Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 156

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 156
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| Reverse stock split rounding issuances                                                                |     |      |             |   |     |      |             |   |
| Restricted common stock forfeitures                                                                   |     |      |             |   |     |      |             |   |
| Debt discount on convertible note                                                                     |     | $    |   3,000,000 |   |     | $    |           — |   |

<div align='center'>See Notes to Consolidated Financial Statements.</div>

| F-7 |

<div align='center'>DIGITAL ALLY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</div>

NOTE 1. NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Business:

Digital Ally, Inc. was originally incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc. and had no operations until 2004. On November 30, 2004, Vegas Petra, Inc. entered into a Plan of Merger with Digital Ally, Inc., at which time the merged entity was renamed Digital Ally, Inc. (such merged entity, the “Predecessor Registrant”).

On August 23, 2022 (the “ Effective Time”), the Predecessor Registrantmerged with and into its wholly owned subsidiary, DGLY Subsidiary Inc., a Nevada corporation (the “ Registrant”), pursuant to an agreement and plan of merger, dated as of August 23, 2022 (the “ Merger Agreement”), between the Predecessor Registrant and the Registrant, with the Registrant as the surviving corporation in the merger (such transaction, the “ Merger”). At the Effective Time, Articles of Merger were filed with the Secretary of State of the State of Nevada, pursuant to which the Registrant was renamed “Digital Ally, Inc.” and, by operation of law, succeeded to the assets, continued the business and assumed the rights and obligations of the Predecessor Registrant immediately prior to the Merger. Under the Nevada Revised Statutes, shareholder approval was not required in connection with the Merger Agreement or the transactions contemplated thereby.

At the Effective Time, pursuant to the Merger Agreement, (i) each outstanding share of Predecessor Registrant’s common stock, par value $ 0.001per share (the “ Predecessor Common Stock”) automatically converted into one share of common stock, par value $ 0.001per share