Company: DGLY
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001641172-25-011765
Chunk: 155

Company: DIGITAL ALLY, INC.
Filing Date: 2025-05-20
Form: 10-Q
Item: Part I, Item 8
Chunk 155
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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 1. Resources
are allocated and performance is assessed using segment operating income by our Chief Executive Officer, whom we have determined to be
our Chief Operating Decision Maker (“CODM”). Our CODM utilizes segment operating income when making decisions about allocating
capital and personnel to the segments, predominantly in the annual budget and quarterly forecasting processes. In addition, our CODM uses
operating income, including comparison of actual results to budget and forecast, in assessing the performance of each segment and in evaluating
product pricing, distribution strategies and marketing investments. Our CODM reviews balance sheet information at a consolidated level.
We compute segment operating income based on net sales revenue, less cost of goods sold, SG&A, asset impairment charges and restructuring
charges. The SG&A used to compute each segment’s operating income is directly associated with the segment. We do not allocate
non-operating income and expense, including interest or income taxes, to operating segments.

We operate in three strategic
business segments. The Video Solutions Segment encompasses our law, commercial, and shield divisions. This segment includes both service
and product revenues through our subscription models offering cloud and warranty solutions, and hardware sales for video and