Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 718

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 11
Chunk 718
---
 and 60 months. At the end of the
term the vehicle becomes the property of the Company.

The capital lease value as calculated following
FASB guidelines is presented as a non-current asset on the balance sheet. As of December 31, 2024, the value is calculated to be $3,261,415,
and as of December 31, 2023, the value was $977,600. For the Operating Lease liability, the amount of $3,261,415 was calculated as of
December 31, 2024, and was $977,600 as of December 31, 2023. The Operating Lease liability is presented as current and long term. The
current portion of the Operating Lease liability for December 31, 2024, is $924,808, with the long-term portion of $2,366,607. For December
31, 2023, the current portion is $269,230, with the long-term portion of $708,369. The significant increase in both the Operating Lease
asset and liability as of December 31, 2024, is due to the addition of 43 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, 2024, 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, 2024, are as follows:

    Schedule of maturities of lease liabilities 

     ●
    2025:  
    $860,542 
  
     ●
    2026: 
    $857,688 
  
     ●
    2027:  
    $807,260 
  
     ●
    2028: 
    $584,415 
  
     ●
    2029: 
    $151,510 
  
     ●
    Total 
    $3,261,415 

NOTE 7 – GOODWILL

On October