Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 38

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 38
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 file Form 10-K for 2024 in compliance with Listing 
 Rule 5250(c)(1).                                                                            |

The Company continues to work diligently to regain and maintain compliance with the Minimum Bid Price Requirement, Low Priced Stocks Rule and Stockholders’ Equity Requirement as promptly as possible. In that regard, management believes that it has achieved compliance with the Stockholders’ Equity Requirement as reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2025. There are no assurances however that the Company will be able to meet and maintain all such conditions required by the Panel.

In the event that our common stock is delisted from the Nasdaq Capital Market, as a result of our failure to comply with the Minimum Bid Price Requirement, the Low Priced Stocks Rule or the Stockholders’ Equity Requirement or due to our failure to continue to comply with any other requirement for continued listing on the Nasdaq Capital Market, and our common stock is not eligible for listing on another exchange, trading in the shares of our common stock could be conducted in the over-the-counter market or on an electronic bulletin board established for unlisted securities such as the Pink Market or another over-the-counter market operated by the OTC Markets Group Inc. In such event, it could become more difficult to dispose of, or obtain accurate price quotations for, our common stock, and it would likely be more difficult to obtain coverage by securities analysts and the news media, which could cause the price of our common stock to decline further. Also, it may be difficult for us to raise additional capital if we are not listed on a national exchange.

Our failure to comply with the agreements relating to our outstanding indebtedness, including as a result of events beyond our control, could result in an event of default that could materially and adversely affect our results of operations and our financial condition.

If
there were an event of default under any of the agreements relating to our outstanding indebtedness, the holders of the defaulted debt
could cause all amounts outstanding with respect to that debt to be due and payable immediately. We cannot assure you that our assets
or cash flows would be sufficient to fully repay borrowings under our outstanding debt instruments if accelerated upon an event of default.
The senior secured promissory notes matured on February 4, 2025, and upon the occurrence of an Event of Default, as defined in the senior
secured promissory notes, bear interest as the rate of 14% per annum. Further, if we are