Digital Ally (DGLY) 10-Q 18 Aug 21 2021 Q2 Quarterly report Financial data

Cover

Cover - shares	6 Months Ended
	Jun. 30, 2021	Aug. 18, 2021
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2021
Current Fiscal Year End Date	--12-31
Entity File Number	001-33899
Entity Registrant Name	Digital Ally, Inc.
Entity Central Index Key	0001342958
Entity Tax Identification Number	20-0064269
Entity Incorporation, State or Country Code	NV
Entity Address, Address Line One	15612 College Blvd
Entity Address, City or Town	Lenexa
Entity Address, State or Province	KS
Entity Address, Postal Zip Code	66219
City Area Code	(913)
Local Phone Number	814-7774
Title of 12(b) Security	Common stock, $0.001 par value per share
Trading Symbol	DGLY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		51,513,691

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 58,276,178	$ 4,361,758
Accounts receivable-trade, less allowance for doubtful accounts of $123,224 – June 30, 2021 and December 31, 2020	888,384	1,705,461
Other receivables	1,795,547	1,529,920
Inventories, net	9,615,759	8,202,274
Prepaid expenses	2,421,777	2,030,693
Total current assets	72,997,645	17,830,106
Property, plant and equipment, net	6,024,184	666,800
Intangible assets, net	1,583,576	392,564
Operating lease right of use assets, net	722,843	753,175
Other assets	1,770,887	1,154,882
Total assets	83,099,135	20,797,527
Current liabilities:
Accounts payable	674,380	1,144,676
Accrued expenses	875,311	796,094
Current portion of operating lease obligations	123,356	113,484
Contract liabilities-current	1,515,138	1,647,469
Subordinated notes payable – current portion	72,502	11,727
Warrant derivative liabilities	29,527,224
Income taxes payable		7,158
Total current liabilities	32,787,911	3,720,608
Long-term liabilities:
Subordinated notes payable – long term	427,498	148,273
Operating lease obligation, long term	672,216	723,272
Contract liabilities-long term	2,504,715	1,848,869
Total liabilities	36,392,340	6,441,022
Commitments and contingencies
Stockholders’ Equity:
Common stock, $0.001 par value per share; 100,000,000 shares authorized; shares issued: 51,577,209 shares issued – June 30, 2021 and 26,834,709 shares issued – December 31, 2020	51,577	26,835
Additional paid in capital	122,487,573	106,501,396
Treasury stock, at cost (63,518 shares)	(2,157,226)	(2,157,226)
Accumulated deficit	(73,675,129)	(90,014,500)
Total stockholders’ equity	46,706,795	14,356,505
Total liabilities and stockholders’ equity	$ 83,099,135	$ 20,797,527

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts receivable	$ 123,224	$ 123,224
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	51,577,209	26,834,709
Treasury stock, shares	63,518	63,518

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Total revenue	$ 2,493,671	$ 1,732,192	$ 5,029,501	$ 4,157,936
Cost of revenue:
Total cost of revenue	1,232,871	1,339,434	2,956,818	2,500,148
Gross profit	1,260,800	392,758	2,072,683	1,657,788
Selling, general and administrative expenses:
Research and development expense	460,999	359,697	909,964	845,445
Selling, advertising and promotional expense	870,183	486,649	1,466,938	1,169,030
General and administrative expense	2,546,502	1,689,566	5,178,359	3,713,832
Total selling, general and administrative expenses	3,877,684	2,535,912	7,555,261	5,728,307
Operating loss	(2,616,884)	(2,143,154)	(5,482,578)	(4,070,519)
Other income (expense):
Interest income	90,774	15,609	132,461	21,869
Interest expense	(1,365)	(25,636)	(2,793)	(333,196)
Secured convertible notes issuance expense		(34,906)		(34,906)
Gain on extinguishment of debt	10,000		10,000
Change in fair value of secured convertible notes		(887,807)		(1,300,252)
Change in fair value of proceeds investment agreement		2,578,000		2,885,000
Change in fair value of short-term investments	(1,590)		(6,554)
Change in fair value of warrant derivative liabilities	(2,863,422)		21,688,835
Total other income (expense)	(2,765,603)	1,645,260	21,821,949	1,238,515
Income (loss) before income tax benefit	(5,382,487)	(497,894)	16,339,371	(2,832,004)
Income tax benefit
Net income (loss)	$ (5,382,487)	$ (497,894)	$ 16,339,371	$ (2,832,004)
Net loss per share information:
Basic	$ (0.10)	$ (0.03)	$ 0.34	$ (0.17)
Diluted	$ (0.10)	$ (0.03)	$ 0.34	$ (0.17)
Weighted average shares outstanding:
Basic	51,513,691	18,976,724	48,177,399	16,430,214
Diluted	51,513,691	18,976,724	48,177,399	16,430,214
Product [Member]
Revenue:
Total revenue	$ 1,719,332	$ 1,053,581	$ 3,631,910	$ 2,820,116
Cost of revenue:
Total cost of revenue	1,017,659	1,165,528	2,578,969	2,154,774
Service, Other [Member]
Revenue:
Total revenue	774,339	678,611	1,397,591	1,337,820
Cost of revenue:
Total cost of revenue	$ 215,212	$ 173,906	$ 377,849	$ 345,374

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings [Member]	Total
Beginning balance, value at Dec. 31, 2019	$ 12,079	$ 83,216,387	$ (2,157,226)	$ (87,388,619)	$ (6,317,379)
Balance, shares at Dec. 31, 2019	12,079,095
Stock-based compensation		311,677			311,677
Restricted common stock grant	$ 530	(530)
Restricted common stock grant, shares	530,050
Restricted common stock forfeitures	$ (23)	23
Restricted common stock forfeitures, shares	(22,500)
Issuance of common stock upon conversion of secured convertible notes and interest	$ 960	1,342,400			1,343,360
Issuance of common stock upon conversion of secured convertible notes and interest, shares	959,543
Issuance of common stock through underwritten public offering (net of offering expenses and underwriters’ discount)	$ 2,522	2,499,614			2,502,136
Balance, shares	2,521,740
Issuance of common stock purchase warrants in connection with issuance of unsecured promissory note payable		20,806			20,806
Net loss				(2,334,110)	(2,334,110)
Ending balance, value at Mar. 31, 2020	$ 16,068	87,390,377	(2,157,226)	(89,722,729)	(4,473,510)
Balance, shares at Mar. 31, 2020	16,067,928
Beginning balance, value at Dec. 31, 2019	$ 12,079	83,216,387	(2,157,226)	(87,388,619)	(6,317,379)
Balance, shares at Dec. 31, 2019	12,079,095
Net loss					(2,832,004)
Ending balance, value at Jun. 30, 2020	$ 26,645	105,697,031	(2,157,226)	(90,220,623)	13,345,827
Balance, shares at Jun. 30, 2020	26,645,118
Beginning balance, value at Mar. 31, 2020	$ 16,068	87,390,377	(2,157,226)	(89,722,729)	(4,473,510)
Balance, shares at Mar. 31, 2020	16,067,928
Stock-based compensation		376,738			376,738
Restricted common stock grant	$ 135	(135)
Restricted common stock grant, shares	135,450
Restricted common stock forfeitures	$ (13)	13
Restricted common stock forfeitures, shares	(12,750)
Issuance of common stock through registered direct offering at $3.095 per share and accompanying warrants (net of offering expenses and placement agent discount)	$ 3,554	5,346,859			5,350,413
Issuance of common stock through underwritten public offering at $1.65 per share (net of offering expenses and underwriters' discount), shares	3,554,545
Issuance of common stock through registered direct offering at $2.80 per share and accompanying warrants (net of offering expenses and placement agent discount)	$ 2,540	4,974,152			4,976,692
Issuance of common stock through underwritten public offering at $2.15 per share (net of offering expenses and underwriters' discount), shares	2,539,534
Issuance of common stock upon conversion of secured convertible notes and interest	$ 1,665	1,679,660			1,681,325
Issuance of common stock upon conversion of secured convertible notes and interest, shares	1,664,669
Issuance of common stock upon exercise of common stock purchase warrants	$ 2,694	5,200,428			5,203,122
Issuance of common stock upon exercise of common stock purchase warrants, shares	2,693,867
Issuance of common stock upon exercise of stock options	$ 2	7,798			7,800
Issuance of common stock upon exercise of stock options, shares	1,875
Issuance of common stock purchase warrants in connection with issuance of secured convertible notes		721,141			721,141
Net loss				(497,894)	(497,894)
Ending balance, value at Jun. 30, 2020	$ 26,645	105,697,031	(2,157,226)	(90,220,623)	13,345,827
Balance, shares at Jun. 30, 2020	26,645,118
Beginning balance, value at Dec. 31, 2020	$ 26,835	106,501,396	(2,157,226)	(90,014,500)	14,356,505
Balance, shares at Dec. 31, 2020	26,834,709
Stock-based compensation		326,164			326,164
Restricted common stock grant	$ 450	(450)
Restricted common stock grant, shares	450,000
Restricted common stock forfeitures	$ (8)	8
Restricted common stock forfeitures, shares	(7,500)
Issuance of common stock through registered direct offering at $3.095 per share and accompanying warrants (net of offering expenses and placement agent discount)	$ 2,800	6,726,200			6,729,000
Issuance of common stock through underwritten public offering at $1.65 per share (net of offering expenses and underwriters' discount), shares	2,800,000
Issuance of common stock through registered direct offering at $2.80 per share and accompanying warrants (net of offering expenses and placement agent discount)	$ 3,250	6,614,350			6,617,600
Issuance of common stock through underwritten public offering at $2.15 per share (net of offering expenses and underwriters' discount), shares	3,250,000
Exercise of pre-funded common stock purchase warrants at $3.095 per share	$ 7,200	22,276,800			22,284,000
Exercise of pre-funded common stock purchase warrants at $3.095 per share, shares	7,200,000
Exercise of pre-funded common stock purchase warrants at $2.80 per share	$ 11,050	30,928,950			30,940,000
Exercise of pre-funded common stock purchase warrants at $2.80 per share, shares	11,050,000
Issuance of pre-funded common stock purchase warrants in connection with the registered direct offerings		(1,817,548)			(1,817,548)
Issuance of common stock purchase warrants at exercise price of $3.25 per share in connection with the registered direct offerings		(49,398,510)			(49,398,510)
Net loss				21,721,858	21,721,858
Ending balance, value at Mar. 31, 2021	$ 51,577	122,157,360	(2,157,226)	(68,292,642)	51,759,069
Balance, shares at Mar. 31, 2021	51,577,209
Beginning balance, value at Dec. 31, 2020	$ 26,835	106,501,396	(2,157,226)	(90,014,500)	14,356,505
Balance, shares at Dec. 31, 2020	26,834,709
Net loss					16,339,371
Ending balance, value at Jun. 30, 2021	$ 51,577	122,487,573	(2,157,226)	(73,675,129)	46,706,795
Balance, shares at Jun. 30, 2021	51,577,209
Beginning balance, value at Mar. 31, 2021	$ 51,577	122,157,360	(2,157,226)	(68,292,642)	51,759,069
Balance, shares at Mar. 31, 2021	51,577,209
Stock-based compensation		330,213			330,213
Net loss				(5,382,487)	(5,382,487)
Ending balance, value at Jun. 30, 2021	$ 51,577	$ 122,487,573	$ (2,157,226)	$ (73,675,129)	$ 46,706,795
Balance, shares at Jun. 30, 2021	51,577,209

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) (Parenthetical)	Mar. 31, 2021$ / shares
Warrant [Member]
Common stock issued price per share	$ 3.095
Warrant exercise price	3.25
Warrants One [Member]
Common stock issued price per share	2.80
IPO [Member]
Common stock issued price per share	3.095
IPO One [Member]
Common stock issued price per share	$ 2.80

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows From Operating Activities:
Net income (loss)	$ 16,339,371	$ (2,832,004)
Adjustments to reconcile net income (loss) to net cash flows used in operating activities:
Depreciation and amortization	145,459	134,143
Stock-based compensation	656,378	688,415
Change in fair value of warrant derivative liabilities	(21,688,835)
Provision for inventory obsolescence	361,437	238,957
Gain on extinguishment of debt	(10,000)
Amortization of discount on unsecured promissory notes		86,867
Change in fair value of secured convertible notes		1,300,252
Change in fair value of proceeds investment agreement		(2,885,000)
Debt issuance costs		34,906
(Increase) decrease in:
Accounts receivable – trade	817,077	(9,866)
Accounts receivable – other	(265,627)	(23,620)
Inventories	(1,774,922)	289,170
Prepaid expenses	(391,084)	(193,366)
Operating lease right of use assets	30,332	(647,176)
Other assets	(616,005)	79,981
Increase (decrease) in:
Accounts payable	(307,744)	(804,120)
Accrued expenses	79,290	92,811
Income taxes payable	(7,231)	(4,776)
Operating lease obligations	(41,185)	572,022
Contract liabilities	523,516	(174,599)
Net cash used in operating activities	(6,149,773)	(4,057,003)
Cash Flows from Investing Activities:
Purchases of property, plant and equipment	(5,452,729)	(96,011)
Additions to intangible assets	(41,126)	(67,098)
Cash paid for business acquisition, net of cash acquired	(1,012,552)
Net cash used in investing activities	(6,506,407)	(163,109)
Cash Flows from Financing Activities:
Proceeds from unsecured promissory note payable, related party		319,000
Proceeds from unsecured promissory note payable		100,000
Proceeds from promissory notes payable		1,568,900
Proceeds from issuance of common stock upon exercise of warrants		5,203,122
Proceeds from issuance of secured convertible notes payable		1,500,000
Proceeds from sale of common stock in underwritten public offering		12,829,241
Proceeds from exercise of stock options		7,800
Principal payment on subordinated notes payable		(400,000)
Principal payment on secured convertible notes		(748,180)
Principal payments on unsecured promissory note payable, related party		(319,000)
Debt issuance costs		(34,906)
Net proceeds from sale of common stock in registered direct offerings	13,346,600
Proceeds from issuance of common stock upon exercise of pre-funded warrants	53,224,000
Principal payment on subordinated notes payable
Principal payment on secured convertible notes
Net cash provided by financing activities	66,570,600	20,025,977
Net increase in cash and cash equivalents	53,914,420	15,805,865
Cash, cash equivalents, beginning of period	4,361,758	359,685
Cash, cash equivalents, end of period	58,276,178	16,165,550
Supplemental disclosures of cash flow information:
Cash payments for interest		128,911
Cash payments for income taxes	7,231	4,776
Supplemental disclosures of non-cash investing and financing activities:
Issuance of contingent consideration promissory note for business acquisition	350,000
Liabilities assumed in business acquisition	162,552
Restricted common stock grant	450	664
Restricted common stock forfeitures	8	36
Cashless exercise of common stock purchase warrants	0	7
Amounts allocated to initial measurement of warrant derivative liabilities in connection to the warrants and pre-funded warrants	51,216,058
Issuance of common stock upon conversion of secured convertible notes		3,024,685
Amounts allocated to common stock purchase warrants in connection with issuance of unsecured promissory note payable		$ 741,947

