Company: DGLY
Filing Date: 2025-12-12
Form Type: 424B3
Source: 0001493152-25-027376
Chunk: 9

Company: DIGITAL ALLY, INC.
Filing Date: 2025-12-12
Form: 424B3
Chunk 9
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 hours of the previous ELOC Purchase Ending Time, as defined in the Purchase Agreement. After an ELOC Agreement Purchase, the Company may only make a subsequent ELOC Agreement Purchase within the ELOC Purchase Valuation Period, as defined in the Purchase Agreement, if the aggregate daily trading volume exceeds 1000% of the initial ELOC Purchase Share Amount. At no point may the Company direct the ELOC Investor to purchase amounts of Purchase Shares, if such purchase, would make the ELOC Investor beneficially own greater than 9.99% of the number of shares of Common Stock outstanding immediately after giving effect to such issuance of shares of Common Stock.

The maximum number of Purchase Shares that may be required to be purchased pursuant to a ELOC Agreement Purchase Notice will be (A) such number of shares of Common Stock equal to the lowestof: of (i) 75% of the average daily trading volume over the five (5) trading days before the date of the ELOC Purchase Notice, (ii) 25% of the daily trading volume on the date of the ELOC Purchase Notice, and (iii) $600,000 divided by the last closing price on the applicable date of the ELOC Purchase Notice, or (B) if the aggregate daily trading volume exceeds 600% of the initial ELOC Purchase Share Amount, as defined in the Purchase Agreement, then such number of shares of Common Stock equal to 600% of the number of shares of Common Stock in (A). There are no upper limits on the price per share that the ELOC Investor must pay for Purchase Shares the Company directs the ELOC Investor to purchase in a ELOC Agreement Purchase under the Purchase Agreement. The purchase price per Purchase Share that the Company directs the ELOC Investor to purchase in a ELOC Agreement Purchase under the Purchase Agreement will be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split, reverse stock split or other similar transaction during the period used to determine the purchase price to be paid by the ELOC Investor for such shares in such ELOC Agreement Purchase.

There are no restrictions on future financings, rights of first refusal, participation rights, penalties or liquidated damages in the Purchase Agreement or ELOC Registration Rights Agreement, other than (i) a prohibition (with certain limited exceptions) on the Company entering into specified “Variable Rate Transactions” (as such term is defined in the Purchase Agreement), and (ii) a prohibition during the ELOC Agreement Purchase Valuation Period (as defined in the Purchase