Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 284

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 284
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 statements of operations as the change in fair value of warrant derivative liabilities. Furthermore, the Company re-values the fair value of warrant derivative liability as of the date the warrant is exercised with the resulting warrant derivative liability transitioned to change in fair value of warrant derivative liabilities through the consolidated statement of operations.

During the three and nine months ended September 30, 2024, the prefunded warrants to purchase 573,008shares of common stock were fully exercised.

| F-76 |

The Company has utilized the following assumptions in its Black-Scholes option valuation model to calculate the estimated fair value of the derivative liability relative to the 2024 Purchase Warrants as of their date of issuance and as of September 30, 2024:

|                                          |     | Issuance         
 date assumptions |                 |   |     | September 30, 2024 
 assumptions        |           |   |
|:-----------------------------------------|:----|:-----------------|----------------:|:--|:----|:-------------------|----------:|:--|
| Volatility – range                       |     |                  |   72.1 - 101.1% |   |     |                    |     106.6 | % |
| Risk-free rate                           |     |                  |    4.25 – 5.46% |   |     |                    |      3.58 | % |
| Dividend                                 |     |                  |               0 | % |     |                    |         0 | % |
| Remaining contractual term               |     |                  | 0.1 - 5.0 years |   |     |                    | 4.7 years |   |
| Exercise price                           |     | $                |            2.51 |   |     | $                  |      2.51 |   |
| Common stock issuable under the warrants |     |                  |       1,768,227 |   |     |                    | 1,195,219 |   |

The following table summarizes information about shares issuable under all warrants outstanding during the nine months ended September 30, 2024:

SCHEDULE OF WARRANT ACTIVITY

|                                    |     | Warrants |           |   |     | Weighted average 
 exercise         
 price            |       |   |
|:-----------------------------------|:----|:---------|----------:|:--|:----|:-----------------|------:|:--|
| Vested Balance, December 31,