Company: DGLY
Filing Date: 2025-02-11
Form Type: S-1/A
Source: 0001493152-25-005949
Chunk: 279

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-11
Form: S-1/A
Chunk 279
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 with definite lives for the next five years ending December 31 and thereafter is as follows:

SCHEDULE OF ESTIMATED AMORTIZATION FOR INTANGIBLE ASSETS

| Year ending December 31:                    
 2024 (October 1, 2024 to December 31, 2024) |     |   |   371,227 |
|:--------------------------------------------|:----|:--|----------:|
| Year I                                      |     | $ |   371,227 |
| 2025                                        |     |   | 1,418,272 |
| Year II                                     |     |   | 1,418,272 |
| 2026                                        |     |   |   913,733 |
| Year III                                    |     |   |   913,733 |
| 2027                                        |     |   |   116,387 |
| Year IV                                     |     |   |   116,387 |
| 2028 and thereafter                         |     |   |   575,830 |
| Year V                                      |     |   |   575,830 |
| Total                                       |     | $ | 3,395,449 |

Interim impairment test

We performed an interim impairment test as of the last day of the fiscal third quarter of 2024 as management determined that a triggering
event had occurred resulting from the additional decline in demand for our services, prolonged economic uncertainty, the fact that the
split-off transaction did not occur when and as expected and a further decrease in our stock price. Therefore, we performed an interim
impairment test as of the September 30, 2024 for our reporting units with remaining goodwill.

The fair value
of each reporting unit was estimated using a weighting of the income and market valuation approaches. The income approach applied a
fair value methodology to each reporting unit based on discounted cash flows. This analysis requires significant judgments,
including estimation of future cash flows, which is dependent on internally-developed forecasts of revenue and profitability,
estimation of the long-term rate of growth for our business, estimation of the useful life over which cash flows will occur, and
determination of our weighted average cost of capital, which is risk-adjusted to reflect the specific risk profile of the reporting
unit being tested. The weighted average cost of capital used in our most recent impairment test ranged from 21% to 32.5%. We also
applied a market approach, which develops a value correlation based on the market