Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 62

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 62
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 on Form S-1, as amended, which was declared effective by the
SEC on February 12, 2025. The final prospectus relating to the offering was filed with the SEC on February 13, 2025.

The aggregate net proceeds
to the Company from the offering including the underwriters exercise of their overallotment option were approximately $14,308,300, after
deducting underwriter’s fees and the payment of other offering expenses associated with the offering payable by the Company.

2024 Issuance of Restricted Common Stock

In January 2024, the board
of directors approved the grant of 27 shares of Common Stock to officers of the Company. Such shares will generally vest over a period
of one to five years on their respective anniversary dates in January through January 2028, provided that each grantee remains an officer
or employee on such dates. Additionally, the board of directors approved the grant of 13 restricted common shares to certain new employees
of the Company. Such shares will generally vest over a period of one1 to two years on their respective anniversary dates from January through
January 2026, provided that each grantee remains an employee of the company on such dates.

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2024 Private Placement Transaction

On June 24, 2024, the Company
entered into a private placement transaction (the “Private Placement”), pursuant to a Securities Purchase Agreement (the “Securities
Purchase Agreement”) with certain institutional investors (the “Purchasers”) for aggregate gross proceeds of approximately
$2.9 million, before deducting fees to the placement agent and other expenses payable by the Company in connection with the Private Placement.

As part of the Private Placement,
the Company issued an aggregate of 60 units and pre-funded units (collectively, the “June Units”) at a purchase price of $5020.00
per unit (less $0.001 per pre-funded unit). Each June Unit consists of (i) one share of Common Stock (or one pre-funded warrant to purchase
one share of Common Stock (the “Pre-Funded Warrants”)), (ii) one Series A warrant to purchase one share 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 and in accordance with the terms therein (the “Series B Warrant”, and together with the Series A Warrant,
the “Warrants