Company: AGSS
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001829126-25-003800
Chunk: 18

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 payments had been made, closing out
this loan.

On
December 08, 2024, The Company entered into a short-term loan agreement with W.L.L Associates. The amount funded was $115,000, reduced
by an original issue discount and fees of $15,000 and with an interest rate of 15%. The note requires principal repayment January 09,
2025. Note is collateralized by Social Security Administration – Urbana MD #4065 in the amount of $485,785. Along with all future
invoices until note paid. Additionally, majority shareholder Lawrence Garcia agreed to transfer 100,000 of his shares to the lender following
payment of loan. On January 8, 2025, W.L.L Associates modified the note, extending the payment date to February 12, 2025. Balance due
on December 31, 2024, was $115,000. As of March 31, 2025, all required payments had been made, closing out this loan.

On
February 05, 2025, the Company entered into a government purchase orders/receivables backed line of credit of $7,000,000 with a maturity
date of August 5, 2026, with Legalist, Inc an investment firm specializing in alternative assets. The agreement requires the payments
from the six Federal Contracts described in Note 13 – Concentration of Sales, to go directly to the lenders, with the Company allowed
to draw on the credit line every week as needed for operations. Interest on the outstanding balance is accrued daily at the U.S. Prime
Rate plus .0246%. The effective interest rate as of March 31, 2025, was 7.5246%. As an active line of credit, the balance is presented
as current.

The
Company paid off all of its merchant advance debt and revenue purchase agreements that were taken out in December 2023 and January of
2024 totaling $1,475,000. The Company also paid off an SBA Loan that was entered into in June 2020, in the amount of $634,849. The Company
also used the line of credit to pay off the two loans with First Class Industries in the amount of $496,000 and the loan with W.L.L Associates
in the amount of $115,000.

The
following schedule details the loans active as of March 31, 2025, and December 31, 2024: