Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 268

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 268
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 COMMON STOCK GRANTED

|                                          |     | Terms at        
 April 5, 2023   
 (issuance date) |             |   |
|:-----------------------------------------|:----|:----------------|------------:|:--|
| Volatility – range                       |     |                 |       106.0 | % |
| Risk-free rate                           |     |                 |        3.36 | % |
| Dividend                                 |     |                 |           0 | % |
| Remaining contractual term               |     |                 |   5.0 years |   |
| Exercise price                           |     | $               | 5.50 – 7.50 |   |
| Common stock issuable under the warrants |     |                 |   1,125,000 |   |

| F-65 |

On June 2, 2023, the Purchasers elected to convert $ 125,000principal, at the fixed price of $ 5.00per share of common stock, 25,000shares valued at $ 119,750. The loss on conversion of convertible note into common shares, of $ 93,386, was recorded during the period.

On October 26, 2023, the Company entered into a Revolving Loan Agreement of which a portion of the net proceeds were used to repay the principal amount of the Convertible debt. The warrants associated with the convertible debt remain outstanding.

Revolving Loan Agreement

On October 26, 2023, the Company entered into a Loan and Security Agreement (the “Loan Agreement”) by and between the Company, Digital Ally Healthcare, Inc., a Nevada corporation and wholly-owned subsidiary of the Company (“Digital Ally Healthcare” and, together with the Company, the “Borrower”), and Kompass Kapital Funding, LLC, a Kansas limited liability company (“Kompass”). In connection with the Loan Agreement, on October 26, 2023, the Company entered into a Mortgage, Assignment of Leases and Rents, Security Agreement and Fixture Filing (the “Mortgage”) by and between the Company, as grantor, and Kompass, as grantee, and issued a Revolving Note (the “Revolving Note”) to Kompass. The gross proceeds to the Company were $ 4,880,000before repaying those certain Senior Secured Convertible Notes issued on April 5, 2023 in the aggregate amount of $ 3,162,500and paying customary fees