Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 314

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 314
---
, and plan to continue to implement, new controls and new processes. We have hired and plan to continue to hire additional
qualified personnel and establish more robust processes to support our internal control over financial reporting, including clearly defined
roles and responsibilities. The Company anticipates time being required to complete the implementation and to assess and ensure the sustainability
of these controls. The effectiveness will not be considered remediated until the applicable controls operate for a sufficient period
of time and management has concluded, through testing, that these controls are operating effectively.

Changes
in Internal Control over Financial Reporting

There
have not been any changes in the Company’s internal control over financial reporting, as such term is defined in Rules 13a-15(f)
and 15d-15(f) under the Exchange Act, during the Company’s last fiscal quarter that have materially affected, or are reasonably
likely to materially affect, its internal control over financial reporting.

56

PART
II – OTHER INFORMATION

Item
1. Legal Proceedings.

The
information regarding certain legal proceedings in which we are involved as set forth in Note 9 – Commitments and Contingencies
of the Notes to the Condensed Consolidated Financial Statements (Part I, Item 1 of this Quarterly Report on Form 10-Q) is incorporated
by reference into this Item 1.

In
addition to such legal proceedings, we are faced with or involved in various other claims and legal proceedings arising in the normal
course of our businesses. At this time, we do not believe any material losses under such other claims and proceedings to be probable.
While the ultimate outcome of such claims or legal proceedings cannot be predicted with certainty, it is in the opinion of management,
after consultation with legal counsel, that the final outcome in such proceedings, in the aggregate, would not have a material adverse
effect on our consolidated financial condition, results of operations or cash flows.

Item
1A. Risk Factors.

As
a smaller reporting company, we are not required to provide the information required by this Item.

Item
2. Unregistered Sales of Equity Securities and Use of Proceeds.

There
were no unregistered sales of equity securities during the three and nine months ended September 30, 2025 that were not disclosed by
the Company on a Current Report on Form 8-K.

Item
3. Defaults upon Senior Securities.

There
were no defaults upon senior securities during the three and nine months ended September 30, 2025 that were not disclosed by the Company
on