Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 38

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 38
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 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.

F-8

NOTE 2 – Restatement of Previously Issued Financial Statements

The Company has restated its consolidated balance sheets as of December 31, 2023 and 2022 and its consolidated statements of operations, consolidated statements of comprehensive loss and consolidated statements of changes in equity for the years ended December 31, 2023 and 2022, along with certain related notes to such restated consolidated financial statements. In addition, the Company has restated its consolidated statement of cash flows for the year ended December 31, 2023.

The Company determined that the restatement was necessary after the re-audit conducted by the new audit firm discovered the incorrect application of the acquisition (ASC 805 Business Combinations) on October 20, 2023 of TransportUS by the Company. The restatement corrects errors that were identified as a result of the re-audit, as well as certain other errors that were identified by the Company. In addition, the restatement reflects corrections of certain immaterial errors and certain previously identified errors that were identified by the Company in the normal course of business and were determined to be immaterial, both individually and in the aggregate, when the consolidated financial statements for the year ended December 31, 2013 were originally issued. In connection with the restatement, the Company has determined that it would be appropriate to correct such errors.

Error Corrections

In 2022 the prior financial statements reflected a combination of both the Company and TransportUS. The re-audit has changed that application and presents the Company separately from the acquisition.

For 2023, the re-audit discovered improper valuations of certain assets such as goodwill, deferred liability, an investment in subsidiary asset value and deferred liability of subsidiary.”

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

In preparing financial statements in conformity with 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