Company: DGLY
Filing Date: 2025-12-12
Form Type: 424B3
Source: 0001493152-25-027376
Chunk: 10

Company: DIGITAL ALLY, INC.
Filing Date: 2025-12-12
Form: 424B3
Chunk 10
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 Agreement), to (i) issue, enter into any agreement to issue or announce the issuance or proposed issuance of any shares of Common Stock or Common Stock Equivalents (as defined in the Purchase Agreement) or (ii) file any registration statement or any amendment or supplement thereto, in each case other than as contemplated pursuant to the ELOC Registration Rights Agreement. Such Variable Rate Transactions include, among others, the issuance of convertible securities with a conversion or exercise price that is based upon or varies with the trading price of the Common Stock after the date of issuance, or the Company effecting or entering into an agreement to effect an “equity line of credit,” an “at the market offering” or other similar continuous offering with a third party, in which the Company may offer, issue or sell Common Stock or any securities exercisable, exchangeable or convertible into Common Stock at future determined prices. Subject to certain exceptions set forth in the Purchase Agreement such restrictions shall remain in effect for a period commencing on the Closing Date and ending on first day of the month next following the 36-month anniversary of the Closing Date. During the term of the Purchase Agreement, the ELOC Investor covenanted not to enter into or effect, in any manner whatsoever, directly or indirectly, any short sales of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock.

On November 7, 2025, the Company entered intothe First Amendment to the Common Stock Purchase Agreement (the “ELOC Amendment”) with the ELOC Investor. Under the ELOC Amendment, the Company paid the Commitment Fee (equal to 3.0% of the Total Commitment) on the date of the ELOC Amendment. The Commitment Fee was satisfied (i) in shares of Common Stock equal to 19.99% of the shares outstanding on the date of execution of the Purchase Agreement, with the value per share based on the 5-day VWAP ending on the tenth (10th) Trading Day following the later of (1) stockholder approval or (2) effectiveness of the Resale Registration Statement, subject to a cap equal to the full Commitment Fee and the Beneficial Ownership Limitation, and (ii) the balance in cash using 30% of the proceeds from any subsequent financings, including under the Purchase Agreement. In addition, as required under the Purchase Agreement, the Company reimbursed the ELOC Investor for reasonable legal fees and disbursements in the amount of $30,000.