Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 130

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 130
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    ●
    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  
    $4,554,640 

The following table represents the change in Level
3 tier value measurements for the three months ended March 31, 2025:

 SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS

    Warrant
                                                                                Derivative Liabilities 

    Balance, December 31, 2024 
    $4,554,640 

    Issuance of pre-funded warrant derivative liabilities in February 2025 public equity offering 
     1,803 

    Transition of warrant derivative liability to equity due to exercise of pre-funded warrant derivative liabilities in February 2025 public equity offering 
     (1,803)

    Transition of warrant derivative liability to equity due to exercise of Series B common stock purchase warrants issued in June 2024 Private Placement 
     (1,989,806)

    Change in fair value of warrant derivative liabilities 
     (2,515,891)

    Balance, March 31, 2025 
    $48,943 

    23

NOTE 7. ACCRUED EXPENSES

Accrued expenses