Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 44

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 44
---
 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 

    Balance, December 31, 2024 
    $4,554,640 

    Issuance of pre-funded warrant derivative liabilities in February 2025 public equity offering 
     1,803 

    Issuance/Activation of Series A Warrants issued in connection with the February 2025 public equity offering 
     1,340,214 

    Issuance/Activation of Series B Warrants issued in connection with the February 2025 public equity offering 
     5,406,408 

    Transition of warrant derivative liability to equity due to exercise of pre-funded warrant derivative liabilities in February 2025 public