Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 179

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 179
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 due to those teams for the Company’s Entertainment Segment season tickets of $122,772.07.
Profits generated from 2025 All Star Game and 2025 Post season tickets will be split 50/50 between the Parties, paid upon completion of
the respective events.

Accounts payable - The Company continues to negotiate with its vendors to settle outstanding balances owed for lesser amounts. In that regard,
the Company’s Video Solutions Segment and one of its significant vendor’s agreed to extinguish accounts payable totaling
$2,250,000
for an immediate payment of $500,000.
The payment was made on February 25, 2025 resulting in a gain on the extinguishment of liabilities of $1,750,000.
The Company continues to negotiate with its vendors to settle outstanding balances owed for lesser amounts.

Termination of Co-Marketing Agreement - On February 20, 2025, the Company’s Entertainment Segment entered into a settlement agreement with
TicketSocket, Inc. to terminate their Co-Marketing Agreement (which had been in place since September 15, 2022. Both parties acknowledged
and agreed that $650,000 was still outstanding and due to the Company’s Entertainment Segment under the provisions of the Co-Marketing
Agreement. However, the parties agreed that $500,000 would be accepted by the Company’s Entertainment Segment as payment in full
if such amount was paid before Tuesday, February 25, 2025. This $500,000 was received before February 25, 2025 so, as such, the amounts
receivable from TicketSocket, Inc. was fully extinguished. The Company’s Entertainment Segment had recorded a reserve for
loss on the termination of the Co-Marketing Agreement of $150,000 as of December 31, 2024.

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