Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 147

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 147
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 December 31, 2024, primarily because of the current year operating losses.

| F-34 |

Significant components of the Company’s deferred tax assets (liabilities) as of December 31, 2024 and 2023 are as follows:

<div align='center'>SCHEDULE OF SIGNIFICANT COMPONENTS OF DEFERRED TAX ASSETS (LIABILITIES)</div>

| Deferred tax assets:                             |     | 2024 |             |   |     | 2023 |             |   |
|:-------------------------------------------------|:----|:-----|------------:|:--|:----|:-----|------------:|:--|
| Stock-based compensation                         |     | $    |     540,000 |   |     | $    |     305,000 |   |
| Start-up costs                                   |     |      |     110,000 |   |     |      |     110,000 |   |
| Inventory reserves                               |     |      |     535,000 |   |     |      |   1,120,000 |   |
| Warrant derivative liabilities                   |     |      |           — |   |     |      |           — |   |
| Investment in subsidiaries                       |     |      |     185,000 |   |     |      |           — |   |
| Research & development expenses                  |     |      |   1,030,000 |   |     |      |           — |   |
| Allowance for doubtful accounts receivable       |     |      |      60,000 |   |     |      |      50,000 |   |
| Property, plant and equipment depreciation       |     |      |      90,000 |   |     |      |     230,000 |   |
| Deferred revenue                                 |     |      |   2,340,000 |   |     |      |   2,535,000 |   |
| Accrued litigation reserve                       |     |      |     985,000 |   |     |      |     500,000 |   |
| Accrued expenses                                 |     |      |      60,000 |   |     |      |      35,000 |   |
| Net operating loss carryforward                  |     |      |  39,275,000 |   |     |      |  35,365,000 |   |
| Research