Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 18

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 18
---
 less has created a challenge in the market. As a result, AGS has shifted its approach to protecting business assets from the traditional standing guard to technology and patrol services. AGS has established a 24-hour dispatch department to monitor activity and direct patrol officers to the problem locations. Our patrol officers respond to all alarms regardless of cause within 15 minutes of activation. This is a cost effect way for businesses to have protection without the high expense of a posted guard. This is an area of service we are continuing to expand.

Currently, we have four federal contracts continuing into 2024, that approximated 96% of our total services revenue for the year ended December 31, 2023. All federal contracts are awarded with a term of 5 years, with annual renewals. At the end of each contract year the government has the option to renew, cancel or renegotiate. Our four contracts and their respective terms are as follows:

| ● | Social Security Administration, NSC     |     | - | September 2022 through September 2027 
 Annual Revenue of approx. $5.8M       |
| ● | Social security Administration, SSC     |     | - | June 2022 through June 2027           
 Annual Revenue of approx. $5M         |
| ● | Social Security Administration, WBDOC   |     | - | June 2021 through July 2026           
 Annual Revenue of approx. $3M         |
| ● | Veterans Administration – Long Beach CA |     | - | Feb 2019 through June 2024            
 Annual Revenue of approx. $4.4M       |

As with all professional service industries the vast majority of expense in with direct labor and expenses associated with that labor. We are not an exception. Our direct expenses average around 91% of revenues. Total cost of services was approximately $19,170,000 in 2023 and approximately $21,950,000 in 2022.

<div align='center'>9</div>

Operating Expenses and Other Expense

Operation expense increased in 2023 over 2022 by approximately $1,153,000. The largest category of increases was in administrative salaries and related payroll expenses, of approximately $442,000. Ninety percent of this increase was due to the establishment of the required IT department and an east coast operations group (mid-2022) along with a new Human Resource department (2023). Professional services experienced an increase of approximately $102,000. A portion of this increase