Company: DGLY
Filing Date: 2025-03-04
Form Type: DEF 14A
Source: 0001493152-25-008945
Chunk: 12

Company: DIGITAL ALLY, INC.
Filing Date: 2025-03-04
Form: DEF 14A
Chunk 12
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<div align='center'>PROPOSAL NO. 1

TO APPROVE AN amendment to our Articles of Incorporation to increase the number of authorized shares of our capital stock that we may issue from 210,000,000 shares to 5,010,000,000 shares, of which 5,000,000,000 shares shall be classified as Common Stock</div>

Proposal No. 1 seeks your approval of an amendment to our Articles of Incorporation (the “Additional Common Stock Authorization”) to increase the number of authorized shares of capital stock that we may issue from 210,000,000 shares to 5,010,000,000 shares, of which 5,000,000,000 shares shall be classified as Common Stock. The Additional Common Stock Authorization was adopted by the Board on February 12, 2025, subject to stockholder approval at the Special Meeting. The form of amendment to amend our Articles of Incorporation (the “Amended Articles”), pursuant to which the Additional Common Stock Authorization would be effected, in the event Proposal No. 1 is approved by stockholders at the Special Meeting, is attached to this Proxy Statement as Appendix A.

Increase in Authorized Shares of Common Stock

We believe that an increase in the number of our authorized shares of Common Stock is prudent to assure that a sufficient number of shares of our Common Stock is available for issuance in the future if our Board of Directors deems it to be in the best interests of our stockholders and us. Our Board of Directors has determined a total of 5,000,000,000 shares of Common Stock to be a reasonable estimate of what might be required in this regard for the foreseeable future to (i) issue Common Stock in acquisitions or strategic transactions and other proper corporate purposes that may be identified by our Board in the future; (ii) issue Common Stock to augment our capital and increase the ownership of our Common Stock; and (iii) provide incentives through the grant of stock options and restricted stock to employees, directors, officers, independent contractors, and others important to our business under our stock option plans. Immediately following this increase, the Company will have approximately 4,920,748,682 shares of Common Stock authorized but unissued and available for issuance. As of the Record Date, we have 79,251,318 shares of Common Stock issued, 52,500 shares issuable upon exercise of outstanding options and 7,101,095 shares issuable upon exercise of outstanding warrants