Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 45

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 45
---
    Weighted
                                                                                average remaining contractual life
  
    $10.04  
     298,805  
    4.2 years
  
    $110,00  
     18,750  
    3.0 years
  
    $130.00  
     18,750  
    3.0 years
  
    $150.00  
     18,750  
    3.0 years

     355,055  
    4.0 years

2025 Purchase Warrants

 On February 13,
2025, the Company issued pre-funded units, each consisting of one-prefunded warrant (to purchase a total of 4,907,500
shares of Common Stock), one Series A warrant and one Series B warrant along with the sale of units, each consisting of one share of
Common Stock, one Series A warrant and one Series B warrant. The Series A and Series B warrants were exercisable only upon receipt
of stockholder approval (the “Stockholder Approval”) to approve each of (i) certain terms in the Series A warrants and
Series B warrants and the issuance of the shares of Common Stock issuable upon the exercise of such warrants, as may be required by
the applicable rules and regulations of The Nasdaq Stock Market LLC and (ii) if necessary, a proposal to amend the Company’s
Articles of Incorporation, as amended, to increase the authorized share capital of the Company to an amount sufficient to cover the
shares of Common Stock issuable upon the exercise of the Series A warrants and Series B warrants. The Series A Warrants were
exercisable commencing upon the date of public notice of the Stockholder Approval (the “Warrant Stockholder Approval
Date”) until five years after the Warrant Stockholder Approval Date, and the Series B Warrants were exercisable commencing
upon the Warrant Stockholder Approval Date until two and one-half years after the Warrant Stockholder Approval Date. Both the Series
A and Series B warrants contain reset provisions that are activated upon the date Stockholder Approval is obtained. The warrant
terms provide for net cash settlement outside the control of the Company under certain circumstances. As such, the Company is
required to treat these warrants as derivative liabilities which are valued at their estimated fair value at their issuance date and
at each reporting date with any subsequent changes reported in the condensed consolidated statements of operations as the change in
fair value of warrant derivative liabilities. Furthermore