Company: DGLY
Filing Date: 2025-10-21
Form Type: DRS
Source: 0001493152-25-018831
Chunk: 43

Company: DIGITAL ALLY, INC.
Filing Date: 2025-10-21
Form: DRS
Chunk 43
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 and Warrants Agreement”), between the Company and a certain investor (the “Investor”). At the initial closing, the Company issued and sold to the Investor certain Senior Secured Convertible Notes in the aggregate original principal amount of $806,451.61 (the “Notes”) and warrants (the “Warrants”). The Notes and Warrants 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 share. Subject to applicable limitations as set forth in the Notes and Warrants Agreement, the Warrants have an initial exercise date of September 15, 2025, and a termination date on the five-year anniversary of the initial exercise date.

Within two business days from the effectiveness date of the registration statement required under the Notes and Warrants Agreement, and while the Notes remain outstanding, the Investor and the Company consummated a second closing of an aggregate of $250,000 of Notes and Warrants on the same terms and conditions as the initial closing. The Notes are convertible into shares of Common Stock at the election of the Investor at any time at a conversion price at a ten percent (10%) discount to the volume weighted average price in the five (5) day period prior to the date of closing (the “Conversion Price”) per share of Common Stock. Subject to certain conditions, including certain equity conditions, the Company may redeem some or all of the then outstanding principal amount of the Note for cash in an amount equal to one hundred ten percent (110%) of the outstanding principal amount of the Notes (the “Optional Redemption Amount”).

Item 16. Exhibits

The list of exhibits in the Exhibit Index to this registration statement is incorporated herein by reference.

Item 17. Undertakings.

The undersigned registrant hereby undertakes:

| (1)  | To file, during any period                                                                                                           
 in which offers or sales are being made, a post-effective amendment to this registration statement.                                  |
| (i)  | To include any prospectus                                                                                                            
 required by Section 10(a)(3) of the Securities Act of 1933, as amended;                                                              |
| (ii) | To reflect in the prospectus                                                                                                         
 any facts or events arising after the effective date of this registration statement