Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 67

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 67
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 until all of the pre-funded warrants are exercised in full.

The
Series A and Series B warrants are exercisable only upon receipt of stockholder approval of (i) certain terms in the Series A and B warrants
and the issuance of the shares of Common Stock issuable upon the exercise of such Series A and Series B warrants, as may be required
by the applicable rules and regulations of The Nasdaq Stock Market LLC and (ii) if necessary, a proposal to amend the Company’s
Articles of Incorporation, to increase the authorized share capital of the Company to an amount sufficient to cover the shares of Common
Stock issuable upon the exercise of the Series A and Series B warrants. The Series A warrants will be exercisable commencing upon the
date of public notice of Stockholder Approval until five years after such date, and the Series B Warrants will be exercisable commencing
upon the date of public notice of Stockholder Approval until two and one-half years after such date.

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The
offering closed on February 14, 2025. The net proceeds to the Company from the offering were approximately $13.48 million, after deducting
underwriter’s fees and the payment of other offering expenses associated with the offering payable by the Company. The Company
intends to use the net proceeds from the offering for working capital and other general corporate purposes, to pay amounts owed under
a short-term merchant advance and to pay in full the aggregate face value of senior secured promissory notes that were previously issued
as part of a private placement that the Company entered into with certain institutional investors on November 6, 2024.

The
Company granted the Underwriter an option to purchase additional shares of Common Stock and/or Series A and Series B warrants of (i)
up to 15.0% of the number of shares of Common Stock sold in the offering, (ii) up to 15.0% of the number of Series A warrants sold in
the offering and (iii) up to 15.0% of the number of Series B warrants sold in the offering. The Underwriter may exercise this option
in whole or in part at any time within forty-five calendar days after the date of the final prospectus relating to the offering. The
Underwriter may exercise the over-allotment option with respect to shares of Common Stock only, Series A and Series B warrants only,
or any combination thereof. The purchase price to be paid per additional share of Common Stock will