Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 146

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 146
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 Common Stock at
an exercise price of $6.00 and (ii) 4,607,500 pre-funded units at a public offering price of $2.98 per pre-funded unit, with each
pre-funded unit consisting of one pre-funded warrant exercisable for one share of Common Stock at an exercise price of $0.001 per
share, one Series A warrant and one Series B warrant. The pre-funded warrants were immediately exercisable and may be exercised
at any time until all of the pre-funded warrants are exercised in full.

The Series A and
Series B warrants are exercisable only upon receipt of stockholder approval of (i) certain terms in the Series A and B warrants and
the issuance of the shares of Common Stock issuable upon the exercise of such Series A and Series B warrants, as may be required by
the applicable rules and regulations of The Nasdaq Stock Market LLC and (ii) if necessary, a proposal to amend the Company’s
Articles of Incorporation, to increase the authorized share capital of the Company to an amount sufficient to cover the shares of
Common Stock issuable upon the exercise of the Series A and Series B warrants. The Series A warrants will be exercisable commencing
upon the date of public notice of Stockholder Approval until five years after such date, and the Series B Warrants will be
exercisable commencing upon the date of public notice of Stockholder Approval until two and one-half years after such date.

The offering closed on February
14, 2025. The net proceeds to the Company from the offering were approximately $13.48 million, after deducting underwriter’s fees
and the payment of other offering expenses associated with the offering payable by the Company. The Company intends to use the net proceeds
from the offering for working capital and other general corporate purposes, to pay amounts owed under a short-term merchant advance and
to pay in full the aggregate face value of senior secured promissory notes that were previously issued as part of a private placement
that the Company entered into with certain institutional investors on November 6, 2024.

The Company granted the Underwriter
an option to purchase additional shares of Common Stock and/or Series A and Series B warrants of (i) up to 15.0% of the number of shares
of Common Stock sold in the offering, (ii) up to 15.0% of the number of Series A warrants sold in the offering and (iii) up to 15.0%