Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 194

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 2
Chunk 194
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’s fluctuations in sales and operating results; (b) regulatory, competitive and contractual risks; (c) development risks; (d) the ability to achieve strategic initiatives, including but not limited to the ability to achieve sales growth, and (e) unknown litigation.

Corporate Structure

As previously mentioned, on December 9, 2022, AGSS executed a reverse merger with AmeriGuard resulting in AGSS becoming the sole owner of AmeriGuard. This merger establishes AGSS as a company operating a viable guard company with annual sales of approximately $24,000,000. It also is in the position to access the capital market to generate the capital needed to begin its growth strategy of mergers and acquisitions within the security industry.

On October 20, 2023, the Company executed
a share purchase agreement to acquire TransportUS Inc. This brings the second entity under the ownership and management of AGSS. TransportUS
Inc., adds an opportunity to increase revenues in the more profitable federal contracts requiring non-emergency medical transportation.
As mentioned earlier, this industry is projected to grow at 9% year over year through 2032. AGSS will be a strong participant in the industry
and will grow via contract awards and additional acquisitions within the industry. The addition of TransportUS Inc increased total
revenue for 2024 to approximately $26,000,000.

AGSS continues developing the leadership team
needed for success. We have in place a CEO with 22 years of experience in our industry and has been very successful in the government
contracting market. Our new CFO has 22 years of experience in improving business performance as well as organizational growth across various
sectors. Our Senior Controller has over 38 years of business finance experience, the last 15 of which he has been focusing on organizational
development consulting across multiple industries, and an Operations team on the east coast managing IT and our federal contracts, and
we have engaged legal and SEC compliance professionals. We have a Board of Directors with Wall Street and government security experience
making us well positioned to aggressively grow the business.

8

Results of Operations for
the fiscal year ending December 31, 2024

Revenues and Cost of Services

For 2024 the Company experienced a 26% overall
increase in operational revenue, totaling approximately $5,465,000. The increase results from the inclusion of a full year of revenue
from TransportUS Inc. (TUS). The increase over revenue received in 2023 totaled approximately $