Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 153

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 153
---
,263,471  
    $(3,931,020)

    Denominator for basic income (loss) per share – weighted average shares outstanding 
     3,032,208  
     143,061 
  
    Dilutive effect of shares issuable upon conversion of convertible debt and the exercise of stock options and warrants outstanding 
     —  
     — 

    Denominator for diluted loss per share – adjusted weighted average shares outstanding 
     3,032,208  
     143,061 

    Net income (loss) per share: 

    Basic 
    $1.41  
    $(27.48)
  
    Diluted 
    $1.41  
    $(27.48)

Basic loss per share is based
upon the weighted average number of shares of Common Stock outstanding during the period. For the three months ended March 31, 2025 and
2024, all shares issuable upon conversion of convertible debt and the exercise of outstanding stock options and warrants were antidilutive,
and, therefore, not included in the computation of diluted loss per share.

    35

NOTE 16. COUNTRY STAMPEDE ACQUISITION

On March 1, 2024, Kustom 440,
entered into an Asset Purchase Agreement (the “Acquisition Agreement”) with JC Entertainment, LLC, a Kansas limited liability
company (“JC Entertainment”). Pursuant to the Acquisition Agreement, Kustom 440 acquired certain assets associated with a
music entertainment event (“Country Stampede”), including all intellectual property arising out of and relating to Country
Stampede (“Country Stampede Intellectual Property”) and certain contracts in which JC Entertainment is a party to host and
operate the 2024 Country Stampede (the “Assumed Contracts”, and together with the Country Stampede Intellectual Property,
the “Purchased Assets”).

As consideration for acquiring
the Purchased Assets, Kustom 440 paid JC Entertainment the aggregate purchase price amount $542,959, with the sum of $400,000 paid at
the time of closing (“Closing”), and the remainder to be paid on or before thirty days from the time of Closing. Kustom 440
shall receive a credit for all non-refunded festival ticket sales for the 2024 Country Stampede to be calculated immediately prior to
Closing, and JC Entertainment shall be entitled to keep all ticket sale proceeds made and/or received prior to Closing. Kustom 440 shall
be obligated