Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 158

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 8
Chunk 158
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    Personal seat licenses (entertainment segment) 
     30 years 
  
    Software 
     3 years 
  
    Website enhancements (entertainment segment) 
     3 years 
  
    Client agreements (revenue cycle management segments) 
     10 years 

Amortization
for the three months ended September 30, 2025 and 2024 was $350,535 and $371,772, respectively, and $1,125,278 and $1,106,939 for the
nine months ended September 30, 2025 and 2024, respectively. Estimated amortization for intangible assets 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: 

    2025 (October 1, 2025 to December 31, 2025) 
    $325,007 
  
    2026 
     898,201 
  
    2027 
     112,449 
  
    2028 
     110,151 
  
    2029 
     103,815 
  
    2030 and thereafter 
     257,590 

    Total 
    $1,807,213 

Annual
impairment test

We
performed an annual impairment test as of December 31, 2024 for each of our reporting units with remaining goodwill. Subsequent to completing
our annual impairment test as of December 31, 2024, no events or changes in circumstances were noted that triggered the requirement for
an interim goodwill impairment test for the nine months ended September 30, 2025.

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 20.9% to 32.5