Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 38

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 38
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, our common stock, and it would likely be more difficult to obtain coverage by securities analysts and the news media, which could cause the price of our common stock to decline further. Also, it may be difficult for us to raise additional capital if we are not listed on a national exchange.

Nasdaq Rule 5810(c)(3)(A)(iii) (the “Low Priced Stock Rule”) provides that if a company’s security has a closing bid price of $0.10 or less for ten consecutive trading days during any bid price compliance period, Nasdaq must issue a delisting determination with respect to that security. The closing price of our common stock on The Nasdaq Capital Market on February 3, 2025 was $0.1880 per share. If the stock price of our common stock falls below $0.10, we may effectuate a reverse stock split, which may assist in raising the price of our common stock over $0.10. At our annual meeting of stockholders held on December 17, 2024, our stockholders approved a proposal to authorize the Board, in its sole and absolute discretion, and without further action of the stockholders, to file an amendment to our Articles of Incorporation, to effect a reverse stock split of our issued and outstanding common stock at a ratio to be determined by the Board, ranging from one-for-five (1:5) to one-for-twenty (1:20), with such reverse stock split to be effected at such time and date, if at all, as determined by the Board in its sole discretion, but no later than December 16, 2025, when the authority granted in the proposal to implement the reverse stock split would terminate. If we receive a letter from Nasdaq indicating that we are not compliant with the Low Priced Stock Rule, we may timely request a hearing before a Hearings Panel (the “Panel”) to appeal the delisting determination, which would stay the delisting and suspension of our common stock pending the decision of the Panel. No assurances may be made as to whether our effectuation of a reverse stock would cure any future deficiencies regarding the price of our common stock for purposes of the Low Priced Stock Rule.

Our failure to comply with the agreements relating to our outstanding indebtedness, including as a result of events beyond our control, could result in an event of default that could materially and adversely affect our results of operations and our financial condition.

If
there were an event of default under any