Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 290

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 290
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 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 $0.0001 per 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 $2.51 per 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 $0.502 per 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 $0.502 per share and the number of shares
underlying the Series A Warrants and Series B Warrants were reset to approximately 5,976,095 shares and 4,780,877 shares, respectively.
Both the Series A and B warrants are now fully issued and exercisable subsequent to December 17, 2024.

Common Stock Issuance

The Company
issued 698,000 shares
of common stock subsequent to September 30, 2024, upon the exercise of common stock purchase Series B warrants.

On November 6, 2024, the Company entered into a SPA with certain institutional
investors, pursuant to which the Company issued to such institutional investors, in a private placement transaction, (i) senior secured
promissory notes in aggregate principal amount of $3,600,000, and (ii) 808,377 shares of the Company’s common stock, for aggregate
gross proceeds of approximately $3.0 million.

Termination of Material Definitive Agreement.

On June 1,