Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 60

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 60
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 within the time periods specified in the SEC’s rules and forms, and was accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

Management’s Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

| ● | Pertain to the maintenance                                                                                          
 of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; |

| ● | Provide reasonable assurance                                                                                                          
 that the transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted   
 accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management 
 and directors; and                                                                                                                    |
| ● | Provide reasonable assurance                                                                                                          
 regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material     
 effect on the financial statements.                                                                                                   |

| 36 |

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

In connection with the filing of this Annual Report on Form 10-K, our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2024. In making this assessment, our management used the criteria set forth by 2013 Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our assessment using the framework in 2013 Internal Control – Integrated Framework, management believes that, as of December 31, 2024, our internal control over financial reporting is not effective.

Material Weakness

In connection with the audit of our consolidated financial statements as
of December 31, 2024 and 2023, we identified a material weakness in our internal control over financial reporting related to timely review
and detection of potential accounting misstatements and a lack of segregation of duties, which