Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 195

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 195
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   |    2023 |   |     |   |    2022 |   |
|:------------------------------------|:----|:--|--------:|:--|:----|:--|--------:|:--|
| Beginning balance                   |     | $ |  15,694 |   |     | $ |  13,742 |   |
| Provision for warranty expense      |     |   |  63,980 |   |     |   |  71,734 |   |
| Charges applied to warranty reserve |     |   | (61,975 | ) |     |   | (69,782 | ) |
| Ending balance                      |     | $ |  17,699 |   |     | $ |  15,694 |   |

NOTE 13. INCOME TAXES

The components of income tax provision (benefit) for the years ended December 31, 2023, and 2022 are as follows:

SCHEDULE OF COMPONENTS OF INCOME TAX PROVISION (BENEFIT)

| Current taxes:                   |     | 2023 |   |     | 2022 |   |
|:---------------------------------|:----|:-----|:--|:----|:-----|:--|
| Federal                          |     | $    | — |     | $    | — |
| State                            |     |      | — |     |      | — |
| Total current taxes              |     |      | — |     |      | — |
| Deferred tax provision (benefit) |     |      | — |     |      | — |
| Income tax provision (benefit)   |     | $    | — |     | $    | — |

A reconciliation of the income tax (provision) benefit at the statutory rate of 21% for the years ended December 31, 2023, and 2022 to the Company’s effective tax rate is as follows:

SCHEDULE OF RECONCILIATION OF INCOME TAX (PROVISION) BENEFIT

|                                                    |     | 2023 |       |    |     | 2022 |       |    |
| U.S. Statutory tax rate                            |     |      |  21.0 | %  |     |      |  21.0 | %  |
| State taxes, net of Federal benefit                |     |      |   6.0 | %