913-814-7774 | | [email protected]

Who We Are

• Public since 2007 and on NASDAQ exchange (DGLY)

• Provide audio/video recording equipment to law enforcement agencies (dashboard cameras)

• First to provide full digital “solid state” systems which replaced VHS and early-stage digital systems

• Received multiple patents for rear-view mirror and other supported technology

• Only public company in our market channel

Our BusinessLaw Enforcement (94% of our business)• In-Car Video• Body-Worn Cameras• LIDAR Speed Detection• Customers Include: City, State, County and Federal

Law Enforcement Agencies, Military, International

and Domestic

Commercial Fleet (6% of our business)• Incident Recorders• Body-Worn Cameras• Customers Include: Ambulance, Fire, Paratransit,

Taxicab, Mass Transit, etc.

Our History

• Began shipping in March 2006

• Generated 9 consecutive quarters of revenue and earnings growth

• 2008 revenues peaked at $33 million

• 2013 revenues were $17.8 million

• Economic recession hit our customers in 2008 and the customers and market are still recovering

• Management right-sized operations

• We are the only public company in our market channel• Dominated by smaller non-public entities or small divisions of large public companies

• Several bankruptcies have cleared up the market

In-Car Video Body-Worn Camera

• Watchguard Video – Texas-based non-public entity• Coban Technologies – Texas-based non-public entity• Panasonic – Small division of public company• MobileVision – Small division of L3 Communications• All of these provide in-car video solutions and private-label their body-worn cameras. None have LIDAR.

• Taser International – Arizona- based public company• VieVu – Washington-based non- public company that private labels to others• Many other smaller and larger companies developing body- worn systems

In-Car Video Body-Worn Camera

• Taser International – Arizona- based public company• VieVu – Washington-based non- public company that private labels to others• Many other smaller and larger companies developing body- worn systems

• Watchguard Video – Texas-based non-public entity• Coban Technologies – Texas-based non-public entity• Panasonic – Small division of public company• MobileVision – Small division of L3 Communications• All of these provide in-car video solutions and private-label their body-worn cameras. None have LIDAR.

Our Law Enforcement Competitors

913-814-7774 | www.digitalallyinc.com | [email protected]

New Digital Video Systems

• Up To 8 Cameras; Unique Back-Up Camera• Integrated Wireless• Intelligent Dual Simultaneous Recording• Loop + Incident Recording• Advance Replacement

Warranty Coverage• And More!

DVM-800Feature-Rich

In-Car Video with

5-Year Warranty

for Under $4000 + Current & Future Trade-In Credits


In-Car VideoLaw Enforcement

67%

Annual Revenue Composition

In-Car VideoLaw Enforcement

71%

CommercialFleet7% Body-Worn

Camera3%

Repair, Service& Accessory

20%

LIDAR 3%


Camera4%


17%

LIDAR 2%


Camera3%

LIDAR 3%LIDAR 2%In-Car Video In-Car Video


20%


Camera4%


17%

2013 1st Quarter 2014

• Approximately 70,000 vehicles are replaced each year• Most agencies also have non-automobile patrols (motorcycle, boat, bicycle, etc.)• Almost 2,000 Coast Guard Boats and Cutters alone• International market is larger and less developed than domestic


• Smaller & Lighter• User-Replaceable Battery

Lasts a Full Shift• 720p HD Video with

Different Quality Options• Wide Field of View• Enhanced Low-Light

Sensitivity• Multiple Mounting Options• Pre-Event Recording• Recording Security & More

FirstVu HDAhead of the Competition


• Simultaneously Starts Recordings on Both Systems

• Utilizes Automatic In-Car Recording Triggers

• Eliminates Distraction, the Need to Continuously Record & User Error

• Can Link Recordings from Both Systems in the Back-Office Software

VuLinkRevolutionizes Body Cam –

In-Car Video Connectivity

New Video System Feature


• Real-time remote situational awareness during incidents

• Only requires Wi-Fi hotspot• Supports numerous devices• High quality, 30 frames/sec.

Live Streaming

New Video System Feature

• Streamlines review process• Secure, logs usage• Add incident information• GPS tagging• Device control• Storage & battery monitoring

Mobile App

New Digital Video Systems FirstVu HD Competition

New Storage Solution

• Offered as alternative to servers (which will also continue to be sold)

• Perfect for departments with no IT personnel

• Provides off-site evidence backup

• Lower up-front cost for customer

• Provides consistent, long term income and loyalty

Cloud StorageSubscription-based


• Up To 8 Cameras• Simultaneous Continuous

Loop and Event Recording• 32GB Internal + Up To 32GB

Removable Memory• Wireless System Updates• Live Streaming Video Option

DVM-250/250Plus

Commercial Fleet Recorder Update

• Expanded Reporting• Easier User Permission

Management• Enhanced Player & More

Management Software

Financial Metrix• 2,295,553 total shares outstanding (2,999,067 fully diluted)

• Approximately 38% held by insiders

• Current market price $4.40• 2013 annual increase in stock price was 164%• Current market capitalization: $10.0 million

• 52 week high/low range $4.00 – $17.47

• Volatility caused by:• Restoration of profits• Excitement regarding new body-worn camera market• Health of domestic customers• Stability of US Government and grant funding• Potential of commercial fleet market• Patent issues

Financial Metrix• Total Q1-2014 Revenue – 18% increase over Q4-2013

• 59.4% Gross Profit Margin in Q1-2014 improved over 49.9% in Q4-2013

• SG&A Expense declined 14% in Q1-2014 compared to Q4-2013

• $546,000 Operating Loss in Q1-2014 improved over $1,573,000 loss in Q4-2013

• DVM-800 represents 27% of total Revenue in Q4-2013

• $2.0 million secured convertible note issued in Q1-2014

• Cash balances at $1,375,000 at March 31, 2014

• Working Capital balances of $8,254,000 at March 31,

2014

• Stockholders Equity balance of $6,314,000 at March 31, 2014

• New Products and Patents

Why We Are Excited About 2014 & Beyond• We have done the hard part! Right-sizing operations.

• New products will dominate!• FirstVu HD body-worn camera• DVM-800 in-car video• VuLink (patent pending)

• Domestic law enforcement market stabilized• Budgets and funding is the issue• Courts and juries demanding video evidence• Liability protection is proven• Our product suite is second to none

• International law enforcement market is improving• Market potential is vast• Customers are adopting our solution

• Commercial fleet market is diversifying our revenue base• Gaining traction in all markets• Our product is proven and preferred

Documents

913-814-7774 | | [email protected]