Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 42

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 42
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 of issuance as follows:

 SCHEDULE OF ALLOCATED NET PROCEEDS FROM PRIVATE PLACEMENT OF DETACHABLE WARRANTS 

    Amount 

    Allocated to the following: 

    Senior secured promissory notes 
    $290,583 

    Detachable warrants 
     319,417 

    Total 
    $610,000 

Committed
Equity Financing (ELOC)

On
September 15, 2025 (the “Closing Date”), the Company entered into a Common Stock Purchase Agreement (the “ELOC Purchase
Agreement”) with an institutional investor (the “ELOC Investor”), providing a committed equity financing facility of
up to $25 million (the “Total Commitment”) over a 36-month term. Under the agreement, and subject to certain conditions and
limitations, the Company may, at its sole discretion, direct the ELOC Investor to purchase shares of its common stock (“Purchase
Shares”) from time to time during the term of the facility.

Concurrently
with the execution of the ELOC Purchase Agreement, the Company entered into a Registration Rights Agreement (the “ELOC Registration
Rights Agreement”) with the investor, pursuant to which the Company agreed to file one or more registration statements under the
Securities Act of 1933, as amended, to register the resale of shares issuable under the facility. The initial registration statement
must be declared effective before any sales under the facility may occur.

Upon
effectiveness of the registration statement and satisfaction of other customary conditions (the “Commencement Date”), the
Company may, from time to time and at its discretion, deliver written purchase notices (“ELOC Purchase Notices”) directing
the ELOC Investor to purchase shares of common stock. The purchase price per share will be equal to 92% of the lowest daily trading price
of the Company’s common stock during the three-trading-day valuation period following each ELOC Purchase Notice. Each purchase
is subject to specified volume and timing restrictions, including that an ELOC Purchase Notice may not be delivered within twenty-four
(24) hours of a prior purchase.

The
ELOC Investor may not beneficially own more than 4.99% of the Company’s outstanding common stock at any time. Under Nasdaq Capital
Market rules, the Company may not issue to the ELOC Investor a number of shares exceeding 19.99% of the Company’s outstanding common
stock as of the execution date (the “Exchange Cap”) unless