Company: AGSS
Filing Date: 2025-09-25
Form Type: 10-Q
Source: 0001213900-25-091579
Chunk: 28

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-09-25
Form: 10-Q
Item: Item 1
Chunk 28
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 our internal control over financial reporting was ineffective as of June 30, 2025,
due to the same weaknesses that rendered our disclosure controls and procedures ineffective. The Company’s internal control over
financial reporting is not effective due to a lack of sufficient resources to hire support staff to separate duties between different
individuals. The Company plans to address these weaknesses as resources become available by hiring additional professional staff, as funding
becomes available, outsourcing certain aspects of the recording and reporting functions, and separating responsibilities. We have identified
the following material weakness.

As of June 30, 2025, we did not maintain
effective controls over the control environment. The Board of Directors has not established an audit committee as defined in Item 407(d)(5)(ii)
of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these
circumstances constitute a material weakness.

Because of these weaknesses, management has concluded
that the Company did not maintain effective internal control over financial reporting as of June 30, 2025, based on the criteria established
in “INTERNAL CONTROL-INTEGRATED FRAMEWORK” issued by the COSO. Management believes that the weaknesses set forth above did
not have an effect on our financial results because the activity during this period was nominal. However, management believes that the
lack of a functioning audit committee results in ineffective oversight in the establishment and monitoring of required internal controls
and procedures, which could result in a material misstatement in our financial statements in future periods. Management will further recruit
qualified individuals, establish an audit committee, and ensure that board members have current and pertinent financial experience.

Changes in Internal Controls over Financial
Reporting

There were no changes in our internal control
over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15
that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal
control over financial reporting.

17

PART II – Other
Information

ITEM 1. LEGAL PROCEEDINGS

Involvement in Certain Legal Proceedings

To our knowledge, during the past ten years, none
of our directors, executive officers, promoters, control persons, or nominees has:

●
been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses)

●
had any bankruptcy petition filed by or against the business or property of the