SCHEDULE: Yield Point NY Discloses 9.9% Stake in Digital Ally

Yield Point NY LLC and Yisroel Ari Kluger have disclosed a 9.9% beneficial ownership stake in Digital Ally, Inc. through warrants and a convertible note.

Summary

• Yield Point NY LLC and Yisroel Ari Kluger (Reporting Persons) have filed a Schedule 13G for Digital Ally, Inc.
• The Reporting Persons beneficially own an aggregate of 191,722 shares of Digital Ally, Inc. Common Stock.
• This ownership represents 9.9% of the outstanding Common Stock, based on 1,727,421 shares outstanding as of October 2, 2025.
• Beneficial ownership is derived from common stock purchase warrants and a senior secured convertible note.
• Both the warrants and the convertible note are subject to a 9.99% beneficial ownership limitation provision (a "Blocker").
• The Blocker prohibits the Reporting Persons from exercising warrants or converting the note if their beneficial ownership would exceed 9.99% of the total outstanding shares.
• Yisroel Ari Kluger, as the director of Yield Point NY LLC, has shared voting and dispositive power over the beneficially owned shares.

Sentiment

Score: 6

Explanation: The filing indicates a significant passive investment by an institutional entity, which can be viewed positively as a vote of confidence. However, it is a disclosure of ownership, not performance, and the 'blocker' provision introduces a slight complexity regarding the investor's potential future influence or increased stake.

Positives

• A significant institutional investor, Yield Point NY LLC, has taken a substantial 9.9% stake in Digital Ally, Inc., potentially signaling confidence in the company's future prospects.
• The investment, structured through warrants and a convertible note, represents a form of capital infusion or financing for Digital Ally, Inc.

Negatives

• The existence of warrants and a convertible note implies potential future dilution for existing shareholders if these instruments are fully exercised or converted into common stock.
• The 9.99% beneficial ownership limitation ("Blocker") restricts the investor's ability to increase their stake beyond this threshold through these specific instruments, potentially limiting their influence or further investment.

Risks

• Potential future dilution of existing shareholders if the warrants are exercised or the convertible note is converted into common stock.
• The "Blocker" provision limits the investor's ability to acquire more than 9.99% of the outstanding shares through these specific instruments, which could cap potential upside from a larger strategic stake or activist position.

Future Outlook

The filing is a disclosure of current beneficial ownership and does not contain specific forward-looking statements or guidance regarding the issuer's future performance or strategic direction.

Management Comments

• The Reporting Persons acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning him or it contained herein and therein, but shall not be responsible for the completeness and accuracy of the information concerning the others, except to the extent that he or it knows or has reason to believe that such information is inaccurate.
• The Reporting Persons certify that, to the best of their knowledge and belief, 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 14a-11.

Industry Context

This Schedule 13G filing indicates a significant passive investment by an institutional entity in Digital Ally, Inc. Such filings are common in the financial industry, reflecting changes in substantial ownership stakes, often by investment funds or individuals, without necessarily implying an intent to control the company. The use of convertible notes and warrants is a standard financing mechanism that can attract investors seeking both income and equity upside.

Stakeholder Impact

• Shareholders: Potential future dilution from the exercise of warrants and conversion of the convertible note. The presence of a significant institutional investor might be viewed as a positive signal of confidence in the company.
• Creditors: The senior secured convertible note indicates a debt instrument, which impacts the company's capital structure and obligations to creditors.

Next Steps

• The filing does not explicitly mention future actions or milestones for Digital Ally, Inc. beyond the potential future exercise of warrants or conversion of the note by the reporting persons, subject to the beneficial ownership limitation.

Key Dates

Recommendation

This Schedule 13G filing primarily discloses a significant passive ownership stake by Yield Point NY LLC and Yisroel Ari Kluger in Digital Ally, Inc. While a 9.9% stake from an institutional investor can be a positive signal of confidence, the filing itself does not provide new operational or financial performance data to warrant a 'buy' or 'sell' recommendation. The existence of warrants and a convertible note suggests past financing activities and potential future dilution, but without further context on the company's current valuation, financial health, or strategic direction, a 'hold' recommendation is appropriate. Investors should monitor future company performance and additional disclosures.

Keywords

Digital Ally, Yield Point NY LLC, Yisroel Ari Kluger, Schedule 13G, Beneficial Ownership, Common Stock, Warrants, Convertible Note, SEC Filing, Investment, Shareholder