Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 123

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 123
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 stock issuable upon exercise of warrants issued previously and outstanding, having a weighted     
 average exercise price of $1.27 per share.                                                                                             |

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

If you invest in the securities being offered by this prospectus, your interest will be diluted immediately to the extent of the difference between the public offering price per Unit and the pro forma net tangible book value per share of our common stock after this offering.

Our historical net tangible book value as of September 30, 2024 was $(13,598,855), or $(3.38) per share of our common stock. Historical net tangible book value per share represents the amount of our total tangible assets, less total liabilities, divided by the number of shares of our common stock outstanding as of September 30, 2024.

Our pro forma net tangible book value was $(13,733,516), or $(1.74) per share of our common stock. Pro forma net tangible book value represents the amount of our total tangible assets less our total liabilities, after giving pro forma effect to (i) the issuance of senior secured promissory notes in aggregate principal amount of $3.6 million and 808,377 shares of our common stock issued as a part of the Private Placement, (ii) the use of $2,015,623 of the net proceeds of the Private Placement to pay in full all liabilities, obligations and indebtedness owed to Mosh Man, LLC and (iii) the issuance of an aggregate of 3,049,745 of our common stock upon the exercise of our Class B warrants, which were subject to reset provisions for total proceeds of $3,049.75.

After giving effect to (i) the sale of [●] Units at the assumed public offering price of $[●] per Unit (the closing sale price of our common stock on Nasdaq on [●], 2025, and assuming no sale of any Pre-Funded Units and no exercise of the Warrants issued in connection with this offering), after deducting the placement agent fees and estimated offering expenses payable by us and (ii) (1) the issuance of senior secured promissory notes in aggregate principal amount of $3.6 million and 808,377 shares of our common stock issued as a part of the Private Placement, (2) the use of $2,015,623 of the net proceeds of the Private Placement to pay in full all liabilities, obligations and indebtedness owed