SCHEDULE: Anson Funds Discloses 0.03% Stake in Digital Ally

Anson Funds Management LP and related entities have filed an amended Schedule 13G, disclosing a passive beneficial ownership of 0.03% in Digital Ally, Inc.

Summary

• Anson Funds Management LP, Anson Management GP LLC, Mr. Tony Moore, Anson Advisors Inc., Mr. Amin Nathoo, and Mr. Moez Kassam collectively beneficially own 47,117 shares of Digital Ally, Inc. common stock.
• This ownership represents 0.03% of the outstanding common stock of Digital Ally, Inc.
• The beneficial ownership includes shares of Common Stock underlying outstanding warrants held by the reporting persons.
• The percentage is calculated by dividing 47,117 shares by 166,896,300 total shares, which is the sum of 166,849,183 Subordinate Voting Shares reported by the Issuer and the 47,117 shares receivable from warrants.
• The securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of Digital Ally, Inc.

Sentiment

Score: 5

Explanation: This is a routine compliance filing (Schedule 13G Amendment) disclosing a passive, minor ownership stake, which typically has a neutral sentiment impact as it provides no new operational or financial performance information.

Positives

• Reporting persons affirm the securities were acquired and are held in the ordinary course of business.
• The acquisition is not for the purpose of changing or influencing control of Digital Ally, Inc., indicating a passive investment stance.

Negatives

• The beneficial ownership stake of 0.03% is very small, indicating a minor position in the company and limited conviction.

Risks

• No specific company-related risks are detailed in this compliance filing, as it pertains to beneficial ownership disclosure.

Future Outlook

This Schedule 13G filing is a disclosure of beneficial ownership and does not contain any forward-looking statements or guidance regarding Digital Ally, Inc.'s future outlook.

Management Comments

• The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities.
• The foreign regulatory scheme applicable to Anson Advisors Inc. is substantially comparable to the regulatory scheme applicable to the functionally equivalent U.S. institution(s).

Industry Context

This filing is a routine disclosure of a passive investment stake by an investment group and does not provide specific insights into broader industry trends or competitive dynamics for Digital Ally, Inc.

Comparison to Industry Standards

• This filing is a standard Schedule 13G amendment, indicating compliance with SEC disclosure requirements for passive beneficial ownership below 5%.
• The disclosed stake of 0.03% is a very small position, typical for a minor portfolio allocation rather than a strategic investment aimed at influence, which aligns with the passive investor classification for Schedule 13G.

Stakeholder Impact

• Minimal impact on shareholders due to the very small percentage of beneficial ownership (0.03%), which is unlikely to influence share price or corporate strategy.
• No direct impact on employees, customers, suppliers, or creditors is indicated by this ownership disclosure.

Next Steps

• No specific future actions, events, or milestones are mentioned in this beneficial ownership disclosure.

Key Dates

Keywords

Digital Ally, Anson Funds, Beneficial Ownership, Schedule 13G, SEC Filing, Common Stock, Passive Investment