Company: DGLY
Filing Date: 2025-01-16
Form Type: S-1/A
Source: 0001493152-25-002490
Chunk: 10

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-16
Form: S-1/A
Chunk 10
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’ obligations thereunder, which sale process was disclosed by the Company in a Current Report on Form 8-K filed by the Company on October 28, 2024 and again November 4, 2024.

The Company anticipates that the remaining net proceeds of $653,627 from the Private Placement after repayment of the Mosh Man Note on November 7, 2024, and after deducting placement agent fees and other offering expenses, will meet the Company’s capital needs for approximately three months after the Closing Date, subsequent to which the Company anticipates that it will need to raise additional funds to implement its business plan and to service its ongoing operations. The Company also anticipates pursuing the sale of its video solutions business in the short term.

Pursuant to the Amendment, (i) the Public Offering
Filing Deadline was amended to require the Company to file the Public Offering Registration Statement not less than 20 Trading Days after,
and not more than 30 Trading Days after, the later of (a) the annual meeting of stockholders scheduled for December 16, 2024 and (b)
the effectiveness of the Resale Registration Statement, (ii) the Offering Consummation Deadline was amended to require the Company to
use its reasonable best efforts to consummate a financing transaction within sixty (60) days of filing the Public Offering Registration
Statement, and (iii) the Resale Filing Deadline was amended to require the Company to use reasonable best efforts to file the Resale
Registration Statement on or before December 18, 2024 (but in no event later than December 20, 2024), and to use commercially reasonable
efforts to cause such Resale Registration Statement to become effective within forty-five (45) calendar days following the filing thereof
and to keep such Resale Registration Statement effective at all times until no Selling Stockholder owns any Shares. Failures to meet
any of the deadlines set forth in the foregoing sentence shall be considered Public Information Failures for which Public Information
Failure Payments shall be due pursuant to Section 4.3(b) of the Amendment.

Pursuant to the Amendment, a participation right
was added to the Purchase Agreement, such that until one (1) year following the Closing Date, the Selling Stockholders shall have the
right to receive an Offer Notice of any Offer of Offered Securities in a Subsequent Placement, which Offer Notice shall, among other
things, offer to issue and sell to or exchange with such Selling Stockholder in accordance