# EDGAR Filing Document

**Accession Number:** 0001342958
**File Stem:** 0001493152-23-006280
**Filing Date:** 2023-2
**Character Count:** 43832
**Document Hash:** ed426a0361ba1d2a7ff5462c1fcec846
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001493152-23-006280.hdr.sgml**: 20230228

**ACCESSION NUMBER**: 0001493152-23-006280

**CONFORMED SUBMISSION TYPE**: S-8

**PUBLIC DOCUMENT COUNT**: 7

**FILED AS OF DATE**: 20230228

**DATE AS OF CHANGE**: 20230228

**EFFECTIVENESS DATE**: 20230228

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** DIGITAL ALLY, INC.
- **CENTRAL INDEX KEY:** 0001342958
- **STANDARD INDUSTRIAL CLASSIFICATION:** RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
- **IRS NUMBER:** 200064269
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-8
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-270129
- **FILM NUMBER:** 23686784

**BUSINESS ADDRESS:**
- **STREET 1:** 14001 MARSHALL DRIVE
- **CITY:** LENEXA
- **STATE:** KS
- **ZIP:** 66215
- **BUSINESS PHONE:** 913-232-5349

**MAIL ADDRESS:**
- **STREET 1:** 14001 MARSHALL DRIVE
- **CITY:** LENEXA
- **STATE:** KS
- **ZIP:** 66215

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DIGITAL ALLY INC
- **DATE OF NAME CHANGE:** 20051031

**As filed with Securities and Exchange Commission on February 28, 2023**

**Registration No. 333-**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM S-8**

**REGISTRATION STATEMENT UNDER**

**THE SECURITIES ACT OF 1933**

**Digital Ally, Inc.**

(Exact name of registrant as specified in its charter)

---

| | |
|:---|:---|
| **Nevada** | **20-0064269** |
| *(State or other jurisdiction of* | *(I.R.S. Employer* |
| *incorporation or organization)* | *Identification Number)* |

---

**14001 Marshall Drive**

**Lenexa, KS 66215**

**(913) 814-7774**

(Address, including zip code, and telephone number, including area code,

of registrant's principal executive offices)

**Digital Ally, Inc. 2022 Stock Option and Restricted Stock Plan**

(Full Title of Plan)

**Stanton E. Ross**

**Chief Executive Officer and Chairman of the Board**

**14001 Marshall Drive**

**Lenexa, KS 66215**

**(913) 814-7774**

(Name, address, including zip code, and telephone number, including area code, of agent for service)

***Copy to:***

**David Danovitch, Esq.**

**Sullivan & Worcester LLP**

**1633 Broadway, 32<sup>nd</sup> Floor**

**New York, New York 10019**

**(212) 660-3060**

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | **☐** | Accelerated filer | **☐** |
| Non-accelerated filer | **☒** | Smaller reporting company | **☒** |
|  |  | Emerging growth company | **☐** |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. **☐**

**EXPLANATORY NOTE**

This Registration Statement on Form S-8 (the "Registration Statement") is being filed by Digital Ally, Inc. (the "Registrant") for the purpose of registering an aggregate of 90,000 shares of common stock, par value $0.001 per share, of the Registrant ("Common Stock"), issuable under the Registrant's 2022 Stock Option and Restricted Stock Plan (the "2022 Plan").

On February 6, 2023, the Company effected a 1-for-20 reverse stock split of all outstanding shares of its Common Stock and the board of directors of the Company approved the corresponding decrease in the number of shares of Common Stock reserved to be issued under the 2022 Plan. The share amounts stated above are presented on a post-split basis and reflect this reverse stock split.

**PART I**

**INFORMATION REQUIRED IN THE SECTION 10(a) PROSPECTUS**

The documents containing the information specified in Part I of Form S-8 will be delivered in accordance with Rule 428(b)(1) of the Securities Act of 1933, as amended (the "Securities Act"). Such documents are not required to be filed with the U.S. Securities and Exchange Commission (the "Commission") either as part of this Registration Statement or as prospectuses or prospectus supplements pursuant to Rule 424 of the Securities Act. These documents, and the documents incorporated by reference in Item 3 of Part II of this Registration Statement, taken together, constitute a prospectus that meets the requirements of Section 10(a) of the Securities Act.

