Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 2

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 2
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 Securities and Exchange Commission (SEC). As a result, the Company engaged a new independent auditor, Bush & Associates CPA, LLC to re-audit the affected prior-year financial statements in accordance with the standards of the Public Company Accounting Oversight Board (PCAOB). BF Borgers’s reports on AGSS’s financial statements for the fiscal years ended December 31, 2023 and 2022 did not contain an adverse opinion or a disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles. During the re-audit it was discovered that the company had an improper application of ASC 805 (Business Combinations) for its October 20, 2023 acquisition of TransportUS.

The restatement of the previously issued financial statements for 2022 and 2023 was due to the incorrect application of the acquisition of the Company. This was discovered by the auditors and the financial impact affected the income statement, balance sheet, shareholder’s equity and cash flow statements for both 2022 & 2023. In 2022 the prior financial statements reflected a combination of both the Company and TransportUS. The re-audit has changed that application and presents the Company separately from the acquisition. The prior stated revenue was $29,139,403 and now has been corrected to $24,947,401. The net income changed from a loss of $392,919 to a loss of $436,766. The loss per share changed from 0.0041 to 0.0046. Total Assets changed from $5,149,832 to $3,748,343, total liabilities changed from $6,760,412 to $5,745,791 and retained earnings changed from a deficit of $1,769,926 to $2,155,794.

For 2023, the re-audit discovered improper valuations of certain assets such as goodwill, deferred liability, an investment in subsidiary asset value and deferred liability of subsidiary.

The purchase agreement was to issue 3,000,000 common shares to Lawrence Garcia in exchange for the 1,000 shares held from TransportUS, Inc. The agreement called for the immediate issuance of 1,500,000 shares when the agreement was executed with the remaining 1,500,000 shares to be issued contingent on TransportUS Inc., renewing its current transportation contract with the Veterans Administration in Long Beach California. The award of the contract is expected to occur in 2025.

This agreement generated a Goodwill asset of $1