Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 117

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 117
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 Video Solutions, Revenue Cycle Management, and Entertainment, each of which
has specific personnel responsible for that business and reports to the CODM. Corporate expenses capture the Company’s corporate
administrative activities, is also to be reported in the segment information. Therefore, its operations are eliminated in consolidation
and is not considered a separate business segment for financial reporting purposes.

    13

The Company adopted ASU 2023-07
in 2024 and applied the amendment retrospectively to all periods presented in the Company’s condensed consolidated financial statements.
See Note 17, Operating Segments, for more information.

Non-Controlling Interests

Non-controlling interests in the
Company’s Condensed Consolidated Financial Statements represent the interest in subsidiaries held by venture partners. The venture
partners hold noncontrolling interests in the Company’s consolidated subsidiary Nobility Healthcare, LLC. Since the Company consolidates
the financial statements of all wholly-owned and majority owned subsidiaries, the noncontrolling owners’ share of each subsidiary’s
results of operations are deducted and reported as net income attributable to noncontrolling interest in the Condensed Consolidated Statements
of Operations.

New Accounting Standards

Recently Adopted Accounting
Standard Updates. - ASU 2023-07, Improvements to Reportable Segment Disclosures, which requires companies to disclose significant
segment expenses provided to the chief operating decision maker (“CODM”) and a description of other segment items. Additionally,
all existing annual disclosures must be provided on an interim basis. This ASU is effective for annual periods beginning after December
15, 2023 and interim periods within fiscal years beginning after December 15, 2024. This ASU is required to be applied retrospectively
to all prior periods presented in the condensed consolidated financial statements. The Company adopted ASU 2023-07 in 2024 and applied
the amendment retrospectively to all periods presented in the Company’s condensed consolidated financial statements. See Note 17,
Operating Segments, for more information.

Recently Issued Accounting
Pronouncements. - ASU 2023-09, Improvements to Income Tax Disclosures, requires improved disclosures related to the rate reconciliation
and income taxes paid. This ASU requires companies to reconcile the income tax expense attributable to continuing operations to the U.S.
statutory federal income tax rate applied to pre-tax income from continuing operations. Additionally, this ASU requires companies to disclose
the total amount of income taxes paid during the period. This ASU is effective for annual periods