Company: DGLY
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001641172-25-016976
Chunk: 45

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-27
Form: 424B4
Chunk 45
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 may, in its sole discretion, elect to exercise the Warrants, as applicable, through a cashless exercise, in which case the holder would receive upon such exercise the net number of shares of common stock determined according to the formula set forth in the Warrants, as applicable.

No fractional shares of common stock will be issued in connection with the exercise of a Warrant. In lieu of fractional shares, we will pay the holder an amount in cash equal to the fractional amount multiplied by the exercise price.

Under the zero exercise price option, the holder of the Series B Warrant, has the right to receive an aggregate number of shares equal to the product of (x) the aggregate number of shares of common stock that would be issuable upon a cash exercise of the Series B Warrant and (y) three (3.0).

Exercise Limitation.A holder will not have the right to exercise any portion of the Warrants if the holder (together with its affiliates) would beneficially own in excess of 4.99% (or, upon election by a holder prior to the issuance of any warrants, 9.99%) of the number of shares of common stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the terms of the Warrants. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99%, upon at least 61 days’ prior notice from the holder to us with respect to any increase in such percentage.

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The Series A Warrants are exercisable upon Warrant Stockholder Approval, have an exercise price of $375.00 per share of common stock (equal to 125% of the public offering price per Unit, subject to certain anti-dilution and share combination event protections, as further set forth below) and expire five (5) years from the date of Warrant Stockholder Approval.

The Series B Warrants are exercisable commencing upon Warrant Stockholder Approval, have an exercise price of $600.00 per share of common stock (equal to 200% of the public offering price per Unit, subject to certain share combination event protections, as further set forth below) per share of common stock and expire two and one-half (2.5) years from the date of Warrant Stockholder Approval.

Beginning on the Reset Date, the exercise price of the Warrants were reset to a price equal to the greater of (i) the Floor Price, as defined in the W