Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 157

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 157
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 Stock Plan (the “2022 Plan”). The 2005 Plan, 2006 Plan, 2007 Plan, 2008 Plan, 2011 Plan, 2013 Plan, 2015 Plan, 2018 Plan, 2020 Plan and 2022 Plan are referred to as the “Plans.”

| F-39 |

Stock option grants.The Company believes that such awards better align the interests of our employees with those of its stockholders. Option awards have been granted with an exercise price equal to the market price of its stock at the date of grant with such option 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 fair value of each option award is estimated on the date of grant using a Black-Scholes option valuation model.

Activity in the various Plans during the years ended December 31, 2024 and 2023 is reflected in the following table:

<div align='center'>SCHEDULE OF STOCK OPTIONS OUTSTANDING</div>

| Options                          |     | Number 
 of     
 Shares |        |   |     | Weighted       
 Average        
 Exercise Price |        |   |
|:---------------------------------|:----|:-------|-------:|:--|:----|:---------------|-------:|:--|
| Outstanding at January 1, 2024   |     |        | 53,600 |   |     | $              |  45.55 |   |
| Granted                          |     |        |      — |   |     |                |      — |   |
| Exercised                        |     |        |      — |   |     |                |      — |   |
| Forfeited                        |     |        | (1,100 | ) |     |                | (65.00 | ) |
| Outstanding at December 31, 2024 |     |        | 52,500 |   |     | $              |  45.14 |   |
| Exercisable at December 31, 2024 |     |        | 52,500 |   |     | $              |  45.14