Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 258

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 258
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 an interest expense on the date of issuance relating to the Notes. The following is the assumptions used in calculating the estimated grant-date fair value of the detachable warrants to purchase common stock granted in connection with the Notes:

SCHEDULE OF WARRANT TO PURCHASE COMMON STOCK GRANTED

|                                          |     | Terms at        
 April 5, 2023   
 (issuance date) |             |   |
|:-----------------------------------------|:----|:----------------|------------:|:--|
| Volatility - range                       |     |                 |       106.0 | % |
| Risk-free rate                           |     |                 |        3.36 | % |
| Dividend                                 |     |                 |           0 | % |
| Remaining contractual term               |     |                 |   5.0 years |   |
| Exercise price                           |     | $               | 5.50 - 7.50 |   |
| Common stock issuable under the warrants |     |                 |   1,125,000 |   |

| F-65 |

On June 2, 2023, the Purchasers elected to convert $ 125,000principal, at the fixed price of $ 5.00per share of common stock, 25,000shares valued at $ 119,750. The loss on conversion of convertible note into common shares, of $ 93,386, was recorded during the period.

On October 26, 2023, the Company entered into a Revolving Loan Agreement of which a portion of the net proceeds were used to repay the principal amount of the Convertible debt. The warrants associated with the convertible debt remain outstanding.

Revolving Loan Agreement

On October 26, 2023, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) by and between the Company, Digital Ally Healthcare, Inc., a Nevada corporation and wholly-owned subsidiary of the Company (“Digital Ally Healthcare” and, together with the Company, the “Borrower”), and Kompass Kapital Funding, LLC, a Kansas limited liability company (“Kompass”). In connection with the Loan Agreement, on October 26, 2023, the Company entered into a Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing (the “Mortgage”) by and between the Company, as grantor, and Kompass, as grantee, and issued a Revolving Note (the “Revolving Note”) to Kompass.