Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 149

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 149
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 securities, cash or other property that the holders would have received had they exercised the warrants immediately prior to such fundamental transaction.In addition, in the event of a fundamental
transaction, as described in the Warrants and the Pre-Funded Warrants, the Company shall, at the option of the holders of the Warrants
and the Pre-Funded Warrants, exercisable at any time concurrently with, or within 30 trading days after, the consummation of the fundamental
transaction (or, if later, the date of the public announcement of the applicable fundamental transaction), purchase the Warrants and
the Pre-Funded Warrants from the holders of the Warrants and the Pre-Funded Warrants by paying to the holders of the Warrants and the
Pre-Funded Warrants an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of the Warrants and the Pre-Funded
Warrants on the date of the consummation of such fundamental transaction.

Variable Rate Transaction. As described in the Warrants, the Company, at any time until the three (3) month anniversary of the initial exercise
date, shall be prohibited from effecting or entering into an agreement to effect any issuance by the Company or any of its subsidiaries
of common stock or common stock equivalents (or a combination of units thereof) involving a Variable Rate Transaction (as defined in the Warrants).

Governing Law.The Pre-Funded Warrants and the Warrants are governed by New York law.

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<div align='center'>UNDERWRITING</div>

Aegis Capital Corp. (“Aegis” or the “underwriter”) is the sole underwriter and the book-running manager of this offering. Under the terms of an underwriting agreement (the “underwriting agreement”), which is filed as an exhibit to the registration statement of which this prospectus forms a part, we have agreed to sell to the underwriter and the underwriter has agreed to purchase, at the public offering price less the underwriting discounts and commissions set forth on the cover page of this prospectus, the following number of Units:

| Underwriter   |     | Number of Units |     | Number              
 of Pre-Funded Units |
| Aegis         
 Capital Corp. |     |                 |     |                     |

The underwriting agreement provides that the underwriter’s obligation to purchase Units and Pre-Funded Units, as the case may be, depends on the satisfaction of the conditions contained in the underwriting agreement including:

|