Company: DGLY
Filing Date: 2025-06-27
Form Type: 424B4
Source: 0001641172-25-016976
Chunk: 1

Company: DIGITAL ALLY, INC.
Filing Date: 2025-06-27
Form: 424B4
Chunk 1
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 the Series B Warrants, a holder of the Series B Warrant has the right to receive an aggregate number of shares equal to the product of (x) the aggregate number of shares of common stock that would be issuable upon a cash exercise of the Series B Warrant and (y) three (3.0). As a result of this feature, we do not expect to receive any cash proceeds from the exercise of the Series B Warrants because it is highly unlikely that a Series B Warrant holder will elect to pay an exercise price in cash to receive one share of common stock when they could elect the alternate cashless exercise option and pay no exercise price to receive more shares of common stock than they would receive if they did pay an exercise price. In addition, the Series A Warrants and Series B Warrants contain a reset of the exercise price to a price equal to the lesser of (i) the then-current exercise price and (ii) the lowest volume weighted average price (“VWAP”) during the period from the trading day immediately following, until the fifth trading day following, the date we effect a reverse stock split in the future with a proportionate adjustment to the number of shares underlying the Series A Warrants and Series B Warrants, among other adjustments. The exercise price of the Series A Warrants and Series B Warrants was reset in accordance with the foregoing provision after the Company’s one-for-twenty reverse stock split that became effective as of 5:30 p.m. Eastern Time on May 6, 2025 (the “First Reverse Stock Split”) and the Company’s one-for-one hundred reverse stock split that became effective at 5:30 p.m. Eastern Time on May 22, 2025 (the “Second Reverse Stock Split”, and together with the First Reverse Stock Split, the “Reverse Stock Splits”). As a result of the Reverse Stock Splits and the reset provisions, the current exercise price of the Series A Warrants and Series B Warrants has been reset to $62.00. Additionally, upon our issuance of our common stock or common stock equivalents at a price per share that is less than the exercise price of the Series A Warrant, subject to certain exceptions, the exercise price of the Series A Warrant will be reduced to such lower price, subject to a floor price set forth in the warrant, and the number of shares issuable upon exercise will be increased such that the aggregate exercise price of the Series A Warrants on the issuance date for the shares of common