Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 24

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 1
Chunk 24
---
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. On October 20, 2023, the Company executed
a share purchase agreement to acquire TransportUS Inc. TransportUS, Inc. was incorporated on October 24, 2018, with an S-Corp tax
election. The corporation was incorporated with the issuance of 1,000 shares with no-par par value stock held by Lawrence Garcia, President
and CEO. TransportUS Inc. provides human transportation services as a federal contractor, currently providing services in the state of
California. These two acquisitions within one year allows AGSS to access the capital market to generate the capital needed to continue
its growth strategy for mergers and acquisitions within related industries.

AGSS continues developing the leadership team
needed for success. We have in place a CEO with 20 years of experience in our industry who has experienced success in the government contracting
market. Our CFO has over 35 years of corporate financial management experience along with improving business performance as well as organizational
growth across various sectors. The last 15 of which has been focused on organizational development consulting across multiple industries.
Our Operations Manager has over 30 years of experience in the Security industry with a focus on human resources and employee effectiveness
and efficiency.

14

Results
of Operations for the nine months ending September 30, 2025

Revenues
and Cost of Goods Sold

Through the third quarter of 2025 the Company
experienced a 3.7% increase in services revenue compared to the same time period of 2024 of approximately $718,800. The increase is the
net result of increases in some revenue categories and decreases in others. The government contract revenue category increased approximately
$1,321,000 while the other categories of commercial services decreased in total by approximately $600,000. The commercial services decline
was expected due to a shift from traditional guard services to services provided by camera systems and fewer individual guards, resulting
in reduced labor costs of approximately $943,000. Overall, AGSS experienced increases in non-labor direct expenses such as, vehicles expenses