Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 36

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 8
Chunk 36
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 generally accepted accounting principles.

Risks and Uncertainties

The risks and uncertainties described below may
not be the only ones we are or may face in the future. If any of the following do occur, our business, financial condition or results
of operations could be materially adversely affected.

 The company receives over 92%
of its total revenue from six Federal contracts as described in Note 13 below. These contracts have specific terms, typically five years
with the opportunity for extension, but there are no assurances they will be extended. Although we have had several extended in the past,
there is no guarantee this will again happened in the future. However, there are significant direct expenses for each contract that also
are removed from operations at the end of a contract. As a result, the revenue lost from a completed contract does not affect the bottom-line
profits in an amount equal to the revenue lost. The actual net income impact depends on the contract. 

The process required to acquire a government contract
takes several months to complete prior to delivery of the proposal to the contracting agency. Due to the time span required to prepare
a proposal and winning the contract is not guaranteed, the Company maintains a department of individuals who monitor and write proposals
for all government contracts that become open for bid on a continuing basis. It is important to the Company that new contracts are acquired
consistently to maintain and grow annual revenue.

Other risks to operations consist of State and
Federal regulations, staffing shortages, accelerating inflation, and overall business environment issues we cannot foresee.

5

NOTE 2 –
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of
Estimates

In preparing financial statements in conformity
with United States generally accepted accounting principles, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements
and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include
estimated useful lives and potential impairment of property and equipment, along with the collectability of some receivables from customers.

Cash and
Cash Equivalents

 The Company considers all highly liquid temporary
cash investments with an original maturity of three months or less to be cash equivalents. On September 30, 2025, and December 31,
2024, the Company had cash and cash equivalents totaling $36,019
and $424,588
respectively. 

Accounts
Receivable

 We record accounts