Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 149

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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 senior secured promissory notes and the commitment shares based upon their relative fair values as of
the date of issuance as follows:

 SCHEDULE OF NET PROCEEDS FROM THE PRIVATE PLACEMENT

    Amount 

    Allocated to the following: 

    Senior secured promissory notes 
    $2,129,795 

    Commitment shares 
     539,455 

    Total 
    $2,669,250 

    33

Cancellation of Restricted Stock

During the three months ended
March 31, 2025 and 2024, the Company cancelled -0- and 56 shares due to termination of employees, respectively.

Exercise of Prefunded Warrants

During the three months ended
March 31, 2025, prefunded warrants to purchase 4,907,500 shares of Common Stock that were issued in conjunction with the February 2025
public equity offering of Common Stock, were fully exercised at an exercise price of $0.001 per share.

During the three months ended
March 31, 2025, Series B warrants to purchase 189,689 shares of Common Stock that were issued in conjunction with the June 2024 public
equity offering of Common Stock, were fully exercised for total proceeds of $3,793. In conjunction with the exercise of the Series B warrants,
the Company transitioned the related warrant derivative liability totaling $1,989,806 to equity as of their exercise date.

Reverse Stock Split

On May 6, 2025, the Company, acting pursuant to authority received at an annual meeting of its stockholders on December 17, 2024, filed
with the Secretary of State of the State of Nevada the Charter Amendment to its Articles of Incorporation, which effected a one-for-twenty
reverse stock split of all of the Company’s outstanding shares of Common Stock. Pursuant to the Charter Amendment, the Reverse Stock
Split became effective as of 5:30 p.m. Eastern Time on May 6, 2025. As a result of the Reverse Stock Split, every twenty (20) shares of
Common Stock were exchanged for one (1) share of Common Stock. The Common Stock began trading on the Nasdaq Capital Market on a split-adjusted
basis at the start of trading on May 7, 2025. The Reverse Stock Split did not affect the total number of shares of capital stock, including
the Common Stock, that the Company is authorized to issue