Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 277

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 277
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 on the closing market price on the date of grant. As of September 30, 2024, there were $ 88,399of total unrecognized compensation costs related to all remaining non-vested restricted stock grants, which will be amortized over the next forty-two 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                                      
 2024 (October 1, 2024 through December 31, 2024) 
 2025                                             |     | Number of Shares |      — 
 35,250 |
|:-------------------------------------------------|:----|:-----------------|-------:|
| 2026                                             |     |                  |  6,500 |
| 2027                                             |     |                  |  5,000 |
| 2028                                             |     |                  |  4,000 |

| F-75 |

NOTE 11. COMMON STOCK PURCHASE WARRANTS

2023 Purchase Warrants

On April 5, 2023, the Company issued warrants to purchase a total of 1,125,000shares of Common Stock. The warrant terms provide for net cash settlement outside the control of the Company under certain circumstances. As such, the Company is required to treat these warrants as derivative liabilities which are valued at their estimated fair value at their issuance date and at each reporting date with any subsequent changes reported in the consolidated statements of operations as the change in fair value of warrant derivative liabilities. Furthermore, the Company re-values the fair value of warrant derivative liability as of the date the warrant is exercised with the resulting warrant derivative liability transitioned to change in fair value of warrant derivative liabilities through the consolidated statement of operations.

The Company has utilized the following assumptions in its Black-Scholes option valuation model to calculate the estimated fair value of the warrant derivative liability relative to the 2023 Purchase Warrants as of their date of issuance and as of September 30, 2024:

SCHEDULE OF WARRANT MODIFICATION

|                                          |     | Issuance         
 date assumptions |             |   |     | September 30, 2024 
 assumptions        |             |   |
|:-----------------------------------------|:----|:-----------------|------------:|:--|:----|:-------------------|------------:|:--|
| Volatility – range                       |     |                  |       106.0 | % |     |