Digital Ally Inc. - The Need To Dilute Shareholders Appears Inevitable
- More dilution for current shareholders in the near future appears inevitable, as $2.34 million is due in May 2015 and the company rapidly is burning through its low cash balance.
- DGLY’s largest shareholder sold most of his position, at around $7.50, on July 11 and recently filed a lawsuit against members of the Board.
- Last week, DGLY announced a significant decrease in revenue and earnings after the company failed to receive any significant orders from state police or other potential customers.
- For the past five years, DGLY has been unable to generate earnings leading to an accumulated deficit of $17.6 million, which is more than the company’s current, inflated market cap.