Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 48

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 48
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 needs. As part of the preparation for the merger, these inter-company balances were removed through the owner draw accounts. Total owner draw amount was $62,825for December 31, 2022.

F-14

NOTE 13 – COMMITMENTS AND CONTINGENCIES

The company has a multiple vehicle lease agreement with Enterprise Leasing. As of December 31, 2023, the company had 23 vehicles under lease. The lease agreement includes maintenance services and tracking. The terms of the lease agreement vary based on the date the vehicle was leased and the respective terms for each vehicle. The master lease is updated annually and requires annual internal financial reports and company tax return.

NOTE 14 – CONCENTRATION OF SALES

The company generated $20,969,727 and $24,947,401 in service revenue for the years 2023 and 2022 respectively. Of the total service revenue, approximately 86% was earned from the federal contracts operated by the company. The 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         |
| ● | National Institute of Health – EPA      |     | - | May 2020 through March 2023           
 Annual Revenue of approx. $2.8M       |
| ● | Veterans Administration – Long Beach CA |     | - | Feb 2019 through March 2024           
 Annual Revenue of approx. $4.4M       |

Currently, we have four federal contracts continuing into 2024, that will approximate 90% of our total services revenue expected for the year ending December 31, 2024. 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       |