Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 65

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 is authorized to issue, which remain as set forth pursuant to the Articles of Incorporation. No fractional
shares of Common Stock were issued in connection with the Reverse Stock Split. Stockholders who otherwise were entitled to receive fractional
shares of Common Stock were automatically entitled to receive an additional fraction of a share of Common Stock to round up to the next
whole share, at a participant level. The Reverse Stock Split also had a proportionate effect on all other options and warrants of the
Company outstanding as of the effective date of the Reverse Stock Split. The Reverse Stock Split was effective as of the time of this
filing.

Notices of Failure to Satisfy a Continued Listing
Rule

Minimum Bid Price Requirement
- 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 operations of at least $500,000 in the most recently completed fiscal year