Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 59

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 1
Chunk 59
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 tangible assets acquired was recorded as goodwill, which will be amortized over 15 years for income tax
filing purposes. Likewise, the other acquired assets were stepped up to fair value and is deductible for income tax purposes. The results
of operations of acquired businesses are included in the condensed consolidated statement of operations from the acquisition date.

The purchase price of the Country
Stampede Acquisition was allocated to tangible assets, goodwill, identifiable intangible assets, and assumed liabilities based on their
preliminary estimated fair values at the time of the acquisition. The Company retained the services of an independent valuation 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 

    36

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.

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