Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 154

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 154
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 position, the position        
 can only be closed out by buying shares in the open market. A naked short position is more         
 likely to be created if the underwriter is concerned that there could be downward pressure         
 on the price of the shares in the open market after pricing that could adversely affect investors  
 who purchase in the offering.                                                                      |
| ● | Penalty                                                                                            
 bids permit the representative to reclaim a selling concession from a syndicate member when        
 the shares of common stock originally sold by the syndicate member is purchased in a stabilizing   
 or syndicate covering transaction to cover syndicate short positions.                              |
| ● | In                                                                                                 
 passive market making, market makers in our common stock who are underwriters or prospective       
 underwriters may, subject to limitations, make bids for or purchase our common stock until         
 the time, if any, at which a stabilizing bid is made.                                              |

These activities may have the effect of raising or maintaining the market price of our common stock or preventing or retarding a decline in the market price of our common stock. As a result of these activities, the price of our common stock ck may be higher than the price that might otherwise exist in the open market. These transactions may be effected on NASDAQ or otherwise and, if commenced, may be discontinued at any time.

Neither we nor the underwriter makes any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of our common stock. In addition, neither we nor the underwriter makes any representation that Aegis will engage in these stabilizing transactions or that any transaction, once commenced, will not be discontinued without notice.

Discretionary Accounts

The underwriter has informed us that they do not expect to make sales to accounts over which they exercise discretionary authority in excess of five percent (5%) of the securities being offered in this offering.

Indemnification

We have agreed to indemnify Aegis, its affiliates, and each person controlling Aegis against any losses, claims, damages, judgments, assessments, costs, and other liabilities, as the same are incurred (including the reasonable fees and expenses of counsel), relating to or arising out of the offering, undertaken in good faith.

Lock-Up Agreements

Pursuant to certain “lock-up” agreements, our executive officers, directors, employees and holders of at least 10% of our Company’s common stock and securities exercisable for or convertible into its common stock outstanding immediately upon the closing of this offering, have agreed,