Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 53

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 53
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| ● | Stabilizing                                                                                        
 transactions permit bids to purchase the underlying security as long as the stabilizing bids       
 do not exceed a specific maximum price.                                                            |
| ● | Syndicate                                                                                          
 covering transactions involve purchases of our shares of common stock in the open market           
 after the distribution has been completed to cover syndicate short positions. In determining       
 the source of shares to close out the short position, the underwriter will consider, among         
 other things, the price of shares available for purchase in the open market as compared to         
 the price at which they may purchase shares through the underwriter’s option to purchase           
 additional shares. If the underwriter sells more shares than could be covered by the underwriter’s 
 option to purchase additional shares, thereby creating a naked short position, the position        
 can only be closed out by buying shares in the open market. A naked short position is more         
 likely to be created if the underwriter is concerned that there could be downward pressure         
 on the price of the shares in the open market after pricing that could adversely affect investors  
 who purchase in the offering.                                                                      |
| ● | Penalty                                                                                            
 bids permit the representative to reclaim a selling concession from a syndicate member when        
 the shares of common stock originally sold by the syndicate member is purchased in a stabilizing   
 or syndicate covering transaction to cover syndicate short positions.                              |
| ● | In                                                                                                 
 passive market making, market makers in our common stock who are underwriters or prospective       
 underwriters may, subject to limitations, make bids for or purchase our common stock until         
 the time, if any, at which a stabilizing bid is made.                                              |

These activities may have the effect of raising or maintaining the market price of our common stock or preventing or retarding a decline in the market price of our common stock. As a result of these activities, the price of our common stock ck may be higher than the price that might otherwise exist in the open market. These transactions may be effected on NASDAQ or otherwise and, if commenced, may be discontinued at any time.

Neither we nor the underwriter makes any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of our common stock. In addition, neither we nor the underwriter makes any representation that Aegis will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued without notice.

Discretionary Accounts

The underwriter did not make sales to accounts over which