Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 155

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 155
---
,827.

    19

As of December 31, 2024 the
outstanding principal balance was $1,922,750 which was paid in full during the six months ended June 30, 2025. The remaining balance is
$-0- as of June 30, 2025.

Securities Purchase Agreement and Senior
Secured Promissory Notes

On November 6, 2024, the Company
entered into a Securities Purchase Agreement (the “SPA”) with certain institutional investors (the “Purchasers”),
pursuant to which the Company agreed to issue and sell to such Purchasers, in a private placement transaction, (i) senior secured promissory
notes in aggregate principal amount of $3,600,000 (the “Notes”), and (ii) 404 shares (the “Commitment Shares”)
of the Company’s Common Stock, for aggregate gross proceeds of approximately $3.0 million, before deducting placement agent fees
and other offering expenses payable by the Company. This private placement closed on November 7, 2024 (the “Closing Date”).

Pursuant to the SPA, the Company
is required to file within 30 days of the Closing Date a registration statement with the SEC for a public offering and use its reasonable
best efforts to pursue and consummate a follow-on financing transaction within 90 days of the Closing Date. The proceeds of the public
offering shall be first used for the repayment of the principal amounts of the Notes. The Company is also required to file within 30 days
of the Closing Date a registration statement on Form S-1 (or other appropriate form if the Company is not then S-1 eligible) providing
for the resale by the Purchasers of the Commitment Shares issued under the SPA. The Company is required to use commercially reasonable
efforts to cause such registration statement to become effective within 60 days following the filing thereof and to keep such registration
statement effective at all times until no Purchaser owns any Commitment Shares.

Furthermore, pursuant to the
SPA, the Company was required to complete the following: (i) the Company’s board of directors shall approve an amendment to the
Company’s bylaws setting the quorum required for a special meeting of stockholders to one-third of all stockholders entitled to
vote at such special meeting and (ii) the Company shall file with the SEC a preliminary proxy statement on Schedule 14A announcing a meeting
of stockholders