Company: AGSS
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001829126-25-003800
Chunk: 32

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 32
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, totaling approximately $276,800, there were increases in other expenses.
The largest increase came in general and administrative expenses of approximately $318,000. Of this increase, $300,000 was the result
of the costs associated with the $7,000,000 credit line awarded in February. There was an increase in professional fees in the amount
of approximately $151,000. Key increases were in legal fees of $36,000 and accounting fees of $92,000. These increases related to the
requirement of having to reissue the 2023 audited financial statements, processed in late 2024 and billed in this quarter. Vehicle expenses,
licenses, and depreciation expense also increased a total of $110,900.

At
this time, we believe that our operating structure and current level of expense can handle significantly more revenue with minor increases
in our operating overhead expenses. This would allow the entire gross profit of any new contract or company acquisition to flow directly
to our earnings, providing a consistent return on investment for our stockholders. Management is focused on reducing operating expenses
wherever possible and actively seeking companies to acquire.

Net
(Loss) from Operations

Net
loss from operations for the quarter approximately $1,325,000, an increase over the loss during the same time period of 2024 by approximately
$463,000. This increase is the result of a gross profit decline of approximately $166,000 and an operating expenses increase of approximately
$297,000. 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.

Liquidity
and Capital Resources

The
Company’s principal sources of liquidity include cash from operations and proceeds from debt financing. During the three months
ending March 31, 2025, operations generated a net decrease in cash of approximately $1,787,000 while cash used by investing activities
was approximately $17,000. Financing activities added approximately $1,650,000. The net decrease in cash for the period was approximately
$154,100.

On
March 31, 2025, the Company had cash on hand of $270,484 with total current assets of $3,196,616.

15

Moving Forward

During
the past twenty-seven months we have worked diligently to set up our corporate structure, process, staffing and