Digital Ally (DGLY) board grants director 3,333-share option award

Rhea-AI Filing Summary

Digital Ally, Inc. director Daniel Duke Daughtery reported an equity award tied to company stock. On January 22, 2026, the Board of Directors awarded him options to acquire 3,333 shares of common stock under the 2022 Stock Option and Restricted Stock Plan. The options carry an exercise price of $2.04 per share, equal to the closing price of the common stock on the Nasdaq Capital Market that day, and 100% of the options vest on January 22, 2027, contingent on him remaining an officer on that date. Following this award, he beneficially owns 3,373 shares of common stock directly, and the share figures reflect 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

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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^*

Daughtery Daniel Duke

(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)

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

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		3,333	A	$0(1)	3,373(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 3,333 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/ Daniel Duke Daughtery	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 Digital Ally (DGLY) report for Daniel Duke Daughtery?

Digital Ally reported that director Daniel Duke Daughtery received an award of options to acquire 3,333 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 the new stock options granted to the Digital Ally director?

The options granted to Daniel Duke Daughtery have an exercise price of $2.04 per share, which is stated as the closing price of Digital Ally’s common stock on the Nasdaq Capital Market on January 22, 2026.

When do Daniel Duke Daughtery’s Digital Ally options vest?

All of the options awarded to Daniel Duke Daughtery will vest on January 22, 2027, contingent upon him remaining an officer of Digital Ally on that date.

How many Digital Ally shares does Daniel Duke Daughtery beneficially own after this transaction?

After the reported transaction, Daniel Duke Daughtery beneficially owns 3,373 shares of Digital Ally common stock directly.

What corporate actions affected the share counts in this Digital Ally Form 4?

The filing notes that the reported share amounts reflect reverse stock splits that occurred in May 2025 and January 2026, which adjusted the share counts reported for Daniel Duke Daughtery.

What plan governs the stock options granted to the Digital Ally director?

The options awarded to Daniel Duke Daughtery were granted under Digital Ally’s 2022 Stock Option and Restricted Stock Plan, as described in the Form 4 footnotes.