DIGITAL ALLY, INC. 8-K

What Happened
Digital Ally, Inc. filed an 8-K (Item 5.02) on Jan 27, 2026 reporting that its Compensation Committee on Jan 22, 2026 approved 2026 cash compensation and stock option awards for its executive officers and board members. Annual base salaries were set at $200,000 for Stanton E. Ross (President & CEO) and Peng Han (COO), and $90,000 for Thomas J. Heckman (CFO). Each executive is eligible for bonuses of up to $250,000 in 2026 based on individual performance, and stock options were granted under the company’s 2022 Stock Option and Restricted Stock Plan (as amended).

Key Details

• Base salaries for 2026: Stanton Ross $200,000; Peng Han $200,000; Thomas Heckman $90,000.
• Bonus opportunity: each named executive eligible for up to $250,000 in 2026, with amounts determined periodically by the Committee.
• Stock options: Ross 58,333 shares; Han 22,500; Heckman 22,500. Directors: Leroy C. Richie 5,000; Duke Daughtery 3,333; Charles Anderson 3,333.
• Exercise price: $2.04 per share (closing Nasdaq price on Jan 22, 2026). Options vest 100% on Jan 22, 2027, provided recipients remain in their roles; grants are subject to effectiveness of a Form S-8 registration statement.

Why It Matters
These decisions affect the company’s near-term cash payroll (salaries and potential bonuses) and create potential future equity dilution if options are exercised. The one-year cliff vesting and exercise price equal to market close indicate alignment incentives tied to continued service and future stock performance. Investors should note the size of option grants and bonus caps as they consider executive incentives, potential dilution, and future compensation-related expenses disclosed in upcoming filings.