Company: DGLY
Filing Date: 2025-01-03
Form Type: 8-K
Source: 0001493152-25-000238
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Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-03
Form: 8-K
Item: Item 3.01
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Item
3.01 Notice of Delisting or Failure to Satisfy a Continued Listing Rule or Standard; Transfer of Listing.

Quarterly
Report on Form 10-Q

As
previously disclosed, on November 27, 2024, Digital Ally, Inc. (the “ Company”) received a notice from the Nasdaq Stock Market
LLC (“ Nasdaq”), which indicated that, as a result of the Company’s delay in filing its Quarterly Report on Form 10-Q
for the period ended September 30, 2024 (the “ Quarterly Report”), the Company was not in compliance with Nasdaq Listing Rule
5250(c)(1) (the “ Quarterly Report Requirement”), which requires Nasdaq-listed companies to timely file all required periodic
financial reports with the U. S. Securities and Exchange Commission (the “ SEC”).

On
December 30, 2024, the Company filed the Quarterly Report. On January 2, 2025, Nasdaq delivered a written notification notifying the
Company that it had regained compliance with the Quarterly Report Requirement.

Minimum
Stockholders’ Equity Standard

On
January 2, 2025, the Company received a notice (the “ Notice”) from the staff of the Listing Qualifications department (the
“ Staff”) of Nasdaq, which indicated that the Company 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 Form 10-Q for the quarterly period ended September 30, 2024, was below the required minimum of $2.5 million, and the Company
did not meet either the alternative compliance standards relating to market value of listed securities of at least $35 million or net
income from continuing operations of at least $500,000 in the most recently completed fiscal year or in two of the last three most recently
completed fiscal years.

Under
Nasdaq listing rules and as specified in the Notice, the Company has 45 calendar days from the date of the Notice to submit to the Staff
a plan to regain compliance with the Stockholders’ Equity Requirement. If the Company’s plan to regain compliance is accepted,
Nasdaq may grant an extension of up to 180 calendar days from the date of the Notice for the Company to evidence compliance. The Company
is presently evaluating various courses of action to regain compliance