Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 194

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 194
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 2028, provided that each grantee
remains an officer or employee on such dates. Additionally, the board of directors approved the grant of 13 restricted common shares
to certain new employees of the Company. Such shares will generally vest over a period of one1 to two years on their respective anniversary
dates from January through January 2026, provided that each grantee remains an employee of the company on such dates.

2024
Private Placement Transaction

On
June 24, 2024, the Company entered into a private placement transaction (the “Private Placement”), pursuant to a Securities
Purchase Agreement (the “Securities Purchase Agreement”) with certain institutional investors (the “Purchasers”)
for aggregate gross proceeds of approximately $2.9 million, before deducting fees to the placement agent and other expenses payable by
the Company in connection with the Private Placement.

As
part of the Private Placement, the Company issued an aggregate of 60 units and pre-funded units (collectively, the “June Units”)
at a purchase price of $5020.00 per unit (less $0.001 per pre-funded unit). Each June Unit consists of (i) one share of Common Stock
(or one pre-funded warrant to purchase one share of Common Stock (the “Pre-Funded Warrants”)), (ii) one Series A warrant
to purchase one share of Common Stock (the “Series A Warrant”) and (iii) one Series B warrant to purchase such number of
shares of Common Stock as will be determined on the Reset Date and in accordance with the terms therein (the “Series B Warrant”,
and together with the Series A Warrant, the “Warrants”).

Securities
Purchase Agreement and Senior Secured Promissory Notes

On
November 6, 2024, the Company entered into a Securities Purchase Agreement (the “SPA”) with certain institutional investors,
pursuant to which the Company agreed to issue and sell to such investors, in a private placement transaction, (i) senior secured promissory
notes in aggregate principal amount of $3,600,000, and (ii) 404 shares (the “Commitment Shares”) of the Company’s Common
Stock, for aggregate gross proceeds of approximately $3.0 million, before deducting placement agent fees and other offering expenses
payable by the Company. This private placement closed on November 7, 2024.

The
net proceeds of the private placement on November 7