Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 296

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 296
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 may be appealed to a Nasdaq hearings panel.

Common Stock Warrant Reset

On June 24, 2024, the Company entered into a private placement transaction as previously described
in NOTE 12. Stockholders’ Equity (the “June 2024 Private Placement”). As part of the June 2024 Private Placement,
the Company issued an aggregate of 1,195,219units and pre-funded units at a purchase price of $2.51per unit (less $0.00001per pre-funded unit). Each Unit consisted of (i) one share of common stock, par value $0.001per share, of the Company (the “Common Stock”) (or one pre-funded warrant to purchase one share of Common Stock),
(ii) one Series A warrant to purchase one share of Common Stock (the “Series A Warrant”) and (iii) one Series B warrant to
purchase such number of shares of Common Stock as will be determined on the Reset Date (as defined below) and in accordance with the
terms therein. The Pre-Funded Warrants were immediately exercisable at an exercise price of $0.0001per share of Common Stock and were fully exercised in August 2024. The Series A Warrants became issued and exercisable on and
after the date Stockholder Approval was obtained, has an initial exercise price of $2.51per share of Common Stock and a term of 5 years after the date that the Company obtains Stockholder Approval. Such Stockholder Approval was obtained at the annual meeting
of shareholders held on December 17, 2024 as described below. The Series A and B Warrants are now issued and exercisable at any time
after the date Stockholder Approval was obtained (December 17, 2024). Both the Series A and B warrants are subject to price and quantity
resets based on the lowest daily weighted average trading price of the shares of Common Stock during a period of 20 trading days, subject
to a pricing reset floor of $0.502per share of Common Stock. Based on the Stockholder Approval date of December 17, 2024 and the weighted average trading price
experienced, the Series A and B warrants both reset to the floor price of $0.502per share and the number of shares underlying the Series A Warrants and Series B Warrants were reset to approximately 5,976,095shares and 4,780,877shares, respectively. Both the Series A and B warrants are now