Company: DGLY
Filing Date: 2025-02-14
Form Type: 424B4
Source: 0001493152-25-006704
Chunk: 269

Company: DIGITAL ALLY, INC.
Filing Date: 2025-02-14
Form: 424B4
Chunk 269
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and $ 377,485, respectively and $ 1,106,939and $ 1,122,635for the nine months ended September 30, 2024 and 2023, 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:                    
 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