Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 38

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 1
Chunk 38
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4, the Company does not have any leases that qualify for this election.

    F-8

Revenue Recognition

The Company recognizes revenue under ASC 606, Revenue from contracts
with customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of services
to customers in an amount that reflects the consideration to which the company expects to be entitled for those services. There are five
steps or qualifiers that determine the timing and amount of Revenue Recognition. Those five steps are:

1.Identifying the contract
                                            with a customer.

2.Identifying the performance
                                            obligation in the contract.

3.Determine the transaction
                                            price.

4.Allocate the transaction
                                            price to performance obligations.

5.Recognize the revenue
                                            when the entity satisfies the performance obligation.

The Company generates and recognizes revenue in three sales categories.
Those being, Formal Contracts, Sales Agreements and Retail activities. For the retail activities, the revenue is recognized on a cash
basis at the time of sale. For the other two categories, the customers are billed at the end of the month the services have been performed.

The formal contract and sales agreements stipulate the exact services
to be performed and the rate the services are to be billed, as per steps 1, 2 and 3. The Company provides details of services provided
with each billing invoice for customer review and approval. Any differences are resolved prior to payment, Step 4. The Company recognizes
revenue in the month the services stipulated in the agreement have been provided, Step 5. 

Ninety eight percent of revenues are billed monthly
and recognized in the month the services were provided. Refunds and returns, which are minimal, are recorded as a reduction of revenue.
The Company has not recorded a reserve for returns on December 31, 2024, or 2023 since it does not believe such returns will be
material.

Net Income/(Loss) per Share

Net income/(loss) per common share is computed by
dividing net income or loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards,
ASC Topic 260, “Earnings per Share”. Basic earnings/(loss) per common share (“EPS”) calculations are determined
by dividing net income/(loss) by the weighted average number of shares of common stock outstanding during the year. Diluted earnings
per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common