Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 230

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 230
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 net of lease liability assumed |     |                           |    77,158 |     |               |    77,158 |
| Liabilities assumed pursuant                                                                                                                         
 to stock purchase agreement                                                                                                                          |     |                           |    77,158 |     |               |    77,158 |
| Net assets acquired and liabilities assumed                                                                                                          |     | $                         | 1,376,509 |     | $             | 1,376,509 |
| Consideration:                                                                                                                                       |     |                           |           |     |               |           |
| Cash paid at Healthcare Acquisition date                                                                                                             |     | $                         | 1,026,509 |     | $             | 1,026,509 |
| Contingent consideration earn-out agreement                                                                                                          |     |                           |   350,000 |     |               |   350,000 |
| Total Healthcare Acquisition purchase price                                                                                                          |     | $                         | 1,376,509 |     | $             | 1,376,509 |

| F-42 |

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               |     | $    | 457,079 |     | $                    | 114,270 |     | 10 years    |

For the period from the date of the Healthcare Acquisition to June 30, 2022, the Company adjusted its preliminary fair value estimates and estimated useful lives based upon information obtained through June 30, 2022, which resulted in adjustments to the preliminary allocation of the purchase price. These adjustments primarily related to estimated identifiable intangible asset fair values of client agreements and goodwill.

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