Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 191

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 191
---
  
  
    Common stock issuable under the warrants 
     562  
     562 

NOTE
12 - STOCKHOLDERS’ EQUITY

Senior
Secured Convertible Note and Committed Equity Financing

On
September 15, 2025, the Company entered into a Securities Purchase Agreement with an institutional investor (the “Purchaser”),
pursuant to which the Company issued Senior Secured Convertible Notes with an aggregate original principal amount of $806,451 and Warrants
to purchase 476,569 shares of the Company’s common stock at an exercise price of $2.124 per share. The Notes were issued at a 7%
original issue discount, providing gross proceeds of $750,000, and bear interest at 8% per annum.

The
net proceeds of the private placement on September 15, 2025 was $610,000 (after $140,000 deduction of costs of the offering). The Company
allocated the net proceeds from the private placement of the senior secured promissory notes and the detachable warrants 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 
    $290,583 

    Detachable warrants 
     319,417 

    Total 
    $610,000 

Committed
Equity Financing (ELOC)

On
September 15, 2025 (the “Closing Date”), the Company entered into a Common Stock Purchase Agreement (the “ELOC Purchase
Agreement”) with an institutional investor (the “ELOC Investor”), providing a committed equity financing facility of
up to $25 million (the “Total Commitment”) over a 36-month term. Under the agreement, and subject to certain conditions and
limitations, the Company may, at its sole discretion, direct the ELOC Investor to purchase shares of its common stock (“Purchase
Shares”) from time to time during the term of the facility.

February
2025 Public Equity Offering

On
February 13, 2025, the Company entered into an underwriting agreement (the “Underwriting Agreement”) with Aegis Capital Corp.
(the “Underwriter”) for the sale and issuance of (i) 3,925 units at a public offering price per unit of $300.00 with each
Unit consisting of one share