Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 145

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 145
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 date of issuance as follows:

<div align='center'>SCHEDULE OF ALLOCATED NET PROCEEDS FROM PRIVATE PLACEMENT OF SENIOR SECURED PROMISSORY NOTES AND COMMITMENT SHARES</div>

| Allocated to the following: |     | Amount |           |
|:----------------------------|:----|:-------|----------:|
| Senior secured              
 promissory notes            |     | $      | 2,129,795 |
| Commitment shares           |     |        |   539,455 |
| Total                       |     | $      | 2,669,250 |

| F-31 |

Following is analysis of the senior secured promissory notes balance:

SCHEDULE OF SENIOR SECURED PROMISSORY NOTES BALANCE

| Balance, as of December 31, 2023        |     | Amount |          — |   |
|:----------------------------------------|:----|:-------|-----------:|:--|
| Issuance of                             
 senior secured promissory notes, at par |     |        |  3,600,000 |   |
| Discount recognized at                  
 issuance date                           |     |        | (1,470,205 | ) |
| Amortization of discount                |     |        |    805,486 |   |
| Balance, as of December 31, 2024        |     | $      |  2,935,281 |   |

NOTE 11. FAIR VALUE MEASUREMENT

In accordance with ASC Topic 820 — Fair Value Measurements and Disclosures(“ASC 820”), the Company utilizes the market approach to measure fair value for its financial assets and liabilities. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets, liabilities or a group of assets or liabilities, such as a business.

ASC 820 utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

| ● | Level                                                                                                                 
 1 — Quoted prices in active markets for identical assets and liabilities                                              |
| ● | Level                                                                                                                 
 2 — Other significant observable inputs (including quoted prices in active markets for similar assets or liabilities) |
| ● | Level                                                                                                                 
 3 — Significant unobservable inputs (including the Company’s own assumptions in determining the fair value)           |

The following table represents the Company’s hierarchy for its financial assets and liabilities measured at fair value on