Digital Ally Inc., was incorporated in Nevada on December 13, 2000 as Vegas Petra, Inc. The Company produces digital video imaging and storage products for use in law enforcement and security applications. The company's current products are a low cost, easy-to-install, in-car digital video rear view mirror, a weather-resistant and rugged mobile digital video recording system designed for use in motorcycles, ATV's and boats, a miniature digital video system designed to be worn on an individual's body (clipped to a pocket, belt etc.), and a digital video flashlight. These products make self-contained video and audio recordings onto flash memory cards that are incorporated in the body of the digital video rear view mirror, officer-worn video and audio system and flashlight. The Company sells its products to law enforcement agencies and other security organizations and for consumer and commercial applications through direct sales and third-party distributors. It currently produces and sells digital audio/video recording and storage products including the following product series; an in-car digital audio/video system that is integrated into a rear view mirror. These products are marketing under the DVM-500, DVM-500 Plus and DVM-750 series. An all-weather mobile digital audio/video system that is designed for motorcycle, ATV and boat uses. This product is marketed as its DVM-500 Ultra system. A miniature body-worn digital audio or video camera. This product is marketed as its First system. A digital audio / video system that is integrated into a large law-enforcement style flashlight. This product is marketed as its DVF-500 system. In-car video systems for patrol cars are now a necessity and have generally become standard. Current systems are digital and VHS-based with cameras mounted in the windshield and the recording device generally in the trunk of the vehicle. This system is a derivative of its in-car video systems but is more rugged and water-proofed to handle a more hostile outdoor environment. The digital video flashlight is a high-quality police-type flashlight with a built-in digital video and audio recording system. All recorded data is stored in an on-board flash memory for later download to a computer. The law enforcement and security surveillance markets are extremely competitive. The law enforcement and security surveillance markets are extremely competitive. Competitive factors in these industries include ease of use, quality, portability, versatility, reliability, accuracy and cost. The Company's competitors include companies with substantially greater financial, technological, marketing, personnel and research and development resources. The Company is subject to various legal proceedings arising from normal business operations.