NATURE OF BUSINESS AND SUMMARY

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations: Digital Ally, Inc. (with its wholly-owned subsidiaries, Digital Ally International, Inc., Shield Products, LLC, Digital Ally Healthcare, LLC , collectively, “Digital Ally,” “Digital,” and the “Company”) produces digital video imaging, storage products and disinfectant and related safety products for use in law enforcement, security and commercial applications. The Company’s products include, among others; in-car digital video/audio recorders contained in a rear-view mirror for use in law enforcement and commercial fleets; a system that provides its law enforcement customers with audio/video surveillance from multiple vantage points and hands-free automatic activation of body-worn cameras and in-car video systems; a miniature digital video system designed to be worn on an individual’s body; and cloud storage solutions. The Company has recently added two new lines of branded products: (1) the ThermoVu™ line, which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and (2) the Shield™ disinfectant and cleanser line, which is for use against viruses and bacteria and which we began offering to the Company’s law enforcement and commercial customers beginning late in the second quarter of 2020. Both product lines are manufactured by third parties. In addition, the Company has active research and development programs to adapt its technologies to other applications. It can integrate electronic, radio, computer, mechanical, and multi-media technologies to create unique solutions to address needs in a variety of other industries and markets, including mass transit, school bus, taxicab and the military. The Company sells its products to law enforcement agencies, private security customers and organizations, and consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally. The Company was originally incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc. and had no operations until 2004. On November 30, 2004, Vegas Petra, Inc. entered into a Plan of Merger with Digital Ally, Inc., at which time the merged entity was renamed Digital Ally, Inc. Basis of Presentation: The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the audited financial statements and footnotes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020, and the unaudited financial statements and footnotes included in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2021. COVID-19 pandemic: The COVID-19 pandemic represents a fluid situation that presents a wide range of potential impacts of varying durations for different global geographies, including locations where the Company has offices, employees, customers, vendors and other suppliers and business partners. Like most US-based businesses, the COVID-19 pandemic and efforts to mitigate the same began to have impacts on our business in March 2020. By that time, much of our first fiscal quarter was completed. During the remainder of 2020 and the first quarter of 2021, the Company observed decreases in demand from certain customers, including primarily law-enforcement and commercial customers. However, the Company are beginning to experience an increase in demand for the three months ended June 30, 2021, compared to the same period in 2020. Given the fact that the Company’s products are sold through a variety of distribution channels, the Company expects its sales will experience more volatility as a result of the changing and less predictable operational needs of many customers as a result of the COVID-19 pandemic. The Company is aware that many companies, including many of its suppliers and customers, are reporting or predicting negative impacts from COVID-19 on future operating results. Although the Company observed significant declines in demand for its products from certain customers during 2020 and the first quarter of 2021, the Company believes that the impact of the COVID-19 remains too fluid and unknown, hindering the Company from determining the long-term demand for current products. The Company also cannot be certain how demand may shift over time as the impacts of the COVID-19 pandemic may go through several phases of varying severity and duration. In light of broader macro-economic risks and already known impacts on certain industries that use the Company’s products and services, the Company has taken, and continue to take targeted steps to lower its operating expenses because of the COVID-19 pandemic. The Company continues to monitor the impacts of COVID-19 on its operations closely and this situation could change based on a significant number of factors that are not entirely within its control and are discussed in this and other sections of this quarterly report on Form 10-Q. The Company does not expect there to be material changes to its assets on its balance sheet or its ability to timely account for those assets. Further, in connection with the preparation of this quarterly report on Form 10-Q, the Company reviewed the potential impacts of the COVID-19 pandemic on goodwill and intangible assets and have determined there to be no material impact at this time. The Company has also reviewed the potential impacts on future risks to the business as it relates to collections, returns and other business-related items. To date, travel restrictions and border closures have not materially impacted its ability to obtain inventory or manufacture or deliver products or services to customers. However, if such restrictions become more severe, they could negatively impact those activities in a way that would harm the business over the long term. Travel restrictions impacting people can restrain our ability to assist its customers and distributors as well as impact its ability to develop new distribution channels, but at present the Company does not expect these restrictions on personal travel to be material to our business operations or financial results. The Company has taken steps to restrain and monitor its operating expenses and therefore it does not expect any such impacts to materially change the relationship between costs and revenues. Like most companies, the Company has taken a range of actions with respect to how it operates to assure it complies with government restrictions and guidelines as well as best practices to protect the health and well-being of its employees and its ability to continue operating its business effectively. To date, the Company has been able to operate its business effectively using these measures and to maintain internal controls as documented and posted. The Company also has not experienced challenges in maintaining business continuity and does not expect to incur material expenditures to do so. However, the impacts of COVID-19 and efforts to mitigate the same have remained unpredictable and it remains possible that challenges may arise in the future. The actions the Company has taken so far during the COVID-19 pandemic include, but are not limited to: ● requiring all employees who can work from home to work from home; ● increasing its IT networking capability to best assure employees can work effectively outside the office; and ● for employees who must perform essential functions in one of its offices: ● having employees maintain a distance of at least six feet from other employees whenever possible; ● having employees work in dedicated shifts to lower the risk all employees who perform similar tasks might become infected by COVID-19; ● having employees stay segregated from other employees in the office with whom they require no interaction; and ● requiring employees to wear masks while they are in the office whenever possible. The Company currently believes revenue for the year ending December 31, 2021 will still be impacted due to the conditions noted. In April 2020, the Company implemented a COVID-19 mitigation plan designed to further reduce its operating expenses during the pandemic. Actions taken to date include work hour and salary reductions for senior management. These cost reductions are in addition to the significant restructuring actions which the Company continues to implement and develop throughout 2021. Based on the Company’s current cash position, its projected cash flow from operations and its cost reduction and cost containment efforts to date, the Company believes that it will have sufficient capital and or have access to sufficient capital through public and private equity and debt offerings to sustain operations for a period of one year following the date of this filing. If business interruptions resulting from the COVID-19 pandemic were to be prolonged or expanded in scope, the business, financial condition, results of operations and cash flows would be negatively impacted. The Company will continue to actively monitor this situation and will implement actions necessary to maintain business continuity. Basis of Consolidation: The accompanying financial statements include the consolidated accounts of Digital Ally and its wholly-owned subsidiaries, Digital Ally International, Inc., Shield Products, LLC , and Digital Ally Healthcare, LLC. All intercompany balances and transactions have been eliminated during consolidation. The Company formed Digital Ally International, Inc. during August 2009 to facilitate the export sales of its products. The Company formed Shield Products, LLC in May 2020 to facilitate the sales of its Shield™ line of disinfectant/cleanser products and ThermoVu™ line of temperature monitoring equipment. The Company formed Digital Ally Healthcare, LLC in June 2021 to facilitate its new medical billing division. Revenue Recognition: The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situations where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer ( i.e. The Company sells its products and services to law enforcement and commercial customers in the following manner: ● Sales to domestic customers are made direct to the end customer (typically a law enforcement agency or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the product is shipped to the end customer. ● Sales to international customers are made through independent distributors who purchase products from the Company at a wholesale price and sell to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor consistent with the terms of the distribution agreement. ● Repair parts and services for domestic and international customers are generally handled by its inside customer service employees. Revenue is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer. Sales taxes collected on products sold are excluded from revenues and are reported as accrued expenses in the accompanying balance sheets until payments are remitted. Service and other revenue is comprised of revenues from extended warranties, repair services, cloud revenue and software revenue. Revenue is recognized upon shipment of the product and acceptance of the service or materials by the end customer for repair services. Revenue for extended warranty, cloud service or other software-based products is over the term of the contract warranty or service period. A time-elapsed method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to these revenues is generally recognized on a straight-line basis over the contract term, as long as the other revenue recognition criteria have been met. Contracts with some of the Company’s customers contain multiple performance obligations that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”). The Company determined SSP for all the performance obligations using observable inputs, such as standalone sales and historical pricing. SSP is consistent with the Company’s overall pricing objectives, taking into consideration the type of service being provided. SSP also reflects the amount the Company would charge for the performance obligation if it were sold separately in a standalone sale. Multiple performance obligations consist of product, software, cloud subscriptions and extended warranties. The Company’s multiple performance obligations may include future in-car or body-worn camera devices to be delivered at defined points within a multi-year contract, and in those arrangements, the Company allocates total arrangement consideration over the life of the multi-year contract to future deliverables using management’s best estimate of selling price. Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract and are reported separately as current liabilities and non-current liabilities in the condensed consolidated balance sheets. Such amounts consist of extended warranty contracts, prepaid cloud services and prepaid installation services and are generally recognized as the respective performance obligations are satisfied. Use of Estimates: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management utilizes various other estimates, including but not limited to determining the estimated lives of long-lived assets, determining the potential impairment of long-lived assets, the fair value of warrants, options, proceeds investment agreement and convertible debt, the recognition of revenue, inventory valuation reserve, the valuation allowance for deferred tax assets and other legal claims and contingencies. The results of any changes in accounting estimates are reflected in the financial statements in the period in which the changes become evident. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period that they are determined to be necessary. Cash and cash equivalents: Cash and cash equivalents include funds on hand, in bank and short-term investments with original maturities of ninety (90) days or less. 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 $ 250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions. At June 30, 2021 and December 31, 2020, the uninsured balance amounted to $ 57,265,079 and $ 3,653,192 , respectively. 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. One individual customer receivable balance exceeded 10 287,000 32 319,000 19 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 (30) days beyond terms. No interest is charged on overdue trade receivables. Segments of Business: Management has determined that its operations are comprised of one reportable segment: the sale of digital audio and video recording and speed detection devices. For the three and six months ended June 30, 2021 and 2020, sales by geographic area were as follows: SUMMARY OF SALES BY GEOGRAPHIC AREA Three Months Ended Six Months Ended June 30, 2021 2020 2021 2020 Sales by geographic area: United States of America $ 2,312,131 $ 1,726,119 $ 4,789,329 $ 4,097,815 Foreign 181,540 6,073 240,172 60,121 $ 2,493,671 $ 1,732,192 $ 5,029,501 $ 4,157,936 Sales to customers outside of the United States are denominated in U.S. dollars. All Company assets are physically located within the United States. Recent Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses” to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. In April 2019 and May 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief” which provided additional implementation guidance on the previously issued ASU. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission (the “SEC”) to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation will not be required until January 1, 2023. The Company will continue to evaluate the effect that adopting ASU 2016-13 will have on the Company’s consolidated financial statements. In 2020, FASB issued ASU No. 2020-06 to simplify the accounting for convertible debt instruments as the current accounting guidance was determined to be unnecessarily complex and difficult to navigate. The ASU primarily does three things: (1) The ASU eliminates the beneficial conversion feature model and the cash conversion model. The elimination of these models will result in more convertible instruments (convertible debt instruments or convertible preferred stock instruments) being reported as a single liability instrument. The ASU also makes targeted improvements to the related disclosures, (2) The ASU eliminates certain settlement conditions that are required to qualify for derivative scope exception which will allow for less equity contracts to be accounted for as a derivative and (3) The ASU aligns the diluted EPS calculation for convertible instruments by requiring the use of the if-converted method and requiring share settlement be included in the calculation when the contract includes an option of cash or share settlement. ASU No. 2020-06 is effective for fiscal years beginning after December 15, 2021 with early adoption permitted for fiscal years beginning after December 15, 2020. Management has not early-adopted this new standard and continues to evaluate the impact of adopting ASU 2020-06 will have on its consolidated financial statements. In 2020, FASB issued ASU No. 2020-01 which represents a consensus of the Emerging Issues Task Force and it clarifies certain items related to ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU (1) clarifies that when an entity is either applying the equity method or upon discontinuing the equity method it should consider observable price changes in orderly transactions for the identical or a similar investment with the same issuer for valuing basis of the investment and (2) clarifies that when determining the accounting for certain forward contracts and purchased options an entity should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. ASU No. 2020-01 is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The Company adopted this update for the quarter ended March 31, 2021, with no material effect on the financials. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes - simplifying the accounting for income taxes (Topic 740), which is meant to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendment also improves consistent application and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The adoption of this standard did not have a significant impact on the Company’s financial position and results of operations. Warrant Derivative Liabilities In accordance with FASB ASC 815-40, Derivatives and Hedging: Contracts in an Entities Own Equity, entities must consider whether to classify contracts that may be settled in its own stock, such as warrants to purchase shares of Common Stock, as equity of the entity or as an asset or liability. If an event that is not within the entity’s control could require net cash settlement, then the contract should be classified as an asset or a liability rather than as equity. We have determined because the terms of the warrants issued during the first quarter of 2021, and remain outstanding, include a provision that entitles all the warrant holders to receive cash for their warrants in the event of a qualifying cash tender offer, while only certain of the holders of the underlying shares of common stock would be entitled to cash, our warrants should be classified as liability measured at fair value, with changes in fair value each period reported in earnings. Volatility in the price of our common stock may result in significant changes in the value of the derivatives and resulting gains and losses on our statement of operations.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 2. INVENTORIES Inventories consisted of the following at June 30, 2021 and December 31, 2020: SCHEDULE OF INVENTORIES June 30, December 31, 2020 Raw material and component parts $ 3,184,707 $ 3,186,426 Work-in-process 15,530 1,907 Finished goods 8,737,310 6,974,291 Subtotal 11,937,547 10,162,625 Reserve for excess and obsolete inventory (2,321,788 ) (1,960,351 ) Total inventories $ 9,615,759 $ 8,202,274 Finished goods inventory includes units held by potential customers and sales agents for test and evaluation purposes. The cost of such units totaled $ 131,068 138,263

DEBT OBLIGATIONS

DEBT OBLIGATIONS	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
DEBT OBLIGATIONS	NOTE 3. DEBT OBLIGATIONS Debt obligations is comprised of the following: SUMMARY OF SECURED CONVERTIBLE DEBENTURES AND PROCEEDS INVESTMENT AGREEMENT June 30, December 31, 2020 Economic injury disaster loan (EIDL) $ 150,000 $ 150,000 Payroll protection program loan (PPP) — 10,000 Contingent consideration promissory note 350,000 — Debt obligations 500,000 160,000 Less: current maturities of debt obligations 72,502 11,727 Debt obligations, long-term $ 427,498 $ 148,273 Debt obligations mature as follows as of June 30, 2021: SCHEDULE OF MATURITY OF DEBT OBLIGATIONS June 30, 2021 2021 (July 1, 2021 to December 31, 2021) $ 1,482 2022 143,049 2023 143,166 2024 73,286 2025 3,412 2026 and thereafter 135,605 Total $ 500,000 2020 Small Business Administration Notes On May 4, 2020, the Company issued a promissory note in connection with the receipt of the Paycheck Protection Program (“PPP”) Loan of $ 1,418,900 (the “PPP Loan”) under the Small Business Administration’s (the “SBA”) PPP Program under the Coronavirus Aid, Relief, and Economic Security Act ( the “CARES Act”). The PPP Loan has a two term and bears interest at a rate of 1.0 % per annum. Monthly principal and interest payments were deferred for nine months after the date of disbursement and total $ 79,851 per month thereafter. The PPP Loan could have been prepaid at any time prior to maturity with no prepayment penalties. The promissory note contained events of default and other provisions customary for a loan of this type. The PPP provides that the PPP Loan may be partially or wholly forgiven if the funds are used for certain qualifying expenses as described in the CARES Act. The Company intends to use the majority of the PPP Loan amount for qualifying expenses and to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. The Company used the majority of the PPP Loan amount for qualifying expenses and to apply for forgiveness of the PPP Loan in accordance with the terms of the CARES Act. The Company applied for forgiveness of the PPP Loan and December 10, 2020, the Company was fully forgiven of its $ 1,418,900 PPP Loan. Additionally, the Company was fully forgiven, during the three months ended June 30, 2021, of its $ 10,000 EIDL advance received with the PPP Loan. On May 12, 2020, the Company received $ 150,000 150,000 Under the terms of the note issued under the EIDL program, interest accrues on the outstanding principal at the rate of 3.75 731 Contingent Consideration Promissory Note On June 30, 2021, Nobility Healthcare, LLC, a subsidiary of the Company, issued a contingent consideration promissory note (the “Note”) in connection with the Stock Purchase Agreement between Nobility and Elite Medical Billing Specialists (“Elite”) of $ 350,000 three 3.00 975,000 The contingent consideration promissory note is considered to be additional purchase price, therefore the estimated fair value of the contingent liability is recorded as a liability at the acquisition date and the fair value is considered part of the consideration paid for the acquisition. Management has recorded the contingent consideration promissory note at its estimated fair value of $ 350,000

