Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 41

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 8
Chunk 41
---
 These expenses were eliminated when the two companies were consolidated for the financial statement presentation. 

NOTE 5 –
FIXED ASSETS

Fixed assets consist of the following on September
30, 2025, and December 31, 2024:

    2025

    2024

    Leasehold Improvements

    274,133

    274,133

    Machinery and Equipment

    480,836

    298,974

    Vehicles

    1,631,005

    1,466,593

    Total Fixed Assets

    2,385,974

    2,039,700

    Accumulated Depreciation

    (1,125,733
    )

    (864,153
    ) 
  
    Fixed Assets, Net
     
    $
    1,260,241

    $
    1,175,547

8

NOTE 6 –
OPERATING LEASES

We have leased vehicles with terms greater than
one year
that are classified as operating leases per the guidelines. The lease terms vary between 48 and 60 months. At the end of the term the
vehicle becomes the property of the Company.

 The capital lease value is calculated following
FASB guidelines annually and is presented as a non-current asset on the balance sheet. As of December 31, 2024, the value is calculated
to be $3,261,415.
There is an Operating Lease liability calculated, in the amount of $3,261,415
as of December 31, 2024. The Operating Lease liability is presented as current and long term. The current portion of the Operating Lease
liability for December 31, 2024, is $924,808,
and the long-term portion is $2,336,607.
The non-current operating lease asset is $3,060,681
as of September 30, 2025, and the current portion of the Operating Lease Liability is $921,408,
with long-term Operating Lease Liability of $2,145,274.

 The discount rate is the interest rate that equates
the present value of future lease payments to the Right-of-Use (ROU) asset or lease liability. The leasehold amortization was calculated
using an incremental borrowing rate. The rate chosen was the 7-year risk-free Treasury rate as of January 3, 2024, set at 3.91%.