Company: DGLY
Filing Date: 2025-01-23
Form Type: 424B3
Source: 0001493152-25-003413
Chunk: 5

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-23
Form: 424B3
Chunk 5
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 Agreement is of no further force and effect, with the exception of specified provisions
set forth in the Termination Agreement, which shall survive the Termination and remain in full force and effect in accordance with their
respective terms.

As previously reported in the amendment
to the Current Report on Form 8-K filed with the SEC by the Company on November8, 2024, in order to secure the Company’s obligations under the Notes (as defined below), the Purchase Agreement provides
that the Company shall cause its wholly owned subsidiaries, to the extent permitted under such subsidiaries’ existing obligations,
to guarantee the payment of and performance of obligations under the Notes. In connection therewith, on November 13, 2024, the Company
entered into that certain Secured Subsidiary Guarantee (the “Guarantee”), by and among the Company, TicketSmarter, Kustom
440, and Kustom (each of TicketSmarter, Kustom 440 and Kustom a “Guarantor” and together, the “Guarantors”).
Pursuant to the Guarantee, the Guarantors guarantee to the Selling Stockholders the prompt and complete payment and performance when
due of the Obligations (as defined in the Guarantee).

As previously reported on the Form 8-K filed on
November 7, 2024, pursuant to the Purchase Agreement, the Company agreed to file within 30 days of the Closing Date (as defined in the
Purchase Agreement) a registration statement (the “Public Offering Registration Statement”) with the SEC for a public offering
(the “Public Offering Filing Deadline”) and use its reasonable best efforts to pursue and consummate a financing transaction
within ninety (90) days of the Closing Date (the “Offering Consummation Deadline”). The Company also agreed 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 Selling Stockholders of the Shares issued under the Purchase Agreement (the “Resale Filing Deadline”).

On December 11, 2024, the Company entered into
that certain First Amendment to Securities Purchase Agreement (the “Amendment”) with the Selling Stockholders. Pursuant to
the Amendment, (i) the Public Offering Filing Deadline was amended to require the Company to file the Public Offering Registration Statement
not less than 20 Trading Days (as defined in the Purchase Agreement) after