Business Context and Reporting Period
This Form 8-K Current Report was filed by Digital Ally, Inc. (trading symbol: DGLY) on May 22, 2025. The report details a corporate action approved by stockholders at a special meeting on May 6, 2025, and filed with the Nevada Secretary of State. Note: The request metadata referenced "KUSTOM ENTERTAINMENT, INC.", but the filing text explicitly identifies the registrant as Digital Ally, Inc.
Key Financial Metrics
This filing is a current report regarding a corporate governance event and does not contain financial statements. Consequently, there are no reported values for revenue, profit, cash flow, margins, debt, or liquidity in this document.
Material Changes
The primary material change reported is the implementation of a 1-for-100 reverse stock split of the Company's outstanding common stock.
- Effective Date: 5:30 p.m. Eastern Time on May 22, 2025.
- Trading Resumption: Split-adjusted trading on Nasdaq began on May 23, 2025.
- Share Exchange: Every 100 pre-split shares were exchanged for 1 post-split share.
- Fractional Shares: No fractional shares were issued; holders entitled to fractions received one whole share.
- Derivatives: All outstanding options and warrants were adjusted proportionately.
- Authorized Capital: The total number of authorized shares remained unchanged.
- Identification: The new CUSIP number is 25382T408.
Guidance, Outlook, and Risks
The filing does not provide updated financial guidance, management commentary on future performance, or specific risk factors beyond the standard disclosure that the summary is qualified by the full text of the Charter Amendment (Exhibit 3.1). The document focuses solely on the mechanics and execution of the reverse stock split.
Investor Verification Checklist
- Verify the new CUSIP number (25382T408) for trading and record-keeping purposes.
- Confirm the adjusted number of shares held in brokerage accounts post-split.
- Review the impact of the split on the strike prices and quantities of any held options or warrants.
- Check for any fractional share rounding adjustments applied to individual holdings.
- Monitor the stock price performance on Nasdaq following the May 23, 2025, resumption of trading.