Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 19

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 19
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, $65,000, was due to the audit requirements of TransportUS Inc. prior to acquisition, the remainder due to the cost associated with a full year of quarterly filings that required professional review. Two other expense categories that experienced an increase over 2022 were Staff Training and Livescan fees. These two experienced a combined increase of approximately $178,000. This is due to the strategic decision to close a separate Training Company operating in Maryland and making it a division of AGS. This resulted in all of the operating expenses of the closed company being added to AGS normal operations. Loan interest expense also saw an increase of approximately $171,000 due to a full year of interest for the shareholder buyout loan, along with additional loan interest and borrowing fees occurred in the 4 quarter. Communication expenses increased by approximately $24,000 due to an increase in cell phones provided for the use of new technology along with related costs of geo tracking. General liability insurance increase by approximately $73,000 due to adding TUS and general increase experience in CA. License and permit expenses increased approximately $63,000 due to the timing of renewals of multi-year licenses. Finally, General and administrative expenses increased approximately $136,000 primarily from increases in bank fees, outside services, rent, and office supplies.

At this time, our operating structure and 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 experienced a significant net loss from operations of $2,428,681 for the year ending December 31, 2023, compared to a minor loss of $82,311 for the year ending December 31,2022. The cause of this loss was the gross profit margin lost due to the end of the EPA contract and the expenses increase described above. Other income increased over $2.5 million due to the Employee Retention Tax Credit received by AGS in June 2023. Bringing the final Net Income to $103,616 for 2023 compared to a $426,416 loss 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, 2023, operations generated net cash increase of $87,715 while cash used from investing activities during the same