Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 70

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 secrets, through other similar means; (18) our
ability to generate more recurring cloud and service revenues; (19) risks related to our license arrangements; (20) the fluctuation of
our operation results from quarter to quarter; (21) sufficient voting power by coalitions of a few of our larger stockholders, including
directors and officers, to make corporate governance decisions that could have a significant effect on us and the other stockholders;
(22) the issuance or sale of substantial amounts of our Common Stock, or the perception that such sales may occur in the future, which
may have a depressive effect on the market price of our securities; (23) potential dilution from the issuance of Common Stock underlying
outstanding options and warrants; (24) our additional securities available for issuance, which, if issued, could adversely affect the
rights of the holders of our Common Stock; (25) the volatility of our stock price due to a number of factors, including, but not limited
to, a relatively limited public float; (26) our ability to integrate and realize the anticipated benefits from acquisitions; (27) our
ability to maintain the listing of our Common Stock on the Nasdaq Capital Market.

41

Current Trends and Recent Developments for the
Company

Reverse
Stock Split

On
May 6, 2025, the Company, acting pursuant to authority received at an annual meeting of its stockholders on December 17, 2024, filed
with the Secretary of State of the State of Nevada a certificate of amendment (the “Charter Amendment”) to its articles of
incorporation, as amended (the “Articles of Incorporation”), which effected a one-for-twenty reverse stock split (the “Reverse
Stock Split”) of all of the Company’s outstanding shares of common stock, par value $0.001 per share (the “Common Stock”).
Pursuant to the Charter Amendment, the Reverse Stock Split became effective as of 5:30 p.m. Eastern Time on May 6, 2025. As a result
of the Reverse Stock Split, every twenty (20) shares of Common Stock were exchanged for one (1) share of Common Stock. The Common Stock
began trading on the Nasdaq Capital Market on a split-adjusted basis at the start of trading on May 7, 2025. The Reverse Stock Split
did not affect the total number of shares of capital stock, including the Common Stock, that the Company