Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 40

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 40
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 $13,477,507.46 after deducting underwriting discounts and commissions and other estimated offering expenses payable by us for the Offering and assuming no exercise of the Warrants issued in connection with the Offering. No underwriting discounts or commissions have been paid on any Warrants purchased pursuant to the underwriter’s over-allotment option.

We used the net proceeds from the Offering for working capital and other general corporate purposes, to pay in full the approximate $1.910 million aggregate amount owed under the Short-Term Merchant Advance and to pay in full the $3.6 million aggregate face value of senior secured promissory notes issued as part of the Private Placement. The senior secured promissory notes matured on February 4, 2025, and upon the occurrence of an Event of Default, as defined in the senior secured promissory notes, bear interest at the rate of 14% per annum. Pursuant to the terms of the senior secured promissory notes, we were required to apply 100% of the net proceeds of the Offering to repay the senior secured promissory notes.

Investors must rely on the judgment of our management, who will have broad discretion regarding the application of the remaining net proceeds of this offering after repayment of our outstanding debt obligations. The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations (if any), business developments and the rate of our growth. We may find it necessary or advisable to use portions of the proceeds of the Offering for other purposes. Pending these uses, we intend to invest the net proceeds of the Offering in a money market or other interest-bearing account.

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<div align='center'>DIVIDEND POLICY</div>

We have never declared or paid any dividends on our common stock. We currently intend to retain all available funds and any future earnings for the operation and expansion of our business and, therefore, we do not anticipate declaring or paying dividends in the foreseeable future. The payment of dividends will be at the discretion of the Board and will depend on our results of operations, capital requirements, financial condition, prospects, contractual arrangements, any limitations on payment of dividends present in our future debt agreements, and other factors that the Board may deem relevant.

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<div align='center'>CERTAIN RELATIONS AND RELATED PARTY TRANSACTIONS</div>

Transactions with Managing Member of Nobility Healthcare

On January 27, 2022, the Board appointed Christian J. Hoffmann, III