Company: DGLY
Filing Date: 2025-01-23
Form Type: 424B3
Source: 0001493152-25-003413
Chunk: 6

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-23
Form: 424B3
Chunk 6
---
, and not more than 30 Trading Days after, the later of (a)
the annual meeting of stockholders scheduled for December 16, 2024 and (b) the effectiveness of the registration statement described
in Section 4.15 of the Purchase Agreement (the “Resale Registration Statement”), (ii) the Offering Consummation Deadline
was amended to require the Company to use its reasonable best efforts to consummate a financing transaction within sixty (60) days of
filing the Public Offering Registration Statement, and (iii) the Resale Filing Deadline was amended to require the Company to use reasonable
best efforts to file the Resale Registration Statement on or before December 18, 2024 (but in no event later than December 20, 2024),
and to use commercially reasonable efforts to cause such Resale Registration Statement to become effective within forty-five (45) calendar
days following the filing thereof and to keep such Resale Registration Statement effective at all times until no Selling Stockholder
owns any Shares. Failures to meet any of the deadlines set forth in the foregoing sentence shall be considered Public Information Failures
for which Public Information Failure Payments shall be due pursuant to Section 4.3(b) of the Amendment.

Pursuant to the Amendment, a participation right
was added to the Purchase Agreement, such that until one (1) year following the Closing Date, the Selling Stockholders shall have the
right to receive an irrevocable written notice (the “Offer Notice”) of any proposed or intended issuance or sale or exchange
(the “Offer”) of the securities being offered (the “Offered Securities”) in a Subsequent Placement (as defined
in the Amendment), which Offer Notice shall, among other things, offer to issue and sell to or exchange with such Selling Stockholder
in accordance with the terms of the Offer such Selling Stockholder’s pro rata portion of 35% of the Offered Securities, subject
to certain conditions.

Nasdaq Notifications

As previously disclosed, on January 2, 2025, the Company received a letter (the “Notice”) from the Nasdaq Listing Qualifications staff (the “Staff”) of The Nasdaq Stock Market LLC (“Nasdaq”) stating that it was not in compliance with Nasdaq Listing Rule 5550(b)(1) (the “Stockholders’ Equity Requirement”),as the Company’s stockholders’ equity of ($2,448,310), as reported in the Company’s Quarterly Report on