Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 164

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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, before deducting placement
agent fees and other offering expenses payable by the Company. This private placement closed on November 7, 2024 (the “Closing
Date”).

Pursuant
to the SPA, the Company is required to file within 30 days of the Closing Date a registration statement with the SEC for a public offering
and use its reasonable best efforts to pursue and consummate a follow-on financing transaction within 90 days of the Closing Date. The
proceeds of the public offering shall be first used for the repayment of the principal amounts of the Notes. The Company is also required
to file within 30 days of the Closing Date a registration statement on Form S-1 (or other appropriate form if the Company is not then
S-1 eligible) providing for the resale by the Purchasers of the Commitment Shares issued under the SPA. The Company is required to use
commercially reasonable efforts to cause such registration statement to become effective within 60 days following the filing thereof
and to keep such registration statement effective at all times until no Purchaser owns any Commitment Shares.

Furthermore,
pursuant to the SPA, the Company was required to complete the following: (i) the Company’s board of directors shall approve an
amendment to the Company’s bylaws setting the quorum required for a special meeting of stockholders to one-third of all stockholders
entitled to vote at such special meeting and (ii) the Company shall file with the SEC a preliminary proxy statement on Schedule 14A announcing
a meeting of stockholders for the purpose of approving the Series A and Series B warrants issued by the Company on June 25, 2024.

The
senior secured promissory notes mature ninety (90) days following their issuance date (the “Maturity Date”) and shall accrue
no interest unless and until an Event of Default (as defined in the senior secured promissory notes) has occurred, in which case interest
shall accrue at a rate of 14% per annum during the pendency of such Event of Default. In addition, upon customary Events of Default,
the Purchasers may require the Company to redeem all or any portion of the senior secured promissory notes in cash with a 125% redemption
premium. The Purchasers may also require the Company to redeem all or any portion of the senior secured promissory notes in cash upon
a Change of Control, as defined in the senior secured promissory notes, at the