Company: DGLY
Filing Date: 2025-03-04
Form Type: DEF 14A
Source: 0001493152-25-008945
Chunk: 27

Company: DIGITAL ALLY, INC.
Filing Date: 2025-03-04
Form: DEF 14A
Chunk 27
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, of the exercise price of any and all currently outstanding warrants pursuant    
 to Section 3.10 of the Series A Warrant and Section 3.9 of the Series B Warrant.                                                        |

| 15 |

Background

On February 14, 2025, the Company consummated a public offering (the “Offering”) pursuant to which the Company issued 7,850,000 Units consisting of (i) one share of Common Stock; (ii) one Series A Warrant; and (iii) one Series B Warrant. The Company also issued 92,150,000 pre-funded units consisting of (i) one Pre-Funded Warrant; (ii) one Series A Warrant; and (iii) one Series B Warrant at a price of $0.149 per Pre-Funded Unit. The Pre-Funded Warrants included in the Pre-Funded Units are exercisable upon issuance until exercised in full at an exercise price of $0.001.

The Offering was made pursuant to that certain Registration Statement on Form S-1 (File No. 333-284448), as amended, which was originally filed on January 24, 2025, and declared effective by the SEC on February 12, 2025.

The closing of the Offering occurred on February 14, 2025. The Company received net proceeds of approximately $13.48 million from the Offering, after deducting the estimated offering expenses payable by the Company, including the underwriting fees. The Company intends to use the net proceeds from the Offering for working capital and other general corporate purposes, to pay in full the approximate $1.910 million aggregate amount owed under the Short-Term Merchant Advance, dated November 29, 2023 and amended March 14, 2024, issued by the Company and Kustom to Agile Capital Funding, LLC, a New York limited liability company, and to pay in full the $3.6 million aggregate face value of senior secured promissory notes issued as part of the private placement transaction that the Company entered into with certain institutional investors on November 6, 2024.

In connection with the Offering, the Company entered into a Underwriting Agreement with Aegis Capital Corp. (the “Underwriter”), as the exclusive underwriter in connection with the Offering. As compensation to the Underwriter, the Company paid the Underwriter a cash fee of 7% of the aggregate gross proceeds raised in the Offering and reimbursed certain expenses of the Underwriter.

The