Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 40

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 40
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 to time, particularly if and
as we engage with applicable governmental agencies or plaintiffs in connection with a proceeding. Also, the matters underlying the reasonably
possible loss will change from time to time. As a result, actual results may vary significantly from the current estimate.

While the ultimate resolution
is unknown, based on the information currently available, we do not expect that the pending lawsuit or the enforcement of the judgment
will have a material adverse effect on our operations, financial condition or cash flows. However, the outcome of any litigation is inherently
uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of the pending
lawsuit or enforcement of the judgment will be covered by our insurance or will not be in excess of amounts recognized or provided by
insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows.

NOTE 10. STOCK-BASED COMPENSATION

The
Company recorded pre-tax compensation expense related to the grant of stock options and restricted stock issued of $13,824 and
$40,695 for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, the Company
had adopted ten separate stock option and restricted stock plans: (i) the 2005 Stock Option and Restricted Stock Plan (the “2005
Plan”), (ii) the 2006 Stock Option and Restricted Stock Plan (the “2006 Plan”), (iii) the 2007 Stock Option and Restricted
Stock Plan (the “2007 Plan”), (iv) the 2008 Stock Option and Restricted Stock Plan (the “2008 Plan”), (v) the
2011 Stock Option and Restricted Stock Plan (the “2011 Plan”), (vi) the 2013 Stock Option and Restricted Stock Plan (the “2013
Plan”), (vii) the 2015 Stock Option and Restricted Stock Plan (the “2015 Plan”), (viii) the 2018 Stock Option and Restricted
Stock Plan (the “2018 Plan”), (ix) the 2020 Stock Option and Restricted Stock Plan (the “2020 Plan”), and (x)
the 2022 Stock Option and Restricted Stock Plan (the “2022 Plan”). The 2005 Plan, 2006 Plan, 2007 Plan, 2008 Plan, 2011 Plan,
2013 Plan, 2015 Plan, 2018