Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 89

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 89
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 per annum with repayment beginning January 2, 2024. As of December 31, 2024 and 2023, the entire TicketSmarter
Related Party note balance totaled $2,700,000, and is classified as current, with an accrued interest balance of $488,711 and $95,031,
respectively. The use of proceeds of the TicketSmarter Related Party Note was to resolve numerous outstanding payables at a discounted
rate, the discount received to resolve such outstanding payables is recognized as a gain on extinguishment of liabilities on the statement
of operations. Additionally, these negotiations relieved TicketSmarter of numerous future obligations following fiscal year 2023.

On August 19, 2024, the parties
agreed to amend the note whereby the repayment dates were extended to begin on January 2, 2025 and continue at $54,000 for 50 consecutive
weeks plus interest. The parties did not change any other provisions or terms of the note. The amendment was determined to be a 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.

| 57 |

| Item 14. | Principal Accountant 
 Fees and Services.   |

Audit and Related Fees

The following table is a summary of the fees billed to us by RBSM LLP for the fiscal years ended December 31, 2024 and 2023:

| Fee Category       |     | Fiscal 2024 fees |         |     | Fiscal 2023 fees |         |
|:-------------------|:----|:-----------------|--------:|:----