Digital Ally Inc - DGLY STOCK NEWS

Digital Ally, Inc. (NASDAQ: DGLY) has been granted six new patents by the United States Patent and Trademark Office (USPTO) over the past 12 months, strengthening its intellectual property portfolio in video technology and safety solutions.

These patents cover diverse applications across multiple industries including:

• Redundant Mobile Video Recording
• Breath Analyzer systems for authenticating and preserving breath analysis data
• Tracking and analysis of drivers within vehicle fleets
• Managing multiple data recording devices
• Portable video and imaging systems
• Systems for automatically triggering recordings

CEO Stan Ross emphasized the company's commitment to innovation, stating that these patents reflect their dedication to developing cutting-edge solutions that address current needs while anticipating future challenges for law enforcement agencies, commercial fleets, and other industries.

Digital Ally (DGLY) has closed its previously announced underwritten public offering, raising approximately $15.0 million in gross proceeds. The offering consisted of 100,000,000 Common Units priced at $0.15 per unit (or $0.149 for Pre-Funded Units).

Each unit includes one share of Common Stock (or Pre-Funded Warrant), one Series A Warrant exercisable at $0.1875, and one Series B Warrant exercisable at $0.30. The Series A Warrants expire after 5 years, while Series B Warrants expire after 2.5 years, both following stockholder approval.

Aegis Capital Corp. acted as the sole book-running manager and exercised its over-allotment option for 15,000,000 additional Series A and B Warrants. The offering was made pursuant to an SEC-registered Form S-1 declared effective on February 12, 2025.

Digital Ally (DGLY) has announced the pricing of a $15.0 million underwritten public offering. The offering consists of 100,000,000 Common Units priced at $0.15 per unit (or $0.149 for Pre-Funded Units). Each unit includes one share of Common Stock (or Pre-Funded Warrant), one Series A Warrant exercisable at $0.1875, and one Series B Warrant exercisable at $0.300.

The Series A Warrants expire after 5 years following stockholder approval, while Series B Warrants expire after 2.5 years. Aegis Capital Corp. has been granted a 45-day over-allotment option for up to 15% additional shares and warrants. The offering is expected to close around February 14, 2025, with proceeds intended for general corporate purposes and working capital.

Kustom Entertainment, a Digital Ally subsidiary, has announced the lineup for the 2025 Country Stampede Festival, scheduled for June 26-28, 2025, at Azura Amphitheater in Bonner Springs, Kansas. The festival will feature headliners Luke Bryan, Miranda Lambert, and Cole Swindell, along with numerous supporting acts.

The company reported its most successful Black Friday through Cyber Monday ticket sales in recent history, indicating a potential sellout. Additionally, Kustom Entertainment has launched a regional Battle of the Bands competition across five cities, with the winner earning a main stage performance slot at the festival.

Digital Ally (DGLY) has received a delinquency notification from Nasdaq due to delayed filing of its Q3 2024 Form 10-Q. The company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of periodic financial reports. While this notification has no immediate effect on the company's Nasdaq listing, DGLY must submit a compliance plan by January 24, 2025. If accepted, Nasdaq may grant an extension until May 19, 2025 to regain compliance. The company states it's working to file the report promptly and expects to resume normal filing schedules in 2025.

Digital Ally (NASDAQ: DGLY) reported securing approximately 160 new subscription contracts throughout 2024 for its FirstVu PRO body-worn cameras and EVO-HD in-car video solutions. The company is currently addressing operational delays, including over $1.5 million in backordered products, which are expected to be fulfilled within the next 120 days. Digital Ally plans to introduce new advancements, including the FirstVu PRO Utility integrated body camera with multiple advanced features, and continues to release updates for its EVO-Web platform, with the latest version V2.3 focusing on bug fixes and new features.

Digital Ally, Inc. (DGLY) announced its Q2 2024 operating results, highlighting significant changes in financial performance. Overall gross profits decreased by 91% to $242,392, primarily due to a decline in the entertainment segment. Total revenues fell by 32% to $5,616,235, with the entertainment segment experiencing a 47% decrease. The company's revenue cycle management business saw a 9% decrease in service revenues.

Notably, selling, general and administrative expenses decreased by 46% to $4,156,613. The company also reported progress in its video solutions segment and recent developments, including the sale of its office building and a potential business combination between Kustom Entertainment and Clover Leaf Capital Corp. Net losses attributable to common stockholders improved to $5,083,861 ($1.74 per share) compared to $9,014,882 ($3.12 per share) in the same period last year.

Kustom Entertainment, a subsidiary of Digital Ally (NASDAQ: DGLY), announced that Clover Leaf Capital Corp.'s registration statement for their proposed business combination has been declared effective by the SEC. The special meeting to approve the merger is scheduled for August 20, 2024. The combined company, valued at $125 million, will be known as Kustom Entertainment with an implied initial pro forma equity value of $222.2 million.

Digital Ally will distribute 30% of its Kustom Entertainment shares to shareholders immediately after the merger closes, with the remaining shares to be distributed following a six-month lock-up period. The initial distribution will be made to Digital Ally stockholders of record as of August 12, 2024. The merger aims to create a premier live event marketing and concert production company under the current management team led by CEO Stanton E. Ross.

Digital Ally has successfully closed a private placement, raising approximately $2.9 million in gross proceeds. The funds will be used for inventory purchases, artist costs for festivals, transaction costs, expanded sales, marketing, and general working capital. The private placement involved the issuance of 1,195,219 units, each priced at $2.51, consisting of one share of common stock, one Series A warrant, and one Series B warrant. The Series A warrant has a 5-year term with an exercise price of $2.51, while the Series B warrant is adjustable and exercisable based on future stock splits. Aegis Capital Corp. acted as the exclusive placement agent. The securities in this offering are exempt from registration under the Securities Act of 1933.