Digital Ally (DGLY) COO granted 22,500 options at $2.04 exercise price

Rhea-AI Filing Summary

Digital Ally, Inc.’s Chief Operating Officer, Han Peng, reported an equity award tied to company stock. On January 22, 2026, the Board of Directors granted Peng options to acquire 22,500 shares of common stock under the company’s 2022 Stock Option and Restricted Stock Plan. The options carry an exercise price of $2.04 per share, matching the closing price of the common stock on the Nasdaq Capital Market on that date, and 100% of the options vest on January 22, 2027, contingent on Peng remaining an officer through that date. Following this award, Peng is shown as beneficially owning 26,983 shares of common stock directly, with share figures reflecting reverse stock splits completed in May 2025 and January 2026.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

OMB APPROVAL

OMB Number:			3235-0287
Estimated average burden
hours per response:			0.5

Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

Han Peng

(Last) (First) (Middle)

6366 COLLEGE BLVD.,

(Street)

OVERLAND PARK, KS 66211

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
DIGITAL ALLY, INC. [ KUST ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
X	Officer (give title below)		Other (specify below)
	Chief Operating Officer

3. Date of Earliest Transaction (Month/Day/Year)
01/22/2026

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price
Common Stock(1)	01/22/2026		A		22,500	A	$0(1)	26,983(2)	D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares

Explanation of Responses:

1. On January 22, 2026, the Board of Directors awarded the Reporting Person the options to acquire 22,500 shares of common stock, effective as of January 22, 2026 under its 2022 Stock Option and Restricted Stock Plan. The exercise price on such options to acquire common stock granted will be $2.04 per share, the closing price of the Common Stock on the Nasdaq Capital Market on January 22, 2026, and 100% of the options awarded will vest on January 22, 2027 contingent upon the Reporting Person remaining an officer on such date.

2. Reflects reverse stock splits occurred in May 2025 and in January 2026.

	/s/ Peng Han	01/26/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
* If the form is filed by more than one reporting person, see Instruction 4 (b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB Number.

FAQ

What insider transaction did DGLY Chief Operating Officer Han Peng report?

Han Peng, Chief Operating Officer of Digital Ally, Inc. (DGLY), reported an equity award related to company stock. The Board granted Peng options to acquire 22,500 shares of common stock effective January 22, 2026 under the company’s 2022 Stock Option and Restricted Stock Plan.

What is the exercise price of Han Peng’s stock options at Digital Ally (DGLY)?

The granted options allow Han Peng to acquire 22,500 shares of Digital Ally common stock at an exercise price of $2.04 per share, which was the closing price of the common stock on the Nasdaq Capital Market on January 22, 2026.

When do Han Peng’s Digital Ally (DGLY) stock options vest?

The filing states that 100% of the options awarded to Han Peng vest on January 22, 2027, contingent upon Peng remaining an officer of Digital Ally, Inc. on that date.

How many Digital Ally (DGLY) shares does Han Peng beneficially own after this transaction?

After the reported award, Han Peng is shown as beneficially owning 26,983 shares of Digital Ally common stock, held directly, according to the filing.

What role does Han Peng hold at Digital Ally, Inc. (DGLY)?

Han Peng is identified in the filing as an officer of Digital Ally, Inc., serving as the company’s Chief Operating Officer.

What stock plan governs Han Peng’s option grant at Digital Ally (DGLY)?

The options granted to Han Peng were issued under Digital Ally’s 2022 Stock Option and Restricted Stock Plan, as described in the filing’s footnotes.

Why do Digital Ally (DGLY) share numbers in the filing reference reverse stock splits?

A footnote explains that the share amounts shown, including the 26,983 shares beneficially owned, reflect reverse stock splits that occurred in May 2025 and January 2026.