Company: DGLY
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001641172-25-016976
Chunk: 50

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-27
Form: 424B4
Chunk 50
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 exercise of the underwriter’s option to purchase Warrants.

We also agreed to reimburse the underwriter for certain of its expenses, including “roadshow,” diligence, and reasonable legal fees and disbursements, in an amount not to exceed $200,000 in the aggregate. The total expenses of the Offering payable by us, excluding underwriting discounts and non-accountable expense allowance, were approximately $322,492.54.

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Stabilization

In accordance with Regulation M under the Exchange Act, the underwriter may engage in activities that stabilize, maintain or otherwise affect the price of our common stock, including short sales and purchases to cover positions created by short positions, stabilizing transactions, syndicate covering transactions, penalty bids and passive market making.

| ● | Short                                                                                              
 positions involve sales by the underwriter of shares of common stock in excess of the number       
 of shares the underwriter is obligated to purchase, which creates a syndicate short position.      
 The short position may be either a covered short position or a naked short position. In a          
 covered short position, the number of shares involved in the sales made by the underwriter         
 in excess of the number of shares they are obligated to purchase is not greater than the           
 number of shares that they may purchase by exercising their option to purchase additional          
 shares. In a naked short position, the number of shares involved is greater than the number        
 of shares in their option to purchase additional shares. The underwriter may close out any         
 short position by either exercising their option to purchase additional shares or purchasing       
 shares in the open market.                                                                         |
| ● | Stabilizing                                                                                        
 transactions permit bids to purchase the underlying security as long as the stabilizing bids       
 do not exceed a specific maximum price.                                                            |
| ● | Syndicate                                                                                          
 covering transactions involve purchases of our shares of common stock in the open market           
 after the distribution has been completed to cover syndicate short positions. In determining       
 the source of shares to close out the short position, the underwriter will consider, among         
 other things, the price of shares available for purchase in the open market as compared to         
 the price at which they may purchase shares through the underwriter’s option to purchase           
 additional shares. If the underwriter sells more shares than could be covered by the underwriter’s 
 option to purchase additional shares, thereby creating a naked short 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