Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 63

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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.04 per share effective December 17, 2024. In addition, the Series
B warrants became effective and exercisable upon relevant stockholder approval on December 17, 2024 which resulted in 238,339 common
shares issuable under the Series B warrants with an exercise price of $0.001 per share effective December 17, 2024. The Company recognized
the full Series B warrant derivative liability value of $2,865,727 as of the date of relevant stockholder approval when it became effective
and exercisable of which $454,150 was recorded in equity and $2,411,577 was charged as a loss in the consolidated statement of operations
for the year ended December 31, 2024. The following are the assumptions used in calculating the estimated fair value of the detachable
Series B warrants to purchase Common Stock which became effective and exercisable upon relevant stockholder approval on December 17,
2024 and on December 31, 2024:

    Series B issuance date - December 17, 2024  assumptions  
    Series B - December 31, 2024 assumptions 
  
    Volatility – range 
     105.5% 
     105.7%
  
    Risk-free rate 
     4.26% 
     4.38%
  
    Dividend 
     —% 
     —%
  
    Remaining contractual term 
     4.5 years  
     4.48 years 
  
    Exercise price 
    $0.001  
    $0.001 
  
    Common stock issuable under the warrants 
     238,339  
     189,689 

During
the year ended December 31, 2024, prefunded warrants to purchase 28,650 shares of Common Stock were fully exercised. No pre-funded warrants
were exercised during the three months ended September 30, 2025. In conjunction with the exercise of the Series B warrants, the Company
transitioned the related warrant derivative liability totaling $584,955 to equity as of their exercise date in 2024. The warrant derivative
liability related to the remaining unexercised Series B warrants was $1,989,806 as of December 31, 2024. The change in fair value of
the Series B warrant derivative liability from their issuance date through December 31, 2024 totaled $290,965 which was included as a
loss in the