Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 106

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 106
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(Unaudited)

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

Nature of Business:

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 Registrant merged 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 (the
“Merger Agreement”), between the Predecessor Registrant and the Registrant, with the Registrant as the surviving corporation
in the merger (such transaction, the “Merger”). At the Effective Time, Articles of Merger were filed with the Secretary of
State of the State of Nevada, pursuant to which the Registrant was renamed “Digital Ally, Inc.” and, by operation of law,
succeeded to the assets, continued the business and assumed the rights and obligations of the Predecessor Registrant immediately prior
to the Merger. Under the Nevada Revised Statutes, shareholder approval was not required in connection with the Merger Agreement or the
transactions contemplated thereby.

At the Effective Time, pursuant to the Merger Agreement, (i) each outstanding share of Predecessor Registrant’s
common stock, par value $0.001 per share (the “Predecessor Common Stock”) automatically converted into one share of common
stock, par value $0.001 per share, of the Registrant (“Registrant Common Stock”), (ii) each outstanding option, right or warrant
to acquire shares of Predecessor Common Stock converted into an option, right or warrant, as applicable, to acquire an equal number of
shares of Registrant Common Stock under the same terms and conditions as the original options, rights or warrants, and (iii) the directors
and executive officers of the Predecessor Registrant were appointed as directors and executive officers, as applicable, of the Registrant,
each to serve in the same capacity and for the same term as such person served