Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 159

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 $12,520,139  
    $45,164,195 

    38

The segment net revenues reported
above represent sales to external customers. Segment gross profit represents net revenues less cost of revenues. Segment operating income,
which is used in management’s evaluation of segment performance, represents net revenues, less cost of revenues, less all operating
expenses. Identifiable assets are those assets used by each segment in its operations. Corporate assets primarily consist of cash, property,
plant and equipment, accounts receivable, inventories, and other assets.

Note 18. SUBSEQUENT EVENTS

Special Shareholder Meeting

On Tuesday, May 6, 2025, the Company
held its special meeting of stockholders. Set forth below are each of the three proposals that were voted on at the Special Meeting and
the stockholder votes on each such proposal, as certified by the inspector of elections for the Special Meeting. These proposals are described
in further detail in the Definitive Proxy Statement on Schedule 14A that the Company filed with the SEC on March 4, 2025.

Proposal One: Approval of an
amendment to our Articles of Incorporation to increase the number of authorized shares of our capital stock that we may issue from
210,000,000 shares to 5,010,000,000 shares, of which 5,000,000,000 shares shall be classified as Common Stock. The proposal was not
approved.

Proposal Two: Approval
of a proposal to authorize the board of directors of the Company (the “Board”), in its sole and absolute discretion, and without
further action of the stockholders, to file an amendment to our Articles of Incorporation to effect a reverse stock split of our issued
and outstanding Common Stock at a ratio to be determined by the Board, ranging from one-for-five (1:5) to one-for-one hundred (1:100),
with such reverse stock split to be effected at such time and date, if at all, as determined by the Board in its sole discretion, but
no later than April 1, 2026, when the authority granted in this proposal to implement the reverse stock split would terminate. The
proposal was approved.

Proposal Three: Authorization,
for purposes of complying with Nasdaq listing rule 5635(d), of the issuance of Series A Warrants to purchase shares of Common Stock
(the “Series A Warrants”) and Series B Warrants to purchase shares of Common Stock (the “