Company: DGLY
Filing Date: 2025-09-26
Form Type: DRS
Source: 0001493152-25-015027
Chunk: 9

Company: DIGITAL ALLY, INC.
Filing Date: 2025-09-26
Form: DRS
Chunk 9
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 held by non-affiliates is less than $250 million measured on the last business day of our second fiscal quarter or (ii) our annual revenue is less than $100 million during the most recently completed fiscal year and the market value of our stock held by non-affiliates is less than $700 million measured on the last business day of our second fiscal quarter. For so long as we remain a smaller reporting company, we are permitted and intend to rely on exemptions from certain disclosure and other requirements that are applicable to other public companies that are not smaller reporting companies.

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<div align='center'>THE TRANSACTION</div>

General

On September 15, 2025, the Company entered into aCommon Stock Purchase Agreement (the “ELOC Purchase Agreement”),
with an certain investor (the “ELOC Investor”), providing for a committed equity financing facility, pursuant to which, upon
the terms and subject to the satisfaction of the conditions contained in the ELOC Purchase Agreement, the ELOC Investor has committed
to purchase, at the Company’s direction in its sole discretion, up to an aggregate of $25,000,000 (the “Total Commitment”)
of the shares of the Company’s Common Stock, subject to certain limitations set forth in the ELOC Purchase Agreement, from time
to time during the term of the ELOC Purchase Agreement (the “Purchase Shares”). Concurrently with the execution of the ELOC
Purchase Agreement, the Company and the ELOC Investor also entered into a Registration Rights Agreement, dated as of September 15, 2025
(the “ELOC Registration Rights Agreement”), pursuant to which the Company agreed to file with the SEC one or more registration
statements, to register under the Securities Act, the offer and resale by the ELOC Investor of all of the Purchase Shares that may be
issued and sold by the Company to the ELOC Investor from time to time under the ELOC Purchase Agreement.

Purchase of Shares under the ELOC Purchase Agreement

From and after the Commencement Date, the Company will have the right, but not the obligation, from time to time at the Company’s sole discretion, to direct the ELOC Investor to purchase amounts of Purchase Shares that are specified by the Company to the ELOC Investor in writing, subject to certain maximum amounts calculated pursuant to the ELOC Purchase Agreement (each such purchase, an “ELOC Agreement Purchase”). The purchase price per share to be paid by the ELOC Investor for Purchase Shares that the Company may elect to sell to