Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 152

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 152
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 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 beginning
after December 15, 2024, with early adoption permitted. The guidance is required to be applied on a prospective basis with the option
to apply retrospectively to all prior periods presented in the consolidated financial statements. The Company has evaluated the impact and determined there was no impact to the condensed consolidated financial statements
as of September 30, 2025.

    11

ASU
2024-03, Disaggregation of Income Statement Expenses, requires disaggregated disclosures in the notes to the consolidated financial
statements of certain categories of expenses that are included in expense line items on the Consolidated Statement of Income. This ASU
is effective for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, with
early adoption permitted. The guidance is required to be applied on a prospective basis with the option to apply retrospectively to all
prior periods presented in the consolidated financial statements. The Company is currently evaluating the impact to the Company’s
condensed consolidated financial statements.

ASU
2024-04, Induced Conversions of Convertible Debt Instruments, clarifies the requirement for determining whether certain settlements
of convertible debt instruments should be accounted for as induced conversions or extinguishments. This ASU is effective for annual periods
beginning after December 15, 2025. Early adoption is permitted and can be applied either on a prospective basis or retrospective basis.
The Company is currently evaluating the impact of this ASU to the Company’s condensed consolidated financial statements, however
the Company does not anticipate this guidance having a material impact to the condensed consolidated financial statements.

The
other recent accounting pronouncements issued by the Financial Accounting Standards Board (“FASB”) are not expected to have
a significant impact on the Company’s consolidated financial statements and related disclosures.

Going
Concern Matters and Management’s Plans

The
accompanying condensed consolidated financial statements have been prepared on a going-concern basis, which contemplates the realization
of assets and the satisfaction of liabilities in the normal course of business. The Company incurred substantial operating losses in
the years ended December 31, 2024 and year to date September 30, 2025 primarily due to reduced gross margins caused by a combination
of competitors’ introduction of newer products with