Company: DGLY
Filing Date: 2025-10-01
Form Type: PRE 14A
Source: 0001493152-25-016554
Chunk: 45

Company: DIGITAL ALLY, INC.
Filing Date: 2025-10-01
Form: PRE 14A
Chunk 45
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 (3) | Mr.                                                                                                                              
 Richie’s total shares of common stock include 9 shares of common stock to be received upon the exercise                          
 of vested options.                                                                                                               |
| (4) | Mr.                                                                                                                              
 Heckman’s total shares of common stock include 43 shares of common stock held in the Company’s 401(k)                            
 Retirement Savings Plan the 401(k) Plan (on December 31, 2024) as to which Mr. Heckman has voting power as trustee of the 401(k) 
 Plan.                                                                                                                            |
| (5) | Mr.                                                                                                                              
 Han’s total shares of common stock include (i) 9 restricted shares that are subject to forfeiture to us and (ii)                 
 1 shares of common stock to be received upon the exercise of vested options.                                                     |

| 29 |

<div align='center'>PROPOSAL THREE

APPROVAL OF THE NOTE AND WARRANT PROPOSAL</div>

Summary

The purpose of this Proposal is to approve the transactions contemplated by the securities purchase agreement, entered into as of September 15, 2025, by and between the Company and a certain institutional investor, including, the issuance of 20% or more of our outstanding shares of our Common Stock, par value $0.001 per share Common Stock upon (i) conversion of the senior secured convertible notes due September 15, 2026, and (ii) exercise of the Common Stock Purchase Warrants dated September 15, 2025

Background

On September 15, 2025, Digital Ally, Inc. (the “Company”) entered into and consummated the initial closing (the “First Closing”) of the transactions contemplated by a Securities Purchase Agreement, dated as of September 15, 2025 (the “Purchase Agreement”), between the Company and a certain investor (the “Purchaser”).

At the First Closing, the Company issued and sold to the Purchaser Senior Secured Convertible Notes in the aggregate original principal amount of $806,451.61 (the “Notes”) and warrants (the “Warrants”). The Purchase Agreement provided for seven percent (7%) original interest discount resulting in gross proceeds to the Company of $750,000. Interest on the note is eight percent (8%). The Warrants are exercisable for an aggregate 476,569 shares at an exercise price of $2.124 per share of the Company’s Common Stock, par value $0.001 per. Subject to applicable