Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 42

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 42
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 modification of the note rather than an extinguishment and reissuance of a new note. No payments have been made to date in 2025.

Company Related Party Note

On August 22, 2024, Digital Ally’s Chief Executive Officer, made a loan in the amount of $100,000 to the Company to support its operations. In addition, on October 24, 2024, Digital Ally’s Chief Executive Officer, made an additional loan in the amount of $40,000 to the Company to support its operations. These transactions were recorded as related party notes payable (the “Company Related Party Notes”). The Company Related Party Notes bear interest at prime rate (8.00% as of December 31, 2024) per annum with repayment due on demand. As of December 31, 2024, the entire Company Related Party note of $140,000, is classified as current, with an accrued interest balance of $3,465.

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<div align='center'>CAPITALIZATION</div>

The following table sets forth our consolidated cash and capitalization, as of March 31, 2025. Such information is set forth on the following basis:

| ● | on an actual basis (assuming no exercise of the Warrants);                                                                               |
| ● | on a pro forma basis giving effect to the issuance of 1,669,319                                                                          
 shares of common stock issuable upon the exercise of Series B Warrants at a zero exercise price which have already been exercised        
 as of the date of this prospectus; there remains outstanding and unexercised Series B Warrants to purchase 37 shares of common           
 stock at a zero exercise price; and                                                                                                      |
| ● | on a pro forma as adjusted basis giving effect to (i)                                                                                    
 the full exercise of the of the remaining unexercised Series B Warrants to purchase 37 shares of common stock at a                       
 zero exercise price and (ii) the full exercise of the of the Series A Warrants to purchase 347,796 shares of common stock at an exercise 
 price of $62.00 per share.                                                                                                               |

You should read the following table in conjunction with “ Use of Proceeds” and our financial statements and related notes incorporated in this prospectus.

|                                                                                                                      |     | As of March 31, 2025 |              |   |     |           |              |   |     |                             |              |   |
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