Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 302

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 3
Chunk 302
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Not Applicable.

Item 4. Controls and Procedures.

Evaluation of Disclosure
Controls and Procedures

The Company maintains disclosure
controls and procedures, as such terms are defined in Rules 13a-15(e) under the Exchange Act. The Company, under the supervision and with
the participation of its management, including its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness
of the design and operation of such disclosure controls and procedures for this Report. Based upon that evaluation, the Chief Executive
Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures were not effective as of
June 30, 2025 to provide reasonable assurance that material information required to be disclosed by the Company in this Report was recorded,
processed, summarized and communicated to the Company’s management as appropriate and within the time periods specified in SEC rules
and forms.

As part of our plan to remediate
our controls which were not effective, we are performing a full review of our internal control procedures. We have implemented, 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.

68

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