Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 44

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 44
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 290,892 
   635,172 
 1,200,197 
  (626,083 | ) |     | 2022 |  224,132 
  278,551 
  110,274 
  612,957 
 (314,151 | ) |
|:-------------------------|:----|:-----|----------:|:--|:----|:-----|---------:|:--|
| Fixed Assets, Net        |     | $    |   574,114 |   |     | $    |  298,806 |   |

NOTE 8 – 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.

F-12

The capital lease value as calculated following FASB guidelines is presented as a non-current asset on the balance sheet. As of December 31, 2023, the value is calculated to be $977,600, and as of December 31, 2022, the value was $241,786. For the Operating Lease liability, the amount of $977,600 was calculated as of December 31, 2023, and was $241,786 as of December 31, 2022. The Operating Lease liability is presented as current and long term. The current portion of the Operating Lease liability for December 31, 2023, is $269,230 and for December 31, 2022, it is $88,245. The increase in both the Operating Lease asset and liability as of December 31, 2023, is due to the addition of 5 leased vehicles by TransportUS Inc., during the year, which directly caused the increased lease asset and related liability.

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 based on the 7-year risk-free Treasury rate as of January 3, 2023, set at 3.95%. This rate was applied to determine the present value of the lease payments and record the right-of-use asset and lease liability as recorded on the balance sheet.

Maturities of lease liabilities on December 31, 2023, are as follows:

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