Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 268

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 268
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 $     | 1,558,208 |

| F-68 |

The following table represents the change in Level 3 tier value measurements for the nine months ended September 30, 2024:

SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS

|                                                                                                           |     | Contingent Consideration 
 Promissory Notes         
 and                      
 Earn-Out                 
 Agreement                |          |   |     | Warrant Derivative 
 Liabilities        |            |   |
|:----------------------------------------------------------------------------------------------------------|:----|:-------------------------|---------:|:--|:----|:-------------------|-----------:|:--|
| Balance, December 31, 2023                                                                                |     | $                        |  188,470 |   |     | $                  |  1,369,738 |   |
| Issuance of warrant derivative liabilities                                                                |     |                          |        — |   |     |                    |  2,075,300 |   |
| Change in fair value of warrant derivative liabilities                                                    |     |                          |        — |   |     |                    | (2,178,965 | ) |
| Principal payments on contingent consideration promissory notes – Revenue Cycle Management Acquisitions   |     |                          | (188,470 | ) |     |                    |          — |   |
| Change in fair value of contingent consideration promissory notes - Revenue Cycle Management Acquisitions |     |                          |        — |   |     |                    |          — |   |
| Balance, September 30, 2024                                                                               |     | $                        |        — |   |     | $                  |  1,266,073 |   |

NOTE 5. ACCRUED EXPENSES

Accrued expenses consisted of the following at September 30, 2024 and December 31, 2023:

SCHEDULE OF ACCRUED EXPENSES

|                                      |     |   | September 30, 2024 |     |   | December 31, 2023 |
|:-------------------------------------|:----|:--|-------------------:|:----|:--|------------------:|
| Accrued warranty expense             |     | $ |             11,615 |     | $ |            17,699 |
| Accrued litigation costs             |     |   |          2,040,292 |     |   |         2,040,292 |
| Acc