Company: DGLY
Filing Date: 2025-01-16
Form Type: S-1/A
Source: 0001493152-25-002490
Chunk: 59

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-16
Form: S-1/A
Chunk 59
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ing placement agent fees and other offering expenses payable by the Company (such
transaction, the “November 2024 Private Placement”). The November 2024 Private Placement closed on November 7, 2024 (the
“November 2024 Private Placement Closing Date”). Pursuant to the November 2024 Securities Purchase Agreement, the Company
is required to use approximately $2,015,623 of the net proceeds from the November 2024 Private Placement to pay, in full, all liabilities,
obligations and indebtedness owing by the Company and its subsidiary, Kustom (the “Borrowers”), to Mosh Man, LLC (the “Lender”),
in respect of that certain promissory note and note purchase agreement and related documents by and among the Borrowers and the Lender
(collectively, the “Mosh Man Note”). The Company’s full repayment of the outstanding obligations under the Mosh Man
Note will effectively terminate the public sale process of the collateral securing the Borrowers’ obligations thereunder, which
sale process was disclosed by the Company in a Current Report on Form 8-K filed by the Company on October 28, 2024 and again November
4, 2024. The Company anticipates that the remaining net proceeds from the November 2024 Private Placement after repayment of the Mosh
Man Note, and after deducting placement agent fees and other offering expenses, will meet the Company’s capital needs for approximately
three months after the November 2024 Private Placement Closing Date, subsequent to which the Company anticipates that it will need to
raise additional funds to implement its business plan and to service its ongoing operations. The Company also anticipates pursuing the
sale of its video solutions business in the short term. Pursuant to the November 2024 Securities Purchase Agreement, the Company shall
file within 30 days of the November 2024 Private Placement Closing Date a registration statement with the SEC for a public offering and
use its reasonable best efforts to pursue and consummate a financing transaction within 90 days of the November 2024 Private Placement
Closing Date. The proceeds of the public offering shall be used as set forth in the registration statement, including the repayment of
the principal amounts of the Notes. The Company shall also file within 30 days of the November 2024 Private Placement Closing Date a
registration statement on Form S-1 (or other appropriate form if the Company is not then S-1 eligible) providing for the resale by the