Digital Ally announces 1-for-100 reverse stock split

OVERLAND PARK, KS - Digital Ally, Inc. (NASDAQ: DGLY), a company specializing in advanced video recording products and safety solutions for various industries, has declared a 1-for-100 reverse stock split of its common stock. The adjustment is set to take effect with the opening of the market on Friday, May 23, 2025, under the new CUSIP number 25382T408. The announcement comes as the company’s stock has declined nearly 100% over the past year, according to InvestingPro data, with shares trading at significant volatility.

The decision for the reverse stock split was ratified by the company’s stockholders during a special meeting on May 6, 2025, where a proposal was approved to amend the Amended and Restated Certificate of Incorporation. This amendment allows for a reverse split of the common stock at a ratio chosen by the Board of Directors within a range of 1-for-5 to 1-for-100 shares. The Board of Directors finalized the 1-for-100 ratio on May 7, 2025. InvestingPro analysis reveals the company faces significant financial challenges, with a weak overall Financial Health Score and concerning cash burn rate. InvestingPro subscribers have access to 15 additional key insights about Digital Ally’s financial condition.

Prior to the reverse split, Digital Ally had 166,849,183 shares of common stock outstanding. Post-split, the number of outstanding shares will be reduced to approximately 1,668,492. Stockholders who possess physical stock certificates will receive instructions from the company’s transfer agent, Securities Transfer Corporation, on how to exchange their certificates. Those holding shares in book-entry form or through brokerage accounts will not be required to take action as their shares will be automatically adjusted to reflect the reverse stock split.

Digital Ally Companies, through its subsidiaries, operates in sectors including video solution technology, healthcare revenue cycle management, ticket brokering, marketing, and event production. While the company has been integrating organizations that exhibit traits such as positive earnings, growth potential, and innovation, recent financial data shows concerning metrics. According to InvestingPro, the company reported a revenue decline of over 30% in the last twelve months, with negative EBITDA of $8.35 million and current ratio of 0.35, indicating potential liquidity challenges.

This announcement is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. These statements are not guarantees of future performance and actual results could differ materially from those anticipated in the forward-looking statements. Digital Ally does not intend to update any forward-looking statements except as required by law. For questions regarding the stock split, shareholders may contact Securities Transfer Corporation at (469) 633-0101.

In other recent news, Digital Ally, Inc. has announced it will implement a 1-for-20 reverse stock split of its common stock, effective May 7, 2025. This decision follows approval from stockholders and a finalized decision by the Board of Directors. Additionally, Digital Ally has been granted continued listing on the Nasdaq Stock Market, contingent upon meeting specific compliance criteria, including a $2.5 million stockholders’ equity requirement and a $1.00 minimum bid price. However, the company faces a compliance issue with Nasdaq due to the late filing of its Annual Report for the period ending December 31, 2024. Digital Ally is actively working to resolve this issue by submitting the overdue report and anticipates maintaining regular filing intervals moving forward. Furthermore, the company has adjourned a special stockholder meeting to solicit more votes on a proposal to increase its authorized capital stock from 210 million to 5.01 billion shares. This move is part of Digital Ally’s strategic initiatives to potentially pursue future growth opportunities. The reconvened meeting is scheduled for early May 2025.

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