Company: DGLY
Filing Date: 2025-01-24
Form Type: S-1
Source: 0001493152-25-003451
Chunk: 223

Company: DIGITAL ALLY, INC.
Filing Date: 2025-01-24
Form: S-1
Chunk 223
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 and liabilities assumed                 |     | $              | 2,920,000 |   |     | $             | 2,920,000 |   |
| Consideration:                                              |     |                |           |   |     |               |           |   |
| Cash paid at Healthcare Acquisition date                    |     | $              | 2,270,000 |   |     | $             | 2,270,000 |   |
| Contingent consideration earn-out agreement                 |     |                |   650,000 |   |     |               |   650,000 |   |
| Total Healthcare Acquisition purchase price                 |     | $              | 2,920,000 |   |     | $             | 2,920,000 |   |

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               |     | $    | 206,955 |     | $                    | 48,290 |     | 10 years    |

For the period from the date of the Healthcare Acquisition to August 31, 2022, the Company adjusted its preliminary fair value estimates and estimated useful lives based upon information obtained through August 31, 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 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