Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 197

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 2
Chunk 197
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 law violations. Additionally,
there was an increase in the general and administrative expenses of approximately $157,000. Within the general and administrative expenses,
outside services expenses increased approximately $100,000. Advertising and marketing experience and increase of approximately $120,000.
TUS expenses the graphics put on the vans in this category and added 41 vans in 2024, total cost $90,235. AGC redesigned its website
and added social media advertising to increase guard services revenue. This program ended in October. There were increases in other operating
expense categories such as vehicle expense, general liability insurance, licenses and permits and depreciation totaling approximately
$354,000, which was offset by a decrease in administrative salaries and payroll taxes by approximately $240,000.

At this time, our operating structure and current
level of expense can handle twice the revenue stream with minor increases to our operating overhead expenses. This allows the entire gross
profit of any new contract or company acquisition to go straight to the bottom line, providing a consistent return on investment.

Net (Loss) from Operations and
Other Income

The Company experience a significant net loss
from operations of $3,403,601 for the year ending December 31, 2024, compared to a loss of $2,428,682 for the year ending December 31,
2023. Other income for 2024 was $1,070,866, including a gain on deferred liability subsidiary of $1,018,500, while 2023 had other income
of $2,561,555 from the Employee Retention Tax Credit received by AGS in June 2023. Resulting in a pre-tax net loss of $2,332,735
for 2024 and a pre-tax net income of $103,615 for 2023.

Liquidity and Capital Resources

The Company’s principal sources of liquidity
include cash from operations and proceeds from debt financing. During the year ended December 31, 2024, operations generated net
cash decrease of $2,611,537 while cash used from investing activities during the same period was $839,504. Cash provided from financing
activities was $1,709,511. The main source of cash from financing activities was short-term loans received in the amount of $4,420,385.
Financing activities usage was total loan payments of $2,760,126.

On December 31, 2024, the Company had cash
on hand of $424,588,