Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 169

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 169
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 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)

    18

The
following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on a recurring
basis as of September 30, 2025 and December 31, 2024:

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

    September 30, 2025 

    Level 1  
    Level 2  
    Level 3  
    Total 
  
    Liabilities: 

    Warrant derivative liabilities 
    $—  
    $—  
    $1,116  
    $1,116 

    $—  
    $—  
    $1,116  
    $1,116 

    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 nine months ended September 30, 2025:

 SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS

    Warrant Derivative Liabilities