Company: DGLY
Filing Date: 2025-09-17
Form Type: 8-K
Source: 0001493152-25-013877
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Company: DIGITAL ALLY, INC.
Filing Date: 2025-09-17
Form: 8-K
Item: Item 1.01
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 ELOC Purchase Agreement which, when aggregated
with all other shares of Common Stock then beneficially owned by the ELOC Investor and its affiliates (as calculated pursuant to Section
13(d) of the Securities Exchange Act of 1934, as amended, and Rule 13d-3 promulgated thereunder), would result in the ELOC Investor beneficially
owning more than 4.99% of the outstanding shares of the Common Stock.

Under
the applicable rules of the Nasdaq Capital Market (the “ Nasdaq CM”), in no event may the Company issue to the ELOC Investor
and any of its affiliates under the ELOC Purchase Agreement, or otherwise, more than 345,311 shares of Common Stock, which number of
shares represents 19.99% of the shares of the Common Stock outstanding immediately prior to the execution of the Purchase Agreement (the
“ Exchange Cap”), unless the Company obtains stockholder approval to issue shares of Common Stock to the ELOC Investor and
any of its affiliates in excess of the Exchange Cap under the Purchase Agreement, or otherwise, and in accordance with applicable Nasdaq
CM listing rules. The Exchange Cap will not be applicable to limit the number of shares of Common Stock that the Company may sell to
the ELOC Investor in any ELOC Agreement Purchase that the Company effects pursuant to the ELOC Purchase Agreement (if any), to the extent
the purchase price per share paid by the ELOC Investor for the shares of Common Stock in such ELOC Agreement Purchase is equal to or
greater than the greater of book or market value of the Common Stock (calculated in accordance with the applicable listing rules of the
Nasdaq CM) at the time the Company delivers the ELOC Agreement Purchase Notice for such ELOC Agreement Purchase to the ELOC Investor,
adjusted as required by the Nasdaq CM to take into account the Company’s payment of the Commitment Fee (as defined below) to the
ELOC Investor and the amount paid as reimbursement for the legal fees and disbursements of the ELOC Investor’s counsel in connection
with this committed equity financing, each as described in more detail below, and otherwise as may be necessary to ensure compliance
with the applicable rules of the Nasdaq CM. In any event, the ELOC Purchase Agreement specifically provides that the Company may not
issue or sell any shares of Common Stock under the ELOC Purchase Agreement if such issuance or sale would breach any applicable rules
or regulations of Nasdaq CM.

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