Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 237

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 237
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| Cash paid at closing to escrow amount                                                     |     |                           |    500,000 |   |     |                    |    500,000 |   |
| Cash retained from escrow amount pursuant to settlement of working capital target         |     |                           |   (297,726 | ) |     |                    |   (297,726 | ) |
| Total TicketSmarter Acquisition purchase price                                            |     | $                         | 13,850,274 |   |     | $                  | 13,305,874 |   |

| F-47 |

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 COMPONENTS OF IDENTIFIABLE INTANGIBLE ASSETS ACCRUED ACQUIRED

|                                    |     | Cost |           |     | Amortization through 
 December 31, 2023    |           |     | Estimated   
 useful life |
|:-----------------------------------|:----|:-----|----------:|:----|:---------------------|----------:|:----|:------------|
| Identifiable intangible assets:    |     |      |           |     |                      |           |     |             |
| Trademarks                         |     | $    |   600,000 |     | $                    |         — |     | indefinite  |
| Sponsorship agreement network      |     |      | 5,600,000 |     |                      | 2,613,333 |     | 5 years     |
| Search engine optimization/content |     |      |   600,000 |     |                      |   350,000 |     | 4 years     |
|                                    |     | $    | 6,800,000 |     | $                    | 2,963,333 |     |             |

For the period from the date of the TicketSmarter Acquisition to December 31, 2021, the Company adjusted its preliminary fair value estimates and estimated useful lives based upon information obtained through December 31, 2021, which resulted in adjustments to the preliminary allocation of the purchase price. These adjustments primarily related to estimated identifiable intangible asset fair values (primarily related to the sponsorship agreement network), the estimated fair value of the contingent earn-out agreement liability and goodwill. There were no adjustments to the allocation of the purchase price during the year ended December 31, 2023.

During the measurement period (which is the period required