Company: DGLY
Filing Date: 2025-11-24
Form Type: DEF 14A
Source: 0001493152-25-024819
Chunk: 54

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-24
Form: DEF 14A
Chunk 54
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 Common Stock outstanding prior to such issuance where the price of the Common Stock to be issued is below the “Minimum Price.” “Minimum Price” means a price that is the lower of: (i) the Nasdaq Official Closing Price (as reflected on Nasdaq.com) immediately preceding the signing of the binding agreement; or (ii) the average Nasdaq Official Closing Price of the common stock (as reflected on Nasdaq.com) for the five trading days immediately preceding the signing of the binding agreement. Shares of Common Stock issuable upon the exercise or conversion of warrants, options, debt instruments, preferred stock or other equity securities issued or granted in such non-public offerings will be considered shares issued in such a transaction in determining whether the 20% limit has been reached, except in certain circumstances such as issuing warrants that are not exercisable for a minimum of six months and have an exercise price that exceeds market value. The Company believes that the transactions contemplated by the transaction documents in connection with the ELOC Purchase Agreement, including full issuance of the Purchase Shares, may require stockholder approval.

If our stockholders do not approve this Proposal, the Purchase Shares will not be fully issuable in a manner that complies with Nasdaq Marketplace Rule 5635(d). In addition, our failure to obtain approval of this Proposal No. 4 when such failure would prohibit us to satisfying our obligations under the ELOC Purchase Agreement might constitute an Event of Default under the ELOC Purchase Agreement.

Additional Information

This summary is intended to provide you with basic information concerning the Committed Equity Financing. The full texts of each of the form of the ELOC Agreement and form of ELOC Registration Rights Agreement were filed as exhibits to our Current Report on Form 8-K, filed with the SEC on September 17, 2025.

Vote Required and Recommendation

The affirmative vote of the holders of a majority of the votes cast will be required to approve the ELOC Proposal.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTE TO APPROVE THE ELOC PROPOSAL.

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<div align='center'>PROPOSAL FIVE</div>

TO AMEND THE 2022 DIGITAL ALLY, INC. STOCK OPTION AND RESTRICTED STOCK PLAN TO INCREASE THE NUMBER OF SHARES RESERVED FOR ISSUANCE UNDER THE PLAN BY 375,000 SHARES TO 375,045 SHARES.

The Company is seeking stockholder approval for an amendment to the 2022 Stock Option and Restricted Stock Plan (the “2022 Plan”) to