Company: AGSS
Filing Date: 2025-09-25
Form Type: 10-Q
Source: 0001213900-25-091579
Chunk: 23

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-09-25
Form: 10-Q
Item: Item 1
Chunk 23
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 services revenue experienced. Management is working on reducing direct expenses wherever possible without
affecting the services provided.

Operating Expenses and Other Expense

Operation expenses increased in 2025 over 2024
by approximately $763,000. Most of the increase was the results of increases in general and administrative expenses, administrative salaries
and professional services. The largest increase came in general and administrative expenses of approximately $517,600. Of this increase,
$300,000 was the result of the costs associated with the $7,000,000 credit line awarded in February. The remaining expense categories
experienced both increases and decreases. The net results were a decrease of approximately $44,000.

At this time, we believe that our operating structure
and current level of expense can handle significantly more revenue with minor increases in our operating overhead expenses. This would
allow the entire gross profit of any new contract or company acquisition to flow directly to our earnings, providing a consistent return
on investment for our stockholders. Management is focused on reducing operating expenses wherever possible and actively seeking companies
to acquire.

Net (Loss) from Operations

Net loss from operations through June 30, 2025,
is approximately $1,898,400, an increase over the loss during the same period of 2024 by approximately $551,000. This increase is the
result of an increase in operating expenses that exceeded the increase in gross profit. Management is focused on reducing the direct expenses
of our services, thus increasing the gross profit percentage. At the same time management does not expect increases in the operation expenses,
resulting in bottom line improvement in the next quarter and beyond.

Liquidity and Capital Resources

The Company’s principal sources of liquidity
include cash from operations and proceeds from debt financing. During the six months ending June 30, 2025, operations generated a net
decrease in cash of approximately $3,131,000 while cash used by investing activities was approximately $81,200. Financing activities added
approximately $3,091,000. The net decrease in cash for the period was approximately $122,100.

On June 30, 2025, the Company had cash on hand
of $302,483 with total current assets of $3,794,921.

15

Moving Forward

During June and July, several key events occurred
that have impacted the Companies ability to continue operating. We have filed the required Form 8-K’s and a summary of the events
follows:

On June