Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 230

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 230
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 could materially affect the timing or amounts recognized in our financial statements. Our assumptions and estimates are based upon information obtained from the management of the Company’s revenue cycle management segment. The acquisition was structured as stock purchase, therefore the excess purchase price over the fair value of net tangible assets acquired was recorded as goodwill, which will not be amortized for income tax filing purposes. The results of operations of acquired businesses are included in the consolidated financial statements from the acquisition date.

The purchase price of the Medical Billing Acquisition was allocated to the tangible assets, and assumed liabilities based on their preliminary estimated fair values at the time of the Medical Billing Acquisition. There was no change from the preliminary estimated fair value to the final estimated fair value of assets acquired, and liabilities assumed in the Healthcare Acquisition, those value were as follows:

SCHEDULE OF PRELIMINARY FAIR VALUE OF ASSETS ACQUIRED AND LIABILITIES ACQUISITION

| Description                                              
 Assets acquired:                                         |     | Amount |           |   |
|:---------------------------------------------------------|:----|:-------|----------:|:--|
| Tangible assets acquired                                 |     | $      |   190,631 |   |
| Goodwill                                                 |     |        | 2,100,000 |   |
| Liabilities assumed pursuant to stock purchase agreement |     |        |  (387,005 | ) |
| Total assets acquired and liabilities assumed            |     | $      | 1,903,626 |   |
| Consideration:                                           |     |        |           |   |
| Cash paid at acquisition date                            |     | $      | 1,153,626 |   |
| Contingent consideration promissory note                 |     |        |   750,000 |   |
| Total acquisition purchase price                         |     | $      | 1,903,626 |   |

During the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these assets or liabilities as of that date. The change in fair value of the contingent consideration is more fully described in Note 10, “Debt Obligations”.

| F-45 |