Company: DGLY
Filing Date: 2025-09-17
Form Type: 8-K
Source: 0001493152-25-013877
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Company: DIGITAL ALLY, INC.
Filing Date: 2025-09-17
Form: 8-K
Item: Item 1.01
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Item
1.01 Entry into a Material Definitive Agreement

Senior
Secured Convertible Note Financing

On
September 15, 2025, Digital Ally, Inc. (the “ Company”) entered into and consummated the initial closing (the “ First
Closing”) of the transactions contemplated by a Securities Purchase Agreement, dated as of September 15, 2025 (the “ Purchase
Agreement”), between the Company and a certain investor (the “ Purchaser”).

At
the First Closing, the Company issued and sold to the Purchaser Senior Secured Convertible Notes in the aggregate original principal
amount of $806,451.61 (the “ Notes”) and warrants (the “ Warrants”). The Purchase Agreement provided for
seven percent (7%) original interest discount resulting in gross proceeds to the Company of $750,000. Interest on the note is eight percent
(8%). The Warrants are exercisable for an aggregate 476,569 shares at an exercise price of $2.124 per share of the Company’s
common stock, par value $0.001 per share (the “ Common Stock”). Subject to applicable limitations as set forth in the
Purchase Agreement, the Warrants have an initial exercise date of September 15, 2025, and a termination date on the five-year anniversary
of the initial exercise date.

Subject
to certain conditions, within two (2) business days from the effectiveness date of the registration statement required under the Purchase
Agreement, and while the Notes remain outstanding, the Purchaser and the Company will consummate a second closing of an aggregate
of $250,000 of Notes and Warrants on the same terms and conditions as the First Closing.

The
Notes are convertible into shares of Common Stock at the election of the Purchaser at any time at a conversion price at a ten percent
(10%) discount to the volume weighted average price in the five (5) day period prior to the date of closing (the “ Conversion Price”)
per share of Common Stock. The Conversion Price is subject to customary adjustments for stock dividends, stock splits, reclassifications
and the like, and subject to price-based adjustment in the event of any issuances of Common Stock, or securities convertible, exercisable
or exchangeable for, Common Stock at a price below the then-applicable Conversion Price (subject to certain exceptions). Subject to certain
conditions, including certain equity conditions, the Company may redeem some or all of the then outstanding principal