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 4. FAIR VALUE MEASUREMENT In accordance with ASC Topic 820 — Fair Value Measurements and Disclosures ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: ● Level 1 — Quoted prices in active markets for identical assets and liabilities ● Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities) ● Level 3 — Significant unobservable inputs (including the Company’s own assumptions in determining the fair value) The following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS June 30, 2021 Level 1 Level 2 Level 3 Total Liabilities: Warrant derivative liabilities $ — $ — $ 29,527,224 $ 29,527,224 Contingent consideration promissory note — — 350,000 350,000 $ — $ — $ 29,877,224 $ 29,877,224 December 31, 2020 Level 1 Level 2 Level 3 Total Liabilities: Warrant derivative liabilities — — — — Contingent consideration promissory note — — — — $ — $ — $ — $ — The following table represents the change in Level 3 tier value measurements for the six months ended June 30, 2021: SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS Contingent Consideration Promissory Note Warrant Derivative Liabilities Balance, December 31, 2020 $ — $ — Issuance of detachable warrants in the January 14, 2021 Offering — 21,922,158 Issuance of detachable warrants in the February 1, 2021 Offering — 27,476,352 Issuance of detachable pre-funded warrants in the January 14, 2021 Offering — 378,615 Issuance of detachable pre-funded warrants in the February 1, 2021 Offering — 1,438,934 Transition of derivative warrant liability to equity on pre-funded warrants — — Change in fair value of warrant derivative liabilities — (24,552,257 ) Balance, March 31, 2021 — 26,663,802 Issuance of contingent consideration promissory note 350,000 — Change in fair value of financial instruments — 2,863,422 Balance, June 30, 2021 $ 350,000 $ 29,527,224

ACCRUED EXPENSES

ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
ACCRUED EXPENSES	NOTE 5. ACCRUED EXPENSES Accrued expenses consisted of the following at June 30, 2021 and December 31, 2020: SCHEDULE OF ACCRUED EXPENSES June 30, 2021 December 31, 2020 Accrued warranty expense $ 11,562 $ 31,845 Accrued litigation costs 250,000 250,000 Accrued sales commissions 22,692 38,294 Accrued payroll and related fringes 321,639 199,850 Accrued sales returns and allowances 22,837 26,069 Accrued sales taxes 48,348 53,627 Other 198,233 196,409 Total accrued expenses $ 875,311 $ 796,094 Accrued warranty expense was comprised of the following for the six months ended June 30, 2021: SCHEDULE OF ACCRUED WARRANTY EXPENSE Beginning balance $ 31,845 Provision for warranty expense 5,815 Charges applied to warranty reserve (26,098 ) Ending balance $ 11,562

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 6. INCOME TAXES The effective tax rate for the three months ended June 30, 2021 and 2020 varied from the expected statutory rate due to the Company continuing to provide a 100 The Company has incurred operating losses in recent years, and it continues to be in a three-year cumulative loss position at June 30, 2021. Accordingly, the Company determined there was not sufficient positive evidence regarding its potential for future profits to outweigh the negative evidence of our three-year cumulative loss position under the guidance provided in ASC 740. Therefore, it determined to continue to provide a 100 76

PROPERTY, PLANT AND EQUIPMENT

PROPERTY, PLANT AND EQUIPMENT	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	NOTE 7. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net consists of the following: Schedule of Property and Equipment, Net June 30, 2021 December 31, 2020 Land $ 789,734 $ 59,226 Buildings 4,909,478 363,215 Equipment 682,065 507,676 Leasehold improvements 291,435 289,865 Property and Equipment, gross 291,435 289,865 Less: accumulated depreciation (648,528 ) (553,182 ) Total property, plant and equipment, net $ 6,024,184 $ 666,800 On 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. The building contains approximately 30,000 square feet of office space and the remainder warehouse space. 5.3 Depreciation expense for the six months ended June 30, 2021 and June 30, 2020 was $ 95,346 43,183

OPERATING LEASE

OPERATING LEASE	6 Months Ended
	Jun. 30, 2021
Operating Lease
OPERATING LEASE	NOTE 8. OPERATING LEASE On May 13, 2020, the Company entered into an operating lease for new warehouse and office space which will serve as its new principal executive office and primary business location. The original lease agreement was amended on August 28, 2020 to correct the footage under lease and monthly payment amounts resulting from such correction. The lease terms, as amended include no base rent for the first nine months and monthly payments ranging from $ 12,398 14,741 December 2026 sixty-six The Company entered into an operating lease with a third party in October 2019 for copiers used for office and warehouse purposes. The terms of the lease include 48 1,598 October 2023 28 Lease expense related to the office space and copier operating leases were recorded on a straight-line basis over their respective lease terms. Total lease expense under the two operating leases was $ 65,953 for the six months ended June 30, 2021. The discount rate implicit within the Company’s operating leases was not generally determinable and therefore the Company determined the discount rate based on its incremental borrowing rate on the information available at commencement date. As of commencement date, the operating lease liabilities reflect a weighted average discount rate of 8 The following sets forth the operating lease right of use assets and liabilities as of June 30, 2021: SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES 1 Assets: Operating lease right of use assets $ 722,843 Liabilities: Operating lease obligations-current portion $ 123,356 Operating lease obligations-less current portion $ 672,216 Total operating lease obligations $ 795,572 The components of lease expense were as follows for the six months ended June 30, 2021: SCHEDULE OF COMPONENTS OF LEASE EXPENSES 1 Selling, general and administrative expenses $ 65,953 Following are the minimum lease payments for each year and in total. SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year ending December 31: 2021 (July 1, 2021 to December 31, 2021) $ 91,272 2022 184,145 2023 184,241 2024 171,642 2025 & beyond 348,446 Total undiscounted minimum future lease payments 979,746 Imputed interest (184,174 ) Total operating lease liability $ 795,572

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	NOTE 9. CONTINGENCIES COVID-19 pandemic The COVID-19 pandemic represents a fluid situation that presents a wide range of potential impacts of varying durations for different global geographies, including locations where the Company has offices, employees, customers, vendors and other suppliers and business partners. Like most US-based businesses, the COVID-19 pandemic and efforts to mitigate the same began to have impacts on our business in March 2020. By that time, much of the Company’s first fiscal quarter was completed. During 2020 and the first quarter of 2021, the Company observed recent decreases in demand from certain customers, including primarily law-enforcement and commercial customers. However, we are beginning to experience an increase in demand for the three months ended June 30, 2021, compared to the same period in 2020. Given the fact that the Company’s products are sold through a variety of distribution channels, the Company expects sales will experience more volatility as a result of the changing and less predictable operational needs of many customers as a result of the COVID-19 pandemic. The Company is aware that many companies, including many current suppliers and customers, are reporting or predicting negative impacts from COVID-19 on future operating results. Although the Company observed a slight increase in demand for products from certain customers during the quarter ended June 30, 2021, the Company believes that the impact of the COVID-19 remains too fluid and unknown, hindering the Company from determining the long-term demand for current products. The Company also cannot be certain how demand may shift over time as the impacts of the COVID-19 pandemic may go through several phases of varying severity and duration. In light of broader macro-economic risks and already known impacts on certain industries that use the Company’s products and services, the Company has taken, and continues to take targeted steps to lower its operating expenses because of the COVID-19 pandemic. The Company continues to monitor the impacts of COVID-19 on its operations closely and this situation could change based on a significant number of factors that are not entirely within its control and are discussed in this and other sections of this quarterly report on Form 10-Q. The Company does not expect there to be material changes to its assets on our balance sheet or its ability to timely account for those assets. Further, in connection with the preparation of this quarterly report on Form 10-Q and the financial statements contained herein, the Company reviewed the potential impacts of the COVID-19 pandemic on goodwill and intangible assets and have determined there to be no material impact at this time. The Company has also reviewed the potential impacts on future risks to the business as it relates to collections, returns and other business-related items. To date, travel restrictions and border closures have not materially impacted its ability to obtain inventory or manufacture or deliver products or services to customers. However, if such restrictions become more severe, they could negatively impact those activities in a way that would harm the business over the long term. Travel restrictions impacting people can restrain its ability to assist its customers and distributors as well as impact its ability to develop new distribution channels, but at present the Company does not expect these restrictions on personal travel to be material to our business operations or financial results. The Company has taken steps to restrain and monitor its operating expenses and therefore it does not expect any such impacts to materially change the relationship between costs and revenues. Like most companies, the Company has taken a range of actions with respect to how it operates to assure it comply with government restrictions and guidelines as well as best practices to protect the health and well-being of its employees and its ability to continue operating its business effectively. To date, the Company has been able to operate its business effectively using these measures and to maintain all internal controls as documented and posted. The Company also has not experienced challenges in maintaining business continuity and does not expect to incur material expenditures to do so. However, the impacts of COVID-19 and efforts to mitigate the same have remained unpredictable and it remains possible that challenges may arise in the future. The actions the Company has taken so far during the COVID-19 pandemic include, but are not limited to: ● Requiring all employees who can work from home to work from home; ● Increasing its IT networking capability to best assure employees can work effectively outside the office; and ● For employees who must perform essential functions in one of its offices: ● Having employees maintain a distance of at least six feet from other employees whenever possible; ● Having employees work in dedicated shifts to lower the risk all employees who perform similar tasks might become infected by COVID-19; ● Having employees stay segregated from other employees in the office with whom they require no interaction; and ● Requiring employees to wear masks while they are in the office whenever possible. The Company currently believes revenue for the year ending December 31, 2021 will still be impacted due to the conditions noted. In April 2020, the Company implemented a COVID-19 mitigation plan designed to further reduce its operating expenses during the pandemic. Actions taken to date include work hour and salary reductions for senior management. These cost reductions are in addition to the significant restructuring actions which the Company continues to implement and develop throughout. Based on the Company’s current cash position, its projected cash flow from operations and its cost reduction and cost containment efforts to date, the Company believes that it will have sufficient capital and or have access to sufficient capital through public and private equity and debt offerings to sustain operations for a period of one year following the date of this filing. If business interruptions resulting from the COVID-19 pandemic were to be prolonged or expanded in scope, the business, financial condition, results of operations and cash flows would be negatively impacted. The Company will continue to actively monitor this situation and will implement actions necessary to maintain business continuity. Litigation. From time to time, the Company is notified that it may be a party to a lawsuit or that a claim is being made against it. It is the Company’s policy to not disclose the specifics of any claim or threatened lawsuit until the summons and complaint are actually served. After carefully assessing the claim, and assuming the Company determines that it is not at fault or it disagrees with the damages or relief demanded, it vigorously defends any lawsuit filed against it. The Company records a liability when losses are deemed probable and reasonably estimable. When losses are deemed reasonably possible but not probable, the Company determines whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim, if material for disclosure. In evaluating matters for accrual and disclosure purposes, the Company takes into consideration factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of it prevailing, the availability of insurance, and the severity of any potential loss. The Company reevaluates and updates accruals as matters progress over time. While the ultimate resolution is unknown, based on the information currently available, the Company does not expect that these lawsuits will individually, or in the aggregate, have a material adverse effect to its results of operations, financial condition or cash flows. However, the outcome of any litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by its insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on its operating results, financial condition or cash flows. Axon The Company owns U.S. Patent No. 9,253,452 (the “ ‘452 Patent”), which generally covers the automatic activation and coordination of multiple recording devices in response to a triggering event, such as a law enforcement officer activating the light bar on the vehicle. The Company filed suit on January 15, 2016 in the U.S. District Court for the District of Kansas (the “U.S. District Court”) (Case No: 2:16-cv-02032) against Axon Enterprise, Inc. (“Axon”), alleging willful patent infringement against Axon’s body camera product line and Signal auto-activation product. The Company is seeking both monetary damages and a permanent injunction against Axon for infringement of the ‘452 Patent. In December 2016 and January 2017, Axon filed two petitions for Inter Partes The District Court litigation was temporarily stayed following the filing of the petitions for IPR. However, on November 17, 2017, the U.S. District Court of Kansas rejected Axon’s request to maintain the stay. With this ruling, the parties then proceeded towards trial, after which the parties filed motions for summary judgement on January 31, 2019. On June 17, 2019, the U.S. District Court granted Axon’s motion for summary judgment that Axon did not infringe on the Company’s patent and dismissed the case. The U.S. District Court’s ruling did not find that the ‘452 Patent was invalid. It also did not address any other issue, such as whether Digital’s requested damages were appropriate, and it did not impact the Company’s ability to file additional lawsuits to hold other competitors accountable for patent infringement. This ruling solely related to an interpretation of the Company’s claims as they relate to Axon and was unrelated to the supplemental briefing the Company filed on its damages claim. Those issues are separate and the U.S. District Court’s ruling on the motion for summary judgment had nothing to do with the Company’s damages request. The Company filed an opening appeal brief on August 26, 2019 with the U.S. Court of Appeals for the Tenth Circuit (the “Court of Appeals”), appealing the U.S. District Court’s granting of Axon’s motion for summary judgment. Axon responded by filing a responsive brief on November 6, 2019 and we then filed a reply brief responding to Axon on November 27, 2019. The Court of Appeals scheduled oral arguments on our appeal of the U.S. District Court’s summary judgment ruling on April 6, 2020. This appeal was intended to address the Company’s position that the U.S. District Court incorrectly dismissed our claims against Axon. If the Court of Appeals overturns the ruling of the U.S. District Court, the case would have been remanded to the U.S District Court before a new judge. On March 12, 2020, the panel of judges for the Court of Appeals issued an order cancelling the oral arguments previously set for April 6, 2020, having determined that the appeal will be decided solely based on the parties’ briefs. On April 22, 2020, a three-judge panel of the United States Court of Appeals denied our appeal and affirmed the District Court’s previous decision to grant Axon summary judgment. On May 22, 2020, we filed a petition for panel rehearing requesting that we be granted a rehearing of our appeal of the U.S. District Court’s summary judgment ruling. Furthermore, we requested that we be given an opportunity to make our case through oral argument in front of the three-judge panel of the Court of Appeals, which was also denied. The Company has abandoned its right to any further appeals.

