Company: DGLY
Filing Date: 2025-08-18
Form Type: 10-Q
Source: 0001641172-25-024667
Chunk: 179

Company: DIGITAL ALLY, INC.
Filing Date: 2025-08-18
Form: 10-Q
Item: Part I, Item 8
Chunk 179
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 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 of
Common Stock, one Series A warrant to purchase one share of Common Stock at an exercise price of $375.00 per share and one Series B warrant
to purchase one share of Common Stock at an exercise price of $600.00 and (ii) 46,075 pre-funded units at a public offering price of $298.00
per pre-funded unit, with each pre-funded unit consisting of one pre-funded warrant exercisable for one share of Common Stock at an exercise
price of $0.001 per share, one Series A warrant and one Series B warrant. The pre-funded warrants were immediately exercisable and may
be exercised at any time until all of the pre-funded warrants are exercised in full.

The Series A and Series B
warrants are exercisable only upon receipt of stockholder approval of (i) certain terms in the Series A and B warrants and the issuance
of the shares of Common Stock issuable upon the exercise of such Series A and Series B warrants, as may be required by the applicable
rules and regulations of The Nasdaq Stock Market LLC and (ii) if necessary, a proposal to amend the Company’s Articles of Incorporation,
to increase the authorized share capital of the Company to an amount sufficient to cover the shares of Common Stock issuable upon the
exercise of the Series A and Series B warrants. The Series A warrants will be exercisable commencing upon the date of public notice of
Stockholder Approval until five years after such date, and the Series B Warrants will be exercisable commencing upon the date of public
notice of Stockholder Approval until two and one-half years after such date.

The offering closed on February
14, 2025. The net proceeds to the Company from the offering were approximately $13.48 million, after deducting underwriter’s fees
and the payment of other offering expenses associated with the offering payable by the Company. The Company intends to use the net proceeds
from the offering for working capital and other general corporate purposes, to pay amounts owed under a short-term merchant advance and
to pay in full the aggregate face value of senior secured promissory notes that