Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 87

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 87
---
 awards generally vesting based
on the completion of continuous service and having ten-year contractual terms. These option awards typically provide for accelerated vesting
if there is a change in control (as defined in the Plans). The Company has registered all shares of common stock that are issuable under
its Plans with the SEC. A total of 137,042 shares remained available for awards under the various Plans as of December 31, 2024.

The Plans authorize us to grant
(i) to the key employees incentive stock options (except for the 2007 Plan) to purchase shares of Common Stock and non-qualified stock
options to purchase shares of Common Stock and restricted stock awards, and (ii) to non-employee directors and consultants’ non-qualified
stock options and restricted stock. The Compensation Committee of our Board (the “Compensation Committee”) administers the
Plans by making recommendations to the Board or determinations regarding the persons to whom options or restricted stock should be granted
and the amount, terms, conditions and restrictions of the awards.

The Plans allow for the grant
of incentive stock options (except for the 2007 Plan), non-qualified stock options and restricted stock awards. Incentive stock options
granted under the Plans must have an exercise price at least equal to 100% of the fair market value of the Common Stock as of the date
of grant. Incentive stock options granted to any person who owns, immediately after the grant, stock possessing more than 10% of the combined
voting power of all classes of our stock, or of any parent or subsidiary corporation, must have an exercise price at least equal to 110%
of the fair market value of the Common Stock on the date of grant. Non-statutory stock options may have exercise prices as determined
by our Compensation Committee.

The Compensation Committee is
also authorized to grant restricted stock awards under the Plans. A restricted stock award is a grant of shares of the Common Stock that
is subject to restrictions on transferability, risk of forfeiture and other restrictions and that may be forfeited in the event of certain
terminations of employment or service prior to the end of a restricted period specified by the Compensation Committee.

We have filed various registration
statements on Form S-8 and amendments to previously filed Form S-8’s with SEC, which registered a total of 408,750 shares of Common
Stock issued or to be issued underlying the awards under the Plans.

The following table sets forth
certain information regarding