Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 164

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 164
---
 principal amount of $3,600,000, and (ii) 808,377 shares (the “Commitment Shares”) of the Company’s common stock, for aggregate gross proceeds of approximately $3.0 million, before deducting placement agent fees and other offering expenses payable by the Company. This private placement closed on November 7, 2024.

The net proceeds of the private placement on November 7, 2024 was $2,669,250 (after $330,750 deduction of costs of the offering). The Company allocated the net proceeds from the private placement of the senior secured promissory notes and the commitment shares based upon their relative fair values as of the date of issuance as follows:

<div align='center'>SCHEDULE OF NET PROCEEDS FROM THE PRIVATE PLACEMENT</div>

| Allocated to the following:     |     | Amount |           |
|:--------------------------------|:----|:-------|----------:|
| Senior secured promissory notes |     | $      | 2,129,795 |
| Commitment shares               |     |        |   539,455 |
| Total                           |     | $      | 2,669,250 |

Cancellation of Restricted Stock

During the years ended December 31, 2024 and 2023, the Company cancelled 49,947 and 3,625 shares due to termination of employees, respectively.

Exercise of Prefunded Warrants

During the year ended December 31, 2024, prefunded warrants to purchase 573,008 shares of common stock were fully exercised at an exercise price of $0.0001 per share.

During the year ended December 31, 2024, Series B warrants to purchase 973,000 shares of common stock were fully exercised for $973. In conjunction with the exercise of the Series B warrants, the Company transitioned the related warrant derivative liability totaling $584,955 to equity as of their exercise date.

Conversion of Convertible Note

During
the year ended December 31, 2023, pursuant to the Convertible Note, the Purchasers elected to convert $125,000 principal, at the fixed
price of $5.00 per share of common stock, 25,000 shares valued at $119,750.

Reverse Stock Split

On February 6, 2023, we filed a Certificate of Amendment to the Articles of Incorporation, as amended, with the Secretary of State of the State of Nevada to effect a 1-for-