Company: DGLY
Filing Date: 2025-12-12
Form Type: 424B3
Source: 0001493152-25-027378
Chunk: 25

Company: DIGITAL ALLY, INC.
Filing Date: 2025-12-12
Form: 424B3
Chunk 25
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| (1) | The business address of                                                                                                            
 Yield Point NY, LLC is 23 Tammy Rd, Spring Valley, NY 10977. As manager of Yield Point NY, LLC, Ari Kluger may be deemed to be the 
 beneficial owner of the shares reported herein.                                                                                    |

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<div align='center'>USE OF PROCEEDS</div>

We will not receive any of the proceeds from the sale of the Shares by the Selling Stockholder pursuant to this prospectus.

However, we received net proceeds of approximately $610,000 from the sale of common shares under the Purchase Agreement, of which approximately $110,000 have been used for routine operational expenses. We intend to use the remainder of the proceeds for general corporate purposes, which may include repayment of debt, capital expenditures and payment of operational expenses. This anticipated use of the proceeds represents our intentions based upon our current plans and business conditions.

The Selling Stockholder will pay any agent’s commissions and expenses they incur for brokerage, accounting, tax or legal services or any other expenses that they incur in disposing of the shares of common stock. We will bear all other costs, fees and expenses incurred in effecting the registration of the shares of common stock covered by this prospectus and any prospectus supplement. These may include, without limitation, all registration and filing fees, SEC filing fees and expenses of compliance with state securities or “blue sky” laws.

See “Plan of Distribution” elsewhere in this prospectus for more information.

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<div align='center'>DIVIDEND POLICY</div>

We have never declared or paid any dividends on our common stock. We currently intend to retain all available funds and any future earnings for the operation and expansion of our business and, therefore, we do not anticipate declaring or paying dividends in the foreseeable future. The payment of dividends will be at the discretion of the Board and will depend on our results of operations, capital requirements, financial condition, prospects, contractual arrangements, any limitations on payment of dividends present in our future debt agreements, and other factors that the Board may deem relevant.

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<div align='center'>DESCRIPTION OF SECURITIES THAT THE SELLING STOCKHOLDER IS OFFERING</div>

The Selling Stockholder is offering for resale up to an aggregate of 2,777,777 Shares underlying the Note and 619,409 Shares underlying the Warrant. The terms of our shares of common stock are contained in our Articles of Incorporation and our