Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 108

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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, every twenty (20) shares of Common Stock were exchanged for one (1)
share of Common Stock. The Common Stock began trading on the Nasdaq Capital Market on a split-adjusted basis at the start of trading
on May 7, 2025. The Reverse Stock Split did not affect the total number of shares of capital stock, including the Common Stock, that
the Company is authorized to issue, which remain as set forth pursuant to the Articles of Incorporation. No fractional shares of
Common Stock were issued in connection with the Reverse Stock Split. Stockholders who otherwise were entitled to receive fractional
shares of Common Stock were automatically entitled to receive an additional fraction of a share of Common Stock to round up to the
next whole share, at a participant level. The Reverse Stock Split also had a proportionate effect on all other options and warrants
of the Company outstanding as of the effective date of the Reverse Stock Split. The Reverse Stock Split was effective as of the time
of this filing. All historical share and per-share amounts reflected throughout the Company’s condensed consolidated financial
statements and other financial information in this Report have been adjusted to reflect the Reverse Stock Split as if the split
occurred as of the earliest period presented. The par value per share of the Company’s Common Stock was not affected by the
Reverse Stock Split.

    7

The following is a summary of the Company’s
Significant Accounting Policies:

Basis of Presentation:

The unaudited condensed consolidated
financial statements have been prepared in accordance with generally accepted accounting principles in the United States for interim financial
information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all the information
and footnotes required by generally accepted accounting principles in the United States for complete financial statements. In the opinion
of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
Operating results for the three-month period ended March 31, 2025 are not necessarily indicative of the results that may be expected for
the year ending December 31, 2025.

The balance sheet as of December
31, 2024 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required
by generally accepted accounting principles in the United States for complete financial statements.

For further information, refer
to the audited consolidated financial statements and footnotes included in the Company’s annual report