Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 164

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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 of the judgment will be covered by our insurance or will not be in excess of amounts recognized or provided by
insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows.

Notices of Failure to Satisfy a Continued
Listing Rule

Minimum Bid Price Requirement
– On December 20, 2024, the Company received a written notification from The Nasdaq Stock Market LLC indicating that the Company
was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”), as the Company’s closing
bid price for its Common Stock was below $1.00 per share for the prior thirty (30) consecutive business days. The Company has been granted
a 180-calendar day compliance period, or until June 18, 2025, to regain compliance with the Minimum Bid Price Requirement. If the Company
is not in compliance by June 18, 2025, the Company may be afforded a second 180-calendar day compliance period. If the Company does not
regain compliance within such compliance period, including any granted extensions, its Common Stock may be subject to delisting, which
delisting may be appealed to a Nasdaq hearings panel.

Minimum Stockholders’
Equity Standard - On January 2, 2025, the Company received a notice (the “Notice”) from the staff of the Listing Qualifications
department (the “Staff”) of Nasdaq, which indicated that the Company was not in compliance with Nasdaq Listing Rule 5550(b)(1)
(the “Stockholders’ Equity Requirement”), as the Company’s stockholders’ equity of ($2,448,310), as reported
in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, was below the required minimum
of $2.5 million, and the Company did not meet either the alternative compliance standards relating to market value of listed securities
of at least $35 million or net income from continuing operations of at least $500,000 in the most recently completed fiscal year or in
two of the last three most recently completed fiscal years.

Under Nasdaq listing rules
and as specified in the Notice, the Company has 45 calendar days from the date of the Notice to submit to the Staff a plan to regain compliance
with the Stockholders’ Equity Requirement. If the Company’s plan to regain compliance is accepted, Nasdaq may grant an extension
of up to 180