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
STOCK-BASED COMPENSATION	NOTE 10. STOCK-BASED COMPENSATION The Company recorded pretax compensation expense related to the grant of stock options and restricted stock issued of $ 330,213 376,738 656,378 688,415 As of June 30, 2021, the Company had adopted nine separate stock option and restricted stock plans: (i) the 2005 Stock Option and Restricted Stock Plan (the “2005 Plan”), (ii) the 2006 Stock Option and Restricted Stock Plan (the “2006 Plan”), (iii) the 2007 Stock Option and Restricted Stock Plan (the “2007 Plan”), (iv) the 2008 Stock Option and Restricted Stock Plan (the “2008 Plan”), (v) the 2011 Stock Option and Restricted Stock Plan (the “2011 Plan”), (vi) the 2013 Stock Option and Restricted Stock Plan (the “2013 Plan”), (vii) the 2015 Stock Option and Restricted Stock Plan (the “2015 Plan”), (viii) the 2018 Stock Option and Restricted Stock Plan (the “2018 Plan”) and (ix) the 2020 Stock Option and Restricted Stock Plan (the “2020 Plan”).. The 2005 Plan, 2006 Plan, 2007 Plan, 2008 Plan, 2011 Plan, 2013 Plan, 2015 Plan, 2018 Plan and 2020 Plan are referred to as the “Plans.” These Plans permit the grant of stock options or restricted stock to its employees, non-employee directors and others for up to a total of 5,675,000 shares of common stock. The 2005 Plan terminated during 2015 with 20,178 shares not awarded or underlying options, which shares are now unavailable for issuance. Stock options granted under the 2005 Plan that remain unexercised and outstanding as of June 30, 2021 total 7,064 . The 2006 Plan terminated during 2016 with 35,474 shares not awarded or underlying options, which shares are now unavailable for issuance. Stock options granted under the 2006 Plan that remain unexercised and outstanding as of June 30, 2021 total 30,125 . The 2007 Plan terminated during 2017 with 94,651 shares not awarded or underlying options, which shares are now unavailable for issuance. The 2008 Plan terminated during 2018 with 40,499 shares not awarded or underlying options, which shares are now unavailable for issuance. There were no stock options granted under the 2008 Plan that remain unexercised and outstanding as of June 30, 2021. The Company believes that such awards better align the interests of our employees with those of its stockholders. Option awards have been granted with an exercise price equal to the market price of its stock at the date of grant with such option awards generally vesting based on the completion of continuous service and having ten-year contractual terms. These option awards typically provide for accelerated vesting if there is a change in control (as defined in the Plans). The Company has registered all shares of common stock that are issuable under its Plans with the SEC. A total of 791,939 The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model. Activity in the various Plans during the six months ended June 30, 2021: SUMMARY OF STOCK OPTIONS OUTSTANDING Options Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2020 838,313 $ 3.20 Granted — — Exercised — — Forfeited (46,375 ) (12.19 ) Outstanding at June 30, 2021 791,939 $ 2.67 Exercisable at June 30, 2021 791,939 $ 2.67 The fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model. The total estimated grant date fair value stock options issued during the six months ended June 30, 2021 was $- 0 no The Plans allow for the cashless exercise of stock options. This provision allows the option holder to surrender/cancel options with an intrinsic value equivalent to the purchase/exercise price of other options exercised. There were no shares surrendered pursuant to cashless exercises during the six months ended June 30, 2021 and 2020. The aggregate intrinsic value of options outstanding was $- 0 0 As of June 30, 2021, the unrecognized portion of stock compensation expense on all existing stock options was $- 0 The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable options under the Company’s option plans as of June 30, 2021: SCHEDULE OF SHARES AUTHORIZED UNDER STOCK OPTION PLANS BY EXERCISE PRICE RANGE Outstanding options Exercisable options Exercise price range Number of options Weighted average contractual life Number of options Weighted average remaining contractual life $ 0.01 2.49 415,000 8.4 415,000 8.4 $ 2.50 3.49 310,314 6.8 310,314 6.8 $ 3.50 4.49 45,750 3.6 45,750 3.6 $ 4.50 6.99 15,000 0.5 15,000 0.5 $ 7.00 9.52 5,875 0.3 5,875 0.3 791,939 7.3 791,939 7.3 Restricted stock grants. A summary of all restricted stock activity under the equity compensation plans for the six months ended June 30, 2021 is as follows: SUMMARY OF RESTRICTED STOCK ACTIVITY Number of Restricted shares Weighted average grant date fair value Nonvested balance, December 31, 2020 720,125 $ 1.69 Granted 450,000 2.76 Vested (479,250 ) (1.99 ) Forfeited (7,500 ) (1.08 ) Nonvested balance, June 30, 2021 683,375 $ 2.14 The Company estimated the fair market value of these restricted stock grants based on the closing market price on the date of grant. As of June 30, 2021, there were $ 753,011 of total unrecognized compensation costs related to all remaining non-vested restricted stock grants, which will be amortized over the next 18 months in accordance with their respective vesting scale. The nonvested balance of restricted stock vests as follows: SCHEDULE OF NON-VESTED BALANCE OF RESTRICTED STOCK Years ended Number of shares 2021 (July 1, 2021 through December 31, 2021) — 2022 458,375 2023 225,000

COMMON STOCK PURCHASE WARRANTS

COMMON STOCK PURCHASE WARRANTS	6 Months Ended
	Jun. 30, 2021
Common Stock Purchase Warrants
COMMON STOCK PURCHASE WARRANTS	NOTE 11. COMMON STOCK PURCHASE WARRANTS The Company has issued common stock purchase warrants in conjunction with various debt and equity issuances. The warrants are either immediately exercisable, or have a delayed initial exercise date, no more than six months from their respective issue date and allow the holders to purchase up to 26,808,598 2.60 5.00 warrants expire from December 30, 2021 through February 1, 2026 On January 14, 2021 and February 1, 2021, the Company issued warrants to purchase a total of 42,550,000 The Company has utilized the following assumptions in its Black-Scholes option valuation model to calculate the estimated fair value of the warrant derivative liabilities as of their date of issuance and as of June 30, 2021: SCHEDULE OF FAIR VALUE OF THE WARRANT DERIVATIVE LIABILITIES Issuance date assumptions June 30, 2021 assumptions Volatility - range 106.6 166.6 % 107.5 % Risk-free rate 0.08 0.49 % 0.87 % Dividend 0 % 0 % Remaining contractual term 0.01 5 4.6 Exercise price $ 2.80 3.25 $ 3.25 Common stock issuable under the warrants 42,550,000 24,300,000 During the six months ended June 30, 2021, holders of pre-funded warrants exercised a total of 18,250,000 1,817,549 zero 1,817,549 The following table summarizes information about shares issuable under warrants outstanding during the six months ended June 30, 2021: SUMMARY OF WARRANT ACTIVITY Warrants Weighted average exercise price Vested Balance, January 1, 2021 3,388,364 $ 6.24 Granted 42,550,000 3.11 Exercised (18,250,000 ) 2.92 Forfeited/cancelled (879,766 ) 13.43 Vested Balance, June 30, 2021 26,808,598 $ 3.29 The total intrinsic value of all outstanding warrants aggregated $- 0 51.2 The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable warrants to purchase shares of common stock as of June 30, 2021: SUMMARY OF RANGE OF EXERCISE PRICES AND WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE OF WARRANTS Outstanding and exercisable warrants Exercise price Number of warrants Weighted average remaining contractual life $ 2.60 465,712 2.1 $ 3.00 316,800 1.8 $ 3.25 24,300,000 4.6 $ 3.36 733,333 1.4 $ 3.65 167,000 1.0 $ 3.75 25,753 1.1 $ 5.00 800,000 0.5 26,808,598 4.3

STOCKHOLDERS_ EQUITY

STOCKHOLDERS’ EQUITY	6 Months Ended
	Jun. 30, 2021
Equity [Abstract]
STOCKHOLDERS’ EQUITY	NOTE 12. STOCKHOLDERS’ EQUITY Registered Direct Offerings On January 14, 2021, the Company consummated a registered direct offering (the “Offering”) of (i) 2,800,000 7,200,000 10,000,000 five years 3.25 who acted as the exclusive placement agent in connection with the Offering pursuant to a placement agency agreement 3.095 3.085 The securities in the Offering were issued pursuant to a prospectus supplement to the Company’s effective shelf registration statement on Form S-3 (File No. 333-239419). The placement agency agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the placement agen t The placement agent received discounts and commissions of six percent ( 6 Under the placement agency agreement, the Company and its officers and directors executed lock-up agreements whereby, subject to certain expectations, (a) the Company has agreed not to engage in the following for a period of 90 days from the date of the pricing of the Offering, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (ii) file or cause to be filed any registration statement with the SEC relating to the offering of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (iii) complete any offering of debt securities of the Company, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of capital stock of the Company. Further, pursuant to the terms of the Securities Purchase Agreement the Company has granted to the Investors, for a period of 12 months after the closing of the Offering, the right to participate in subsequent offerings by the Company of Common Stock and Common Stock equivalents in an amount up to 50 The Company received approximately $ 28,941,000 29,013,000 The Company received net proceeds from this offering as follows: SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Net proceeds received: Proceeds from the sale of 2,800,000 3.095 $ 8,666,000 Proceeds from the sale of pre-funded warrants to purchase 7,200,000 3.085 22,212,000 Less: Placement agent fees and other expenses of the offering (1,937,000 ) Net proceeds of the offering $ 28,941,000 In conjunction with this Offering, the Company issued prefunded Common Stock purchase warrants to purchase up to 7,200,000 3.095 3.085 10,000,000 3.25 he Company allocated a portion of the net proceeds of this offering to warrant derivative liabilities based on their estimated fair value as follows (See Notes 4 and 11) : SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Warrant derivative liabilities $ 21,922,158 Pre-funded warrant derivative liabilities 378,615 Total allocation of the net proceeds of the offering to warrant derivative liabilities $ 22,300,773 Registered Direct Offering On February 1, 2021, the Company consummated an registered direct offering (the “Second Offering”) of (i) 3,250,000 11,050,000 14,300,000 five years 3.25 acted as the exclusive placement agent in connection with the Second Offering pursuant to a placement agency agreement 2.80 2.79 The securities in the Second Offering were issued pursuant to a prospectus supplement to the Company’s effective shelf registration statement on Form S-3 (File No. 333-239419). The placement agency agreement contained customary representations, warranties and agreements by the Company, customary conditions to closing, indemnification obligations of the Company and the placement agent. The placement agent received discounts and commissions of six percent (6%) of the gross cash proceeds received by the Company from the sale of the securities sold in the Second Offering and certain expenses. Under the placement agency agreement, the Company and its officers and directors executed lock-up agreements whereby, subject to certain exceptions, (a) the Company has agreed not to engage in the following for a period of 90 days from the date of the pricing of the Offering, (i) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (ii) file or cause to be filed any registration statement with the SEC relating to the offering of any shares of capital stock of the Company or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (iii) complete any offering of debt securities of the Company, or (iv) enter into any swap or other arrangement that transfers to another, in whole or in part, any of the economic consequences of ownership of capital stock of the Company. Further, pursuant to the terms of the Securities Purchase Agreement the Company has granted to the Investors, for a period of 12 months after the closing of the Second Offering, the right to participate in subsequent offerings by the Company of Common Stock and Common Stock equivalents in an amount up to 50 The Company received approximately $ 37,447,100 37,557,600 The Company received net proceeds from this offering as follows: SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Net proceeds received: Proceeds from the sale of 3,250,000 2.80 $ 9,100,000 Proceeds from the sale of pre-funded warrants to purchase 11,050,000 2.79 30,829,500 Less: Placement agent fees and other expenses of the offering (2,482,400 ) Net proceeds of the offering $ 37,447,100 In conjunction with this Offering, the Company issued prefunded Common Stock purchase warrants to purchase up to 11,050,000 2.80 2.79 14,300,000 3.25 he Company allocated a portion of the net proceeds of this offering to warrant derivative liabilities based on their estimated fair value as follows (See Notes 4 and 11): SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Warrant derivative liabilities $ 27,476,352 Pre-funded warrant derivative liabilities 1,438,934 Total allocation of the net proceeds of the offering to warrant derivative liabilities $ 28,915,286 2021 Issuance of Restricted Common Stock. On January 7, 2021, the board of directors approved the grant of 450,000 Such shares will generally vest one-half on January 7, 2022 and one half on January 7, 2023, provided that each grantee remains an officer or employee on such dates.

NET EARNINGS (LOSS) PER SHARE

NET EARNINGS (LOSS) PER SHARE	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
NET EARNINGS (LOSS) PER SHARE	NOTE 13. NET EARNINGS (LOSS) PER SHARE The calculation of the weighted average number of shares outstanding and loss per share outstanding for the three and six months ended June 30, 2021 and 2020 are as follows: SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND LOSS PER SHARE OUTSTANDING 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended 2021 2020 2021 2020 Numerator for basic and diluted income per share – Net income (loss) $ (5,382,487 ) $ (497,894 ) $ 16,339,371 $ (2,832,004 ) Denominator for basic loss per share – weighted average shares outstanding 51,513,691 18,976,724 48,177,399 16,430,214 Dilutive effect of shares issuable under stock options and warrants outstanding — — — — Denominator for diluted loss per share – adjusted weighted average shares outstanding 51,513,691 18,976,724 48,177,399 16,430,214 Net loss per share: Basic $ (0.10 ) $ (0.03 ) $ 0.34 $ (0.17 ) Diluted $ (0.10 ) $ (0.03 ) $ 0.34 $ (0.17 ) Basic income (loss) per share is based upon the weighted average number of common shares outstanding during the period. For the three and six months ended June 30, 2021 and 2020, all shares issuable upon conversion of convertible debt and the exercise of outstanding stock options and warrants were antidilutive, and, therefore, not included in the computation of diluted income (loss) per share.

DIGITAL ALLY HEALTHCARE VENTURE

DIGITAL ALLY HEALTHCARE VENTURE	6 Months Ended
	Jun. 30, 2021
Digital Ally Healthcare Venture
DIGITAL ALLY HEALTHCARE VENTURE	NOTE 14. DIGITAL ALLY HEALTHCARE VENTURE On June 4, 2021, Digital Ally Healthcare, a wholly-owned subsidiary of the Company, entered into a venture with Nobility LLC (“Nobility”), an eight-year old revenue cycle management (“RCM”) company servicing the medical industry, to form Nobility Healthcare, LLC (“Nobility Healthcare”). Digital Ally Healthcare is capitalizing the venture with $ 13.5 Digital Ally Healthcare owns 51% of the venture that entitles it to 51% of the distributable cash as defined in the venture’s operating agreement plus a cumulative preferred return of 10% per annum on its invested capital. Nobility will receive a management fee and 49% of the distributable cash, subordinated to Digital Ally Healthcare’s preferred return. On June 30, 2021, Nobility Healthcare completed the acquisition of Elite Medical Billing Specialists, Inc, a Michigan limited liability company (“Elite”). In accordance with the stock purchase agreement, Nobility Healthcare agreed to a non-refundable initial payment (the “Initial Payment Amount”) of $ 850,000 350,000 162,552 1,376,509 164,630 The Company accounts for business combinations using the acquisition method. Under the acquisition method, the purchase price of the Elite Acquisition has been allocated to Elite’s acquired tangible and identifiable intangible assets and assumed liabilities based on their estimated fair values at the time of the Elite Acquisition. This allocation involves a number of assumptions, estimates, and judgments that could materially affect the timing or amounts recognized in our financial statements. Our assumptions and estimates are based upon comparable market data and information obtained from the management of Nobility. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date. The purchase price of the Elite Acquisition was allocated to Elite’s tangible assets, identifiable intangible assets, and assumed liabilities based on their estimated fair values at the time of the Elite Acquisition. The preliminary fair value of assets acquired and liabilities assumed in the Elite Acquisition were as follows: SCHEDULE OF PRELIMINARY FAIR VALUE OF ASSETS AD LIABILITIES ASSUMED Description Amount Assets acquired: Tangible assets acquired, consisting of acquired cash $ 13,957 Goodwill 1,200,000 Liabilities assumed consisting of a promissory note issued by the Selling shareholders 162,552 Total assets acquired and liabilities assumed 1,376,509 Cash paid at Elite Acquisition date 1,026,509 Contingent consideration 350,000 Total Elite Acquisition purchase price $ 1,376,509

