Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 4

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 4
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 Reverse Stock Split”, and together with the First Reverse Stock Split, the “Reverse Stock Splits”). As a result of the Reverse Stock Splits and the reset provisions, the current exercise price of the Series A Warrants and Series B Warrants has been reset to $62.00. Additionally, upon our issuance of our common stock or common stock equivalents at a price per share that is less than the exercise price of the Series A Warrant, subject to certain exceptions, the exercise price of the Series A Warrant will be reduced to such lower price, subject to a floor price set forth in the warrant, and the number of shares issuable upon exercise will be increased such that the aggregate exercise price of the Series A Warrants on the issuance date for the shares of common stock underlying the Warrants then outstanding shall remain unchanged.

Finally, on the trading day after the Reset Period (defined below) (the “Reset Date”), the exercise price of the Warrants was reset to a price equal to the lower of (i) the exercise price then in effect and (ii) the greater of (a) the lowest daily VWAP during the period commencing two full trading days prior to the Warrant Stockholder Approval and ending following the close of trading on the 10th trading day after public notice of the Warrant Stockholder Approval (the “Reset Period”), and (b) the floor price set forth in the Warrants, and the number of shares issuable upon exercise will be increased such that the aggregate exercise price of the Warrants on the issuance date for the shares of common stock underlying the Warrants then outstanding shall remain unchanged. The number of shares issuable upon the exercise of the Warrants under the reset provisions increases as the Company’s stock price falls deeper below the initial exercise price of the Warrants. Given the provisions of the Warrants, holders of the Warrants will be issued a maximum aggregate of 347,796 shares of common stock upon the exercise of all of the Series A Warrants and a maximum aggregate of 556,452 shares of common stock upon the exercise of the Series B Warrants. However, if the holders of the Series B Warrants elect the “zero exercise price” option, the number of shares of common stock issuable upon exercise of the Series B Warrants would increase by a factor of three, resulting in a maximum aggregate of 1,669,356 shares of common stock upon the exercise of the Series B Warrants. For reference, there were 39,626 shares of common