Company: AGSS
Filing Date: 2025-09-25
Form Type: 10-Q
Source: 0001213900-25-091579
Chunk: 20

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-09-25
Form: 10-Q
Item: Item 1
Chunk 20
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. The lease agreement includes maintenance services and tracking. The terms of the lease agreement vary based on the date the vehicle was leased and the respective terms for each vehicle. The master lease is updated annually and requires annual internal financial reports and company tax return. 

NOTE 13 – CONCENTRATION OF SALES  The company generated approximately $14,830,000 in service revenue as of June 30, 2025, and approximately $13,665,000 in contract service revenue. Of the total service revenue, approximately 92% was earned from six federal contracts through the second quarter of 2025. The active contracts and their respective terms are as follows:      ● Social Security Administration, NSC **   -  September 2022 through September 2027 Annual Revenue of approx. $6.1M                 ● Social Security Administration, SSC  **   -  June 2022 through June 2027 Annual Revenue of approx. $5.4M                 ● Social Security Administration, WBDOC **   -  June 2021 through July 2026 Annual Revenue of approx. $3M                 ● Veterans Administration – Central Los Angeles CA   -  Oct 2024 through Sep 2029 Annual Revenue of approx. $720K                 ● Veterans Administration – Long Beach CA   -  Feb 2019 through September 2025 Annual Revenue of approx. $9M                 ● Veterans Administration – Loma Linda CA   -  Oct 2024 through Sep 2029 Annual Revenue of approx. $2.1M    **- See Moving Forward comments, ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS regarding this contract.  

NOTE 14 – LITIGATION AND CLAIMS  As of December 31, 2023, there are three employment issues pending. The issues revolve around terminated employees alleging the Company has failed to pay minimum wages, sick pay wages, meal period violations, rest period violations wage statement violations and violation of relevant unfair business practices acts. A lawsuit has been filed, and management did participate in a mediation process March 20, 2025. The Company believes this lawsuit has no merit, yet to avoid significant cost of a trial, the company agreed to a settlement amount of $150,000. The settlement process is expected to require 12 months to get through