Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 54

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 54
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 Series B warrants,
the Company transitioned the related warrant derivative liability totaling $1,989,806 to equity as of their exercise date.

Reverse Stock Split

On May 6, 2025, the Company, acting pursuant to authority received at an annual meeting of its stockholders on December 17, 2024, filed
with the Secretary of State of the State of Nevada the Charter Amendment to its Articles of Incorporation, which effected a one-for-twenty
reverse stock split of all of the Company’s outstanding shares of Common Stock. Pursuant to the Charter Amendment, the Reverse Stock
Split became effective as of 5:30 p.m. Eastern Time on May 6, 2025. As a result of the Reverse Stock Split, every twenty (20) shares of
Common Stock were exchanged for one (1) share of Common Stock. The Common Stock began trading on the Nasdaq Capital Market on a split-adjusted
basis at the start of trading on May 7, 2025. The Reverse Stock Split did not affect the total number of shares of capital stock, including
the Common Stock, that the Company is authorized to issue, which remain as set forth pursuant to the Articles of Incorporation. No fractional
shares of Common Stock were issued in connection with the Reverse Stock Split. Stockholders who otherwise were entitled to receive fractional
shares of Common Stock were automatically entitled to receive an additional fraction of a share of Common Stock to round up to the next
whole share, at a participant level. The Reverse Stock Split also had a proportionate effect on all other options and warrants of the
Company outstanding as of the effective date of the Reverse Stock Split. The Reverse Stock Split was effective as of the time of this
filing.

Noncontrolling Interests

The Company owns 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 $3,611 and $12,248 for the three months ended March
31, 2025 and 2024, respectively.

NOTE 13. RELATED PARTY TRANSACTIONS

Transactions with Managing Member of Nobility
Healthcare

The Company accrued reimbursable
expenses payable