Company: DGLY
Filing Date: 2025-10-01
Form Type: PRE 14A
Source: 0001493152-25-016554
Chunk: 55

Company: DIGITAL ALLY, INC.
Filing Date: 2025-10-01
Form: PRE 14A
Chunk 55
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(d). In addition, our failure to obtain approval of this Proposal No. 4 when such failure would prohibit us to satisfying our obligations under the ELOC Purchase Agreement might constitute an Event of Default under the ELOC Purchase Agreement.

Additional Information

This summary is intended to provide you with basic information concerning the Committed Equity Financing. The full texts of each of the form of the ELOC Agreement and form of ELOC Registration Rights Agreement were filed as exhibits to our Current Report on Form 8-K, filed with the SEC on September 17, 2025.

Vote Required and Recommendation

The affirmative vote of the holders of a majority of the votes cast will be required to approve the ELOC Proposal.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTE TO APPROVE THE ELOC PROPOSAL.

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<div align='center'>PROPOSAL FIVE</div>

TO AMEND THE 2022 DIGITAL ALLY, INC. STOCK OPTION AND RESTRICTED STOCK PLAN TO INCREASE THE NUMBER OF SHARES RESERVED FOR ISSUANCE UNDER THE PLAN BY 375,000 SHARES TO 375,045 SHARES.

The Company is seeking stockholder approval for an amendment to the 2022 Stock Option and Restricted Stock Plan (the “2022 Plan”) to increase the number of shares reserved for issuance under the 2022 Plan from 45 shares of Common Stock to 375,045 shares of Common Stock (the “2022 Plan Amendment”). The 2022 Plan Amendment was adopted by the Board on August 23, 2023, subject to stockholder approval at the Annual Meeting. As of December 31, 2024 there were 51 subject to restricted stock awards or stock options issued. We made such grants generally in lieu of cash bonuses and compensation, which helped to conserve cash in 2022 and to-date in 2024 and plan to do the same during the remainder of 2025 and beyond. As a result of past grants, as of December 31, 2024, we have 45 shares remaining available for awards under the 2022 Plan without consideration of the additional shares proposed by the 2022 Plan Amendment. The 2022 Plan Amendment is attached to this Proxy Statement as Appendix A.

The purpose of the 2022 Plan is to offer all our employees, directors, and key consultants an opportunity to acquire a proprietary interest in our success and remain in service to the Company and to attract new employees, directors and consultants. The 2020