Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 152

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 152
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 of the leased facilities on January 1, 2022. The Company terminated this lease in January 2024 and reversed the right of use asset and lease liability by $73,894.

Lease expense related to the Company’s office space and copier operating leases was recorded on a straight-line basis over the lease term. Total lease expense under the five operating leases was approximately $627,212 for the year ended December 31, 2024.

The weighted-average remaining lease-term related to the Company’s lease liabilities as of December 31, 2024 and December 31, 2023 were 4.3 years and 4.5 years, respectively.

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 the 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 December 31, 2024:

<div align='center'>SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES</div>

| Assets:                                     |     |   |         |
|:--------------------------------------------|:----|:--|--------:|
| Operating                                   
 lease right of use assets                   |     | $ | 718,509 |
| Liabilities:                                |     |   |         |
| Operating lease obligations-current portion |     |   | 158,304 |
| Operating lease obligations-less            
 current portion                             |     |   | 560,205 |
| Total operating lease                       
 obligations                                 |     | $ | 718,509 |

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

<div align='center'>SCHEDULE OF FUTURE MINIMUM LEASE PAYMENTS</div>

| Year ending December 31:                         
 2025                                             |     |   |  210,086 |   |
|:-------------------------------------------------|:----|:--|---------:|:--|
| 2026                                             |     |   |  210,925 |   |
| 2027                                             |     |   |  189,275 |   |
| 2028                                             |     |   |  100,863 |   |
| 2029 and thereafter                              |     |   |  130,086 |   |
| Total undiscounted minimum future lease payments |