Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 35

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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    $4,554,640 

The following table represents the change in Level
3 tier value measurements for the three months ended March 31, 2025:

 SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS

    Warrant
                                                                                Derivative Liabilities 

    Balance, December 31, 2024 
    $4,554,640 

    Issuance of pre-funded warrant derivative liabilities in February 2025 public equity offering 
     1,803 

    Transition of warrant derivative liability to equity due to exercise of pre-funded warrant derivative liabilities in February 2025 public equity offering 
     (1,803)

    Transition of warrant derivative liability to equity due to exercise of Series B common stock purchase warrants issued in June 2024 Private Placement 
     (1,989,806)

    Change in fair value of warrant derivative liabilities 
     (2,515,891)

    Balance, March 31, 2025 
    $48,943 

    23

NOTE 7. ACCRUED EXPENSES

Accrued expenses consisted of
the following at March 31, 2025 and December 31, 2024:

 SCHEDULE OF ACCRUED EXPENSES

    March 31, 2025  
    December 31, 2024 
  
    Accrued warranty expense 
    $11,615  
    $11,615 
  
    Accrued payroll and related fringes 
     87,703  
     428,380 
  
    Accrued sales returns and allowances 
     93,170  
     93,170 
  
    Accrued sales taxes 
     113,816  
     104,404 
  
    Accrued interest - related party 
     5,918  
     492,177 
  
    Accrued board of directors’ fees 
     40,000  
     197,000 
  
    Customer deposits 
     2,400  
     165,779 
  
    Other 
     176,931  
     21,983 
  
    Total accrued expenses 
    $531,553  
    $1,514,508 

NOTE 8. INCOME TAXES

The effective tax rate for the
three months ended March 31, 2025, and 202