Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 23

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 23
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 15,000,000 Series B warrants.

| 11 |

Aegis Capital Corp. served as
the sole book-running manager in the offering, pursuant to the terms of the Underwriting Agreement, and received seven percent (7%) of
the aggregate purchase price paid by investors in the offering, a one percent (1%) non-accountable expense and reimbursement of the legal
fees of its counsel.

The units and pre-funded units
were offered by the Company pursuant to an effective registration statement on Form S-1, as amended, which was declared effective by the
SEC on February 12, 2025. The final prospectus relating to the offering was filed with the SEC on February 13, 2025.

| Item 1A. | Risk Factors. |

Not applicable.

| Item 1B. | Unresolved Staff Comments. |

None.

| Item 1C. | Cybersecurity. |

Risk management and strategy

We assess material risks from cybersecurity threats on an ongoing basis, including any potential unauthorized occurrence on or conducted through our information systems that may result in adverse effects on the confidentiality, integrity, or availability of our information systems or any information residing therein. As our Company grows, we plan to develop a more robust and detailed strategy for cybersecurity in alignment with nationally accepted standards. We have not encountered cybersecurity challenges that have materially impaired our operations or financial standing.

Governance

Our management and the Board recognize the critical importance of maintaining the trust and confidence of our business partners and employees, including the importance of managing cybersecurity risks as part of our larger risk management program. While all of our personnel play a part in managing cybersecurity risks, one of the key functions of our Board is informed oversight of our risk management process, including risks from cybersecurity threats. Our Board is responsible for monitoring and assessing strategic risk exposure, and our executive officers are responsible for the day-to-day management of the material risks that we face. In general, we seek to address cybersecurity risks through a cross-functional approach that is focused on preserving the confidentiality, integrity, and availability of the information that we collect and store by identifying, preventing, and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur.

| Item 2. | Properties. |

On April 30, 2021, the Company closed on a purchase and sale agreement
to acquire a 71,361 square feet commercial office building located in Lenexa, Kansas which was intended to serve as the Company’s
future office and warehouse needs for executive offices and for