Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 293

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 293
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arrants are now issued and exercisable at any time
after the date Stockholder Approval was obtained (December 17, 2024). Both the Series A and B warrants are subject to price and quantity
resets based on the lowest daily weighted average trading price of the shares of Common Stock during a period of 20 trading days, subject
to a pricing reset floor of $0.502per share of Common Stock. Based on the Stockholder Approval date of December 17, 2024 and the weighted average trading price
experienced, the Series A and B warrants both reset to the floor price of $0.502per share and the number of shares underlying the Series A Warrants and Series B Warrants were reset to approximately 5,976,095shares and 4,780,877shares, respectively. Both the Series A and B warrants are now fully issued and exercisable subsequent to December 17, 2024.

Common Stock Issuance

The Company
issued 698,000 shares
of common stock subsequent to September 30, 2024, upon the exercise of common stock purchase Series B warrants.

On November 6, 2024, the Company entered into a SPA with certain institutional
investors, pursuant to which the Company issued to such institutional investors, in a private placement transaction, (i) senior secured
promissory notes in aggregate principal amount of $3,600,000, and (ii) 808,377 shares of the Company’s common stock, for aggregate
gross proceeds of approximately $3.0 million.

Termination of Material Definitive Agreement.

On June 1, 2023, the Company and its wholly owned subsidiary Kustom Entertainment, Inc. (“Kustom”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Clover Leaf Capital Corp., (“Clover Leaf”), and their subsidiary whereby Kustom and Clover Leaf would merge.

On November 7, 2024, pursuant to provisions of the Merger Agreement, the Company, Clover Leaf, and related entities the parties entered into a Mutual Termination and Release Agreement (the “Termination Agreement”) to terminate the Merger Agreement. As a result of the Termination Agreement, the Merger Agreement was fully terminated and is of no further force and effect.

Amendments to Company Bylaws

On November 6, 2024, the Company adopted Amendment No. 1 to its Corporate Bylaws with the approval of the Company’s board of