Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 30

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 30
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 will be issued three times the number of shares of common stock for each share of common stock issuable upon exercise of a Series
B Warrant for cash. If holders elect the “zero exercise price option”, on this basis, such exercise will result in substantial
dilution to our shareholders. 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 stock outstanding as of February 14, 2025 and there are 1,727,421 shares of common stock
outstanding as of the date of this prospectus.

Stockholders may experience future dilution as a result of this and future equity offerings.

In order to raise additional capital, we may in the future offer additional shares of our common stock or other securities convertible into or exchangeable for our common stock. Investors purchasing our shares or other securities in the future could have rights superior to existing common stockholders, and the price per share at which we sell additional shares of our common stock or other securities convertible into or exchangeable for our common stock in future transactions may be higher or lower than the price per share in this offering.

You will experience immediate and substantial dilution in the net tangible book value per share of the common stock underlying the Warrants.

The effective price per share of common stock underlying the Warrants is substantially higher than the as adjusted net tangible book value per share of our common stock outstanding prior to this offering. Assuming the sale of all Warrants in this offering, if you purchase shares of common stock underlying the Warrants in this offering, you will incur immediate and substantial dilution of $51.01 per share, with respect to the as adjusted net tangible book value of the common stock as of March 31, 2025. See the section titled “ Dilution” below for a more detailed discussion of the dilution you will incur if you participate in this offering.