Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 11

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 11
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 from the exercise of the Series B Warrants because it is highly unlikely that a Series B Warrant holder will elect         
 to pay an exercise price in cash to receive one share of common stock when they could elect the alternate cashless exercise option       
 and pay no exercise price to receive more shares of common stock than they would receive if they did pay an exercise price. In           
 addition, beginning on the Reset Date, the exercise price of the Warrants was reset to a price equal to the greater of (i)               
 the Floor Price, as defined in the Warrants, in effect on the Reset Date and (ii) the lowest VWAP during the Reset Period. In addition,  
 following a reverse stock split, the exercise price of the Warrants will be adjusted to equal the lowest single-day VWAP during the      
 period from the trading day immediately following, until the fifth trading day following the reverse stock split, with a proportionate   
 adjustment to the number of shares underlying the Warrants. The exercise price of the Series A Warrants and Series B Warrants            
 was reset in accordance with the foregoing provision as a result of the Reverse Stock Splits. As a result of the Reverse Stock Splits    
 and the reset provisions, the current exercise price of the Series A Warrants and Series B Warrants has been reset to $62.00.            
 Upon our issuance of our common stock or common stock equivalents at a price per share that is less than the exercise price of the       
 Series A Warrant, subject to certain exceptions, the exercise price of the Series A Warrant will be reduced to such lower price,         
 subject to a floor price set forth in the warrant, and the number of shares issuable upon exercise will be increased such that the       
 aggregate exercise price of the Series A Warrants on the issuance date for the shares of common stock underlying the Warrants then       
 outstanding shall remain unchanged. The number of shares issuable upon the exercise of the Warrants under the reset provisions           
 increases as the Company’s stock price falls deeper below the initial exercise price of the Warrants. Given the provisions               
 of the Warrants, holders of the Warrants will be issued a maximum aggregate of 347,796 shares of common stock upon the exercise of       
 all of the Series A Warrants and a maximum aggregate of 556,452 shares of common stock upon the exercise of the Series B Warrants.       
 However, if the holders of the Series B Warrants elect the “zero exercise price” option, the number of shares of common