Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 17

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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Cash and cash equivalents:

Cash and cash equivalents include
funds on hand, in bank and short-term investments with original maturities of ninety (90) days or less.

The Company maintains its cash
and cash equivalents in banks insured by the Federal Deposit Insurance Corporation (FDIC) in accounts that at times may be in excess of
the federally insured limit of $250,000 per bank. The Company minimizes this risk by placing its cash deposits with major financial institutions.
At March 31, 2025 and December 31, 2024, the uninsured balance amounted to $3,009,668 and $-0-, respectively.

Restricted Cash:

Restricted cash of $-0- and $97,600
was included in other assets as of March 31, 2025 and 2024, respectively. Restricted cash consists of bank deposits that collateralize
a debt obligation. Such debt obligation was paid off as of December 31, 2024.

The following table provides a reconciliation of cash
and cash equivalents in the condensed consolidated balance sheets to cash, cash equivalents and restricted cash in the condensed consolidated
statements of cash flows:

 SCHEDULE OF RECONCILIATION OF CASH AND CASH EQUIVALENTS

    March 31,  2025  
    March 31,  2024 
  
    Cash and cash equivalents 
    $3,762,608  
    $927,861 
  
    Long-term restricted cash included in other assets 
     —  
     97,600 
  
    Total cash, cash equivalents and restricted cash in the statements of cash flows 
    $3,762,608  
    $1,025,461 

    11

Goodwill and Other Intangibles:

Goodwill - In connection
with acquisitions, the Company applies the provisions of ASC 805, Business Combinations, using the acquisition method of accounting. The
excess purchase price over the fair value of net tangible assets and identifiable intangible assets acquired is recorded as goodwill.
In accordance with ASC 350, Intangibles - Goodwill and Other, the Company assesses goodwill for impairment annually as of December 31st,
and more frequently if events and circumstances indicate that goodwill might be impaired.

Goodwill impairment testing is
performed at the reporting unit level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill
has been assigned to reporting units, it no longer