Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 215

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 215
---
 22, 2025 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
May 22, 2025 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 May 22, 2025 Reverse Stock Split. All historical share and per-share amounts reflected throughout the Company’s
condensed consolidated financial statements and other financial information in this Report have been adjusted to reflect the May 22,
2025 Reverse Stock Split as if the split occurred as of the earliest period presented. The par value per share of the Company’s
Common Stock was not affected by the May 22, 2025 Reverse Stock Split.

37

Nasdaq
Notifications

As
previously disclosed, on December 20, 2024, the Company received notice from the Listing Qualifications Staff (the “Staff”)
of The Nasdaq Stock Market LLC (“Nasdaq”) that the bid price of its listed securities had closed at less than $1 per share
over the previous 30 consecutive business days, and, as a result, did not comply with Nasdaq Listing Rule 5550(a)(2) (the “Minimum
Bid Price Requirement”). Therefore, in accordance with Listing Rule 5810(c)(3)(A), the Company was provided 180 calendar days,
or until June 18, 2025, to regain compliance with the Minimum Bid Price Requirement.

As
previously disclosed, on January 2, 2025, the Staff notified the Company that it was not in compliance with Nasdaq Listing Rule 5550(b)(1),
which requires companies listed on Nasdaq to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing (the
“Stockholders’ Equity Requirement”). The Company reported stockholders’ equity (deficit) of ($2,448,310) in its
Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, and, as a result, did not satisfy the Stockholders’ Equity
Requirement pursuant to Listing Rule 5550(b)(1).

As
previously disclosed, on March 6, 2025, the Company received notice (the “March 6 Letter”) from the Staff that the Staff
had determined