Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 45

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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 vary significantly from the current estimate.

    24

While the ultimate resolution
is unknown, based on the information currently available, we do not expect that the pending lawsuit or the enforcement of the judgment
will have a material adverse effect on our operations, financial condition or cash flows. However, the outcome of any litigation is inherently
uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of the pending
lawsuit or enforcement of the judgment will be covered by our insurance or will not be in excess of amounts recognized or provided by
insurance coverage and will not have a material adverse effect on our operating results, financial condition or cash flows.

Notices of Failure to Satisfy a Continued
Listing Rule

Minimum Bid Price Requirement
– On December 20, 2024, the Company received a written notification from The Nasdaq Stock Market LLC indicating that the Company
was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”), 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.

Minimum Stockholders’
Equity Standard - On January 2, 2025, the Company received a notice (the “Notice”) from the staff of the Listing Qualifications
department (the “Staff”) of Nasdaq, which indicated that the Company was not in compliance with Nasdaq Listing Rule 5550(b)(1)
(the “Stockholders’ Equity Requirement”), as the Company’s stockholders’ equity of ($2,448,310), as reported
in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, was below the required minimum
of $2.5 million, and the Company did not meet either the alternative compliance standards relating to market value of listed securities
of at least $35 million or net income from continuing