Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 416

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 7
Chunk 416
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 current
level of expense can handle twice the revenue stream with minor increases to our operating overhead expenses. This allows the entire gross
profit of any new contract or company acquisition to go straight to the bottom line, providing a consistent return on investment.

Net (Loss) from Operations and
Other Income

The Company experience a significant net loss
from operations of $3,403,601 for the year ending December 31, 2024, compared to a loss of $2,428,682 for the year ending December 31,
2023. Other income for 2024 was $1,070,866, including a gain on deferred liability subsidiary of $1,018,500, while 2023 had other income
of $2,561,555 from the Employee Retention Tax Credit received by AGS in June 2023. Resulting in a pre-tax net loss of $2,332,735
for 2024 and a pre-tax net income of $103,615 for 2023.

Liquidity and Capital Resources

The Company’s principal sources of liquidity
include cash from operations and proceeds from debt financing. During the year ended December 31, 2024, operations generated net
cash decrease of $2,611,537 while cash used from investing activities during the same period was $839,504. Cash provided from financing
activities was $1,709,511. The main source of cash from financing activities was short-term loans received in the amount of $4,420,385.
Financing activities usage was total loan payments of $2,760,126.

On December 31, 2024, the Company had cash
on hand of $424,588, with total current assets of $3,294,366.

Moving Forward

During the past twenty-four months we have worked
diligently to set up our corporate structure, systems and implement our strategy as a public company to expand our business. Our current
overhead expense structure has significant excess capacity positioning us to manage two to three times the revenues from one of two strategic
sources. We have two contracts that were won and commenced during the second half of 2024 that we will realize the impact of the full
annual revenue increase in 2025.

10

Our first source is to continue our historical
strategy of seeking organic growth through bidding and winning contracts that meet our criteria for both AGS and TUS. As of December 31,
2024, we had four bids submitted totaling over