Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
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Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
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 expect that the pending lawsuit or the enforcement
of the judgment will have a material adverse effect on our operations, financial condition or cash flows. However, the outcome of any
litigation is inherently uncertain and there can be no assurance that any expense, liability or damages that may ultimately result from
the resolution of the pending lawsuit or enforcement of the judgment will be covered by our insurance or will not be in excess of amounts
recognized or provided by insurance coverage and will not have a material adverse effect on our operating results, financial condition
or cash flows.

Notices
of Failure to Satisfy a Continued Listing Rule

Minimum
Bid Price Requirement – On December 20, 2024, the Company received a written notification from The Nasdaq Stock Market LLC
indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2) (the “Minimum Bid Price Requirement”),
as the Company’s closing bid price for its Common Stock was below $1.00 per share for the prior thirty (30) consecutive business
days. The Company has been granted a 180-calendar day compliance period, or until June 18, 2025, to regain compliance with the Minimum
Bid Price Requirement. If the Company is not in compliance by June 18, 2025, the Company may be afforded a second 180-calendar day compliance
period. If the Company does not regain compliance within such compliance period, including any granted extensions, its Common Stock may
be subject to delisting, which delisting may be appealed to a Nasdaq hearings panel.

Minimum
Stockholders’ Equity Standard - On January 2, 2025, the Company received a notice (the “Notice”) from the staff
of the Listing Qualifications department (the “Staff”) of Nasdaq, which indicated that the Company was not in compliance
with Nasdaq Listing Rule 5550(b)(1) (the “Stockholders’ Equity Requirement”), as the Company’s stockholders’
equity of ($2,448,310), as reported in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30,
2024, was below the required minimum of $2.5 million, and the Company did not meet either the alternative compliance standards relating
to market value of listed securities of at least $35 million or net income from continuing operations of at least $500,000 in the most
recently completed fiscal year or in two of the last three most recently completed fiscal years