Company: DGLY
Filing Date: 2025-11-26
Form Type: S-1
Source: 0001493152-25-025056
Chunk: 40

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-26
Form: S-1
Chunk 40
---
 |

Except as stated above, no underwriters were involved in the foregoing sales of securities. The issuances of the securities described above were deemed to be exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act or Regulation D promulgated under the Securities Act. The recipients of securities in such transactions represented their intention to acquire the securities for investment only and not with a view to or for sale in connection with any distribution thereof and appropriate legends were affixed to the stock certificates and option agreements issued in such transactions. All recipients had adequate access, through their relationships with us, to information about us.

On September 15, 2025, the Company entered into and consummated the initial closing of the transactions contemplated by a Securities Purchase Agreement, dated as of September 15, 2025 (the “Notes and Warrants Agreement”), between the Company and the Selling Stockholder. At the initial closing, the Company issued and sold to the Selling Stockholder certain Senior Secured Convertible Notes in the aggregate original principal amount of $806,451.61 (the “Notes”) and warrants (the “Warrants”). The Notes and Warrants Agreement provided for seven percent (7%) original interest discount resulting in gross proceeds to the Company of $750,000. Interest on the note is eight percent (8%). The Warrants are exercisable for an aggregate 476,569 shares at an exercise price of $2.124 per share of the Company’s Common Stock, par value $0.001 per share. Subject to applicable limitations as set forth in the Notes and Warrants Agreement, the Warrants have an initial exercise date of September 15, 2025, and a termination date on the five-year anniversary of the initial exercise date.

Within two business days from the effectiveness date of the registration statement required under the Notes and Warrants Agreement, and while the Notes remain outstanding, the Selling Stockholder and the Company consummated a second closing of an aggregate of $250,000 of Notes and Warrants on the same terms and conditions as the initial closing. The Notes are convertible into shares of Common Stock at the election of the Selling Stockholder at any time at a conversion price at a ten percent (10%) discount to the volume weighted average price in the five (5) day period prior to the date of closing (the “Conversion Price”) per share of Common Stock. Subject to certain conditions, including certain equity conditions, the Company may redeem some or all of the then outstanding