Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 226

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 226
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 related costs aggregated $ 10,322, which was expensed as incurred.

In accordance with ASC 805, “Business Combinations”, the acquisition method of accounting is used, and recognition of the assets acquired is at fair value as of the acquisition dates. All acquisition costs were expensed as incurred. The consideration paid has been allocated to the assets acquired based on their estimated fair values at the acquisition date. The estimate of fair values for the intangible assets acquired were agreed to by both buyer and seller. The estimated fair value of intangible assets acquired in the Medical Billing Asset Acquisition were as follows:

SCHEDULE OF PRELIMINARY FAIR VALUE OF ASSETS ACQUIRED AND LIABILITIES ACQUISITION

| Description                                    
 Assets acquired:                               |     | Amount |         |
|:-----------------------------------------------|:----|:-------|--------:|
| Intangible assets acquired – client agreements |     | $      | 335,000 |
| Total assets acquired and liabilities assumed  |     | $      | 335,000 |
| Consideration:                                 |     |        |         |
| Cash paid at acquisition date                  |     | $      | 230,000 |
| Contingent consideration promissory note       |     |        | 105,000 |
| Total acquisition purchase price               |     | $      | 335,000 |

The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives in years as of the date of acquisition:

SCHEDULE OF IDENTIFIABLE INTANGIBLE ASSETS ACQUIRED AND THEIR ESTIMATED USEFUL LIVES

|                                 |     | Cost |         |     | Amortization through 
 December 31,         
 2023                 |        |     | Estimated   
 useful life |
|:--------------------------------|:----|:-----|--------:|:----|:---------------------|-------:|:----|:------------|
| Identifiable intangible assets: |     |      |         |     |                      |        |     |             |
| Client agreements               |     | $    | 335,000 |     | $                    | 64,208 |     | 10 years    |

The change in fair value of the contingent consideration is more fully described in Note 10, “Debt Obligations” and will be estimated on a quarterly basis.

| F-46 |

NOTE 22. TICKETSMARTER ACQUISITION

On September 1, 2021, Digital Ally,