**PART II**

**INFORMATION REQUIRED IN THE REGISTRATION STATEMENT**

**Item 3. Incorporation of Documents by Reference.**

Incorporated by reference in this Registration Statement are the following documents filed by the Company with the Commission pursuant to the Securities Act and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), excluding those portions of any Current Report on Form 8-K that are not deemed "filed" pursuant to the General Instructions of Form 8-K:

(1) Our
 Annual Report on [Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222010126/form10-k.htm) for the fiscal year ended December 31, 2021, filed with the Commission on April 15, 2022, as amended by
 Amendment No. 1 to our Annual Report on [Form 10-K/A](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222011555/form10-ka.htm) filed with the Commission on April 29, 2022;

(2) Our
 Quarterly Reports on Form 10-Q for the fiscal quarters ended [March 31, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222014628/form10-q.htm) (filed with the Commission on May 20, 2022), [June 30, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222022893/form10-q.htm) (filed with the Commission on August 15, 2022), and [September 30, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222032106/form10-q.htm) (filed with the Commission on November 14, 2022, as amended
 by Amendment No. 1 to our Quarterly Report on [Form 10-Q/A](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222035075/form10-qa.htm) filed with the Commission on December 9, 2022);

(3) Our
 Current Reports on Forms 8-K filed with the Commission on [January 6, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222000564/form8-k.htm) , [January 18, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222001428/form8-k.htm) , [February 1, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222002880/form8-k.htm) , [July 7, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222018821/form8-k.htm) , [August 3, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222021072/form8-k.htm) , [August 23, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222023852/form8-k.htm) , [October 19, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222028895/form8-k.htm) , [December 8, 2022](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222034911/form8-k.htm) , [January 4, 2023](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315223000241/form8-k.htm) , [January 11, 2023](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315223001180/form8-k.htm) , [February 7, 2023](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315223003871/form8-k.htm) and [February 23, 2023](https://www.sec.gov/Archives/edgar/data/1342958/000149315223005874/form8-k.htm) ; and

(4) The
 description of our Common Stock contained in (i) our Registration Statement on [Form 8-A](https://www.sec.gov/Archives/edgar/data/1342958/000119312507272692/d8a12b.htm) , filed with the Commission on December 28,
 2007, pursuant to Section 12(g) of the Exchange Act, including all other amendments and reports filed for the purpose of updating
 such description; and (ii) Exhibit 4.6 - Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act
 of 1934, to our Annual Report on [Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/1342958/000149315222011555/form10-ka.htm) for the fiscal year ended December 31, 2021, filed with the Commission on April 29, 2022.

All documents subsequently filed by the Company pursuant to Sections 13(a), 13(c), 14 and 15(d) of the Exchange Act prior to the filing of a post-effective amendment which indicates that all securities offered hereby have been sold or which deregisters all securities then remaining unsold, shall be deemed to be incorporated by reference into this Registration Statement and to be a part hereof from the date of filing of such documents; provided, however, that documents or information deemed to have been furnished and not filed in accordance with Commission rules shall not be deemed incorporated by reference into this Registration Statement. Any statement contained herein or in a document, all or a portion of which is incorporated or deemed to be incorporated by reference herein, shall be deemed to be modified or superseded for purposes of this Registration Statement to the extent that a statement contained herein or in any other subsequently filed document which also is or is deemed to be incorporated by reference herein modifies or supersedes such statement. Any such statement so modified or superseded shall not be deemed, except as so modified or amended, to constitute a part of this Registration Statement.

**Item 4. Description of Securities.**

Not Applicable.

**Item 5. Interests of Named Experts and Counsel.**

Not applicable.

