Company: DGLY
Filing Date: 2025-11-12
Form Type: PRER14A
Source: 0001493152-25-021783
Chunk: 44

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: PRER14A
Chunk 44
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 * % |

* Represents less than 1%.

| (1) | Based                                                                                                                             
 on 1,898,436 shares of common stock issued and outstanding as of November 10, 2025 and, with respect only to the ownership        
 by all executive officers and directors as a group                                                                                |
| (2) | The business address of Yield Point NY, LLC is 23 Tammy                                                                           
 Rd, Spring Valley, NY 10977. As manager of Yield Point NY, LLC, Ari Kluger may be deemed to be the beneficial owner of the shares 
 reported herein.                                                                                                                  |
| (3) | Mr.                                                                                                                               
 Ross’s total shares of common stock include 9 restricted shares that are subject to forfeiture to us.                             |
| (4) | Mr.                                                                                                                               
 Richie’s total shares of common stock include 9 shares of common stock to be received upon the exercise                           
 of vested options.                                                                                                                |
| (5) | Mr.                                                                                                                               
 Heckman’s total shares of common stock include 43 shares of common stock held in the Company’s 401(k)                             
 Retirement Savings Plan the 401(k) Plan (on December 31, 2024) as to which Mr. Heckman has voting power as trustee of the 401(k)  
 Plan.                                                                                                                             |
| (6) | Mr.                                                                                                                               
 Han’s total shares of common stock include (i) 9 restricted shares that are subject to forfeiture to us and (ii)                  
 1 shares of common stock to be received upon the exercise of vested options.                                                      |

| 29 |

<div align='center'>PROPOSAL THREE

APPROVAL OF THE NOTE AND WARRANT PROPOSAL</div>

Summary

The purpose of this Proposal is to approve the transactions contemplated by the securities purchase agreement, entered into as of September 15, 2025, by and between the Company and a certain institutional investor, including, the issuance of 20% or more of our outstanding shares of our Common Stock, par value $0.001 per share Common Stock upon (i) conversion of the senior secured convertible notes due September 15, 2026, and (ii) exercise of the Common Stock Purchase Warrants dated September 15, 2025

Background

On September 15, 2025, Digital Ally, Inc. (the “Company”) entered into and consummated the initial closing (the “First Closing”) of the transactions contemplated by a Securities Purchase Agreement,