Company: DGLY
Filing Date: 2025-01-23
Form Type: 424B3
Source: 0001493152-25-003413
Chunk: 8

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-23
Form: 424B3
Chunk 8
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 Company is required to use approximately $2,015,623 of the net proceeds from the 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 of $653,627 from the Private Placement after repayment of the Mosh Man Note on November 7, 2024, and after deducting placement agent fees and other offering expenses, will meet the Company’s capital needs for approximately three months after the 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 Amendment, (i) the Public Offering
Filing Deadline was amended to require the Company to file the Public Offering Registration Statement not less than 20 Trading Days after,
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 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