Company: DGLY
Filing Date: 2025-11-26
Form Type: S-1
Source: 0001493152-25-025057
Chunk: 11

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-26
Form: S-1
Chunk 11
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 or sell Common Stock or any securities exercisable, exchangeable or convertible into Common Stock at future determined prices. Subject to certain exceptions set forth in the Purchase Agreement such restrictions shall remain in effect for a period commencing on the Closing Date and ending on first day of the month next following the 36-month anniversary of the Closing Date. During the term of the Purchase Agreement, the ELOC Investor covenanted not to enter into or effect, in any manner whatsoever, directly or indirectly, any short sales of the Common Stock or hedging transaction which establishes a net short position with respect to the Common Stock.

On November 7, 2025, the Company entered into the First Amendment to the Common Stock Purchase Agreement (the “ELOC Amendment”) with the ELOC Investor. Under the ELOC Amendment, the Company paid the Commitment Fee (equal to 3.0% of the Total Commitment) on the date of the ELOC Amendment. The Commitment Fee was satisfied (i) in shares of Common Stock equal to 19.99% of the shares outstanding on the date of execution of the Purchase Agreement, with the value per share based on the 5-day VWAP ending on the tenth (10th) Trading Day following the later of (1) stockholder approval or (2) effectiveness of the Resale Registration Statement, subject to a cap equal to the full Commitment Fee and the Beneficial Ownership Limitation, and (ii) the balance in cash using 30% of the proceeds from any subsequent financings, including under the Purchase Agreement. In addition, as required under the Purchase Agreement, the Company reimbursed the ELOC Investor for reasonable legal fees and disbursements in the amount of $30,000.

Registration Rights Agreement

Concurrently with entering into the Purchase Agreement, we also entered into the Registration Rights Agreement, in which we agreed to file one or more registration statements, as necessary, to register under the Securities Act the resale of the shares of our Common Stock issuable to Yield Point NY LLC under the Purchase Agreement and the shares of Common Stock that may be issued to Yield Point NY LLC if we fail to comply with our obligations in the Registration Rights Agreement. Under the Registration Rights Agreement, we agreed to file one or more registration statements, as necessary, to register under the Securities Act the resale of all of the shares of Common Stock that may, from time to time, be issued or become issuable to Yield Point NY LLC under the Purchase Agreement and the Registration Rights Agreement.

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