Company: DGLY
Filing Date: 2025-02-06
Form Type: S-1/A
Source: 0001493152-25-005144
Chunk: 234

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-06
Form: S-1/A
Chunk 234
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 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 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. The change in fair value of the contingent consideration is more fully described in Note 10, “Debt Obligations”.

NOTE 23. SEGMENT DATA

The accounting guidance