Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 68

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 68
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Approval. Stockholder approval was obtained on May 6, 2025 at the Special Meeting of Shareholders which activated both the Series A and
B warrants. Both the Series A and Series B warrants also contain price and warrant reset provisions that were activated upon the date
of Stockholder Approval. The reset provisions increased the number of common shares issuable under the Series A and B warrants as provided
for in their respective agreements and the exercise price was reduced from $3.75 per share to $0.62 per share relative to the Series
A warrants and $6.00 per share to $0.62 for the Series B warrants.

There have been no exercises
of the Series A warrants to date and the Series B warrants contained cashless exercise provisions. The Series B warrant holders have
exercised a total of 161,068,935 of the total 166,935,591 Series B warrants available to be exercised on a cashless basis.

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Item 2. Management’s Discussion and Analysis
of Financial Condition and Results of Operation.

This quarterly report on Form
10-Q (the “Report”) of Digital Ally, Inc. (the “Company”, “we”, “us”, or “our”)
contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”). The words “aim,” “anticipate,” “believe,”
“continue,” “could,” “estimate,” “expect,” “feel,” “forecast,”
“intend,” “may,” “outlook,” “plan,” “potential,” “predict,” “project,”
“seek,” “should,” “will,” “would,” and similar expressions intended to identify forward-looking
statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are based largely
on our expectations or forecasts of future events, can be affected by inaccurate assumptions, and are subject to various business risks
and known and unknown uncertainties, a number of which are beyond our control. Therefore, actual results could differ materially from
the forward-looking statements contained in this document, and readers are cautioned not to place undue reliance on such forward-looking
statements.

We undertake no obligation to
publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. A wide variety
of factors