Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 34

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 34
---
 of December 31, 2024 
     2,935,281 

    Amortization of discount 
     664,719 

    Principal payment 
     (3,600,000)

    Balance, as of March 31, 2025 
    $— 

    22

NOTE 6. FAIR VALUE MEASUREMENT

In accordance with ASC Topic 820
— Fair Value Measurements and Disclosures (“ASC 820”), the Company utilizes the market approach to measure fair
value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions
involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business.

ASC 820 utilizes a fair value
hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief
description of those three levels:

    ●
    Level 1 — Quoted prices in active markets for identical assets and liabilities

    ●
    Level 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities)

    ●
    Level 3 — Significant unobservable inputs (including the Company’s own assumptions in determining the fair value)

The following table represents
the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2025
and December 31, 2024:

 SCHEDULE OF FINANCIAL ASSETS AND LIABILITIES MEASURED AT FAIR VALUE ON RECURRING BASIS

    March 31, 2025 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Warrant derivative liabilities 
    $—  
    $—  
    $48,943  
    $48,943 

    $—  
    $—  
    $48,943  
    $48,943 

    December 31, 2024 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Warrant derivative liabilities 
    $—  
    $—  
    $4,554,640  
    $4,554,640 

    $—  
    $—  
    $4,554,640