Company: DGLY
Filing Date: 2025-09-17
Form Type: 8-K
Source: 0001493152-25-013877
Chunk: 3

Company: DIGITAL ALLY, INC.
Filing Date: 2025-09-17
Form: 8-K
Item: Item 1.01
Chunk 3
---
 time to time at the Company’s sole
discretion, to direct the ELOC Investor to purchase amounts of Purchase Shares that are specified by the Company to the ELOC Investor
in writing, subject to certain maximum amounts calculated pursuant to the ELOC Purchase Agreement (each such purchase, an “ ELOC
Agreement Purchase”). The purchase price per share to be paid by the ELOC Investor for Purchase Shares that the Company may elect
to sell to the ELOC Investor will be equal to 92% of lowest daily trade price during a three day valuation period of the Common Stock
immediately following the date that the purchase notice with respect to the particular ELOC Agreement Purchase (each, a “ ELOC Purchase
Notice”) is timely delivered from the Company to the ELOC Investor. The Company may deliver an ELOC Purchase Notice to the Investor
on any trading day selected by the Company, provided however, an ELOC Purchase Notice may not be delivered within twenty-four (24) hours
of the previous ELOC Purchase Ending Time, as defined in the ELOC 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 ELOC Purchase Agreement,
if the aggregate daily trading volume exceeds 300% of the initial ELOC Purchase Share Amount.

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 lowest

   4  

The
ELOC Investor has no right to require the Company to sell any Purchase Share to the ELOC Investor, but the ELOC Investor is obligated
to make purchases of Purchase Shares as directed by the Company, subject to the satisfaction of conditions set forth in the ELOC Purchase
Agreement at Commencement and thereafter at each time that the Company may direct the ELOC Investor to purchase the Purchase Shares under
the ELOC Purchase Agreement. Actual sales of Purchase Shares by the Company to the ELOC Investor under the ELOC Purchase Agreement, if
any, will depend on a variety of factors to be determined by the Company in its sole discretion from time to time, including, among others,
market conditions, the trading price of the Common Stock and determinations by the Company as to the appropriate sources of funding for
the Company and its operations.

The
Company may not issue or sell any shares of its Common Stock to the ELOC Investor under the