Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 9

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 1
Chunk 9
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 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 June 30, 2025, nor December 31, 2024, 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 share equivalents outstanding.

Fair Value
of Financial Instruments

The Company applies the accounting guidance under
Financial Accounting Standards Board (“FASB”) ASC 820-10, “Fair Value Measurements”, as well as certain related
FASB staff positions. This guidance defines fair value as the price that would be received from selling an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements
for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which
it would transact business and considers assumptions that marketplace participants would use when pricing the asset or liability, such
as inherent risk, transfer restrictions, and risk of nonperformance.

7

The guidance also establishes a fair value hierarchy
for measurements of fair value as follows:

    ●
    Level 1 - quoted market prices in
        active markets for identical assets or liabilities.

    ●
    Level 2 - inputs other than Level
        1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted
        prices for identical or similar assets or liabilities in markets that are not active, or other