Digital Ally faces Nasdaq compliance issue over late filing

LENEXA, KS - Digital Ally, Inc. (NASDAQ: DGLY), a company specializing in video solution technology and other services, disclosed today that it has received a notification of non-compliance from Nasdaq. The notice, dated April 23, 2025, was issued because the company failed to file its Annual Report for the period ending December 31, 2024, as required by Nasdaq Listing Rule 5250(c)(1). This rule mandates timely submission of periodic financial reports to the U.S. Securities and Exchange Commission (SEC). According to InvestingPro data, the company’s overall financial health score is rated as WEAK, with concerning metrics including significant debt burden and rapid cash burn.

The notification does not immediately affect the listing of Digital Ally’s securities on the Nasdaq stock market. However, the company must submit a written explanation regarding the delay to Nasdaq by April 30, 2025. Digital Ally has stated it is working diligently to complete and file the overdue Annual Report and anticipates resuming regular filing intervals for the remainder of 2025. The company’s stock has faced significant challenges, with InvestingPro data showing a 98.5% decline over the past year and current market capitalization of just $2.24 million.

Digital Ally, through its subsidiaries, operates in various sectors including human and animal health protection products, healthcare revenue cycle management, ticket brokering and marketing, event production, and jet chartering. The company aims to expand by integrating organizations with positive earnings, growth potential, and innovative capabilities. Recent financial data reveals challenging operational metrics, with revenue declining 32% in the last twelve months to $21.1 million and gross profit margins at just 18%.

The press release also contained forward-looking statements, cautioning that actual results could differ materially from those projected due to a range of risks and uncertainties. These statements were made based on current management expectations and are subject to change.

Investors are advised that the information in this article is based on a press release statement from Digital Ally, Inc. and that future updates regarding the company’s compliance status and financial reporting will likely be disclosed through official filings with the SEC.

In other recent news, Digital Ally, Inc. has announced several significant developments. The company is seeking shareholder approval to amend its articles of incorporation to increase the number of authorized shares from 210 million to 5.01 billion, with 5 billion shares designated as common stock. This proposal aims to provide Digital Ally with greater flexibility for future corporate needs, including financing activities and potential strategic transactions. The special meeting to vote on this proposal has been adjourned to allow more time for gathering votes and is scheduled to reconvene on April 29, 2025.

Additionally, Digital Ally has set the pricing for a public offering expected to raise approximately $15 million before fees and expenses. The offering includes 100 million Common Units and various warrants, with the proceeds intended for general corporate purposes and working capital. Aegis Capital Corp. is managing the offering, which is anticipated to close on or about February 14, 2025. These developments come as Digital Ally navigates a rapidly evolving market landscape, with management remaining silent on the specific strategic rationale behind the proposed increase in authorized shares.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.