Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 61

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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14, 2025. The net proceeds to the Company from the offering were approximately $13.48 million, after deducting underwriter’s fees
and the payment of other offering expenses associated with the offering payable by the Company. The Company intends to use the net proceeds
from the offering for working capital and other general corporate purposes, to pay amounts owed under a short-term merchant advance and
to pay in full the aggregate face value of senior secured promissory notes that were previously issued as part of a private placement
that the Company entered into with certain institutional investors on November 6, 2024.

The Company granted the Underwriter
an option to purchase additional shares of Common Stock and/or Series A and Series B warrants of (i) up to 15.0% of the number of shares
of Common Stock sold in the offering, (ii) up to 15.0% of the number of Series A warrants sold in the offering and (iii) up to 15.0% of
the number of Series B warrants sold in the offering. The Underwriter may exercise this option in whole or in part at any time within
forty-five calendar days after the date of the final prospectus relating to the offering. The Underwriter may exercise the over-allotment
option with respect to shares of Common Stock only, Series A and Series B warrants only, or any combination thereof. The purchase price
to be paid per additional share of Common Stock will be equal to the public offering price of one Unit (less $0.00001 allocated to each
Series A and Series B warrants), as applicable, less the underwriting discount, and the purchase price to be paid per over-allotment Series
A and Series B warrants will be $0.00001. On February 14, 2025, the Underwriter exercised its over-allotment option with respect to 3,000
pre-funded warrants/common shares, 7,500 Series A warrants and 7,500 Series B warrants. Settlement occurred on April 17, 2025.

Aegis Capital Corp. served
as the sole book-running manager in the offering, pursuant to the terms of the Underwriting Agreement, and received seven percent (7%)
of the aggregate purchase price paid by investors in the offering, a one percent (1%) non-accountable expense and reimbursement of the
legal fees of its counsel.

The units and pre-funded units
were offered by the Company pursuant to an effective registration statement