Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 67

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 2
Chunk 67
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. This net increase was the result of various increases and decreases in the operating expense
categories. Some of the notable changes where; operating salaries and benefits. In this category, there was a decrease in total labor
of $82,800, but there was a significant increase in medical insurance of $203,600. Next there was a significant increase in the general
and administrative expense category grouping of $588,124. Of this increase, $300,000 was the result of the costs associated with the $7,000,000
credit line awarded in February, along with an increase of $205,470 in the outside services category. The bulk of outside service expense
is for consulting services for managing federal contracts. Depreciation expense also increased due to the significant increase in vehicles
needed for transportation contracts in the amount of $166,163. Several other major expense categories experience a decline in 2025 over
2024 such as professional fees, advertising and marketing, staff training, and loan interest.

Management is focused on reducing operating expenses
wherever possible to increase the bottom line.

Net
(Loss) from Operations and Net (Loss) before Taxes

Net loss from operations through September 30,
2025, is approximately $1,749,700, a decrease over the loss during the same period of 2024 by approximately $411,500. This decrease is
the result of an increase in the gross profit margin described above. Management is focused on reducing the direct expenses of our services,
thus increasing the gross profit percentage. At the same time management does not expect increases in the operation expenses, resulting
in bottom line improvement in the next quarter and beyond. The Net Loss before Taxes decreased significantly from the loss of $2,135,170
in 2024 to a loss of $835,620 for the same period in 2025. The reason for the decrease, is from two events that occurred in the 3rd
quarter of 2025. The most significant was a one-time write off of a deferred revenue balance held by TransportUS Inc., in the amount of
$657,327. This liability was written off, because it was established with a Company that originally supported TransportUS Inc with its
original contract with the Department of Veterans Affairs in Long Beach CA. That company was sold by the owners, and this liability was
not transferable. The second event was a gain on sale of equipment in the amount of by Ameriguard Security Services of California, totaling
$