Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 302

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 302
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 as the Company’s closing bid price for its common stock was below
$1.00 per share for the prior thirty (30) consecutive business days. The Company has been granted a 180-calendar day compliance period,
or until June 18, 2025, to regain compliance with the Minimum Bid Price Requirement.If the Company is not
in compliance by June 18, 2025, the Company may be afforded a second 180-calendar day compliance period. If the Company does not regain
compliance within such compliance period, including any granted extensions, its common stock may be subject to delisting, which
delisting may be appealed to a Nasdaq hearings panel.

Common Stock Warrant Reset

On June 24, 2024, the Company entered into a private placement transaction as previously described
in NOTE 12. Stockholders’ Equity (the “June 2024 Private Placement”). As part of the June 2024 Private Placement,
the Company issued an aggregate of 1,195,219units and pre-funded units at a purchase price of $2.51per unit (less $0.00001per pre-funded unit). Each Unit consisted of (i) one share of common stock, par value $0.001per share, of the Company (the “Common Stock”) (or one pre-funded warrant to purchase one share of Common Stock),
(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 (as defined below) and in accordance with the
terms therein. The Pre-Funded Warrants were immediately exercisable at an exercise price of $0.0001per share of Common Stock and were fully exercised in August 2024. The Series A Warrants became issued and exercisable on and
after the date Stockholder Approval was obtained, has an initial exercise price of $2.51per share of Common Stock and a term of 5 years after the date that the Company obtains Stockholder Approval. Such Stockholder Approval was obtained at the annual meeting
of shareholders held on December 17, 2024 as described below. The Series A and B Warrants are now issued and exercisable at any time
after the date Stockholder Approval was obtained (December 17, 2024). Both the Series A and B warrants are subject to price and quantity
resets based on the lowest daily weighted