Digital Ally Inc SEC Filings

Digital Ally, Inc. (DGLY) filed its Q3 2025 report, showing modest top-line growth but continued losses. Q3 revenue was $4.54 million (up from $4.05 million), as service and other revenue rose to $3.87 million while product revenue fell to $0.66 million. Gross profit was $1.37 million, and the company reported an operating loss of $1.12 million, a marked improvement versus the prior-year quarter that included a $4.83 million impairment.

Net loss attributable to common stockholders for Q3 was $1.02 million, versus $3.47 million a year ago. For the nine months, revenue totaled $14.64 million and operating loss was $6.19 million. Cash was $793,360 at September 30, 2025. Current liabilities dropped to $9.80 million from $29.73 million at year-end, helped by lower accounts payable, reduced debt due within a year, and a decline in warrant derivative liabilities to $1,116.

The company executed reverse stock splits of 1-for-20 on May 6, 2025 and 1-for-100 on May 22, 2025. Financing activities in 2025 included $14.31 million net proceeds from a February public equity offering with warrants and $610,000 from September senior secured convertible notes. Shares outstanding were 1,898,436 as of November 12, 2025.

Digital Ally, Inc. entered into a First Amendment to its Common Stock Purchase Agreement with an investor effective November 7, 2025. The amendment sets how the Commitment Fee will be paid: a portion in shares of common stock equal to 19.99% of the shares outstanding on September 15, 2025, with the value per share based on the 5-day VWAP ending on the tenth trading day after the later of stockholder approval or the resale registration becoming effective, capped at the full commitment fee and subject to the agreement’s Beneficial Ownership Limitation. The remaining balance of the fee will be paid in cash using 30% of proceeds from subsequent financings, including the purchase agreement.

The company filed the form of this amendment as an exhibit. The structure combines stock and cash components tied to future corporate milestones and financing activity.

Digital Ally, Inc. received a joint Schedule 13G from Yield Point NY LLC and Yisroel Ari Kluger disclosing potential beneficial ownership of 191,722 shares of common stock, representing 9.9% of the 1,727,421 shares outstanding as of October 2, 2025. The reported position arises from a combination of 476,569 warrants and a senior secured convertible note with a principal of approximately $806,451, the economic interaction of which is limited by "Blocker" provisions that cap beneficial ownership at 9.99%.

The filing clarifies that Yield Point holds the instruments directly and Mr. Kluger, as director of Yield Point, has shared voting and disposition power over the 191,722 shares; Mr. Kluger does not directly own the shares. The Reporting Persons state the holdings were not acquired to change or influence control and have executed a joint filing agreement.

Digital Ally, Inc. preliminary proxy seeks stockholder approval for several governance items including a request to amend the 2022 Stock Option and Restricted Stock Plan to increase the number of shares reserved for issuance by 375,000 shares, bringing the total reserved to 375,045 shares. The filing also includes two non-binding advisory proposals: one to approve the compensation paid to the company’s named executive officers and one to set the frequency of that advisory vote.

The document lists board changes and director backgrounds, including Charles M. Anderson, who joined the board in December 2024 and is described as CEO of Alien Audio since 2007. Summary compensation figures shown include $348,525 total for Thomas J. Heckman in 2023 and $54,808 for 2024, and totals for Peng Han of $285,771 in 2023 and $150,541 in 2024.

Digital Ally, Inc. filed a Form D claiming a Regulation D exemption under Rule 506(b) for an equity offering of up to $25,000,000. The filing shows $0 sold to date with $25,000,000 remaining and indicates the first sale has yet to occur. The issuer is organized in Nevada, lists its principal place of business in Overland Park, Kansas, and classifies its industry as Other Technology. The issuer reported one investor so far, a minimum investment accepted of $0, no sales commissions or finders' fees, and $0 of proceeds allocated to named officers or directors. The notice was signed by Stanton E. Ross, Chairman and CEO on 2025-09-26.

Digital Ally, Inc. filed a Form D notice reporting a Rule 506(b) exempt offering of convertible notes convertible into the companys common stock. The issuer set a total offering target of $1,000,000 and reports $750,000 sold with $250,000 remaining to be sold.

The filing identifies executive officers and directors at the issuers Overland Park, Kansas address, lists the offering as a new notice with the first sale on 2025-09-15, indicates the offering will not last more than one year, reports no sales commissions or finders fees, and shows 1 investor has already invested. The convertible note will convert into common stock, par value $0.001 per share.

Digital Ally, Inc. entered into a senior secured convertible note and warrant financing and a separate committed equity facility to access additional capital. On September 15, 2025, the company issued notes with an aggregate original principal of $806,451.61 at a 7% original issue discount for gross proceeds of $750,000, bearing 8% interest, together with warrants for 476,569 common shares at an exercise price of $2.124 per share. A second closing for an additional $250,000 of notes and warrants may occur if conditions are met. The notes are convertible at a 10% discount to the five-day volume-weighted average price and may be redeemed by the company at 110% of principal, and are secured by substantially all assets and subsidiary guarantees, with specified exceptions.

The company also put in place an equity line of credit under which an investor has committed to purchase up to $25,000,000 of common stock over a term of up to 36 months, at a price equal to 92% of the lowest daily trading price over a three-day valuation period per draw, subject to ownership caps, Nasdaq exchange limits, and trading-volume based size formulas. The facility includes a 3% commitment fee, partly payable in shares and partly in cash from a portion of future financing proceeds, and requires registration of resale shares and compliance with leak-out, no-variable-rate and no-short-sale covenants.

Digital Ally, Inc. (DGLY) reported a quarter marked by corporate restructurings, financings and continued operating losses. Management completed two reverse stock splits (1-for-20 effective May 6, 2025 and 1-for-100 effective May 22, 2025) and adjusted historical share amounts accordingly. The company raised approximately $14.3 million in a February 2025 underwritten public offering and used proceeds to repay debt, pay accounts payable and fund operations. Liquidity improved: working capital moved to a positive $119,506 and stockholders' equity to $8,151,705 from deficits at year-end 2024. However, the company recorded an accumulated deficit of $137.8 million, reported net cash used in operating activities of $8.64 million for the six months ended June 30, 2025, and continues to disclose substantial doubt about its ability to continue as a going concern. The period included non-cash goodwill impairment charges recorded in 2024 and ongoing fair-value remeasurements of warrant derivative liabilities. Nasdaq notified the company of listing-compliance conditions including minimum bid price and filing and disclosure deadlines with potential delisting if not resolved.

Digital Ally, Inc. reported that Anson Funds Management LP and affiliated persons collectively beneficially own 47,117 shares of the issuer's common stock (CUSIP 25382T200), representing 0.03% of the class when including shares underlying warrants. The reported position reflects shared voting and dispositive power of 47,117 shares and no sole voting or dispositive power. The filing identifies the reporting group as Anson Funds Management LP, Anson Management GP LLC, Tony Moore, Anson Advisors Inc., Amin Nathoo and Moez Kassam, with organizational jurisdictions in Texas, the United States and Canada. The filing states the securities were acquired and are held in the ordinary course of business and not for changing or influencing control of the issuer.