SCHEDULE 13G/A: Altium Entities Disclose 4.99% Beneficial Ownership in Digital Ally, Inc. via Warrants

Altium Capital Management LLC and its related entities have filed an amended Schedule 13G, disclosing a 4.99% beneficial ownership stake in Digital Ally, Inc. through Series A and Series B Warrants.

Summary

• The filing is an Amendment No. 1 to Schedule 13G for DIGITAL ALLY, INC. (Issuer).
• The reporting persons are Altium Capital Management LLC, Altium Healthcare Long Short Onshore Fund LP, and Altium Healthcare Long Short GP LLC.
• The securities covered are Common Stock, $0.001 par value, with CUSIP Number 25382T200.
• The date of the event requiring the filing was March 31, 2025.
• The aggregate amount beneficially owned by each reporting person is 40,000,000 shares, which represents 4.99% of the class.
• This ownership is primarily through Series A Warrants and Series B Warrants, each subject to a 4.99% blocker, meaning the reporting persons cannot exercise them if it would result in beneficial ownership exceeding 4.99% of outstanding common stock.
• The 40,000,000 shares represent the number of shares issuable upon full conversion and exercise of such Warrants, without giving effect to the blocker.
• The percentage of class (4.99%) is based on 115,601,371 shares of Common Stock outstanding as of May 2, 2025, as reported in the Issuer's Form 10-K.
• The reporting persons disclaim that the securities were acquired or are held for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 5

Explanation: This is a factual disclosure of beneficial ownership, not an operational update or financial performance report, thus it carries a neutral sentiment.

Future Outlook

NA

Management Comments

• Jacob Gottlieb (CEO of Altium Capital Management LLC, Managing Member of Altium Healthcare Long Short GP LLC) certified that the securities were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer, nor in connection with any transaction having that purpose or effect, other than activities solely in connection with a nomination under Rule 240.14a-11.

Industry Context

NA

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership and the nature of that ownership (via warrants with a blocker).

Key Dates

Keywords

Digital Ally Inc., Altium Capital Management, Altium Healthcare Long Short Onshore Fund, Altium Healthcare Long Short GP, Schedule 13G, beneficial ownership, common stock, warrants, SEC filing, institutional ownership