Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 64

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 has a 51% equity
interest in its consolidated subsidiary, Nobility Healthcare. As a result, the noncontrolling shareholders or minority interest is allocated
49% of the income/loss of Nobility Healthcare which is reflected in the condensed consolidated statement of operations as “net income
(loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported net
(loss) income attributable to noncontrolling interests of consolidated subsidiary of $55,997 and $73,310 for the three months ended June
30, 2025 and 2024, respectively and $59,608 and $61,063 for the six months ended June 30, 2025 and 2024, respectively.

NOTE 13. RELATED PARTY TRANSACTIONS

Transactions with Managing Member of Nobility
Healthcare

The Company accrued reimbursable
expenses payable to Nobility, LLC totaling $42,082 and $245,716 as of June 30, 2025 and December 31, 2024, respectively. Total management
fees accrued and payable in accordance with the operating agreement totaled $20,933 and $38,625 as of June 30, 2025 and December 31, 2024,
respectively. The company recorded management fee expense of $30,255 and $22,403 for the six months ended June 30, 2025 and 2024, respectively.

Transactions with Related Party of TicketSmarter

On September 22, 2023, a
trust, the beneficiaries of which are an officer of TicketSmarter’s  and his spouse, made a loan in the
amount of $2,325,000
to TicketSmarter to support TicketSmarter’s operations. On October 2, 2023 an additional $375,000
was advanced to Ticketsmarter. The transaction was recorded as a related party note payable (the “TicketSmarter Related Party
Note”). The TicketSmarter Related Party Note bears interest of 13.25%
per annum with repayment beginning January 2, 2024. As of December 31, 2024 the entire TicketSmarter Related Party note balance
totaled $2,700,000,
and was classified as current, with an accrued interest balance of $488,711.
The use of proceeds of the TicketSmarter Related Party Note was to resolve numerous outstanding payables at a discounted rate, the
discount received to resolve such outstanding payables is recognized as a gain on extinguishment