What changed in this filing

/stocks — the workspaceLOADING

Item 2. Properties

2025-05-02 compared with 2024-04-01 · 41 added, 34 removed, 9 unchanged (89% of the section changed)

May 13, 2020, the Company entered into an operating lease for new warehouse and office space which had served as its principal executive

office and primary business location, prior to the completed building purchase.

The Company plans to relocate the entertainment operating

segment operations to this existing leased facility in 2023.

This facility contains approximately 16,531 square feet and is located at

15612 College Blvd, Lenexa, Kansas 66219.

The lease terms, as amended, include no base rent for the first nine months and monthly payments

ranging from $12,398 to $14,741 thereafter, with a termination date of December 31, 2026.

April 30, 2021, the Company closed on the purchase and sale agreement to acquire a 71,361 square feet commercial office building located

in Lenexa, Kansas which is intended to serve as the Company’s future office and warehouse needs for executive offices and for management

and warehouse operations for the video solutions operating segment.

The building contains approximately 30,000 square feet of office

space and the remainder warehouse space.

The total purchase price was approximately $5.3 million.

The Company funded the purchase price

with cash on hand, without the addition of external debt or other financing.

On October 26, 2023, the Company entered into a Loan and Security Agreement (the “Kompass

Loan Agreement”) by and between the Company, Digital Ally Healthcare, and Kompass Kapital Funding, LLC, a Kansas limited liability

company (“Kompass”).

In connection with the Kompass Loan Agreement, on October 26, 2023, the Company entered into a Mortgage,

Assignment of Leases and Rents, Security Agreement and Fixture Filing by and between the Company, as grantor, and Kompass, as grantee,

and mortgaged its real property having an address of 14001 Marshall Drive, Lenexa, KS 66215.

June 30, 2021, the Company completed the acquisition of a private medical billing company, through Nobility Healthcare, a majority owned

Upon completion of this acquisition, Nobility Healthcare became responsible for the operating lease for the seller’s

office space.

On April 30, 2021, the Company closed on a purchase and sale agreement

to acquire a 71,361 square feet commercial office building located in Lenexa, Kansas which was intended to serve as the Company’s

future office and warehouse needs for executive offices and for management and warehouse operations for the video solutions operating

The building contains approximately 30,000 square feet of office space and the remainder warehouse space.

The total purchase

price was approximately $5.3 million.

The Company funded the purchase price with cash on hand, without the addition of external debt or

other financing.

October 26, 2023, the Company entered into a Loan and Security Agreement (the “Kompass Loan Agreement”) by and between the

Company, Digital Ally Healthcare, and Kompass Kapital Funding, LLC, a Kansas limited liability company (“Kompass”).

In connection

with the Kompass Loan Agreement, on October 26, 2023, the Company entered into a Mortgage, Assignment of Leases and Rents, Security Agreement

and Fixture Filing by and between the Company, as grantor, and Kompass, as grantee, and mortgaged its real property having an address

of 14001 Marshall Drive, Lenexa, KS 66215.

the year ended December 31, 2024 the Company sold its building for $5,900,000 less closing costs of $36,634.

The carrying amount of the

building on the date of sale was $5,461,623.

As a result of the sale the Company recorded a gain of $401,743 in the Consolidated Statement

of Operations during the year ended December 31, 2024.

As part of the sale agreement the Company leased the space back for a period of

6 months, ending February 12, 2025.

The Company is searching for suitable facilities for its long-term needs.

The Company entered into an operating

lease with a third party on October 16, 2024, for office space used by the entertainment segment and temporarily by the video solutions

The terms of the lease include 36 monthly payments of $7,251.92 with a maturity date of October 31, 2027.

The remaining lease

term for the Company’s office space lease as of December 31, 2024 was thirty-four months.

June 30, 2021, the Company completed the acquisition of a private medical billing company, through Nobility Healthcare, a majority

owned subsidiary.

Upon completion of this acquisition, Nobility Healthcare became responsible for the operating lease for the

seller’s office space.

The lease terms include monthly payments ranging from $2,648 to $2,774 and terminate in July 2024.

The Company plans to

relocate the revenue cycle management operating segment acquired operations to existing owned or leased facilities upon termination of

this operating lease.

Company was responsible for property taxes, utilities, insurance and its proportionate share of common area costs related to this

The lease term expired in July 2024 and was not renewed by the Company.

August 31, 2021, the Company completed the acquisition of another private medical billing company, through Nobility Healthcare.

completion of this acquisition, Nobility Healthcare became responsible for the operating lease for the seller’s office space.

The lease was renewed in April 2023 with favorable terms and payments ranging from 7,436 to 8,877 thereafter, and with a termination

date in March 2030.

lease was renewed in April 2023 with favorable terms and payments ranging from 7,436 to 8,877 thereafter, and with a termination date

in March 2030.

September 1, 2021, the Company completed the acquisition of Goody Tickets, LLC and TicketSmarter, LLC, through TicketSmarter.

completion of this acquisition, the Company became responsible for the operating lease for the TicketSmarter office space.

terms included monthly payments ranging from $7,211 to $7,364 and the lease was originally going to expire in December 2022.

Company signed a six-month extension through June 2023 and is currently on a month-to-month lease with plans to relocate the

entertainment operating segment.

Upon completion

of this acquisition, the Company became responsible for the operating lease for the TicketSmarter office space.

The lease terms included

monthly payments ranging from $7,211 to $7,364 and the lease was originally going to expire in December 2022.

The Company signed a six-month

extension through June 2023 and is currently on a month-to-month lease with plans to relocate the entertainment operating segment.

January 1, 2022, the Company completed the acquisition of another private medical billing company, through Nobility Healthcare.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties