Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 161

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 161
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 day compliance period, or until June 18, 2025, to regain compliance with the Minimum Bid Price Requirement. If the Company
is not in compliance by June 18, 2025, the Company may be afforded a second 180-calendar day compliance period. If the Company does not
regain compliance within such compliance period, including any granted extensions, its Common Stock may be subject to delisting, which
delisting may be appealed to a Nasdaq hearings panel.

Minimum Stockholders’
Equity Standard - On January 2, 2025, the Company received a notice (the “Notice”) from the staff of the Listing Qualifications
department (the “Staff”) of Nasdaq, which indicated that the Company was not in compliance with Nasdaq Listing Rule 5550(b)(1)
(the “Stockholders’ Equity Requirement”), as the Company’s stockholders’ equity of ($2,448,310), as reported
in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, was below the required minimum
of $2.5 million, and the Company did not meet either the alternative compliance standards relating to market value of listed securities
of at least $35 million or net income from continuing operations of at least $500,000 in the most recently completed fiscal year or in
two of the last three most recently completed fiscal years.

    39

Under Nasdaq listing rules and
as specified in the Notice, the Company has 45 calendar days from the date of the Notice to submit to the Staff a plan to regain compliance
with the Stockholders’ Equity Requirement. If the Company’s plan to regain compliance is accepted, Nasdaq may grant an extension
of up to 180 calendar days from the date of the Notice for the Company to evidence compliance.

The Company submitted its plan
to Nasdaq to regain compliance with the Stockholders’ Equity Requirement on February 17, 2025. There can be no assurance that the
Company’s plan will be accepted or that if it is, that the Company will be able to regain compliance with the Stockholders’
Equity Requirement.

If the Company does not regain
compliance within the allotted compliance period(s), including any extensions that may be granted by Nasdaq, Nasdaq will provide notice
that the Common Stock will be subject to delisting from the Nasdaq Capital Market. At that time, the Company may appeal any such delisting
determination to a Nasdaq