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2021
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 15. RELATED PARTY TRANSACTIONS American Rebel Holding, Inc. Secured Promissory Notes On October 1, 2020, the Company advanced $ 250,000 8 1,250,000 0.10 five-year . This note had an original maturity date of January 2, 2021 On October 21, 2020, the Company advanced $ 250,000 8 1,250,000 0.10 five . April 21, 2021 subject to full repayment upon AREB closing on debt or equity financings of at least $600,000, and the receipt of revenue from the sale of inventory sold under the specific purchase order serving as collateral 117,600 On April 21, 2021, the parties agreed to the terms of a Debt Settlement Agreement and Mutual Release regarding the following: (a) the secured promissory note dated October 1, 2020; (b) the secured promissory note dated October 21, 2020; and (c) an advance made by the Company on March 1, 2021. The parties arranged for a lump sum payment aggregating $ 639,956 Unsecured Promissory Notes Payable – Related party During February and April 2020, the Company borrowed a total of $ 319,000 6 May 28, 2020 5,236 Elite Medical Billing Specialists, Inc. Acquisition Related Expenses On June 30, 2021, Nobility Healthcare, LLC, (a consolidated subsidiary of the Company), acquired Elite and paid acquisition related costs aggregating $ 164,630 30,600 23,580

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2021
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 16. SUBSEQUENT EVENTS Letter of Intent to Acquire Medical Billing Company On May 21, 2021, the Company’s healthcare subsidiary entered a letter of intent to acquire 100 2,750,000 2.1 650,000 3 Amendment to the 2020 Stock Option and Restricted Stock Plan Our Board of Directors approved an amendment to the 2020 Stock Option and Restricted Stock Plan (the “2020 Plan”) on March 15, 2021, subject to the affirmative vote of a majority of common shares by the Company’s stockholders. At the annual meeting of the Company’s stockholders held on July 8, 2020 (the “Annual Meeting”) the stockholders approved the amendment to the 2020 Plan. Such amendment provided for an increase in the number of shares reserved for issuance under the plan from 1,000,000 2,500,000

NATURE OF BUSINESS AND SUMMAR_2

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Nature of Operations:	Nature of Operations: Digital Ally, Inc. (with its wholly-owned subsidiaries, Digital Ally International, Inc., Shield Products, LLC, Digital Ally Healthcare, LLC , collectively, “Digital Ally,” “Digital,” and the “Company”) produces digital video imaging, storage products and disinfectant and related safety products for use in law enforcement, security and commercial applications. The Company’s products include, among others; in-car digital video/audio recorders contained in a rear-view mirror for use in law enforcement and commercial fleets; a system that provides its law enforcement customers with audio/video surveillance from multiple vantage points and hands-free automatic activation of body-worn cameras and in-car video systems; a miniature digital video system designed to be worn on an individual’s body; and cloud storage solutions. The Company has recently added two new lines of branded products: (1) the ThermoVu™ line, which is a line of self-contained temperature monitoring stations that provides alerts and controls facility access when an individual’s temperature exceeds a pre-set threshold and (2) the Shield™ disinfectant and cleanser line, which is for use against viruses and bacteria and which we began offering to the Company’s law enforcement and commercial customers beginning late in the second quarter of 2020. Both product lines are manufactured by third parties. In addition, the Company has active research and development programs to adapt its technologies to other applications. It can integrate electronic, radio, computer, mechanical, and multi-media technologies to create unique solutions to address needs in a variety of other industries and markets, including mass transit, school bus, taxicab and the military. The Company sells its products to law enforcement agencies, private security customers and organizations, and consumer and commercial fleet operators through direct sales domestically and third-party distributors internationally. The Company was originally incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc. and had no operations until 2004. On November 30, 2004, Vegas Petra, Inc. entered into a Plan of Merger with Digital Ally, Inc., at which time the merged entity was renamed Digital Ally, Inc.
Basis of Presentation:	Basis of Presentation: The condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by generally accepted accounting principles in the United States for complete financial statements. For further information, refer to the audited financial statements and footnotes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020, and the unaudited financial statements and footnotes included in the Company’s quarterly report on Form 10-Q for the quarter ended March 31, 2021.
COVID-19 pandemic:	COVID-19 pandemic: The COVID-19 pandemic represents a fluid situation that presents a wide range of potential impacts of varying durations for different global geographies, including locations where the Company has offices, employees, customers, vendors and other suppliers and business partners. Like most US-based businesses, the COVID-19 pandemic and efforts to mitigate the same began to have impacts on our business in March 2020. By that time, much of our first fiscal quarter was completed. During the remainder of 2020 and the first quarter of 2021, the Company observed decreases in demand from certain customers, including primarily law-enforcement and commercial customers. However, the Company are beginning to experience an increase in demand for the three months ended June 30, 2021, compared to the same period in 2020. Given the fact that the Company’s products are sold through a variety of distribution channels, the Company expects its sales will experience more volatility as a result of the changing and less predictable operational needs of many customers as a result of the COVID-19 pandemic. The Company is aware that many companies, including many of its suppliers and customers, are reporting or predicting negative impacts from COVID-19 on future operating results. Although the Company observed significant declines in demand for its products from certain customers during 2020 and the first quarter of 2021, the Company believes that the impact of the COVID-19 remains too fluid and unknown, hindering the Company from determining the long-term demand for current products. The Company also cannot be certain how demand may shift over time as the impacts of the COVID-19 pandemic may go through several phases of varying severity and duration. In light of broader macro-economic risks and already known impacts on certain industries that use the Company’s products and services, the Company has taken, and continue to take targeted steps to lower its operating expenses because of the COVID-19 pandemic. The Company continues to monitor the impacts of COVID-19 on its operations closely and this situation could change based on a significant number of factors that are not entirely within its control and are discussed in this and other sections of this quarterly report on Form 10-Q. The Company does not expect there to be material changes to its assets on its balance sheet or its ability to timely account for those assets. Further, in connection with the preparation of this quarterly report on Form 10-Q, the Company reviewed the potential impacts of the COVID-19 pandemic on goodwill and intangible assets and have determined there to be no material impact at this time. The Company has also reviewed the potential impacts on future risks to the business as it relates to collections, returns and other business-related items. To date, travel restrictions and border closures have not materially impacted its ability to obtain inventory or manufacture or deliver products or services to customers. However, if such restrictions become more severe, they could negatively impact those activities in a way that would harm the business over the long term. Travel restrictions impacting people can restrain our ability to assist its customers and distributors as well as impact its ability to develop new distribution channels, but at present the Company does not expect these restrictions on personal travel to be material to our business operations or financial results. The Company has taken steps to restrain and monitor its operating expenses and therefore it does not expect any such impacts to materially change the relationship between costs and revenues. Like most companies, the Company has taken a range of actions with respect to how it operates to assure it complies with government restrictions and guidelines as well as best practices to protect the health and well-being of its employees and its ability to continue operating its business effectively. To date, the Company has been able to operate its business effectively using these measures and to maintain internal controls as documented and posted. The Company also has not experienced challenges in maintaining business continuity and does not expect to incur material expenditures to do so. However, the impacts of COVID-19 and efforts to mitigate the same have remained unpredictable and it remains possible that challenges may arise in the future. The actions the Company has taken so far during the COVID-19 pandemic include, but are not limited to: ● requiring all employees who can work from home to work from home; ● increasing its IT networking capability to best assure employees can work effectively outside the office; and ● for employees who must perform essential functions in one of its offices: ● having employees maintain a distance of at least six feet from other employees whenever possible; ● having employees work in dedicated shifts to lower the risk all employees who perform similar tasks might become infected by COVID-19; ● having employees stay segregated from other employees in the office with whom they require no interaction; and ● requiring employees to wear masks while they are in the office whenever possible. The Company currently believes revenue for the year ending December 31, 2021 will still be impacted due to the conditions noted. In April 2020, the Company implemented a COVID-19 mitigation plan designed to further reduce its operating expenses during the pandemic. Actions taken to date include work hour and salary reductions for senior management. These cost reductions are in addition to the significant restructuring actions which the Company continues to implement and develop throughout 2021. Based on the Company’s current cash position, its projected cash flow from operations and its cost reduction and cost containment efforts to date, the Company believes that it will have sufficient capital and or have access to sufficient capital through public and private equity and debt offerings to sustain operations for a period of one year following the date of this filing. If business interruptions resulting from the COVID-19 pandemic were to be prolonged or expanded in scope, the business, financial condition, results of operations and cash flows would be negatively impacted. The Company will continue to actively monitor this situation and will implement actions necessary to maintain business continuity.
Basis of Consolidation:	Basis of Consolidation: The accompanying financial statements include the consolidated accounts of Digital Ally and its wholly-owned subsidiaries, Digital Ally International, Inc., Shield Products, LLC , and Digital Ally Healthcare, LLC. All intercompany balances and transactions have been eliminated during consolidation. The Company formed Digital Ally International, Inc. during August 2009 to facilitate the export sales of its products. The Company formed Shield Products, LLC in May 2020 to facilitate the sales of its Shield™ line of disinfectant/cleanser products and ThermoVu™ line of temperature monitoring equipment. The Company formed Digital Ally Healthcare, LLC in June 2021 to facilitate its new medical billing division.
Revenue Recognition:	Revenue Recognition: The Company applies the provisions of Accounting Standards Codification (ASC) 606-10, Revenue from Contracts with Customers The Company considers customer purchase orders, which in some cases are governed by master sales agreements, to be the contracts with the customer. In situations where sales are to a distributor, the Company had concluded its contracts are with the distributor as the Company holds a contract bearing enforceable rights and obligations only with the distributor. As part of its consideration for the contract, the Company evaluates certain factors including the customers’ ability to pay (or credit risk). For each contract, the Company considers the promise to transfer products, each of which is distinct, to be the identified performance obligations. In determining the transaction price, the Company evaluates whether the price is subject to refund or adjustment to determine the net consideration to which it expects to be entitled. As the Company’s standard payment terms are less than one year, it has elected the practical expedient under ASC 606-10-32-18 to not assess whether a contract has a significant financing component. The Company allocates the transaction price to each distinct product based on its relative standalone selling price. The product price as specified on the purchase order is considered the standalone selling price as it is an observable input which depicts the price as if sold to a similar customer in similar circumstances. Revenue is recognized when control of the product is transferred to the customer ( i.e. The Company sells its products and services to law enforcement and commercial customers in the following manner: ● Sales to domestic customers are made direct to the end customer (typically a law enforcement agency or a commercial customer) through its sales force, which is composed of its employees. Revenue is recorded when the product is shipped to the end customer. ● Sales to international customers are made through independent distributors who purchase products from the Company at a wholesale price and sell to the end user (typically law enforcement agencies or a commercial customer) at a retail price. The distributor retains the margin as its compensation for its role in the transaction. The distributor generally maintains product inventory, customer receivables and all related risks and rewards of ownership. Accordingly, upon application of steps one through five above, revenue is recorded when the product is shipped to the distributor consistent with the terms of the distribution agreement. ● Repair parts and services for domestic and international customers are generally handled by its inside customer service employees. Revenue is recognized upon shipment of the repair parts and acceptance of the service or materials by the end customer. Sales taxes collected on products sold are excluded from revenues and are reported as accrued expenses in the accompanying balance sheets until payments are remitted. Service and other revenue is comprised of revenues from extended warranties, repair services, cloud revenue and software revenue. Revenue is recognized upon shipment of the product and acceptance of the service or materials by the end customer for repair services. Revenue for extended warranty, cloud service or other software-based products is over the term of the contract warranty or service period. A time-elapsed method is used to measure progress because the Company transfers control evenly over the contractual period. Accordingly, the fixed consideration related to these revenues is generally recognized on a straight-line basis over the contract term, as long as the other revenue recognition criteria have been met. Contracts with some of the Company’s customers contain multiple performance obligations that are distinct and accounted for separately. The transaction price is allocated to the separate performance obligations on a relative standalone selling price (“SSP”). The Company determined SSP for all the performance obligations using observable inputs, such as standalone sales and historical pricing. SSP is consistent with the Company’s overall pricing objectives, taking into consideration the type of service being provided. SSP also reflects the amount the Company would charge for the performance obligation if it were sold separately in a standalone sale. Multiple performance obligations consist of product, software, cloud subscriptions and extended warranties. The Company’s multiple performance obligations may include future in-car or body-worn camera devices to be delivered at defined points within a multi-year contract, and in those arrangements, the Company allocates total arrangement consideration over the life of the multi-year contract to future deliverables using management’s best estimate of selling price. Contract liabilities consist of deferred revenue and include payments received in advance of performance under the contract and are reported separately as current liabilities and non-current liabilities in the condensed consolidated balance sheets. Such amounts consist of extended warranty contracts, prepaid cloud services and prepaid installation services and are generally recognized as the respective performance obligations are satisfied.
Use of Estimates:	Use of Estimates: The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management utilizes various other estimates, including but not limited to determining the estimated lives of long-lived assets, determining the potential impairment of long-lived assets, the fair value of warrants, options, proceeds investment agreement and convertible debt, the recognition of revenue, inventory valuation reserve, the valuation allowance for deferred tax assets and other legal claims and contingencies. The results of any changes in accounting estimates are reflected in the financial statements in the period in which the changes become evident. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the period that they are determined to be necessary.
Cash and cash equivalents:	Cash and cash equivalents: Cash and cash equivalents include funds on hand, in bank and short-term investments with original maturities of ninety (90) days or less. 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 $ 250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions. At June 30, 2021 and December 31, 2020, the uninsured balance amounted to $ 57,265,079 and $ 3,653,192 , respectively.
Accounts Receivable:	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. One individual customer receivable balance exceeded 10 287,000 32 319,000 19 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 (30) days beyond terms. No interest is charged on overdue trade receivables.
Segments of Business:	Segments of Business: Management has determined that its operations are comprised of one reportable segment: the sale of digital audio and video recording and speed detection devices. For the three and six months ended June 30, 2021 and 2020, sales by geographic area were as follows: SUMMARY OF SALES BY GEOGRAPHIC AREA Three Months Ended Six Months Ended June 30, 2021 2020 2021 2020 Sales by geographic area: United States of America $ 2,312,131 $ 1,726,119 $ 4,789,329 $ 4,097,815 Foreign 181,540 6,073 240,172 60,121 $ 2,493,671 $ 1,732,192 $ 5,029,501 $ 4,157,936 Sales to customers outside of the United States are denominated in U.S. dollars. All Company assets are physically located within the United States.
Recent Accounting Pronouncements:	Recent Accounting Pronouncements: In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses” to improve information on credit losses for financial assets and net investment in leases that are not accounted for at fair value through net income. ASU 2016-13 replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses. In April 2019 and May 2019, the FASB issued ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments” and ASU No. 2019-05, “Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief” which provided additional implementation guidance on the previously issued ASU. In November 2019, the FASB issued ASU 2019-10, “Financial Instruments - Credit Loss (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842),” which defers the effective date for public filers that are considered small reporting companies (“SRC”) as defined by the Securities and Exchange Commission (the “SEC”) to fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Since the Company is an SRC, implementation will not be required until January 1, 2023. The Company will continue to evaluate the effect that adopting ASU 2016-13 will have on the Company’s consolidated financial statements. In 2020, FASB issued ASU No. 2020-06 to simplify the accounting for convertible debt instruments as the current accounting guidance was determined to be unnecessarily complex and difficult to navigate. The ASU primarily does three things: (1) The ASU eliminates the beneficial conversion feature model and the cash conversion model. The elimination of these models will result in more convertible instruments (convertible debt instruments or convertible preferred stock instruments) being reported as a single liability instrument. The ASU also makes targeted improvements to the related disclosures, (2) The ASU eliminates certain settlement conditions that are required to qualify for derivative scope exception which will allow for less equity contracts to be accounted for as a derivative and (3) The ASU aligns the diluted EPS calculation for convertible instruments by requiring the use of the if-converted method and requiring share settlement be included in the calculation when the contract includes an option of cash or share settlement. ASU No. 2020-06 is effective for fiscal years beginning after December 15, 2021 with early adoption permitted for fiscal years beginning after December 15, 2020. Management has not early-adopted this new standard and continues to evaluate the impact of adopting ASU 2020-06 will have on its consolidated financial statements. In 2020, FASB issued ASU No. 2020-01 which represents a consensus of the Emerging Issues Task Force and it clarifies certain items related to ASU 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The ASU (1) clarifies that when an entity is either applying the equity method or upon discontinuing the equity method it should consider observable price changes in orderly transactions for the identical or a similar investment with the same issuer for valuing basis of the investment and (2) clarifies that when determining the accounting for certain forward contracts and purchased options an entity should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. ASU No. 2020-01 is effective for fiscal years beginning after December 15, 2020 with early adoption permitted. The Company adopted this update for the quarter ended March 31, 2021, with no material effect on the financials. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes - simplifying the accounting for income taxes (Topic 740), which is meant to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740, Income Taxes. The amendment also improves consistent application and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The adoption of this standard did not have a significant impact on the Company’s financial position and results of operations.
Warrant Derivative Liabilities	Warrant Derivative Liabilities In accordance with FASB ASC 815-40, Derivatives and Hedging: Contracts in an Entities Own Equity, entities must consider whether to classify contracts that may be settled in its own stock, such as warrants to purchase shares of Common Stock, as equity of the entity or as an asset or liability. If an event that is not within the entity’s control could require net cash settlement, then the contract should be classified as an asset or a liability rather than as equity. We have determined because the terms of the warrants issued during the first quarter of 2021, and remain outstanding, include a provision that entitles all the warrant holders to receive cash for their warrants in the event of a qualifying cash tender offer, while only certain of the holders of the underlying shares of common stock would be entitled to cash, our warrants should be classified as liability measured at fair value, with changes in fair value each period reported in earnings. Volatility in the price of our common stock may result in significant changes in the value of the derivatives and resulting gains and losses on our statement of operations.

