Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 147

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 147
---
 of
the number of Series B warrants sold in the offering. The Underwriter may exercise this option in whole or in part at any time within
forty-five calendar days after the date of the final prospectus relating to the offering. The Underwriter may exercise the over-allotment
option with respect to shares of Common Stock only, Series A and Series B warrants only, or any combination thereof. The purchase price
to be paid per additional share of Common Stock will be equal to the public offering price of one Unit (less $0.00001 allocated to each
Series A and Series B warrant), as applicable, less the underwriting discount, and the purchase price to be paid per over-allotment Series
A and Series B warrant will be $0.00001. On February 14, 2025, the Underwriter exercised its over-allotment option with respect to 300,000
pre-funded warrants/common shares, 750,000 Series A warrants and 750,000 Series B warrants. Settlement occurred on April 17, 2025.

Aegis Capital Corp. served as
the sole book-running manager in the offering, pursuant to the terms of the Underwriting Agreement, and received seven percent (7%) of
the aggregate purchase price paid by investors in the offering, a one percent (1%) non-accountable expense and reimbursement of the legal
fees of its counsel.

The units and pre-funded units were offered by the
Company pursuant to an effective registration statement on Form S-1, as amended, which was declared effective by the SEC on February 12,
2025. The final prospectus relating to the offering was filed with the SEC on February 13, 2025.

    32

The aggregate net proceeds to
the Company from the offering including the underwriters exercise of their overallotment option were approximately $14,308,300, after
deducting underwriter’s fees and the payment of other offering expenses associated with the offering payable by the Company.

2024 Issuance of Restricted Common Stock

In January 2024, the board of
directors approved the grant of 2,750 shares of Common Stock to officers of the Company. Such shares will generally vest over a period
of one to five years on their respective anniversary dates in January through January 2028, provided that each grantee remains an officer
or employee on such dates. Additionally, the board of directors approved the grant of 1,260 restricted common shares