Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 195

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 195
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, 2024 was $2,669,250 (after $330,750 deduction of costs of the offering). The Company
allocated the net proceeds from the private placement of the senior secured promissory notes and the commitment shares based upon their
relative fair values as of the date of issuance as follows:

    Amount 

    Allocated to the following: 

    Senior secured promissory notes 
    $2,129,795 

    Commitment shares 
     539,455 

    Total 
    $2,669,250 

    28

Cancellation
of Restricted Stock

During
the nine months ended September 30, 2025 and 2024, the Company cancelled -0- and 1 shares due to termination of employees, respectively.

Exercise
of Prefunded Warrants

During
the three months ended September 30, 2025, prefunded warrants to purchase 49,075 shares of Common Stock that were issued in conjunction
with the February 2025 public equity offering of Common Stock, were fully exercised at an exercise price of $0.001 per share.

During
the three months ended September 30, 2025, Series B warrants to purchase 1,897 shares of Common Stock that were issued in conjunction
with the June 2024 public equity offering of Common Stock, were fully exercised for total proceeds of $3,793. In conjunction with the
exercise of the Series B warrants, the Company transitioned the related warrant derivative liability totaling $1,989,806 to equity as
of their exercise date.

Noncontrolling
Interests

The
Company has a 51% equity interest in its consolidated subsidiary, Nobility Healthcare. As a result, the noncontrolling shareholders or
minority interest is allocated 49% of the income/loss of Nobility Healthcare which is reflected in the condensed consolidated statement
of operations as “net income (loss) attributable to noncontrolling interests of consolidated subsidiary”. We reported net
(loss) income attributable to noncontrolling interests of consolidated subsidiary of $(58,525) and $2,000,206 for the three months ended
September 30, 2025 and 2024, respectively and $(118,133) and $1,939,143 for the nine months ended September 30, 2025 and 2024, respectively.

NOTE
13. RELATED PARTY TRANSACTIONS

Transactions
with Managing Member of Nobility Healthcare

The
Company