NATURE OF BUSINESS AND SUMMAR_3

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
SUMMARY OF SALES BY GEOGRAPHIC AREA	SUMMARY OF SALES BY GEOGRAPHIC AREA Three Months Ended Six Months Ended June 30, 2021 2020 2021 2020 Sales by geographic area: United States of America $ 2,312,131 $ 1,726,119 $ 4,789,329 $ 4,097,815 Foreign 181,540 6,073 240,172 60,121 $ 2,493,671 $ 1,732,192 $ 5,029,501 $ 4,157,936

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
	Jun. 30, 2021
Inventory Disclosure [Abstract]
SCHEDULE OF INVENTORIES	Inventories consisted of the following at June 30, 2021 and December 31, 2020: SCHEDULE OF INVENTORIES June 30, December 31, 2020 Raw material and component parts $ 3,184,707 $ 3,186,426 Work-in-process 15,530 1,907 Finished goods 8,737,310 6,974,291 Subtotal 11,937,547 10,162,625 Reserve for excess and obsolete inventory (2,321,788 ) (1,960,351 ) Total inventories $ 9,615,759 $ 8,202,274

DEBT OBLIGATIONS (Tables)

DEBT OBLIGATIONS (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Disclosure [Abstract]
SUMMARY OF SECURED CONVERTIBLE DEBENTURES AND PROCEEDS INVESTMENT AGREEMENT	Debt obligations is comprised of the following: SUMMARY OF SECURED CONVERTIBLE DEBENTURES AND PROCEEDS INVESTMENT AGREEMENT June 30, December 31, 2020 Economic injury disaster loan (EIDL) $ 150,000 $ 150,000 Payroll protection program loan (PPP) — 10,000 Contingent consideration promissory note 350,000 — Debt obligations 500,000 160,000 Less: current maturities of debt obligations 72,502 11,727 Debt obligations, long-term $ 427,498 $ 148,273
SCHEDULE OF MATURITY OF DEBT OBLIGATIONS	Debt obligations mature as follows as of June 30, 2021: SCHEDULE OF MATURITY OF DEBT OBLIGATIONS June 30, 2021 2021 (July 1, 2021 to December 31, 2021) $ 1,482 2022 143,049 2023 143,166 2024 73,286 2025 3,412 2026 and thereafter 135,605 Total $ 500,000

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS	The following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020: SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS June 30, 2021 Level 1 Level 2 Level 3 Total Liabilities: Warrant derivative liabilities $ — $ — $ 29,527,224 $ 29,527,224 Contingent consideration promissory note — — 350,000 350,000 $ — $ — $ 29,877,224 $ 29,877,224 December 31, 2020 Level 1 Level 2 Level 3 Total Liabilities: Warrant derivative liabilities — — — — Contingent consideration promissory note — — — — $ — $ — $ — $ —
SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS	The following table represents the change in Level 3 tier value measurements for the six months ended June 30, 2021: SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS Contingent Consideration Promissory Note Warrant Derivative Liabilities Balance, December 31, 2020 $ — $ — Issuance of detachable warrants in the January 14, 2021 Offering — 21,922,158 Issuance of detachable warrants in the February 1, 2021 Offering — 27,476,352 Issuance of detachable pre-funded warrants in the January 14, 2021 Offering — 378,615 Issuance of detachable pre-funded warrants in the February 1, 2021 Offering — 1,438,934 Transition of derivative warrant liability to equity on pre-funded warrants — — Change in fair value of warrant derivative liabilities — (24,552,257 ) Balance, March 31, 2021 — 26,663,802 Issuance of contingent consideration promissory note 350,000 — Change in fair value of financial instruments — 2,863,422 Balance, June 30, 2021 $ 350,000 $ 29,527,224

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2021
Payables and Accruals [Abstract]
SCHEDULE OF ACCRUED EXPENSES	Accrued expenses consisted of the following at June 30, 2021 and December 31, 2020: SCHEDULE OF ACCRUED EXPENSES June 30, 2021 December 31, 2020 Accrued warranty expense $ 11,562 $ 31,845 Accrued litigation costs 250,000 250,000 Accrued sales commissions 22,692 38,294 Accrued payroll and related fringes 321,639 199,850 Accrued sales returns and allowances 22,837 26,069 Accrued sales taxes 48,348 53,627 Other 198,233 196,409 Total accrued expenses $ 875,311 $ 796,094
SCHEDULE OF ACCRUED WARRANTY EXPENSE	Accrued warranty expense was comprised of the following for the six months ended June 30, 2021: SCHEDULE OF ACCRUED WARRANTY EXPENSE Beginning balance $ 31,845 Provision for warranty expense 5,815 Charges applied to warranty reserve (26,098 ) Ending balance $ 11,562

PROPERTY, PLANT AND EQUIPMENT (

PROPERTY, PLANT AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2021
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property, plant and equipment, net consists of the following: Schedule of Property and Equipment, Net June 30, 2021 December 31, 2020 Land $ 789,734 $ 59,226 Buildings 4,909,478 363,215 Equipment 682,065 507,676 Leasehold improvements 291,435 289,865 Property and Equipment, gross 291,435 289,865 Less: accumulated depreciation (648,528 ) (553,182 ) Total property, plant and equipment, net $ 6,024,184 $ 666,800 On 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. The building contains approximately 30,000 square feet of office space and the remainder warehouse space. 5.3 Depreciation expense for the six months ended June 30, 2021 and June 30, 2020 was $ 95,346 43,183

OPERATING LEASE (Tables)

OPERATING LEASE (Tables)	6 Months Ended
	Jun. 30, 2021
Operating Lease
SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES	The following sets forth the operating lease right of use assets and liabilities as of June 30, 2021: SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES 1 Assets: Operating lease right of use assets $ 722,843 Liabilities: Operating lease obligations-current portion $ 123,356 Operating lease obligations-less current portion $ 672,216 Total operating lease obligations $ 795,572
SCHEDULE OF COMPONENTS OF LEASE EXPENSES	The components of lease expense were as follows for the six months ended June 30, 2021: SCHEDULE OF COMPONENTS OF LEASE EXPENSES 1 Selling, general and administrative expenses $ 65,953
SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS	Following are the minimum lease payments for each year and in total. SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS Year ending December 31: 2021 (July 1, 2021 to December 31, 2021) $ 91,272 2022 184,145 2023 184,241 2024 171,642 2025 & beyond 348,446 Total undiscounted minimum future lease payments 979,746 Imputed interest (184,174 ) Total operating lease liability $ 795,572

STOCK-BASED COMPENSATION (Table

STOCK-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
SUMMARY OF STOCK OPTIONS OUTSTANDING	Activity in the various Plans during the six months ended June 30, 2021: SUMMARY OF STOCK OPTIONS OUTSTANDING Options Number of Shares Weighted Average Exercise Price Outstanding at December 31, 2020 838,313 $ 3.20 Granted — — Exercised — — Forfeited (46,375 ) (12.19 ) Outstanding at June 30, 2021 791,939 $ 2.67 Exercisable at June 30, 2021 791,939 $ 2.67
SCHEDULE OF SHARES AUTHORIZED UNDER STOCK OPTION PLANS BY EXERCISE PRICE RANGE	The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable options under the Company’s option plans as of June 30, 2021: SCHEDULE OF SHARES AUTHORIZED UNDER STOCK OPTION PLANS BY EXERCISE PRICE RANGE Outstanding options Exercisable options Exercise price range Number of options Weighted average contractual life Number of options Weighted average remaining contractual life $ 0.01 2.49 415,000 8.4 415,000 8.4 $ 2.50 3.49 310,314 6.8 310,314 6.8 $ 3.50 4.49 45,750 3.6 45,750 3.6 $ 4.50 6.99 15,000 0.5 15,000 0.5 $ 7.00 9.52 5,875 0.3 5,875 0.3 791,939 7.3 791,939 7.3
SUMMARY OF RESTRICTED STOCK ACTIVITY	A summary of all restricted stock activity under the equity compensation plans for the six months ended June 30, 2021 is as follows: SUMMARY OF RESTRICTED STOCK ACTIVITY Number of Restricted shares Weighted average grant date fair value Nonvested balance, December 31, 2020 720,125 $ 1.69 Granted 450,000 2.76 Vested (479,250 ) (1.99 ) Forfeited (7,500 ) (1.08 ) Nonvested balance, June 30, 2021 683,375 $ 2.14
SCHEDULE OF NON-VESTED BALANCE OF RESTRICTED STOCK	The nonvested balance of restricted stock vests as follows: SCHEDULE OF NON-VESTED BALANCE OF RESTRICTED STOCK Years ended Number of shares 2021 (July 1, 2021 through December 31, 2021) — 2022 458,375 2023 225,000

COMMON STOCK PURCHASE WARRANTS

COMMON STOCK PURCHASE WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2021
Common Stock Purchase Warrants
SCHEDULE OF FAIR VALUE OF THE WARRANT DERIVATIVE LIABILITIES	The Company has utilized the following assumptions in its Black-Scholes option valuation model to calculate the estimated fair value of the warrant derivative liabilities as of their date of issuance and as of June 30, 2021: SCHEDULE OF FAIR VALUE OF THE WARRANT DERIVATIVE LIABILITIES Issuance date assumptions June 30, 2021 assumptions Volatility - range 106.6 166.6 % 107.5 % Risk-free rate 0.08 0.49 % 0.87 % Dividend 0 % 0 % Remaining contractual term 0.01 5 4.6 Exercise price $ 2.80 3.25 $ 3.25 Common stock issuable under the warrants 42,550,000 24,300,000
SUMMARY OF WARRANT ACTIVITY	The following table summarizes information about shares issuable under warrants outstanding during the six months ended June 30, 2021: SUMMARY OF WARRANT ACTIVITY Warrants Weighted average exercise price Vested Balance, January 1, 2021 3,388,364 $ 6.24 Granted 42,550,000 3.11 Exercised (18,250,000 ) 2.92 Forfeited/cancelled (879,766 ) 13.43 Vested Balance, June 30, 2021 26,808,598 $ 3.29
SUMMARY OF RANGE OF EXERCISE PRICES AND WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE OF WARRANTS	The following table summarizes the range of exercise prices and weighted average remaining contractual life for outstanding and exercisable warrants to purchase shares of common stock as of June 30, 2021: SUMMARY OF RANGE OF EXERCISE PRICES AND WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE OF WARRANTS Outstanding and exercisable warrants Exercise price Number of warrants Weighted average remaining contractual life $ 2.60 465,712 2.1 $ 3.00 316,800 1.8 $ 3.25 24,300,000 4.6 $ 3.36 733,333 1.4 $ 3.65 167,000 1.0 $ 3.75 25,753 1.1 $ 5.00 800,000 0.5 26,808,598 4.3

STOCKHOLDERS_ EQUITY (Tables)

STOCKHOLDERS’ EQUITY (Tables)	6 Months Ended
	Jun. 30, 2021
IPO One [Member]
Subsidiary, Sale of Stock [Line Items]
SCHEDULE OF NET PROCEEDS FROM OFFERING	The Company received net proceeds from this offering as follows: SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Net proceeds received: Proceeds from the sale of 2,800,000 3.095 $ 8,666,000 Proceeds from the sale of pre-funded warrants to purchase 7,200,000 3.085 22,212,000 Less: Placement agent fees and other expenses of the offering (1,937,000 ) Net proceeds of the offering $ 28,941,000
IPO One [Member] | Warrant Derivative Liability [Member]
Subsidiary, Sale of Stock [Line Items]
SCHEDULE OF NET PROCEEDS FROM OFFERING	SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Warrant derivative liabilities $ 21,922,158 Pre-funded warrant derivative liabilities 378,615 Total allocation of the net proceeds of the offering to warrant derivative liabilities $ 22,300,773
IPO Two [Member]
Subsidiary, Sale of Stock [Line Items]
SCHEDULE OF NET PROCEEDS FROM OFFERING	The Company received net proceeds from this offering as follows: SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Net proceeds received: Proceeds from the sale of 3,250,000 2.80 $ 9,100,000 Proceeds from the sale of pre-funded warrants to purchase 11,050,000 2.79 30,829,500 Less: Placement agent fees and other expenses of the offering (2,482,400 ) Net proceeds of the offering $ 37,447,100
IPO Two [Member] | Warrant Derivative Liability [Member]
Subsidiary, Sale of Stock [Line Items]
SCHEDULE OF NET PROCEEDS FROM OFFERING	SCHEDULE OF NET PROCEEDS FROM OFFERING Description Amount Warrant derivative liabilities $ 27,476,352 Pre-funded warrant derivative liabilities 1,438,934 Total allocation of the net proceeds of the offering to warrant derivative liabilities $ 28,915,286

NET EARNINGS (LOSS) PER SHARE (

NET EARNINGS (LOSS) PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2021
Earnings Per Share [Abstract]
SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND LOSS PER SHARE OUTSTANDING	The calculation of the weighted average number of shares outstanding and loss per share outstanding for the three and six months ended June 30, 2021 and 2020 are as follows: SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND LOSS PER SHARE OUTSTANDING 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended 2021 2020 2021 2020 Numerator for basic and diluted income per share – Net income (loss) $ (5,382,487 ) $ (497,894 ) $ 16,339,371 $ (2,832,004 ) Denominator for basic loss per share – weighted average shares outstanding 51,513,691 18,976,724 48,177,399 16,430,214 Dilutive effect of shares issuable under stock options and warrants outstanding — — — — Denominator for diluted loss per share – adjusted weighted average shares outstanding 51,513,691 18,976,724 48,177,399 16,430,214 Net loss per share: Basic $ (0.10 ) $ (0.03 ) $ 0.34 $ (0.17 ) Diluted $ (0.10 ) $ (0.03 ) $ 0.34 $ (0.17 )

