Company: DGLY
Filing Date: 2025-06-17
Form Type: POS AM
Source: 0001641172-25-015434
Chunk: 48

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-17
Form: POS AM
Chunk 48
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 Approval, have an exercise price of $375.00 per share of common stock (equal to 125% of the public offering price per Unit, subject to certain anti-dilution and share combination event protections, as further set forth below) and expire five (5) years from the date of Warrant Stockholder Approval.

The Series B Warrants are exercisable commencing upon Warrant Stockholder Approval, have an exercise price of $600.00 per share of common stock (equal to 200% of the public offering price per Unit, subject to certain share combination event protections, as further set forth below) per share of common stock and expire two and one-half (2.5) years from the date of Warrant Stockholder Approval.

Beginning on the Reset Date, the exercise price of the Warrants were reset to a price equal to the greater of (i) the Floor Price, as defined in the Warrants, in effect on the Reset Date, and (ii) the lowest VWAP during the Reset Period. In addition, following a reverse stock split, the exercise price of the Warrants will be adjusted to equal the lowest single-day VWAP during the period from the trading day immediately following, until the fifth trading day following the reverse stock split with a proportionate adjustment to the number of shares underlying the Warrants. 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. 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.

Adjustment for Subsequent Issuances.Subject to certain exceptions, if the Company sells any common stock (or securities convertible into or exercisable into common stock) at a price per share (or conversion or exercise price, as applicable) less than the exercise price of the Series A Warrants then in effect, then the exercise price of the Series A Warrants will be reduced to such lower price (subject to a minimum exercise price of $155.00 prior to Warrant Stockholder Approval (50% of the Nasdaq Minimum Price immediately prior to the execution of the underwriting agreement and a minimum exercise price of $62.00 after Warrant Stockholder Approval (20