Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 238

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 238
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 with the sale proceeds of property, plant and equipment |     | $                                       |     549,356 |   |     | $    |           — |   |
| Reduction in proceeds from sale of building for loan, prepaid rent, and                 
 other accrued expenses                                                                  |     | $                                       |   5,474,347 |   |     | $    |           — |   |
| Payments to vendors directly from proceeds of sale of common stock                      |     | $                                       |     334,703 |   |     | $    |           — |   |
| Issuance of common stock upon exercise of re-funded warrants                            |     | $                                       |         573 |   |     |      |           — |   |
| Restricted common stock grant                                                           |     | $                                       |          80 |   |     | $    |          35 |   |
| Reverse stock split rounding issuances                                                  |     | $                                       |           — |   |     | $    |          24 |   |
| Restricted common stock forfeitures                                                     |     | $                                       |          51 |   |     | $    |           4 |   |
| Debt discount on convertible note                                                       |     | $                                       |           — |   |     | $    |   3,000,000 |   |

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

| F-54 |

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

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)</div>

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

Nature of Operations:

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 (