Company: DGLY
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001641172-25-016976
Chunk: 2

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-27
Form: 424B4
Chunk 2
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 stock underlying the Warrants then outstanding shall remain unchanged.

Finally, on the trading day after the Reset Period (defined below) (the “Reset Date”), the exercise price of the Warrants was reset to a price equal to the lower of (i) the exercise price then in effect and (ii) the greater of (a) the lowest daily VWAP during the period commencing two full trading days prior to the Warrant Stockholder Approval and ending following the close of trading on the 10th trading day after public notice of the Warrant Stockholder Approval (the “Reset Period”), and (b) the floor price set forth in the Warrants, and the number of shares issuable upon exercise will be increased such that the aggregate exercise price of the Warrants on the issuance date for the shares of common stock underlying the Warrants then outstanding shall remain unchanged. The number of shares issuable upon the exercise of the Warrants under the reset provisions increases as the Company’s stock price falls deeper below the initial exercise price of the Warrants. Given the provisions of the Warrants, holders of the Warrants will be issued a maximum aggregate of 347,796 shares of common stock upon the exercise of all of the Series A Warrants and a maximum aggregate of 556,452 shares of common stock upon the exercise of the Series B Warrants. However, if the holders of the Series B Warrants elect the “zero exercise price” option, the number of shares of common stock issuable upon exercise of the Series B Warrants would increase by a factor of three, resulting in a maximum aggregate of 1,669,356 shares of common stock upon 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.

Any reduction to the exercise prices of the Series A Warrants and the Series B Warrants and resulting increase in the shares of common stock underlying the Warrants will be subject to a floor price. Prior to notice of the Warrant Stockholder Approval, the floor Price was equal to 50% of the Nasdaq Minimum Price immediately prior to the execution of the underwriting agreement with Aegis Capital Corp. (as described below) and after public notice of the Warrant Stockholder Approval, the floor Price is 20% of the Nasdaq Minimum Price immediately prior to the execution of the underwriting agreement.