Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 42

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 8
Chunk 42
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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. Since this calculation only impacts the Consolidated Balance Sheet, management determined that assets and liabilities
would be adjusted annually unless a material change occurred in the number of leases held by the company. 

NOTE 7 –
GOODWILL

 As of March 31, 2025, the Company’s goodwill
totaled $1,795,406,
resulting from the purchase of TransportUS, Inc., in October 2023. No goodwill was acquired or disposed of during the quarter. 

 As indicated the agreement generated a Goodwill
asset of $1,795,406
resulting from the $2,220,000
value of the shares issued for the purchase over the net book value of TransportUS, Inc. of $424,593
as of October 31, 2023. Due to the agreement’s two step issuance of the 3,000,000
AGSS shares, 1,500,000
at signing and 1,500,00
at a future date, the impact on the Balance Sheet of AGSS is an increase in common stock book value and additional paid in capital, by
$1,110,000,
a deferred liability of $1,110,000,
and an investment in subsidiary asset value of $424,593
along with the Goodwill in the amount of $1,795,406,
as of October 31, 2023. The consolidated Balance Sheet presentation eliminates the investment in subsidiary asset reflected on the Balance
Sheet of AGSS 

 As of December 31, 2024, the Deferred Liability
in Subsidiary decreased by $1,018,000
due to the decrease in share value as of that date. This created a gain from deferred liability of subsidiary equal to $1,018,000.
The result is a balance of $121,500
in Deferred Liability Subsidiary as of December 31, 2024. 

 As September 30, 2025, the Deferred Liability
in Subsidiary was decreased by $248,850
to a balance of $32,100,
due to the decrease in market value of AGSS shares from $.187
on June 30, 2025, to $.0214
on September 30, 2025. 

The Company reviewed events and circumstances
during the quarter