**Item 6. Indemnification of Directors and Officers.**

Under Nevada law, a corporation may include in its articles of incorporation a provision that eliminates or limits the personal liability of a director to the corporation or its stockholders for monetary damages for breach of fiduciary duties as a director, but no such provision may eliminate or limit the liability of a director (a) for any breach of his or her fiduciary duty as a director, (b) for acts or omissions not in good faith or that involve intentional misconduct, fraud or a knowing violation of law, (c) for conduct violating the Nevada Revised Statutes ("NRS"), or (d) for any transaction from which the director will personally receive a benefit in money, property or services to which the director is not legally entitled.

Section 78.7502 of the NRS provides, in general, that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with the action, suit or proceeding if the person acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the conduct was unlawful.

NRS Section 78.4502 also provides, in general, that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by the person in connection with the defense or settlement of the action or suit if the person acted in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the corporation; provided, however, that indemnification may not be made for any claim, issue or matter as to which such a person has been adjudged by a court of competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the corporation or for amounts paid in settlement to the corporation, unless and only to the extent that the court in which the action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Any indemnification pursuant to the above provisions may be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made: (a) by the stockholders; (b) by the Board of Directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding; (c) if a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent legal counsel in a written opinion; or (d) if a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion.

Our articles of incorporation, and bylaws provide, among other things, that a director or officer of the corporation may be indemnified against expenses, liability, and loss (including attorneys' fees inclusive of any appeal), judgments, fines and amounts paid in settlement reasonably incurred by such person in connection with any claim, action, suit or proceeding, whether civil, criminal, or investigative, to the fullest extent permitted under the NRS, unless it is ultimately determined by a court of competent jurisdiction that he is not entitled to be indemnified by the corporation. Directors and officers of the corporation cannot be personally liable for damages for breach of fiduciary duty, except (a) for acts of omissions involving intentional misconduct, fraud, or knowing violation of law, or (b) the payment of dividends in violation of Section 78.300 of the NRS.

Insofar as indemnification for liabilities arising under the Securities Act may be provided for directors, officers, employees, agents or persons controlling an issuer pursuant to the foregoing provisions, the opinion of the Commission is that such indemnification is against public policy as expressed in the Securities Act, and is therefore unenforceable. In the event that a claim for indemnification by such director, officer or controlling person of us in the successful defense of any action, suit or proceeding is asserted by such director, officer or controlling person in connection with the securities being offered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

At the present time, there is no pending litigation or proceeding involving a director, officer, employee or other agent of ours in which indemnification would be required or permitted. We are not aware of any threatened litigation or proceeding, which may result in a claim for such indemnification.

**Item 7. Exemption From Registration Claimed.**

Not applicable.

**Item 8. Exhibits.**

---

| | |
|:---|:---|
| Exhibit<br> Number | Exhibit Title |
| 4.1 | [Articles of Incorporation of Digital Ally, Inc. (incorporated by reference to Exhibit 3.1 to the Registrant's Form 8-K filed with the Commission on August 23, 2022).](https://www.sec.gov/Archives/edgar/data/1342958/000149315222023866/ex3-1.htm) |
| 4.2 | [Certificate of Amendment to Digital Ally, Inc.'s Articles of Incorporation, filed with the Secretary of State of the State of Nevada on December 8, 2022 (incorporated by reference to Exhibit 3.1 to the Registrant's Form 8-K filed with the Commission on December 8, 2022).](https://www.sec.gov/Archives/edgar/data/1342958/000149315222034911/ex3-1.htm)<br>|
| 4.3 | [Certificate of Amendment to Digital Ally, Inc.'s Articles of Incorporation, filed with the Secretary of State of the State of Nevada on February 6, 2023 (incorporated by reference to Exhibit 3.1 to the Registrant's Form 8-K filed with the Commission on February 7, 2023).](https://www.sec.gov/Archives/edgar/data/1342958/000149315223003871/ex3-1.htm) |
| 4.4 | [Bylaws of Digital Ally, Inc. (incorporated by reference to Exhibit 3.3 to the Registrant's Form 8-K filed with the Commission on August 23, 2022).](https://www.sec.gov/Archives/edgar/data/1342958/000149315222023866/ex3-3.htm) |
| 4.5 | [Form of Common Stock Certificate (incorporated by reference to Exhibit 4.1 to the Registrant's Annual Report on Form 10-K filed with the Commission on April 15, 2022).](https://www.sec.gov/Archives/edgar/data/1342958/000119312506208449/dex41.htm)<br>|
| 4.6 | [Digital Ally, Inc. 2022 Stock Option and Restricted Stock Plan (incorporated by reference to Appendix A to the Registrant's Definitive Proxy Statement on Schedule 14A filed with the Commission on October 28, 2022).](https://www.sec.gov/Archives/edgar/data/1342958/000149315222029767/formdef14a.htm)<br>|
| 4.7 | [Form of 2022 Stock Option and Restricted Stock Plan Restricted Stock Grant Agreement under the 2022 Stock Option and Restricted Stock Plan (filed herewith).](ex4-7.htm)<br>|
| 5.1 | [Opinion of Sullivan & Worcester LLP (filed herewith).](ex5-1.htm) |
| 23.1 | [Consent of RBSM LLP (filed herewith).](ex23-1.htm) |
| 23.2 | [Consent of Sullivan & Worcester LLP (included in Exhibit 5.1).](ex5-1.htm) |
| 24.1 | [Power of Attorney (set forth on the signature page of this Registration Statement).](#S1_001) |
| 107 | [Filing Fee Table (filed herewith).](ex107.htm) |

