Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 72

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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A), a company’s security has a closing bid price of $0.10 or less for ten consecutive trading days, the Listing
Qualifications Department shall issue a Staff Delisting Determination under Rule 5810 with respect to that security (the “Low Priced
Stocks Rule”).

The
Company timely requested a hearing before the Panel to appeal the March 6 Letter and to address all outstanding matters, including compliance
with the Minimum Bid Price Requirement, the Low Priced Stocks Rule and the Stockholders’ Equity Requirement, which hearing date
has not been set as of the date of this Form 10-K. While the appeal process is pending, the suspension of trading of the Company’s
Common Stock, will be stayed and the Common Stock will continue to trade on the Nasdaq Capital Market until the hearing process concludes
and the Panel issues a written decision. The Company held its hearing with the Panel as scheduled on April 17, 2025.

On
May 1, 2025, the Panel rendered its decision which granted the Company’s request for continued listing on the Nasdaq Exchange.
Such decision is subject to the following conditions:

●On
                                            or before May 2, 2025, the Company shall file Form 10-K for 2024 in compliance with Listing
                                            Rule 5250(c)(1). 

●On
                                            or before May 20, 2025, the Company must file a public disclosure describing any transactions
                                            undertaken by the Company to increase its equity and providing an indication of its equity
                                            following those transactions.

●In
                                            addition, on or before May 20, 2025, the Company must provide the Panel with an update on
                                            its fundraising plans, and updated income projections for the next 12 months, with all underlying
                                            assumptions clearly stated. 

●On
                                            or before June 6, 2025, the Company shall demonstrate compliance with the Minimum Bid Price
                                            Requirement. 

●If,
                                            prior to September 2, 2025, the Company becomes non-compliant with any Listing Rule, the
                                            Company will be delisted.

There
are no assurances however, that the Company will be able to meet and maintain all such conditions required by the Panel.

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Segment Overview

Video Solutions Operating Segment
– Within our video solutions operating segment we supply technology-based products utilizing our portable digital video and
audio recording capabilities for the law enforcement and security industries and for the commercial fleet and