Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 21

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 to, determining the estimated lives of long-lived assets, determining the potential impairment of long-lived
assets, the fair value of warrants, options, the recognition of revenue, inventory valuation reserve, allowances for doubtful accounts
and other receivables, incremental borrowing rate on leases, the valuation allowance for deferred tax assets and other legal claims and
contingencies. The results of any changes in accounting estimates are reflected in the condensed consolidated financial statements in
the period in which the changes become evident. Estimates and assumptions are reviewed periodically, and the effects of revisions are
reflected in the period that they are determined to be necessary.

    9

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 September 30, 2025 and December 31, 2024, the uninsured balance amounted to $-0-.

Restricted
Cash:

Restricted
cash of $-0- was included in other assets as of September 30, 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

    September
30, 2025  
    September
30, 2024 
  
    Cash and cash equivalents 
    $793,360  
    $415,131 
  
    Long-term restricted cash included in other assets 
     —  
     — 
  
    Total cash, cash equivalents and restricted cash in the statements of cash flows 
    $793,360  
    $415,131 

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