Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 26

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 26
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    Total 
    $20,444,658  
    $4,960,333  
    $4,830,000  
    $10,654,325 

    17

Patents and trademarks pending
will be amortized beginning at the time they are issued by the appropriate authorities. If issuance of the final patent or trademark is
denied, then the amount deferred will be immediately charged to expense.

Amortization for the three months
ended March 31, 2025 and 2024 was $365,193 and $388,278, 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 (April 1, 2025 to December 31, 2025) 
    $1,042,528 
  
    2026 
     903,328 
  
    2027 
     109,328 
  
    2028 
     107,194 
  
    2029 
     107,194 
  
    2030 and thereafter 
     264,349 

    Total 
    $2,533,921 

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 fiscal first quarter of 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 18.3% to 21.3%. We also applied a market approach,