Company: DGLY
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001641172-25-016976
Chunk: 48

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-27
Form: 424B4
Chunk 48
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 concurrently with, or within 30 trading days after, the consummation of the fundamental transaction (or, if later, the date of the public announcement of the applicable fundamental transaction), purchase the Warrants from the holders of the Warrants by paying to the holders of the Warrants an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of the Warrants on the date of the consummation of such fundamental transaction.

Variable Rate Transaction. As described in the Warrants, the Company, at any time until the six (6) month anniversary of the initial
exercise date, shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its subsidiaries
of common stock or common stock equivalents (or a combination of units thereof) involving a Variable Rate Transaction (as defined in
the Warrants).

Governing Law.The Warrants are governed by New York law.

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<div align='center'>UNDERWRITING</div>

Aegis Capital Corp. (“Aegis” or the “underwriter”) was the sole underwriter and the book-running manager of the Offering. Under the terms of an underwriting agreement (the “underwriting agreement”), which is filed as an exhibit to the registration statement of which this prospectus forms a part, we agreed to sell to the underwriter and the underwriter agreed to purchase, at the public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus, the following number of Units:

| Underwriter   |     | Number of Units |     |              Number 
 of Pre-Funded Units |
| Aegis         
 Capital Corp. |     |           3,925 |     |              46,075 |

The underwriting agreement provides that the underwriter’s obligation to purchase Units and Pre-Funded Units, as the case may be, depends on the satisfaction of the conditions contained in the underwriting agreement including:

| ● | the                                                                    
 representations and warranties made by us to the underwriter are true; |
| ● | there                                                                  
 is no material change in our business or the financial markets; and    |
| ● | we                                                                     
 deliver customary closing documents to the underwriter.                |

The underwriter agreed to purchase all of the Units and Pre-Funded Units (other than those covered by the over-allotment option described below) purchased under the underwriting agreement.

Over-Allotment Option

Solely to cover over-all