Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 227

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 227
---
-------|--------:|
| 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, Inc. formed TicketSmarter, Inc. (“TicketSmarter”), through which the Company completed the acquisition of Goody Tickets, LLC, a Kansas limited liability company (“Goody Tickets”) and TicketSmarter, LLC, a Kansas limited liability company (“TicketSmarter LLC”), collectively the “TicketSmarter Acquisition”. TicketSmarter, Inc. comprises the Company’s entertainment business segment. In accordance with the stock purchase agreement, the Company agreed to an initial payment (the “Initial Payment Amount”) of $ 9,403,600through a combination of cash and common stock. In addition to the Initial Payment Amount, the Company agreed to issue an earn-out agreement to the stockholders of Goody Tickets and TicketSmarter LLC in the contingent amount of $ 4,244,400that is subject to an earn-out adjustment based