Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 3

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 3
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 below), subject to certain anti-dilution and share combination event protections, and each Series B Warrant is exercisable at an exercise price of $600.00 per share, (200% of the public offering price per Unit set forth below) subject to certain share combination event protections. The Series A Warrants are exercisable commencing upon our receipt of the Warrant Stockholder Approval (described below) and expire five (5) years after the date of the Warrant Stockholder Approval. The Series B Warrants are exercisable commencing upon our receipt of the Warrant Stockholder Approval and expire two and one-half (2.5) years from the date of Warrant Stockholder Approval. See “Description of Securities.”

Under the zero exercise price option of the Series B Warrants, a 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). As a result of this feature, we do not expect to receive any cash proceeds from the exercise of the Series B Warrants because it is highly unlikely that a Series B Warrant holder will elect to pay an exercise price in cash to receive one share of common stock when they could elect the alternate cashless exercise option and pay no exercise price to receive more shares of common stock than they would receive if they did pay an exercise price. In addition, the Series A Warrants and Series B Warrants contain a reset of the exercise price to a price equal to the lesser of (i) the then-current exercise price and (ii) the lowest volume weighted average price (“VWAP”) during the period from the trading day immediately following, until the fifth trading day following, the date we effect a reverse stock split in the future with a proportionate adjustment to the number of shares underlying the Series A Warrants and Series B Warrants, among other adjustments. The exercise price of the Series A Warrants and Series B Warrants was reset in accordance with the foregoing provision after the Company’s one-for-twenty reverse stock split that became effective as of 5:30 p.m. Eastern Time on May 6, 2025 (the “First Reverse Stock Split”) and the Company’s one-for-one hundred reverse stock split that became effective at 5:30 p.m. Eastern Time on May 22, 2025 (the “Second