Company: DGLY
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001641172-25-016976
Chunk: 28

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-27
Form: 424B4
Chunk 28
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 the exercise of the Series B Warrants. For
reference, there were 39,626 shares of common stock outstanding as of February 14, 2025 and there are 1,727,421 shares of common stock
outstanding as of the date of this prospectus.

Stockholders may experience future dilution as a result of this and future equity offerings.

In order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock. Investors purchasing our shares or other securities in the future could have rights superior to existing common stockholders, and the price per share at which we sell additional shares of our common stock or other securities convertible into or exchangeable for our common stock in future transactions may be higher or lower than the price per share in this offering.

You will experience immediate and substantial dilution in the net tangible book value per share of the common stock underlying the Warrants.

The effective price per share of common stock underlying the Warrants is substantially higher than the as adjusted net tangible book value per share of our common stock outstanding prior to this offering. Assuming the sale of all Warrants in this offering, if you purchase shares of common stock underlying the Warrants in this offering, you will incur immediate and substantial dilution of $51.01 per share, with respect to the as adjusted net tangible book value of the common stock as of March 31, 2025. See the section titled “ Dilution” below for a more detailed discussion of the dilution you will incur if you participate in this offering.

You may experience future dilution as a result of future equity offerings or acquisitions.

In order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock at prices that may not be the same as the price per share in this offering. We may sell shares or other securities in any future offering at a price per share that is less than the price per share paid by investors in this offering, and investors purchasing shares or other securities in the future could have rights superior to existing stockholders. The price per share at which we sell additional shares of our common stock, or securities convertible or exchangeable into our common stock, in future transactions or acquisitions may be higher or lower than the price per share paid by investors in this offering.

You should consult your own independent tax advisor regarding any tax matters arising with respect to the exercise of the Warrants.

The exercise