Company: DGLY
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001641172-25-016976
Chunk: 8

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-27
Form: 424B4
Chunk 8
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 a proportionate   
 adjustment to the number of shares underlying the Warrants. The exercise price of the Series A Warrants and Series B Warrants            
 was reset in accordance with the foregoing provision as a result of the Reverse Stock Splits. As a result of the Reverse Stock Splits    
 and the reset provisions, the current exercise price of the Series A Warrants and Series B Warrants has been reset to $62.00.            
 Upon our issuance of our common stock or common stock equivalents at a price per share that is less than the exercise price of the       
 Series A Warrant, subject to certain exceptions, the exercise price of the Series A Warrant will be reduced to such lower price,         
 subject to a floor price set forth in the warrant, and the number of shares issuable upon exercise will be increased such that the       
 aggregate exercise price of the Series A Warrants on the issuance date for the shares of common stock underlying the Warrants then       
 outstanding shall remain unchanged. The number of shares issuable upon the exercise of the Warrants under the reset provisions           
 increases as the Company’s stock price falls deeper below the initial exercise price of the Warrants. Given the provisions               
 of the Warrants, holders of the Warrants will be issued a maximum aggregate of 347,796 shares of common stock upon the exercise of       
 all of the Series A Warrants and a maximum aggregate of 556,452 shares of common stock upon the exercise of the Series B Warrants.       
 However, if the holders of the Series B Warrants elect the “zero exercise price” option, the number of shares of common                  
 stock issuable upon exercise of the Series B Warrants would increase by a factor of three, resulting in a maximum aggregate of 1,669,356 
 shares of common stock upon the exercise of the Series  B Warrants. For reference, there were 39,626                                     
 shares of common stock outstanding as of February 14, 2025 and there are 1,727,421 shares of common stock outstanding as of the date     
 of this prospectus.                                                                                                                      
 Prior                                                                                                                                    
 to notice of the Warrant Stockholder Approval, the Floor Price was equal to 50% of the Nasdaq Minimum Price immediately prior            
 to the execution of the underwriting agreement and after public notice of the Warrant Stockholder Approval, the Floor Price is           
 20% of the Nasdaq Minimum Price immediately prior to the execution of the underwriting agreement. See “Description of Securities.”       |

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