Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 175

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 175
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 net exposure to zero at September 30, 2025 and December
31, 2024. Our estimate with respect to the aggregate reasonably possible loss is based upon currently available information and is subject
to significant judgment and a variety of assumptions and known and unknown uncertainties, which may change quickly and significantly
from time to time, particularly if and as we engage with applicable governmental agencies or plaintiffs in connection with a proceeding.
Also, the matters underlying the reasonably possible loss will change from time to time. As a result, actual results may vary significantly
from the current estimate.

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