---

**Item 9. Undertakings.**

(a) The undersigned Registrant hereby undertakes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) To file, during any period in which offers or sales are being made, a post-effective amendment to this Registration Statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To include any prospectus required by Section 10(a)(3) of the Securities Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To reflect in the prospectus any facts or events arising after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective Registration Statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement;

*provided, however,* that paragraphs (a)(1)(i) and (a)(1)(ii) above do not apply if the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) That, for the purpose of determining any liability under the Securities Act, each such post-effective amendment shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(b) The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act, each filing of the Registrant's annual report pursuant to Section 13(a) or 15(d) of the Exchange Act (and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Exchange Act) that is incorporated by reference in the Registration Statement shall be deemed to be a new Registration Statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial *bona fide* offering thereof.

(c) Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by any such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question of whether or not such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

**SIGNATURES**

Pursuant to the requirements of the Securities Act of 1933, as amended, the Registrant certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-8 and has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Lenexa, State of Kansas on the 28<sup>th</sup> day of February, 2023.

---

| | |
|:---|:---|
| **Digital Ally, Inc.** | **Digital Ally, Inc.** |
| By: | */s/ Stanton E. Ross* |
|  | Stanton E. Ross |
|  | Chief Executive Officer and Chairman of the Board<br> (Principle Executive Officer) |

---

POWER OF ATTORNEY: KNOW ALL MEN BY THESE PRESENTS, that each individual whose signature appears below constitutes and appoints **Stanton E. Ross** and **Thomas J. Heckman** and each of them, his or her true and lawful attorney-in-fact and agent with full power of substitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments (including post-effective amendments) to this Registration Statement, and to file the same with all exhibits thereto, and all documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitute or substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, as amended, this Registration Statement has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| **Signature and Title** | **Date** |
| */s/ Stanton E. Ross* | February 28, 2023 |
| Stanton E. Ross, Director and Chief Executive Officer |  |
| */s/ Leroy C. Richie* | February 28, 2023 |
| Leroy C. Richie, Director |  |
| */s/ Michael J. Caulfield* | February 28, 2023 |
| Michael J. Caulfield, Director |  |
| */s/ Daniel F. Hutchins* | February 28, 2023 |
| Daniel F. Hutchins, Director |  |
| */s/ Thomas J. Heckman* | February 28, 2023 |
| Thomas J. Heckman, Chief Financial Officer, Secretary, Treasurer and Principal Accounting Officer<br> (Principle Financial Officer) |  |

