Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 205

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 2
Chunk 205
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 accordance with Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days,
or until June 18, 2025, to regain compliance with the Minimum Bid Price Requirement.

As
previously disclosed, on January 2, 2025, the Staff notified the Company that it was not in compliance with Nasdaq Listing Rule 5550(b)(1),
which requires companies listed on Nasdaq to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing (the
“Stockholders’ Equity Requirement”). The Company reported stockholders’ equity (deficit) of ($2,448,310) in its
Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and, as a result, did not satisfy the Stockholders’ Equity
Requirement pursuant to Listing Rule 5550(b)(1).

As
previously disclosed, on March 6, 2025, the Company received notice (the “March 6 Letter”) from the Staff that the Staff
had determined that as of March 5, 2025, the Company’s securities had a closing bid price of $0.10 or less for ten consecutive
trading days triggering application of Listing Rule 5810(c)(3)(A)(iii) which states in part: if during any compliance period specified
in Rule 5810(c)(3)(A), a company’s security has a closing bid price of $0.10 or less for ten consecutive trading days, the Listing
Qualifications Department shall issue a Staff Delisting Determination under Rule 5810 with respect to that security (the “Low Priced
Stocks Rule”).

The
Company timely requested a hearing before the Panel to appeal the March 6 Letter and to address all outstanding matters, including compliance
with the Minimum Bid Price Requirement, the Low Priced Stocks Rule and the Stockholders’ Equity Requirement, which hearing date
has not been set as of the date of this Form 10-K. While the appeal process is pending, the suspension of trading of the Company’s
Common Stock, will be stayed and the Common Stock will continue to trade on the Nasdaq Capital Market until the hearing process concludes
and the Panel issues a written decision. The Company held its hearing with the Panel as scheduled on April 17, 2025.

On
May 1, 2025, the Panel rendered its decision which granted the Company’s request for