DIGITAL ALLY HEALTHCARE VENTU_2

DIGITAL ALLY HEALTHCARE VENTURE (Tables)	6 Months Ended
	Jun. 30, 2021
Digital Ally Healthcare Venture
SCHEDULE OF PRELIMINARY FAIR VALUE OF ASSETS AD LIABILITIES ASSUMED	SCHEDULE OF PRELIMINARY FAIR VALUE OF ASSETS AD LIABILITIES ASSUMED Description Amount Assets acquired: Tangible assets acquired, consisting of acquired cash $ 13,957 Goodwill 1,200,000 Liabilities assumed consisting of a promissory note issued by the Selling shareholders 162,552 Total assets acquired and liabilities assumed 1,376,509 Cash paid at Elite Acquisition date 1,026,509 Contingent consideration 350,000 Total Elite Acquisition purchase price $ 1,376,509

SUMMARY OF SALES BY GEOGRAPHIC

SUMMARY OF SALES BY GEOGRAPHIC AREA (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 2,493,671	$ 1,732,192	$ 5,029,501	$ 4,157,936
UNITED STATES
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	2,312,131	1,726,119	4,789,329	4,097,815
Foreign [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 181,540	$ 6,073	$ 240,172	$ 60,121

NATURE OF BUSINESS AND SUMMAR_4

NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Product Information [Line Items]
Cash, FDIC Insured Amount	$ 250,000
Cash, Uninsured Amount	57,265,079	$ 3,653,192
Accounts receivable	888,384	1,705,461
One Customer [Member]
Product Information [Line Items]
Accounts receivable	$ 287,000	$ 319,000
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Percentage of concentration risk	32.00%	19.00%
One Customer [Member] | Accounts Receivable [Member] | Minimum [Member] | Customer Concentration Risk [Member]
Product Information [Line Items]
Percentage of concentration risk	10.00%	10.00%

SCHEDULE OF INVENTORIES (Detail

SCHEDULE OF INVENTORIES (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Raw material and component parts	$ 3,184,707	$ 3,186,426
Work-in-process	15,530	1,907
Finished goods	8,737,310	6,974,291
Subtotal	11,937,547	10,162,625
Reserve for excess and obsolete inventory	(2,321,788)	(1,960,351)
Total inventories	$ 9,615,759	$ 8,202,274

INVENTORIES (Details Narrative)

INVENTORIES (Details Narrative) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Inventory Disclosure [Abstract]
Finished goods inventory	$ 131,068	$ 138,263

SUMMARY OF SECURED CONVERTIBLE

SUMMARY OF SECURED CONVERTIBLE DEBENTURES AND PROCEEDS INVESTMENT AGREEMENT (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Short-term Debt [Line Items]
Debt obligations	$ 500,000	$ 160,000
Contingent consideration promissory note	350,000
Less: current maturities of debt obligations	72,502	11,727
Debt obligations, long-term	427,498	148,273
Economic Injury Disaster Loan [Member]
Short-term Debt [Line Items]
Debt obligations	150,000	150,000
Paycheck Protection Program Loan [Member]
Short-term Debt [Line Items]
Debt obligations		$ 10,000

SCHEDULE OF MATURITY OF DEBT OB

SCHEDULE OF MATURITY OF DEBT OBLIGATIONS (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Debt Disclosure [Abstract]
2021 (July 1, 2021 to December 31, 2021)	$ 1,482
2022	143,049
2023	143,166
2024	73,286
2025	3,412
2026 and thereafter	135,605
Total	$ 500,000	$ 160,000

DEBT OBLIGATIONS (Details Narra

DEBT OBLIGATIONS (Details Narrative) - USD ($)	Dec. 10, 2020	May 12, 2020	May 04, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Short-term Debt [Line Items]
Gain (Loss) on Extinguishment of Debt				$ 10,000		$ 10,000
Debt nstrument principal amount				$ 350,000		$ 350,000
Paycheck Protection Program [Member] | 2020 Small Business Administration Notes [Member]
Short-term Debt [Line Items]
Notes Payable			$ 1,418,900
Debt instrument term			2 years
Debt Instrument, Interest Rate, Stated Percentage			1.00%
Monthly principal payments			$ 79,851
Gain (Loss) on Extinguishment of Debt	$ 1,418,900
Proceeds from loans	$ 10,000
2020 Small Business Administration Notes [Member]
Short-term Debt [Line Items]
Debt Instrument, Interest Rate, Stated Percentage		3.75%
Monthly principal payments		$ 731
Proceeds from loans		150,000
Debt nstrument principal amount		$ 150,000
Contingent Consideration Promissory Note [Member]
Short-term Debt [Line Items]
Debt instrument term						3 years
Debt Instrument, Interest Rate, Stated Percentage				3.00%		3.00%
Debt nstrument principal amount				$ 350,000		$ 350,000
Debt Instrument Projected Revenue						975,000
Debt Instrument Fair Value				$ 350,000		$ 350,000

SCHEDULE OF FINANCIAL ASSETS AN

SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS (Details) - USD ($)	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	$ 29,877,224
Contingent Consideration Promissory Note [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	350,000
Warrant Derivative Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	29,527,224	$ 26,663,802
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Fair Value, Inputs, Level 1 [Member] | Contingent Consideration Promissory Note [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Fair Value, Inputs, Level 1 [Member] | Warrant Derivative Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Fair Value, Inputs, Level 2 [Member] | Contingent Consideration Promissory Note [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Fair Value, Inputs, Level 2 [Member] | Warrant Derivative Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	29,877,224
Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Promissory Note [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	350,000
Fair Value, Inputs, Level 3 [Member] | Warrant Derivative Liability [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liabilities, fair value	$ 29,527,224

SCHEDULE OF FAIR VALUE MEASUREM

SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS (Details) - USD ($)	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Subsidiary, Sale of Stock [Line Items]
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance	$ (2,863,422)	(24,552,257)		21,688,835
Issuance of contingent consideration promissory note	350,000
Liabilities, fair value, beginning balance	2,863,422	24,552,257		(21,688,835)
Liabilities, fair value, beginning balance	29,877,224			29,877,224
Warrant Derivative Liability [Member]
Subsidiary, Sale of Stock [Line Items]
Liabilities, fair value, beginning balance	26,663,802
Liabilities, fair value, beginning balance	(2,863,422)
Issuance of contingent consideration promissory note
Liabilities, fair value, beginning balance	2,863,422
Liabilities, fair value, beginning balance	29,527,224	26,663,802		29,527,224
Contingent Consideration Promissory Note [Member]
Subsidiary, Sale of Stock [Line Items]
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance	$ 350,000			$ 350,000
January 14, 2021 Offering [Member] | Warrant Derivative Liability [Member]
Subsidiary, Sale of Stock [Line Items]
Liabilities, fair value, beginning balance		21,922,158
Liabilities, fair value, beginning balance		378,615
January 14, 2021 Offering [Member] | Contingent Consideration Promissory Note [Member]
Subsidiary, Sale of Stock [Line Items]
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance
February 1, 2021 Offering [Member] | Warrant Derivative Liability [Member]
Subsidiary, Sale of Stock [Line Items]
Liabilities, fair value, beginning balance		27,476,352
Liabilities, fair value, beginning balance		1,438,934
February 1, 2021 Offering [Member] | Contingent Consideration Promissory Note [Member]
Subsidiary, Sale of Stock [Line Items]
Liabilities, fair value, beginning balance
Liabilities, fair value, beginning balance

SCHEDULE OF ACCRUED EXPENSES (D

SCHEDULE OF ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Payables and Accruals [Abstract]
Accrued warranty expense	$ 11,562	$ 31,845
Accrued litigation costs	250,000	250,000
Accrued sales commissions	22,692	38,294
Accrued payroll and related fringes	321,639	199,850
Accrued sales returns and allowances	22,837	26,069
Accrued sales taxes	48,348	53,627
Other	198,233	196,409
Total accrued expenses	$ 875,311	$ 796,094

SCHEDULE OF ACCRUED WARRANTY EX

SCHEDULE OF ACCRUED WARRANTY EXPENSE (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
Payables and Accruals [Abstract]
Beginning balance	$ 31,845
Provision for warranty expense	5,815
Charges applied to warranty reserve	(26,098)
Ending balance	$ 11,562

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Effective tax rate expected statutory valuation allowance on net deferred tax assets	100.00%	100.00%
Net operating loss carry-forwards	$ 76

Schedule of Property and Equipm

Schedule of Property and Equipment, Net (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Less: accumulated depreciation	$ (648,528)	$ (553,182)
Total property, plant and equipment, net	6,024,184	666,800
Land [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	789,734	59,226
Building [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	4,909,478	363,215
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	682,065	507,676
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and Equipment, gross	$ 291,435	$ 289,865

PROPERTY, PLANT AND EQUIPMENT_2

PROPERTY, PLANT AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Property, Plant and Equipment [Abstract]
Property and equipment, basis of valuation	On 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. The building contains approximately 30,000 square feet of office space and the remainder warehouse space.
Payments to Acquire Productive Assets	$ 5,300,000
Depreciation	$ 95,346	$ 43,183

SCHEDULE OF OPERATING LEASES RI

SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Operating Lease
Operating lease right of use assets	$ 722,843	$ 753,175
Operating lease obligations-current portion	123,356	113,484
Operating lease obligations-less current portion	672,216	$ 723,272
Total operating lease obligations	$ 795,572

SCHEDULE OF COMPONENTS OF LEASE

SCHEDULE OF COMPONENTS OF LEASE EXPENSES (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
Selling, General and Administrative Expenses [Member]
Selling, general and administrative expenses	$ 65,953

SCHEDULE OF FUTURE MINIMUM LEAS

SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS (Details)	Jun. 30, 2021USD ($)
Operating Lease
2021 (July 1, 2021 to December 31, 2021)	$ 91,272
2022	184,145
2023	184,241
2024	171,642
2025 & beyond	348,446
Total undiscounted minimum future lease payments	979,746
Imputed interest	(184,174)
Total operating lease liability	$ 795,572

OPERATING LEASE (Details Narrat

OPERATING LEASE (Details Narrative) - USD ($)	May 13, 2020	Jun. 30, 2021
September 2012 for Office and Warehouse Space [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating lease maturity date	Dec. 31, 2026
Weighted average remaining lease term		66 months
September 2012 for Office and Warehouse Space [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating lease monthly payments	$ 12,398
September 2012 for Office and Warehouse Space [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating lease monthly payments	$ 14,741
October 2019 for Copiers [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating lease monthly payments		$ 1,598
Operating lease maturity date		Oct. 31, 2023
Weighted average remaining lease term		28 months
Lease term		48 months
Office Space and Copier [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Operating Lease, Expense		$ 65,953
Weighted average discount rate		8.00%

SUMMARY OF STOCK OPTIONS OUTSTA

SUMMARY OF STOCK OPTIONS OUTSTANDING (Details)	6 Months Ended
	Jun. 30, 2021$ / sharesshares
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Options Granted	791,939
Stock Options [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Options Outstanding, Beginning balance	838,313
Weighted Average Exercise Price, Outstanding, Beginning balance | $ / shares	$ 3.20
Options Granted
Weighted Average Exercise Price, Granted | $ / shares
Options Exercised
Weighted Average Exercise Price, Exercised | $ / shares
Options Forfeited	(46,375)
Weighted Average Exercise Price, Forfeited | $ / shares	$ (12.19)
Options Outstanding, Ending balance	791,939
Weighted Average Exercise Price, Outstanding, Ending balance | $ / shares	$ 2.67
Options Exercisable, Ending balance	791,939
Weighted Average Exercise Price, Exercisable, Ending balance | $ / shares	$ 2.67

SCHEDULE OF SHARES AUTHORIZED U

SCHEDULE OF SHARES AUTHORIZED UNDER STOCK OPTION PLANS BY EXERCISE PRICE RANGE (Details)	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Number of options, outstanding	791,939
Weighted average remaining contractual life, outstanding options	7 years 3 months 18 days
Number of options, exercisable	791,939
Weighted average remaining contractual life, exercisable options	7 years 3 months 18 days
Exercise Price Range One [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit | $ / shares	$ 0.01
Exercise price range, upper limit | $ / shares	$ 2.49
Number of options, outstanding	415,000
Weighted average remaining contractual life, outstanding options	8 years 4 months 24 days
Number of options, exercisable	415,000
Weighted average remaining contractual life, exercisable options	8 years 4 months 24 days
Exercise Price Range Two [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit | $ / shares	$ 2.50
Exercise price range, upper limit | $ / shares	$ 3.49
Number of options, outstanding	310,314
Weighted average remaining contractual life, outstanding options	6 years 9 months 18 days
Number of options, exercisable	310,314
Weighted average remaining contractual life, exercisable options	6 years 9 months 18 days
Exercise Price Range Three [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit | $ / shares	$ 3.50
Exercise price range, upper limit | $ / shares	$ 4.49
Number of options, outstanding	45,750
Weighted average remaining contractual life, outstanding options	3 years 7 months 6 days
Number of options, exercisable	45,750
Weighted average remaining contractual life, exercisable options	3 years 7 months 6 days
Exercise Price Range Four [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit | $ / shares	$ 4.50
Exercise price range, upper limit | $ / shares	$ 6.99
Number of options, outstanding	15,000
Weighted average remaining contractual life, outstanding options	6 months
Number of options, exercisable	15,000
Weighted average remaining contractual life, exercisable options	6 months
Exercise Price Range Five [Member]
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items]
Exercise price range, lower limit | $ / shares	$ 7
Exercise price range, upper limit | $ / shares	$ 9.52
Number of options, outstanding	5,875
Weighted average remaining contractual life, outstanding options	3 months 18 days
Number of options, exercisable	5,875
Weighted average remaining contractual life, exercisable options	3 months 18 days

SUMMARY OF RESTRICTED STOCK ACT

SUMMARY OF RESTRICTED STOCK ACTIVITY (Details) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Restricted shares, Non-vested Beginning Balance | shares	720,125
Weighted average grant date fair value, Non-vested Beginning Balance | $ / shares	$ 1.69
Number of Restricted shares, Granted | shares	450,000
Weighted average grant date fair value, Granted | $ / shares	$ 2.76
Number of Restricted shares, Vested | shares	(479,250)
Weighted average grant date fair value, Vested | $ / shares	$ (1.99)
Number of Restricted shares, Forfeited | shares	(7,500)
Weighted average grant date fair value, Forfeited | $ / shares	$ (1.08)
Number of Restricted shares, Non-vested Ending Balance | shares	683,375
Weighted average grant date fair value, Non-vested Ending Balance | $ / shares	$ 2.14

SCHEDULE OF NON-VESTED BALANCE

SCHEDULE OF NON-VESTED BALANCE OF RESTRICTED STOCK (Details)	Jun. 30, 2021shares
Share-based Payment Arrangement [Abstract]
2021 (July 1, 2021 through December 31, 2021)
2022	458,375
2023	225,000

