Finished goods – video solutions segment                           |     |   |    4,623,489 |   |     |   |    6,846,091 |   |
| Finished goods – entertainment segment                             |     |   |      699,204 |   |     |   |      970,527 |   |
| Subtotal                                                           |     |   |    8,387,742 |   |     |   |   12,328,947 |   |
| Reserve for excess and obsolete inventory– video solutions segment |     |   |   (4,355,666 | ) |     |   |   (5,230,261 | ) |
| Reserve for excess and obsolete inventory – entertainment segment  |     |   |     (186,795 | ) |     |   |     (259,280 | ) |
| Total inventories                                                  |     | $ |    3,845,281 |   |     | $ |    6,839,406 |   |

Finished goods inventory includes units held by potential customers and sales agents for test and evaluation purposes. The cost of such units totaled $ 42,797and $ 171,071as of December 31, 2023 and 2022, respectively.

NOTE 6. PREPAID EXPENSES

Prepaid expenses were the following at December 31, 2023 and 2022:

SCHEDULE OF PREPAID EXPENSE

|                        |     |   | December 31, 
         2023 |     |   | December 31, 
         2022 |
|:-----------------------|:----|:--|-------------:|:----|:--|-------------:|
| Prepaid inventory      |     | $ |    5,318,939 |     | $ |    6,110,321 |
| Prepaid advertising    |     |   |      612,292 |     |   |    1,931,628