Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 11

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 11
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 ticketing
platform, ticketsmarter.com, and we also acquire tickets from primary sellers to then sell through various platforms. The accounting guidance
on Segment Reporting establishes standards for reporting information regarding operating segments in annual financial statements and requires
selected information of those segments to be presented in financial statements. Such required segment information is included in Note
17.

Reverse Stock Split

On May 6, 2025,
the Company, acting pursuant to authority received at an annual meeting of its stockholders on December 17, 2024, filed with the
Secretary of State of the State of Nevada a certificate of amendment (the “Charter Amendment”) to its articles of
incorporation, as amended (the “Articles of Incorporation”), which effected a one-for-twenty reverse stock split (the
“Reverse Stock Split”) of all of the Company’s outstanding shares of common stock, par value $0.001 per share (the
“Common Stock”). Pursuant to the Charter Amendment, the Reverse Stock Split became effective as of 5:30 p.m. Eastern
Time on May 6, 2025. As a result of the Reverse Stock Split, every twenty (20) shares of Common Stock were exchanged for one (1)
share of Common Stock. The Common Stock began trading on the Nasdaq Capital Market on a split-adjusted basis at the start of trading
on May 7, 2025. The Reverse Stock Split did not affect the total number of shares of capital stock, including the Common Stock, that
the Company is authorized to issue, which remain as set forth pursuant to the Articles of Incorporation. No fractional shares of
Common Stock were issued in connection with the Reverse Stock Split. Stockholders who otherwise were entitled to receive fractional
shares of Common Stock were automatically entitled to receive an additional fraction of a share of Common Stock to round up to the
next whole share, at a participant level. The Reverse Stock Split also had a proportionate effect on all other options and warrants
of the Company outstanding as of the effective date of the Reverse Stock Split. The Reverse Stock Split was effective as of the time
of this filing. All historical share and per-share amounts reflected throughout the Company’s condensed consolidated financial
statements and other financial information in this Report have been adjusted to reflect the Reverse Stock Split as if the split
occurred as of the earliest period presented. The par value per share of the Company’s Common Stock was not affected by the
Reverse Stock Split.

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