Company: DGLY
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001493152-25-021680
Chunk: 77

Company: DIGITAL ALLY, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 77
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 firm to determine the fair value of these identifiable intangible assets. The Company has finalized the estimated
fair value of assets acquired, and liabilities assumed in the Country Stampede Acquisition which are as follows:

 SCHEDULE OF PRELIMINARY FAIR VALUE OF ASSETS ACQUIRED AND LIABILITIES ACQUISITION

    As allocated (Final) 
  
    Description 
    March 1, 2024 
  
    Assets acquired (provisional): 

    Tangible assets acquired 
    $305,000 
  
    Identifiable intangible assets acquired (Trademarks and trade names) 
     300,000 
  
    Goodwill 
     225,959 
  
    Liabilities assumed 
     (288,000)

    Net assets acquired and liabilities assumed 
    $542,959 
  
    Consideration: 

    Cash paid at Country Stampede Acquisition date 
    $400,000 
  
    Cash paid subsequent to closing 
     142,959 

    Total Country Stampede Acquisition purchase price 
    $542,959 

During
the measurement period (which is the period required to obtain all necessary information that existed at the acquisition date, or to
conclude that such information is unavailable, not to exceed one year), additional assets or liabilities may be recognized, or there
could be changes to the amounts of assets or liabilities previously recognized on a preliminary basis, if new information is obtained
about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of these
assets or liabilities as of that date. There were no additional assets or liabilities recognized during the measurement period that ended
March 1, 2025, the amounts of assets or liabilities previously recognized on a preliminary basis are now final.

    31

NOTE
17. OPERATING SEGMENTS

The
Company adopted ASU 2023-07 in 2024 and applied the amendment retrospectively to all periods presented in the Company’s condensed
consolidated financial statements. Segment financial information is prepared in accordance with GAAP and our significant accounting policies
described in Note 1. Resources are allocated and performance is assessed using segment operating income by our Chief Executive Officer,
whom we have determined to be our Chief Operating Decision Maker (“CODM”). Our CODM utilizes segment operating income when
making decisions about allocating capital and personnel to the segments, predominantly in the annual budget and quarterly forecasting
processes. In addition, our CODM