Company: DGLY
Filing Date: 2025-11-26
Form Type: S-1
Source: 0001493152-25-025057
Chunk: 37

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-26
Form: S-1
Chunk 37
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,000 (the “2023 Notes”) and warrants (the “2023
Warrants”). The 2023 Purchase Agreement provided for ten percent (10%) original interest discount resulting in gross proceeds to
the Company of $2,700,000. No interest accrues under the Notes. The Warrants are exercisable for an aggregate 562 shares comprised
of 188 warrants at an exercise price of $11,000.00 per share of the Company’s common stock, 188 warrants at
an exercise price of $13,000.00 per share of common stock, and 186 warrants at an exercise price of $15,000.00 per
share of common stock. Subject to certain conditions, within 18 months from the effectiveness date and while the 2023 Notes remain outstanding,
the 2023 Purchasers have the right to require the Company to consummate a second closing of up to an additional $3,000,000 of 2023 Notes
and 2023 Warrants on the same terms and conditions as the First Closing, except that the 2023 Notes may be subordinate to a mortgage
on the Company’s headquarters building (the “Bank Mortgage”). The 2023 Notes are convertible into shares of common
stock at the election of the 2023 Purchasers at any time at a fixed conversion price of $10,000.00 (the “Conversion Price”)
per share of common stock. The Conversion Price is subject to customary adjustments for stock dividends, stock splits, reclassifications
and the like, and subject to price-based adjustment in the event of any issuances of common stock, or securities convertible, exercisable
or exchangeable for, common stock at a price below the then-applicable Conversion Price (subject to certain exceptions). Subject to certain
conditions, including certain equity conditions, the Company may redeem some or all of the then outstanding principal amount of the 2023
Note for cash in an amount equal to 110% of the outstanding principal amount of the 2023 Notes (the “Optional Redemption Amount”).
In addition, the Purchasers may, at their option, demand repayment at the Optional Redemption Amount upon five (5) business days’
written notice following (i) the closing by the Company of the Bank Mortgage, or (ii) a sale by the Company of common stock or common
stock equivalents.

On June 24, 2024, the Company entered into a private placement transaction (the “June 2024 Private Placement