---

## Exhibit 4.7

**Exhibit 4.7**

**2022 Stock Option and Restricted Stock Plan Restricted Stock Grant Agreement**

**Digital Ally, Inc.**

**I.** **Notice of Restricted Stock Grant:** 

---

| | |
|:---|:---|
| **Grantee's Name and Address:** | **______________**<br> 14001 Marshall Drive<br> Lenexa, KS 66215 |

---

You have been granted restricted shares of Common Stock of the Company, subject to the terms and conditions of the Plan and this Restricted Stock Grant Agreement, as follows:

**Date of Grant:** January __, 2023

**Market Value per Share:** $_____ (closing share price on date of grant).

**Total Number of Shares Granted:** ___________.

**Total Value of Grant:** $___________ (number of shares multiplied by closing share price on date of grant).

**Vesting Schedule:** The restricted shares of Common Stock will vest as follows:

**2022 Stock Option and Restricted Stock Plan**

**Restricted Stock Grant Agreement**

**Digital Ally, Inc.**

**This Restricted Stock Agreement** (this "Restricted Stock Agreement) is dated January __, 2023 between **Digital Ally, Inc** **.**, a Nevada Company (the "Company") and **_______________** (the "Recipient"). Unless otherwise defined herein, the terms defined in the Digital Ally, Inc. 2022 Stock Option and Restricted Stock Plan (the "Plan") shall have the same defined meanings in this Agreement.

1.  **<u>Grant</u>** .
 The Company hereby grants a Restricted Stock Award (the "Award") with respect
 to **____________ (___,____)** shares of common stock, $0.001 par value ("Common
 Stock") of the Company (the "Shares"), all in accordance with and subject
 to the Plan and the following terms and conditions.

2.  **<u>Grant Date; Value</u>** . This Award was made as of **January** __, **2023** (the "Date
 of Grant"). The value of the Award is $**__________**, calculated as the Shares
 multiplied by $__.__,the closing price per share on the Date of Grant.

3.  **<u>Custody of Restricted Stock</u>** . The Shares granted hereunder may be evidenced in such manner
 as the Company shall determine. The Shares may be held, along with any stock dividends and
 other non-cash distributions relating thereto, in custody by the Company or an agent for
 the Company until it shall become vested. If any certificates are issued for the Shares,
 the certificates will bear an appropriate legend as determined by the Company referring to
 the applicable restrictions. Upon the vesting of the Shares pursuant to the terms hereof
 and the satisfaction of any withholding tax obligations described below, the Recipient will
 receive vested shares of Common Stock.

4.  **<u>Vesting Requirements</u>** . This Award shall become vested in accordance with the schedule set
 forth below:

---

| | |
|:---|:---|
| **<u>Vesting Date</u>** | **<u>% of Shares Becoming Vested</u>** |
| January __, 2024 | Fifty percent (50.00%), or (__,000 shares) |
| January __, 2025 | Fifty percent (50.00%), or (__,000 shares)<br>|

---

5.  **<u>Accelerated Vesting</u>** . Notwithstanding the vesting schedule reflected in the preceding Section
 4, "Vesting Requirements," or Section 7, "Termination of Employment,"
 in the event of a Change in Control all restrictions imposed on any then-restricted Shares
 shall terminate (such that any Shares shall vest and become fully transferable) immediately
 prior to any such event. A "Change in Control" means (i) one party alone, or
 acting with others, has acquired or gained control over more than fifty percent (50%) of
 the voting shares of the Company; or (ii) the Company merges or consolidates with or into
 another entity or completes any other corporate reorganization, if more than fifty percent
 (50%) of the combined voting power of the surviving entity's securities outstanding
 immediately after such merger, consolidation or other reorganization is owned by persons
 who were not shareholders of the Company immediately prior to such merger, consolidation
 or other reorganization; or (iii) a majority of the Company's Board of Directors is
 replaced and/or dismissed by the shareholders of the Company without the recommendation of
 or nomination by the Company's current Board of Directors; or (iv) the Company's
 Chief Executive Officer (the "CEO") is replaced and/or dismissed by shareholders
 without the approval of the Company's Board of Directors; or (v) the Company sells,
 transfers or otherwise disposes of all or substantially all of the consolidated assets of
 the Company and the Company does not own stock in the purchaser or purchasers having more
 than fifty percent (50%) of the voting power of the entity owning all or substantially all
 of the consolidated assets of the Company after such purchase.

