Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 163

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 163
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 following those transactions.

    ●
    In addition, on or before May 20, 2025, the Company must provide the Panel with an update on its fundraising plans, and updated income projections for the next 12 months, with all underlying assumptions clearly stated. 

    ●
    On or before June 6, 2025,
    the Company shall demonstrate compliance with the Minimum Bid Price Requirement. 

    ●
    If, prior to September 2, 2025, the Company becomes non-compliant with any Listing Rule, the Company will be delisted.

The Company continues to work diligently to regain and maintain compliance
with the Minimum Bid Price Requirement and Stockholders’ Equity Requirement as promptly as possible. In that regard, management
believes that it has achieved compliance with the Stockholders’ Equity Requirement as reported in the accompanying Statement of
Stockholders’ Equity (Deficit) as of March 31, 2025. There are no assurances however,
that the Company will be able to meet and maintain all such conditions required by the Panel.

Series A and B warrants issued in connection
with the February 2025 public equity offering

The Series A and B warrants issued
in the February 2025 public equity offering (See Note 12 – Stockholders Equity) become issuable and exercisable on the date of Stockholder
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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40

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,