Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 287

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 287
---
559 |
| Revenue Cycle Management      |     |   |  1,969,225 |     |   |  2,260,376 |
| Entertainment                 |     |   |  6,037,666 |     |   |  6,324,211 |
| Corporate                     |     |   |  7,379,605 |     |   | 12,047,663 |
| Total Identifiable Assets     |     | $ | 32,263,169 |     | $ | 47,028,809 |

The segments recorded noncash items effecting the gross profit and operating income (loss) through the established inventory reserves based on estimates of excess and/or obsolete current and non-current inventory. The Company recorded a reserve for excess and obsolete inventory in the video solutions segment of $ 4,144,749and a reserve for the entertainment segment of $ 78,241as of September 30, 2024.

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 15. RELATED PARTY TRANSACTIONS

Transactions with Managing Member of Nobility Healthcare

The Company accrued reimbursable expenses payable to Nobility, LLC totalling $ 294,715and $ 404,483as of September 30, 2024 and $ 265,241as of December 31, 2023 and management fees in accordance with the operating agreement of $ 6,877as
of September 30, 2024 and $36,502 as of December 31, 2023. The Company recorded management fees of $29,280and
$20,062for
the nine months ended September 30, 2024 and 2023.

Transactions with Related Party of TicketSmarter

On September 22, 2023, a trust, the beneficiaries of which are TicketSmarter’s Chief Executive Officer and his spouse, made a loan in the amount of $ 2,325,000to TicketSmarter to support TicketSmarter’s operations. On October 2, 2023 an additional $ 375,000was advanced to