Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 164

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 164
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,634,454 |
|                                                                               |     | $                 | 3,532,199 |     | $        | — |     | $        | — |     | $          | 3,532,199 |

The Company maintains its cash and cash equivalents in banks insured by the Federal Deposit Insurance Corporation (FDIC) in accounts that at times may be in excess of the federally insured limit of $ 250,000per bank. The Company minimizes this risk by placing its cash deposits with numerous major financial institutions. At December 31, 2023 and 2022, the uninsured balance amounted to $ 29,700and $ 2,495,189, respectively.

Restricted Cash:

Restricted cash of $ 97,600and $- 0- was included in other assets as of December 31, 2023 and 2022, respectively. Restricted cash consists of bank deposits that collateralize our debt obligations.

The following table provides a reconciliation of cash and cash equivalents in the consolidated balance sheets to cash, cash equivalents and restricted cash in the consolidated statements of cash flows:

SCHEDULE OF RECONCILIATION OF CASH AND CASH EQUIVALENTS

|                                                                                  |     |   | December 31, 
         2023 |     |   | December 31, 
         2022 |
|:---------------------------------------------------------------------------------|:----|:--|-------------:|:----|:--|-------------:|
| Cash and cash equivalents                                                        |     | $ |      680,549 |     | $ |    3,532,199 |
| Long-term restricted cash included in other assets                               |     |   |       97,600 |     |   |            — |
| Total cash, cash equivalents and restricted cash in the statements of cash flows |     | $ |      778,149 |     | $ |    3,532,199 |

Accounts Receivable:

Accounts receivable are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a weekly basis. The Company determines the allowance for doubtful accounts by regularly evaluating individual customer receivables and considering a customer’s financial condition, credit history, and current economic conditions.

Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. A trade receivable is considered to be past due if any portion of the receivable balance is outstanding for more than thirty