Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 182

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 182
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 “Commitment Shares”) of the Company’s Common Stock, for aggregate gross
proceeds of approximately $3.0 million, before deducting placement agent fees and other offering expenses payable by the Company. This
private placement closed on November 7, 2024.

The net proceeds of the private
placement on November 7, 2024 was $2,669,250 (after $330,750 deduction of costs of the offering). The Company allocated the net proceeds
from the private placement of the senior secured promissory notes and the commitment shares based upon their relative fair values as of
the date of issuance as follows:

 SCHEDULE OF NET PROCEEDS FROM THE PRIVATE PLACEMENT

    Amount 

    Allocated to the following: 

    Senior secured promissory notes 
    $2,129,795 

    Commitment shares 
     539,455 

    Total 
    $2,669,250 

Cancellation of Restricted Stock

During the six months ended
June 30, 2025 and 2024, the Company cancelled -0- and 1 shares due to termination of employees, respectively.

Exercise of Prefunded Warrants

During the three months ended
June 30, 2025, prefunded warrants to purchase 49,075 shares of Common Stock that were issued in conjunction with the February 2025 public
equity offering of Common Stock, were fully exercised at an exercise price of $0.001 per share.

During the three months ended
June 30, 2025, Series B warrants to purchase 1,897 shares of Common Stock that were issued in conjunction with the June 2024 public equity
offering of Common Stock, were fully exercised for total proceeds of $3,793. In conjunction with the exercise of the Series B warrants,
the Company transitioned the related warrant derivative liability totaling $1,989,806 to equity as of their exercise date.

    34

Noncontrolling Interests

The Company has a 51% equity
interest in its consolidated subsidiary, Nobility Healthcare. As a result, the noncontrolling shareholders or minority interest is allocated
49% of the income/loss of Nobility Healthcare which is reflected in the condensed consolidated statement of operations as “net income
(loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported net
(loss) income attributable to noncontrolling interests of consolidated subsidiary of $55,997 and $73,310 for