Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 207

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 207
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     |                   | — |     |         | — |     |         | 777,840 |     |       | 777,840 |
|                                                                                           |     | $                 | — |     | $       | — |     | $       | 777,840 |     | $     | 777,840 |

The following table represents the change in Level 3 tier value measurements:

SCHEDULE OF FAIR VALUE MEASUREMENTS CHANGE IN LEVEL 3 INPUTS

|                                                                                                           |     | Contingent                              
 Consideration                           
 Promissory Notes and Earn-Out Agreement |          |   |     | Warrant Derivative 
 Liabilities        |            |   |
|:----------------------------------------------------------------------------------------------------------|:----|:----------------------------------------|---------:|:--|:----|:-------------------|-----------:|:--|
| Balance, December 31, 2022                                                                                |     | $                                       |  777,840 |   |     | $                  |          — |   |
| Issuance of warrant derivative liabilities                                                                |     |                                         |        — |   |     |                    |  3,216,380 |   |
| Change in fair value of warrant derivative liabilities                                                    |     |                                         |        — |   |     |                    | (1,846,642 | ) |
| Principal payments on contingent consideration promissory notes – Revenue Cycle Management Acquisitions   |     |                                         | (411,460 | ) |     |                    |          — |   |
| Change in fair value of contingent consideration promissory notes - Revenue Cycle Management Acquisitions |     |                                         | (177,910 | ) |     |                    |          — |   |
| Balance, December 31, 2023                                                                                |     | $                                       |  188,470 |   |     | $                  |  1,369,738 |   |

| F-29 |

NOTE 12. ACCRUED EXPENSES

Accrued expenses consisted of the following at December 31, 2023 and 2022:

SCHEDULE OF ACCRUED EXPENSES

|                                      |     |   | December 31, 
         2023 |     |   | December 31, 
         2022 |
|:-------------------------------------|:----|:--|-------------:|:----|:--|-------------:|
| Accrued warranty expense             |     | $ |       17,699 |     | $