6.  **<u>Rights as Shareholder</u>** . The Recipient will have the right to vote the Shares and to receive
 any cash dividends. However, stock dividends, stock rights or others securities issued with
 respect to the Shares shall subject to the same restrictions as exist regarding the original
 Shares.

7.  **<u>Termination of Employment</u>** . If the Recipient ceases to be an employee of the Company for any reason,
 including, without limitation, death, disability, termination for cause or without cause
 or voluntary separation, the Shares granted to the Recipient that have not vested prior to
 such time will no longer vest, and any such Shares, if issued, shall be returned to the Company
 for cancellation, and neither the Recipient nor his or her heirs, executors, administrators
 or successors shall have any right or interest in any of such unvested restricted stock.

8.  **<u>No Guarantee of Employment</u>. Recipient acknowledges and agrees that the vesting of shares pursuant to the vesting schedule hereof is earned only by continuing service as an employee at the will of the Company and not through the act of being granted the Award. The Recipient further acknowledges and agrees that this Restricted Stock Agreement, the transactions contemplated hereunder and the vesting schedule set forth herein do not constitute an express or implied promise of continued retention as an employee for the vesting period, for any period, or at all, and shall not interfere with the Recipient's right or the Company's right to terminate the Recipient's service as an employee at any time, with or without cause.** 

9.  **<u>Award Not Transferable</u>** . The Shares are not transferable except by will or the laws of descent
 and distribution, and may not be assigned, negotiated, or pledged in any way (whether by
 operation of law or otherwise), and shall not be subject to execution, attachment or similar
 process.

10.  **<u>Conformity to Securities Laws</u>** . The Recipient acknowledges that the Plan is intended to conform,
 to the extent necessary, with all provisions of the Securities Act of 1933, as amended, and
 the Securities Exchange Act of 1934, as amended, and any and all regulations and rules promulgated
 thereunder by the Securities and Exchange Commission. Notwithstanding anything herein to
 the contrary, the Plan shall be administered only in such a manner as to conform to such
 laws, rules and regulations. To the extent permitted by applicable law, the Plan and this
 Restricted Stock Agreement shall be deemed amended to the extent necessary to conform to
 such laws, rules and regulations.

11.  **<u>Tax Withholding</u>** . The Company may require, as a condition to the vesting of any shares
 of the Shares, that the Recipient concurrently pay to the Company any taxes which the Company
 is required to withhold by reason of such vesting. In lieu of part or all of such payment,
 the Recipient may request, subject to such rules and regulations as the Board may adopt from
 time to time, that the Company withhold a portion of the shares otherwise becoming vested
 to defray all or a portion of any applicable taxes, or request that the Company withhold
 the required amounts from other compensation, if any, payable to the Recipient.

12.  **<u>Restricted Stock Legend</u>.** While the Recipient is a member of the Board of Directors of the Company
 or otherwise an Affiliate of the Company, the stock certificates evidencing the Shares shall
 indicate that the Shares are restricted stock.

13.  **<u>Entire Agreement; Governing Law</u>.** The Plan is incorporated herein by reference. The Plan
 and this Restricted Stock Agreement constitute the entire agreement of the parties with respect
 to the subject matter hereof and supersede in their entirety all prior undertakings and agreements
 of the Company and Recipient with respect to the subject matter hereof, and may not be modified
 adversely to the Recipient's interest except by means of a writing signed by the Company
 and the Recipient. This Restricted Stock Agreement is governed by Nevada law except for that
 body of law pertaining to conflict of laws.

[THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

By your signature and the signature of the Company's representative below, you and the Company agree that this Award is granted under and governed by the terms and conditions of the Plan and this Restricted Stock Agreement. The Recipient has reviewed the Plan and this Restricted Stock Agreement in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Restricted Stock Agreement and fully understands all provisions of the Plan and Restricted Stock Agreement. Recipient hereby agrees to accept as binding, conclusive and final all decisions or interpretations of the Board of Directors upon any questions relating to the Plan and Restricted Stock Agreement. The Recipient further agrees to notify the Company upon any change in the residence address indicated below.

---

| | | |
|:---|:---|:---|
| RECIPIENT: | DIGITAL ALLY, INC. | DIGITAL ALLY, INC. |
|  | By: |  |
| Signature |  | Signature |
|  | Thomas J. Heckman | Thomas J. Heckman |
|  | Print Name | Print Name |
| Residence Address |  |  |
|  | Title: | CFO, Treasurer & Secretary |

---

**CONSENT OF SPOUSE**

The undersigned spouse of Recipient has read and hereby approves the terms and conditions of the Plan and this Restricted Stock Agreement. In consideration of the Company's granting his or her spouse the right to purchase Shares as set forth in the Plan and this Restricted Stock Agreement, the undersigned hereby agrees to be irrevocably bound by the terms and conditions of the Plan and this Restricted Stock Agreement and further agrees that any community property interest shall be similarly bound. The undersigned hereby appoints the undersigned's spouse as attorney-in-fact for the undersigned with respect to any amendment or exercise of rights under the Plan or this Restricted Stock Agreement.

  <br> Spouse of Recipient

## Exhibit 5.1

**Exhibit 5.1**

![](ex5-1_001.jpg)

February 28, 2023

Digital Ally, Inc.

14001 Marshall Drive

Lenexa, KS 66215

Ladies and Gentlemen:

This opinion is furnished to you in connection with a Registration Statement on Form S-8, as supplemented or amended from time to time (the "<u>Registration Statement</u>"), filed by Digital Ally, Inc., a Nevada corporation (the "<u>Company</u>"), with the U.S. Securities and Exchange Commission (the "<u>Commission</u>") under the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), on February 23, 2023. The Registration Statement relates to the registration under the Securities Act of an aggregate of 90,000 shares (the "<u>Shares</u>") of common stock, par value $0.001 per share, of the Company ("<u>Common Stock</u>") issuable under the Company's 2022 Stock Option and Restricted Stock Plan (the "<u>2022 Plan</u>").

We have been requested by the Company to render this opinion letter with respect to the legality of the Shares being registered under the Registration Statement.

In connection with this opinion, we have examined and relied upon the originals or copies certified or otherwise identified to our satisfaction of (i) the Company's articles of incorporation, as amended, (ii) the Company's bylaws and (iii) the Registration Statement, including all exhibits filed therewith, and have also examined and relied upon minutes of meetings and/or resolutions of the board of directors of the Company as provided to us by the Company, and such other documents as we have deemed necessary for purposes of rendering the opinion hereinafter set forth.

In addition to the foregoing, we have relied as to matters of fact upon the representations made by the Company and its representatives. In our examination of the foregoing documents, we have assumed the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as copies, the authenticity of the originals of such latter documents, the legal competence of all signatories to such documents and that each signatory to such document has or will have sufficient legal capacity to execute such document. Other than our examination of the documents indicated above, we have made no other examination in connection with this opinion.

For purposes of our opinion, we have examined an official compilation of "Title 7 – Business Associations; Securities; Commodities, Chapter – 78 – Private Corporations" of the Nevada Revised Statutes. Such examination was limited to the provisions of such statute only, and did not include any annotations or commentary related thereto. Other than such examination and our examination of the documents indicated above, we have made no other examination in connection with this opinion and we express no opinion as to the effect on the matters covered by this opinion of the laws of any other jurisdiction. We are not rendering any opinion as to compliance with any federal or state antifraud law, rule or regulation relating to securities, or to the sale or issuance thereof.