STOCK-BASED COMPENSATION (Detai

STOCK-BASED COMPENSATION (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock based compensation	$ 330,213	$ 376,738	$ 656,378	$ 688,415
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	5,675,000		5,675,000
Grants in period			791,939
Aggregate intrinsic value of options outstanding	$ 0		$ 0			$ 0
Intrinsic value of options exercisable	0		0			$ 0
Unrecognized stock compensation expense	0		0
Non Vested Restricted Stock Grants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock compensation expense	$ 753,011		$ 753,011
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Grants in period			0
Fair value of stock options			$ 0
2005 Stock Option Plan [Member] | During 2015 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	20,178		20,178
[custom:UnexercisedAndOutstandingStockOptions-0]	7,064		7,064
2006 Stock Option Plan [Member] | During 2016 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance					35,474
[custom:UnexercisedAndOutstandingStockOptions-0]					30,125
2007 Stock Option Plan [Member] | During 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	94,651		94,651
2008 Plan [Member] | During 2018 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common Stock, Capital Shares Reserved for Future Issuance	40,499		40,499
[custom:UnexercisedAndOutstandingStockOptions-0]	0		0

SCHEDULE OF FAIR VALUE OF THE W

SCHEDULE OF FAIR VALUE OF THE WARRANT DERIVATIVE LIABILITIES (Details)	Jan. 14, 2021$ / sharesft²shares	Jun. 30, 2021$ / sharesshares
Warrant [Member] | Measurement Input, Price Volatility [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input		107.5
Warrant [Member] | Measurement Input, Price Volatility [Member] | Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input	106.6
Warrant [Member] | Measurement Input, Price Volatility [Member] | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input	166.6
Warrant [Member] | Measurement Input, Risk Free Interest Rate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input		0.87
Warrant [Member] | Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input | ft²	0.08
Warrant [Member] | Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input	0.49
Warrant [Member] | Measurement Input, Expected Dividend Rate [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input	0	0
Warrant [Member] | Measurement Input, Expected Term [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities measurement input term		4 years 7 months 6 days
Warrant [Member] | Measurement Input, Expected Term [Member] | Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities measurement input term	3 days
Warrant [Member] | Measurement Input, Expected Term [Member] | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities measurement input term	5 years
Warrant [Member] | Measurement Input, Exercise Price [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input		3.25
Warrant [Member] | Measurement Input, Exercise Price [Member] | Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input	2.80
Warrant [Member] | Measurement Input, Exercise Price [Member] | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Derivative liabilities, measurement input	3.25
Warrant Derivative Liability [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Common stock issuable under the warrants | shares	42,550,000	24,300,000

SUMMARY OF WARRANT ACTIVITY (De

SUMMARY OF WARRANT ACTIVITY (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2021$ / sharesshares
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warrants, Vested, Beginning balance | shares	3,388,364
Weighted average exercise price, Vested, Beginning balance | $ / shares	$ 6.24
Warrants, Granted | shares	42,550,000
Weighted average exercise price, Granted | $ / shares	$ 3.11
Warrants, Exercised | shares	(18,250,000)
Weighted average exercise price, Exercised | $ / shares	$ 2.92
Warrants, Forfeited/cancelled | shares	(879,766)
Weighted average exercise price, Forfeited/cancelled | $ / shares	$ 13.43
Warrants, Vested, Ending balance | shares	26,808,598
Weighted average exercise price, Vested, Ending balance | $ / shares	$ 3.29

SUMMARY OF RANGE OF EXERCISE PR

SUMMARY OF RANGE OF EXERCISE PRICES AND WEIGHTED AVERAGE REMAINING CONTRACTUAL LIFE OF WARRANTS (Details) - Warrant [Member]	6 Months Ended
	Jun. 30, 2021$ / sharesshares
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Number of warrants	26,808,598
Outstanding and exercisable warrants, Weighted average remaining contractual life	4 years 3 months 18 days
Exercise Price Range One [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 2.60
Outstanding and exercisable warrants, Number of warrants	465,712
Outstanding and exercisable warrants, Weighted average remaining contractual life	2 years 1 month 6 days
Exercise Price Range Two [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3
Outstanding and exercisable warrants, Number of warrants	316,800
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 year 9 months 18 days
Exercise Price Range Three [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.25
Outstanding and exercisable warrants, Number of warrants	24,300,000
Outstanding and exercisable warrants, Weighted average remaining contractual life	4 years 7 months 6 days
Exercise Price Range Four [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.36
Outstanding and exercisable warrants, Number of warrants	733,333
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 year 4 months 24 days
Exercise Price Range Five [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.65
Outstanding and exercisable warrants, Number of warrants	167,000
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 year
Range Six [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 3.75
Outstanding and exercisable warrants, Number of warrants	25,753
Outstanding and exercisable warrants, Weighted average remaining contractual life	1 year 1 month 6 days
Range Seven [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Outstanding and exercisable warrants, Exercise price | $ / shares	$ 5
Outstanding and exercisable warrants, Number of warrants	800,000
Outstanding and exercisable warrants, Weighted average remaining contractual life	6 months

COMMON STOCK PURCHASE WARRANT_2

COMMON STOCK PURCHASE WARRANTS (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Feb. 02, 2021	Jan. 14, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Exercise of pre-funded common stock purchase warrants	$ 22,284,000
Common Stock Purchase Warrants [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warrants to purchase common stock		26,808,598	42,550,000	42,550,000
Warrant expiration term, description		warrants expire from December 30, 2021 through February 1, 2026
Common Stock Purchase Warrants [Member] | Minimum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warrant, exercise per share		$ 2.60
Common Stock Purchase Warrants [Member] | Maximum [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warrant, exercise per share		$ 5
Warrant Derivative Liability [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warrants to purchase common stock		24,300,000		42,550,000
Exercise of pre-funded common stock purchase warrants at, shares		18,250,000
Exercise of pre-funded common stock purchase warrants		$ 1,817,549
Fair value of warrant		1,817,549
Pre- Funded Warrants [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Fair value of warrant		0
Warrant [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Warrant, exercise per share	$ 3.25
Intrinsic value of all outstanding warrants		$ 0
Warrants, weighted average remaining term		51 months 6 days

SCHEDULE OF NET PROCEEDS FROM O

SCHEDULE OF NET PROCEEDS FROM OFFERING (Details) (Parenthetical) - IPO [Member] - $ / shares	Feb. 02, 2021	Jan. 14, 2021
Subsidiary, Sale of Stock [Line Items]
Number of offering shares issued	3,250,000	2,800,000
Sale of stock price per share	$ 2.80	$ 3.095
Warrants to purchase shares of common stock	14,300,000	10,000,000
Pre- Funded Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Sale of stock price per share	$ 2.79	$ 3.085
Warrants to purchase shares of common stock	11,050,000	7,200,000

SCHEDULE OF NET PROCEEDS FROM_2

SCHEDULE OF NET PROCEEDS FROM OFFERING (Details) - USD ($)	Feb. 02, 2021	Jan. 14, 2021	Jun. 30, 2021	Jun. 30, 2020
Subsidiary, Sale of Stock [Line Items]
Proceeds from the sale of shares of Common Stock			$ 13,346,600
Net proceeds of the offering				$ 12,829,241
IPO One [Member]
Subsidiary, Sale of Stock [Line Items]
Proceeds from the sale of shares of Common Stock		$ 8,666,000
Proceeds from the sale of pre-funded warrants to purchase shares of Common Stock		22,212,000
Less: Placement agent fees and other expenses of the offering		(1,937,000)
Net proceeds of the offering		28,941,000
Warrant derivative liabilities		21,922,158
Pre-funded warrant derivative liabilities		378,615
Total allocation of the net proceeds of the offering to warrant derivative liabilities		$ 22,300,773
IPO Two [Member]
Subsidiary, Sale of Stock [Line Items]
Proceeds from the sale of shares of Common Stock	$ 9,100,000
Proceeds from the sale of pre-funded warrants to purchase shares of Common Stock	30,829,500
Less: Placement agent fees and other expenses of the offering	(2,482,400)
Net proceeds of the offering	37,447,100
Warrant derivative liabilities	27,476,352
Pre-funded warrant derivative liabilities	1,438,934
Total allocation of the net proceeds of the offering to warrant derivative liabilities	$ 28,915,286

STOCKHOLDERS_ EQUITY (Details N

STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($)	Feb. 02, 2021	Jan. 14, 2021	Jan. 07, 2021	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021
Subsidiary, Sale of Stock [Line Items]
Percentage for placement agent received discount and commissions		6.00%
Proceeds from public offering					$ 12,829,241
Proceeds from secondary public offering				$ 37,447,100
Officers [Member]
Subsidiary, Sale of Stock [Line Items]
Restricted stock issued, shares			450,000
Restricted stock vesting rights description			Such shares will generally vest one-half on January 7, 2022 and one half on January 7, 2023, provided that each grantee remains an officer or employee on such dates.
Warrant [Member]
Subsidiary, Sale of Stock [Line Items]
Warrant exercise price per share						$ 3.25
Sale of stock price per share	$ 3.25	$ 3.25
IPO [Member]
Subsidiary, Sale of Stock [Line Items]
Ownership percentage description	the Company consummated an registered direct offering (the “Second Offering”) of (i) 3,250,000 shares of common stock (“Shares”), (ii) pre-funded warrants to purchase up to 11,050,000 shares of Common Stock (the “Pre-Funded Warrants”), issuable to investors whose purchase of shares of Common Stock would otherwise result in such investor, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the holder, 9.99%) of the Company’s outstanding Common Stock	the Company consummated a registered direct offering (the “Offering”) of (i) 2,800,000 shares of common stock (“Shares”), (ii) pre-funded warrants to purchase up to 7,200,000 shares of Common Stock (the “Pre-Funded Warrants”), issuable to investors whose purchase of shares of Common Stock would otherwise result in such investor, together with its affiliates and certain related parties, beneficially owning more than 4.99% (or, at the election of the holder, 9.99%) of the Company’s outstanding Common Stock
Number of offering shares issued	3,250,000	2,800,000
Warrants to purchase shares of common stock	14,300,000	10,000,000
Warrants exercisable term	5 years	5 years
Warrant exercise price per share	$ 3.25	$ 3.25
Sale of stock price per share	$ 2.80	$ 3.095
Subsequent offering percentage	50.00%	50.00%
Proceeds from public offering		$ 28,941,000
IPO [Member] | Pre- Funded Warrants [Member]
Subsidiary, Sale of Stock [Line Items]
Warrants to purchase shares of common stock	11,050,000	7,200,000
Sale of stock price per share	$ 2.79	$ 3.085
Proceeds from public offering	$ 37,557,600	$ 29,013,000

SCHEDULE OF WEIGHTED AVERAGE NU

SCHEDULE OF WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING AND LOSS PER SHARE OUTSTANDING (Details) - USD ($)	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Numerator for basic and diluted income per share – Net income (loss)	$ (5,382,487)	$ 21,721,858	$ (497,894)	$ (2,334,110)	$ 16,339,371	$ (2,832,004)
Denominator for basic loss per share – weighted average shares outstanding	51,513,691		18,976,724		48,177,399	16,430,214
Dilutive effect of shares issuable under stock options and warrants outstanding
Denominator for diluted loss per share – adjusted weighted average shares outstanding	51,513,691		18,976,724		48,177,399	16,430,214
Basic	$ (0.10)		$ (0.03)		$ 0.34	$ (0.17)
Diluted	$ (0.10)		$ (0.03)		$ 0.34	$ (0.17)

SCHEDULE OF PRELIMINARY FAIR VA

SCHEDULE OF PRELIMINARY FAIR VALUE OF ASSETS AD LIABILITIES ASSUMED (Details)	6 Months Ended
	Jun. 30, 2021USD ($)
Digital Ally Healthcare Venture
Tangible assets acquired, consisting of acquired cash	$ 13,957
Goodwill	1,200,000
Liabilities assumed consisting of a promissory note issued by the Selling shareholders which was paid off at closing	162,552
Total assets acquired and liabilities assumed	1,376,509
Cash paid at Elite Acquisition date	1,026,509
Contingent consideration	350,000
Total Elite Acquisition purchase price	$ 1,376,509

DIGITAL ALLY HEALTHCARE VENTU_3

DIGITAL ALLY HEALTHCARE VENTURE (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 04, 2021
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Total Elite Acquisition purchase price	$ 1,376,509
Nobility LLC [Member]
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Capitalization, Long-term Debt and Equity		$ 13,500,000
Related party transaction description	Digital Ally Healthcare owns 51% of the venture that entitles it to 51% of the distributable cash as defined in the venture’s operating agreement plus a cumulative preferred return of 10% per annum on its invested capital. Nobility will receive a management fee and 49% of the distributable cash, subordinated to Digital Ally Healthcare’s preferred return.
Nobility LLC [Member] | Elite Medical Billing Specialists, Inc [Member]
Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves [Line Items]
Related Party Transaction, Purchases from Related Party	$ 850,000
Related Party Costs	350,000
Related Party Transaction, Due from (to) Related Party	162,552
Total Elite Acquisition purchase price	1,376,509
Business Acquisition, Transaction Costs	$ 164,630

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	Apr. 21, 2021	Oct. 21, 2020	Oct. 02, 2020	Apr. 30, 2020	Feb. 29, 2020	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2021	Mar. 02, 2021
Related Party Transaction [Line Items]
Proceeds from related party							$ 319,000
Nobility Healthcare L L C [Member]
Related Party Transaction [Line Items]
Transaction Costs						164,630
Nobility Healthcare L L C [Member] | Nobility LLC [Member]
Related Party Transaction [Line Items]
Transaction Costs						30,600
Nobility Healthcare L L C [Member] | Nobility LLC [Member] | Shareholder [Member]
Related Party Transaction [Line Items]
Transaction Costs						$ 23,580
Warrant [Member]
Related Party Transaction [Line Items]
Warrant exercise price								$ 3.25
American Rebel Holdings Inc [Member] | Secured Promissory Note [Member]
Related Party Transaction [Line Items]
Advance provided		$ 250,000	$ 250,000						$ 117,600
Interest rate		8.00%	8.00%
Warrants to purchase common stock		1,250,000
Warrant exercise price		$ 0.10
Warrant term		5 years
Failure to raise debt, description						This note had an original maturity date of January 2, 2021; however, additional provisions within the note provided for an extension of the maturity date for fourteen months due to AREB’s failure to raise $300,000 in new debt or equity financing prior to the original maturity date.
Maturity date		Apr. 21, 2021	Jan. 2, 2021
Related party transaction, description		subject to full repayment upon AREB closing on debt or equity financings of at least $600,000, and the receipt of revenue from the sale of inventory sold under the specific purchase order serving as collateral
Proceeds from related party	$ 639,956
American Rebel Holdings Inc [Member] | Secured Promissory Note [Member] | Warrant [Member]
Related Party Transaction [Line Items]
Warrants to purchase common stock			1,250,000
Warrant exercise price			$ 0.10
Warrant term			5 years
Chairman CEO and President[Member] | Unsecured Promissory Note Payable [Member]
Related Party Transaction [Line Items]
Advance provided				$ 319,000	$ 319,000
Notes payable interest rate				6.00%	6.00%
Notes payable maturity date				May 28, 2020	May 28, 2020
Interest accrued and paid				$ 5,236	$ 5,236

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	May 21, 2021	Jul. 08, 2021	Jun. 30, 2021	Dec. 31, 2020	Jul. 08, 2020
Subsequent Event [Line Items]
Common stock, shares issued			51,577,209	26,834,709
Twenty Twenty Plan [Member]
Subsequent Event [Line Items]
Number of shares reserved for issuance					1,000,000
Twenty Twenty Plan [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Common stock, shares issued		2,500,000
Medical Billing Company [Member]
Subsequent Event [Line Items]
Percentage of Voting Interests	100.00%
Purchase price	$ 2,750,000
Contingent consideration amount	$ 650,000
Medical Billing Company [Member] | Contingent Consideration Promissory Note [Member]
Subsequent Event [Line Items]
Promissory note bearing percentage	3.00%
Medical Billing Company [Member] | Cash [Member]
Subsequent Event [Line Items]
Purchase price	$ 2,100,000