Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 18

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 18
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 to compete effectively primarily depends on our trade secrets and know-how and does not depend heavily on any proprietary technology or patents.

Intellectual Property – Entertainment Operating Segment

Our entertainment operating segment’s ability to compete effectively primarily depends on our trade secrets and know-how and does not depend heavily on any proprietary technology or patents.

Government Approval

Government approval is not required for us to license
our video solutions technology or sell such devices or products. However, government support for semiconductors and certain of our target
markets including law enforcement and commercial vehicles, taxi-cab and private security operations may impact the size and growth rate
of video solutions devices and these potential target markets. In recent years, there has been a trend in both the United States and abroad
to support the adoption of electric vehicles and renewable energy due to increased concern regarding the effects of climate change. Under
the Trump administration, government support for law enforcement and certain of our potential target markets may or may not continue or
may continue at lower levels than seen with the prior administration. Government support for video solutions devices especially the application
of artificial intelligence within those video products and our potential target markets could have a material and positive impact on our
business. A lack of government support, on the other hand, may have a material and negative impact on our business if this lack of support
results in slower adoption of products in our target markets, until such time that the cost and performance improve for these products
enough that government support is unnecessary for mass adoption. Regardless of the administration in the U.S., the market for video solutions
and our target markets is global and we believe there continues to be strong macro-trends regarding the adoption of video solutions and
associated products.

Environmental Regulation

While the Company believes that
it has the environmental permits necessary to conduct its business and that its operations conform to current environmental regulations,
increased public attention has been focused on the environmental impact of video manufacturing operations. The Company, in
the conduct of its manufacturing operations, has handled and does handle materials that are considered hazardous, toxic or volatile under
federal, state and local laws and, therefore, is subject to regulations related to their use, storage, discharge and disposal. No
assurance can be made that the risk of accidental release of such materials can be completely eliminated. In the event of a
violation of environmental laws, the Company could be held liable for damages and the costs of remediation. In addition, the Company,
along with the rest of the video solutions industry, is