Company: DGLY
Filing Date: 2025-01-23
Form Type: 424B3
Source: 0001493152-25-003413
Chunk: 10

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-23
Form: 424B3
Chunk 10
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 following their issuance date (the “Maturity Date”) and shall accrue no interest unless and until an Event of Default (as defined in the Notes) has occurred, in which case interest shall accrue at a rate of 14% per annum during the pendency of such Event of Default. In addition, upon customary Events of Default, the Selling Stockholders may require the Company to redeem all or any portion of the Notes in cash with 125% redemption premium. The Selling Stockholders may also require the Company to redeem all or any portion of the Notes in cash upon a Change of Control, as defined in the Notes, at the prices set forth therein. Upon a Bankruptcy Event of Default (as defined in the Notes), the Company shall immediately pay to the Selling Stockholders an amount in cash representing 100% of all outstanding principal, accrued and unpaid interest, if any, in addition to any and all other amounts due under the Notes, without the requirement for any notice or demand or other action by the Selling Stockholder or any other person.

If the Company engages in one or more subsequent financings while the Notes are outstanding, the Company will be required to use at least 100% of the gross proceeds of such financing to redeem all or any portion of the Notes outstanding. The Company may also prepay the Notes in whole or in part at any time or from time to time. The Notes also contain customary representations and warranties and covenants of each of the parties. Subject to certain exceptions, the Notes are secured by a first lien and continuing security interest in and to the Collateral (as defined in the Notes).

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<div align='center'>ABOUT THIS OFFERING</div>

This prospectus relates to the offer and resale by the Selling Stockholders of up to 808,377 Shares. All of the Shares, if and when sold, will be sold by the Selling Stockholders.

| Shares                                                         
 offered by the Selling Stockholders:                           |     | Up                                                                                                                                   
 to 808,377 Shares.                                                                                                                   |
| Shares                                                         
 of common stock outstanding after completion of this offering: |     | 7,883,214(1)                                                                                                                         |
| Use                                                            
 of proceeds:                                                   |     | We                                                                                                                                   
 will not receive any of the proceeds from any sale of the Shares by the Selling Stockholders. See                                    
 “Use of Proceeds.”                                                                                                                   |
| Risk                                                           
 factors:                                                       |     | An                                                                                                                                   
 investment in our securities involves substantial risk