![](ex5-1_002.jpg)

Based upon the foregoing and in reliance thereon, and subject to the qualifications, limitations, exceptions and assumptions set forth herein, we are of the opinion that the Shares have been duly authorized by the Company, and when granted and delivered by the Company to the 2022 Plan participants pursuant to the terms of the 2022 Plan and the underlying award agreements executed pursuant to such plan in the manner contemplated by the Registration Statement, will be validly issued, fully paid and non-assessable shares of Common Stock.

This opinion letter speaks only as of the date hereof and we assume no obligation to update or supplement this opinion letter if any applicable laws change after the date of this opinion letter or if we become aware after the date of this opinion letter of any facts, whether existing before or arising after the date hereof, that might change the opinions expressed above.

We hereby consent to the filing of this opinion as Exhibit 5.1 to the Registration Statement. In giving such consent, we do not admit that we are in the category of persons whose consent is required under Section 7 of the Securities Act or the rules and regulations of the Commission.

---

| |
|:---|
| Very truly yours, |
| /s/ Sullivan & Worcester LLP |

---

## Exhibit 23.1

**EXHIBIT 23.1**

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the incorporation by reference in this Registration Statement on Form S-8 of Digital Ally, Inc. of our report dated April 15, 2022, relating to the consolidated financial statements of Digital Ally, Inc., appearing in the Annual Report on Form 10-K of Digital Ally, Inc. for the years ended December 31, 2021 and 2020.

We also consent to the reference to our firm under the heading of "experts" in such Prospectus.

---

| |
|:---|
| */s/ **RBSM LLP*** |
| New York, NY |
| February 28, 2023 |

---

## Ex-Filing

**Exhibit 107**

**Calculation of Filing Fee Tables**

**Form S-8**

(Form Type)

**Digital Ally, Inc.**

(Exact Name of Registrant as Specified in its Charter)

**<u>Table 1—Newly Registered Securities</u>**

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security<br> Type** | **Security <br> Class <br> Title** | **Fee <br> Calculation<br> Rule** | **Amount<br> Registered<br> (1)** |  | **Proposed<br> Maximum<br> Offering<br> Price Per<br> Unit (3)** | **Maximum<br> Aggregate<br> Offering <br> Price (3)** | **Fee Rate** | **Amount of<br> Registration<br> Fee (3)** |
| **Fees to Be Paid** | Equity | Common stock, par value $0.001 per share, issuable under Digital Ally, Inc. Stock Option and Restricted Stock Plan | Rule 457(c) and Rule 457(h) | 90000 | (2) | $5.19 | $467100 | .0001102 | $51.48 |
| **Fees Previously Paid** |  |  |  |  |  |  |  |  |  |
|  | **Total Offering Amounts** | **Total Offering Amounts** | **Total Offering Amounts** |  |  |  |  |  | $51.48 |
|  | **Total Fee Offsets** | **Total Fee Offsets** | **Total Fee Offsets** | 90000 |  |  | $467100 |  |  |
|  | **Net Fee Due** | **Net Fee Due** | **Net Fee Due** |  |  |  |  |  | $51.48 |

---

(1) Pursuant
 to Rule 416(a) under the Securities Act of 1933, as amended (the "Securities Act"), this Registration Statement shall
 also cover any additional shares of common stock, par value $0.001 per share (the "Common Stock") of Digital Ally, Inc.
 (the "Company" or the "Registrant") that may from time to time be offered or issued to prevent dilution from
 any stock dividend, stock split, recapitalization or other similar transaction effected without receipt of consideration that increases
 the number of outstanding shares of the Common Stock.

(2) Represents
 the number of shares of Common Stock reserved for issuance pursuant to the Company's Stock Option and Restricted Stock Plan
 (the "2022 Plan"). Pursuant to Rule 416(c) under the Securities Act, this Registration Statement shall cover an indeterminate
 number of shares of Common Stock to be offered or sold pursuant to the 2022 Plan.

(3) Estimated
 in accordance with Rule 457(c) under the Securities Act, solely for the purpose of calculating the applicable registration fee. The
 proposed maximum offering price per share of Common Stock represents the average of the high and low prices of the Common Stock as
 reported on The Nasdaq Capital Market on February 24, 2023.