Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 91

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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 2025. We intend to collect our outstanding receivables on a timely basis
and reduce the overall level during 2025, which would help to provide positive cash flow to support our operations during 2025 and beyond.
Inventory represents $2,489,111 of our net working capital at March 31, 2025. We are actively managing the level of inventory and our
goal is to reduce such level during 2025 by our sales activities, the decrease of which should provide additional cash flow to help support
our operations during 2025 and beyond.

Capital Expenditures:

We had the following material
commitments for capital expenditures at March 31, 2025:

Lease commitments. Total
lease expense under the Company’s operating leases was approximately $223,580 during the three months ended March 31, 2025.

The following sets forth the operating
lease right of use assets and liabilities as of March 31, 2025:

    Assets: 

    Operating lease right of use assets 
    $680,628 

    Liabilities: 

    Operating lease obligations-current portion 
     162,234 
  
    Operating lease obligations-less current portion 
     518,394 
  
    Total operating lease obligations 
    $680,628 

Following are the minimum lease
payments for each year and in total.

    Year ending December 31: 

    2025 (April 1, 2025 through December 31, 2025) 
    $158,086 
  
    2026 
     210,925 
  
    2027 
     189,275 
  
    2028 
     100,863 
  
    2029 and thereafter 
     130,086 
  
    Total undiscounted minimum future lease payments 
     789,235 
  
    Imputed interest 
     (108,607)
  
    Total operating lease liability 
    $680,628 

Debt obligations - We have the following
outstanding debt as of March 31, 2025 which require future principal payments:

     March 31, 2025 
  
    Economic injury disaster loan (EIDL) 
    $143,654 
  
    Unsecured Promissory note – Entertainment Segment 
     600,000 
  
    Debt obligations 
     743,654 

    Less: current maturities of debt obligations 
     (603,