Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 213

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 213
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 lose all or part of their investment if we are unable to compete in our markets and return to profitability; (15) defects in our
products that could impair our ability to sell our products or could result in litigation and other significant costs; (16) our dependence
on a few manufacturers and suppliers for components of our products and our dependence on domestic and foreign manufacturers for certain
of our products; (17) our ability to protect technology through patents and to protect our proprietary technology and information, such
as trade secrets, through other similar means; (18) our ability to generate more recurring cloud and service revenues; (19) risks related
to our license arrangements; (20) the fluctuation of our operation results from quarter to quarter; (21) sufficient voting power by coalitions
of a few of our larger stockholders, including directors and officers, to make corporate governance decisions that could have a significant
effect on us and the other stockholders; (22) the issuance or sale of substantial amounts of our Common Stock, or the perception that
such sales may occur in the future, which may have a depressive effect on the market price of our securities; (23) potential dilution
from the issuance of Common Stock underlying outstanding options and warrants; (24) our additional securities available for issuance,
which, if issued, could adversely affect the rights of the holders of our Common Stock; (25) the volatility of our stock price due to
a number of factors, including, but not limited to, a relatively limited public float; (26) our ability to integrate and realize the
anticipated benefits from acquisitions; (27) our ability to maintain the listing of our Common Stock on the Nasdaq Capital Market.

Current
Trends and Recent Developments for the Company

Reverse
Stock Split

On
May 6, 2025, the Company, acting pursuant to authority received at an annual meeting of its stockholders on December 17, 2024, filed
with the Secretary of State of the State of Nevada a certificate of amendment (the “Charter Amendment”) to its articles of
incorporation, as amended (the “Articles of Incorporation”), which effected a one-for-twenty reverse stock split (the “Reverse
Stock Split”) of all of the Company’s outstanding shares of common stock, par value $0.001 per share (the “Common Stock”).
Pursuant to the Charter Amendment, the Reverse Stock Split became effective as of 5:30 p.m. Eastern