Dallas, Texas 08/22/2014 (FINANCIALSTRENDS) – Digital Ally, Inc. (NASDAQ:DGLY) despite concentrated efforts at righting several wrongs, may in all probability go the dilution route, if the current circumstances persists, estimate analysts.
If this option is explored it will the owners of shareholders currently will in the future too see dilution of shares to the tune of $2.34 million, likely to be due by May 2015. If this were to be explored, then the company would see further drop in cash balance.
Digital Ally, Inc. (NASDAQ:DGLY) has been in the dock for some time now, following the sale of shares by one of its largest shareholders. The critical part of the sale was the share prices at $7.50 a piece in early July. More importantly, a new development by the same shareholder has definitely offset this player in investor community.
The ex-largest shareholder has filed a suit against the Board members.
In the run up to the end of the second week of trading in August, Digital Ally, Inc. (NASDAQ:DGLY) posted less than good revenue earnings. The poor financial health of the company was due to the lack of new and fresh orders. DGLY routinely works with state police as well as other third parties.
In the last half-decade, it was found that DGLY is yet to generate earnings which are based on an accumulated deficit which is to the tune of $17.6 million. These are expected to be much higher than the current market cap of the company, which is already inflated.
Digital Ally is involved in the manufacture and development of advanced video surveillance products which are used by homeland security besides a host of commercial applications.
On August 20, the company reported that the ensuing months were brighter, as there have been expressions of Interest coming its way for the FirstVU HD officer-Worn Video, from agencies engaged in law enforcement.