Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 50

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 50
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 a fundamental transaction, as described in the Warrants, and generally including, with certain exceptions, any reorganization, recapitalization or reclassification of our shares of common stock, the sale, transfer or other disposition of all or substantially all of our properties or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding shares of common stock, or any person or group becoming the beneficial owner of 50% of the voting power represented by our outstanding shares of common stock, the holders of the Warrants will be entitled to receive upon exercise thereof the kind and amount of securities, cash or other property that the holders would have received had they exercised the warrants immediately prior to such fundamental transaction. In addition, in the event of a fundamental transaction, as described in the Warrants, the Company shall, at the option of the holders of the Warrants, exercisable at any time 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