Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 211

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 211
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 into as of September 15, 2025 (the “ELOC
Purchase Agreement”), by and between the Company and a certain institutional investor, including, the issuance of 20% or more of
our outstanding shares of Common Stock pursuant to the ELOC Purchase Agreement.

5. To
approve the amendment to the 2022 Digital Ally, Inc. Stock Option and Restricted Stock Plan which increases the number of shares reserved
for issuance under such Plan by 375,000 shares of Common Stock;

6. To
approve a non-binding advisory proposal to approve the compensation paid to the Company’s named executive officers;

7. To
approve a non-binding advisory proposal on the frequency of the stockholder advisory vote on executive compensation;

8. To
consider and act upon such other business as may properly come before the Annual Meeting or any adjournment thereof.

Issuance of restricted common stock

On November
7, 2025, the Company issued an aggregate of 171,015 shares of the Company’s common stock to the ELOC Investor (see Note 5) as part
of the 3% commitment fee owed under the ELOC Purchase Agreement. The shares were issued in book-entry form as Rule 144 restricted stock
however the Company is expected to file a Registration Statement on Form S-1 to register these shares.

Following
this issuance, the Company’s total shares outstanding increased from 1,727,421 to 1,898,436.

36

Item
2. Management’s Discussion and Analysis of Financial Condition and Results of Operation.

This
quarterly report on Form 10-Q (the “Report”) of Digital Ally, Inc. (the “Company”, “we”, “us”,
or “our”) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “aim,” “anticipate,”
“believe,” “continue,” “could,” “estimate,” “expect,” “feel,”
“forecast,” “intend,” “may,” “outlook,” “plan,” “potential,”
“predict,” “project,” “seek,” “should,” “will,” “would,” and
similar expressions intended to identify forward-looking statements, although not all forward-looking statements contain these identifying
words. These forward-looking statements are based largely on our expectations or forecasts of future events, can