Company: DGLY
Filing Date: 2025-09-17
Form Type: 8-K
Source: 0001493152-25-013877
Chunk: 1

Company: DIGITAL ALLY, INC.
Filing Date: 2025-09-17
Form: 8-K
Item: Item 1.01
Chunk 1
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 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”).

The
Notes rank senior to all outstanding and future indebtedness of the Company and its subsidiaries, other than (i) TicketSmarter, Inc.,
which shall grant a second priority security interest, and (ii) Digital Ally Healthcare, Inc. and Nobility Healthcare, LLC, each of which
shall not grant a security interest, and are secured by substantially all of the Company’s assets, as evidenced by (i) a Security
Agreement entered into at the Closing (the “ Security Agreement”), (ii) a Trademark Security Agreement entered into at the
Closing (the “ Trademark Security Agreement”), (iii) a Patent Security Agreement entered into at the Closing (the “ Patent
Security Agreement”), and (iv) a Guaranty executed by all direct and indirect subsidiaries of the Company, other than Digital
Ally Healthcare, Inc. and Nobility Healthcare, LLC, (the “ Guaranty”) pursuant to which each of them has agreed to guaranty
the obligations of the Company under the Notes.

   2  

Also
at the Closing, the Company entered into a Registration Rights Agreement (the “ Registration Rights Agreement”) with the
Purchaser. Pursuant to the terms of the Registration Rights Agreement, the Company has agreed to prepare and file with the U. S.
Securities and Exchange Commission (the “ SEC”) within the 30 th

Also
at the Closing, the Company entered into a Leak-Out Agreement (the “ Leak-Out Agreement”) with Purchaser. Pursuant to the
terms of the Leak-Out Agreement, during the Leak Out Period, as defined in the Leak-Out Agreement, on any trading day, the Holder will
not sell, dispose, or otherwise transfer, in the aggregate, more than twenty percent (20%) of the composite daily trading volume
of the Common Stock as reported by Bloomberg, LP.

The
foregoing summaries provide only a brief description of the Notes, the Warrants, the Purchase Agreement, the Security Agreement, the
Trademark Security Agreement, the Patent Security Agreement, the Guaranty the Registration Rights Agreement, and the Leak-Out Agreement.
The summaries do not purport to be complete and are qualified in their entireties by the full text of such documents, copies of which
are attached as Exhibits 4.1, 4.2,