Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 225

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 225
---
 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 |

On February 1, 2022, the Company’s revenue cycle management segment completed an asset acquisition from another private medical billing company (the “Medical Billing Asset Acquisition”). In accordance with the asset purchase agreement, Nobility Healthcare agreed to a non-refundable initial payment (the “Initial Payment Amount”) of $ 230,000. In addition to the Initial Payment Amount, the Company’s revenue cycle management segment agreed to issue a contingent promissory note to the stockholders of the Medical Billing Asset Acquisition in the principal amount of $ 105,000that is subject to an earn-out adjustment. The Company’s revenue cycle management segment anticipates the estimated fair value of the contingent promissory note to be paid in full, therefore, the total aggregate purchase price was determined to be approximately $ 335,000. Total acquisition