Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 167

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 167
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                                                          |     | $    |           — |   |     | $    |     387,005 |   |
| ROU and lease liability recorded on extension of lease                                                |     | $    |     611,702 |   |     | $    |      42,403 |   |
| Common stock issued due to rounding from reverse stock split                                          |     | $    |          24 |   |     | $    |           — |   |
| Conversion of convertible notes payable into common stock                                             |     | $    |     119,750 |   |     | $    |           — |   |
| Issuance of common stock through warrant exchange agreement                                           |     | $    |           — |   |     | $    |   4,495,500 |   |
| Adjustments of accounts payable with the sale proceeds of property, plant and equipment               |     |      |             |   |     |      |             |   |
| Reduction in proceeds from sale of building for loan, prepaid rent, and                               
 other accrued expenses                                                                                |     |      |             |   |     |      |             |   |
| Payments to vendors directly from proceeds of sale of common stock                                    |     |      |             |   |     |      |             |   |
| Issuance of common stock upon exercise of re-funded warrants                                          |     |      |             |   |     |      |             |   |
| 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,