Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 69

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 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 60 units and pre-funded units (collectively, the “June Units”)
at a purchase price of $5020.00 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) 404 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 senior secured promissory notes and the commitment shares based upon their
relative fair values as of the date of issuance as follows:

    Amount 

    Allocated to the following: 

    Senior secured promissory notes 
    $2,129,795 

    Commitment shares 
     539,455 

    Total 
    $2,669,250 

    28

Cancellation
of Restricted Stock

During
the nine months ended September