Company: DGLY
Filing Date: 2025-05-02
Form Type: 424B3
Source: 0001641172-25-008437
Chunk: 123

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-02
Form: 424B3
Chunk 123
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,333 |     | $                      | 4,830,000 |     | $                  | 10,654,325 |     | $                 | 20,070,817 |     | $                        | 3,560,395 |     | $                  | 16,510,422 |

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 years ended December 31, 2024 and 2023 was $1,477,712 and $1,507,134, 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                     |     |   | 1,407,721 |
|:-------------------------|:----|:--|----------:|
| 2026                     |     |   |   903,328 |
| 2027                     |     |   |   109,328 |
| 2028                     |     |   |   107,194 |
| 2029                     |     |   |   107,194 |
| 2030 and thereafter      |     |   |   264,349 |
| Total                    |     | $ | 2,899,114 |

| F-21 |

Annual impairment test

We performed an annual impairment
test as of December 31, 2024 for each of 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 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, which develops a value correlation based