Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 253

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 2
Chunk 253
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2025, to regain
compliance with the Minimum Bid Price Requirement.

As previously disclosed, on
January 2, 2025, the Staff notified the Company that it was not in compliance with Nasdaq Listing Rule 5550(b)(1), which requires companies
listed on Nasdaq to maintain a minimum of $2,500,000 in stockholders’ equity for continued listing (the “Stockholders’
Equity Requirement”). The Company reported stockholders’ equity (deficit) of ($2,448,310) in its Quarterly Report on Form
10-Q for the quarter ended September 30, 2024, and, as a result, did not satisfy the Stockholders’ Equity Requirement pursuant to
Listing Rule 5550(b)(1).

As previously disclosed, on
March 6, 2025, the Company received notice (the “March 6 Letter”) from the Staff that the Staff had determined that as of
March 5, 2025, the Company’s securities had a closing bid price of $0.10 or less for ten consecutive trading days triggering application
of Listing Rule 5810(c)(3)(A)(iii) which states in part: if during any compliance period specified in Rule 5810(c)(3)(A), a company’s
security has a closing bid price of $0.10 or less for ten consecutive trading days, the Listing Qualifications Department shall issue
a Staff Delisting Determination under Rule 5810 with respect to that security (the “Low Priced Stocks Rule”).

The Company timely requested
a hearing before the Panel to appeal the March 6 Letter and to address all outstanding matters, including compliance with the Minimum
Bid Price Requirement, the Low-Priced Stocks Rule and the Stockholders’ Equity Requirement. While the appeal process was pending, the suspension of trading of the Company’s Common Stock,
was stayed and the Common Stock continued to trade on the Nasdaq Capital Market until the hearing process concludes, and the Panel
issues a written decision. The Company held its hearing with the Panel as scheduled on April 17, 2025.

43

On May 1, 2025, the Panel rendered its
decision which granted the Company’s request for continued listing on the Nasdaq Exchange. Such decision is subject to the
Company meeting and maintaining the following conditions:

    ●
    On or before May 2, 2025, the Company shall file Form 10-K for 2024 in