Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 148

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 148
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 to certain new employees
of the Company. Such shares will generally vest over a period of one1 to two years on their respective anniversary dates in January through
January 2026, provided that each grantee remains an employee of the company on such dates.

2024 Private Placement Transaction

On June 24, 2024, the Company
entered into a private placement transaction (the “Private Placement”), pursuant to a Securities Purchase Agreement (the “Securities
Purchase Agreement”) with certain institutional investors (the “Purchasers”) for aggregate gross proceeds of approximately
$2.9 million, before deducting fees to the placement agent and other expenses payable by the Company in connection with the Private Placement.

As part of the Private Placement,
the Company issued an aggregate of 59,761 units and pre-funded units (collectively, the “June Units”) at a purchase price
of $50.20 per unit (less $0.001 per pre-funded unit). Each June Unit consists of (i) one share of Common Stock (or one pre-funded warrant to purchase one share of Common Stock (the “Pre-Funded
Warrants”)), (ii) one Series A warrant to purchase one share of Common Stock (the “Series A Warrant”) and (iii) one
Series B warrant to purchase such number of shares of Common Stock as will be determined on the Reset Date and in accordance with the
terms therein (the “Series B Warrant”, and together with the Series A Warrant, the “Warrants”).

Securities Purchase Agreement and Senior Secured
Promissory Notes

On November 6, 2024, the Company
entered into a Securities Purchase Agreement (the “SPA”) with certain institutional investors, pursuant to which the Company
agreed to issue and sell to such investors, in a private placement transaction, (i) senior secured promissory notes in aggregate principal
amount of $3,600,000, and (ii) 40,419 shares (the “Commitment Shares”) of the Company’s Common Stock, for aggregate
gross proceeds of approximately $3.0 million, before deducting placement agent fees and other offering expenses payable by the Company.
This private placement closed on November 7, 2024.

The net proceeds of the private
placement on November 7, 2024 was $2,669,250 (after $330,750 deduction of costs of the offering). The Company allocated the net proceeds
from the private placement of the