Company: DGLY
Filing Date: 2025-11-12
Form Type: PRER14A
Source: 0001493152-25-021783
Chunk: 56

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: PRER14A
Chunk 56
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 interests of our stockholders. The Board also believes equity awards are essential to attracting new employees and retaining current employees. Further, the granting of options to new and existing employees frequently permits the Company to pay lower salaries than otherwise might be the case. The Board of Directors believes that to remain competitive with other technology companies in our long-term incentive plans, the Company must continue to provide employees with the opportunity to obtain equity in the Company and that an inability to offer equity incentives to new and current employees would put the Company at a competitive disadvantage in attracting and retaining qualified personnel. Our Named Executive Officers and directors have an interest in this proposal because they are expected to receive awards under the 2022 Plan if the 2022 Plan Amendment is approved at the Annual Meeting.

Summary of the Amendment to the 2022 Stock Option and Restricted Stock Plan

Our Board of Directors adopted the 2022 Plan on October 12, 2022 and the 2022 Plan was approved by the stockholders at the 2022 annual meeting of stockholders held on December 7, 2022. At the Annual Meeting, we are asking stockholders to approve the 2022 Plan Amendment to increase the number of shares of Common Stock issuable under the 2022 Plan by 45 shares. The 2022 Plan currently authorizes us to issue 45 shares of Common Stock upon exercise of options and grant of restricted stock awards, which will be increased to a total of 375,045 shares reserved if the stockholders approve the 2022 Plan Amendment. Stock options and restricted stock representing a total of zero shares of Common Stock have been granted under the 2022 Plan to date. The 2022 Plan authorizes us to grant (i) to the key employees incentive stock options to purchase shares of Common Stock and non-qualified stock options to purchase shares of Common Stock and restricted stock awards and (ii) to non-employee directors and consultants non-qualified stock options and restricted stock. As of December 31, 2024 , approximately twenty-eight (28) employees, three (3) executive officers, and three (3) non-employee directors were eligible to participate in the 2022 Plan.

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The following paragraphs provide a summary of the principal features of the 2022 Plan and its operation. The following summary is qualified in its entirety by reference to the 2022 Plan as set forth in Appendix A to the Company’s definitive proxy statement on Schedule 14A, filed with the SEC on October 28