Company: DGLY
Filing Date: 2025-10-01
Form Type: PRE 14A
Source: 0001493152-25-016554
Chunk: 48

Company: DIGITAL ALLY, INC.
Filing Date: 2025-10-01
Form: PRE 14A
Chunk 48
---
 of Common Stock, may require stockholder approval.

If our stockholders do not approve this Proposal, (i) the Convertible Notes will not be fully convertible and the Warrants will not be fully exercisable in a manner that complies with Nasdaq Marketplace Rule 5635(d). In addition, our failure to obtain approval of this Proposal No. 3 when such failure would prohibit us to satisfying our obligations under the Convertible Notes and the Warrants might constitute an Event of Default under the Convertible Notes and Warrants, and result in an obligation to immediately purchase back in cash any outstanding principal amount of the Convertible Notes or unexercised Warrants at the amounts as described in the Convertible Notes and Warrants, as applicable.

Additional Information

This summary is intended to provide you with basic information concerning the Securities Purchase Agreement, the Convertible Notes and the Warrants. The full text of the Purchase Agreement, the form of Convertible Notes, and the form of Warrants were filed as exhibits to our Current Report on Form 8-K filed with the SEC on September 17, 2025.

Vote Required and Recommendation

The affirmative vote of the holders of a majority of the votes cast will be required to approve the Note and Warrant Proposal.

THE BOARD UNANIMOUSLY RECOMMENDS A VOTE TO APPROVE THE NOTE AND WARRANT PROPOSAL.

| 31 |

<div align='center'>PROPOSAL FOUR

APPROVAL TO ISSUE ALL OF THE PURCHASE SHARES IN CONNECTION WITH THE COMMITTED EQUITY FINANCING</div>

Summary

The purpose of this Proposal is to approve the transactions contemplated by the common stock purchase agreement, entered into as of September 15, 2025 the ELOC Purchase Agreement, by and between the Company and a certain institutional investor, including, the issuance of 20% or more of our outstanding shares of Common Stock pursuant to the ELOC Purchase Agreement.

Background

On September 15, 2025 the Closing Date, the Company entered into a Common Stock Purchase Agreement the ELOC Purchase Agreement, with an certain investor (the “ELOC Investor”), providing for a committed equity financing facility, pursuant to which, upon the terms and subject to the satisfaction of the conditions contained in the ELOC Purchase Agreement, the ELOC Investor has committed to purchase, at the Company’s direction in its sole discretion, up to an aggregate of $25,000,000 (the “Total Commitment”) of the shares of the Company’s Common Stock,