Company: AGSS
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001829126-25-003800
Chunk: 35

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 35
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, evaluated the effectiveness of the design and
operation of our disclosure controls and procedures as of March 31, 2025. Based on that evaluation, our Chief Executive Officer and
Chief Financial Officer concluded that as of March 31, 2025, our disclosure controls and procedures were not effective to satisfy
the objectives for which they are intended due to a weakness in our internal control over financial reporting discussed below.

The framework our management uses to evaluate
the effectiveness of our internal control over financial reporting is based on the guidance provided by the Committee of Sponsoring Organizations
(COSO) of the Treadway Commission in its 1992 report: INTERNAL CONTROL - INTEGRATED FRAMEWORK. Based on our evaluation under the framework
described above, our management has concluded that our internal control over financial reporting was ineffective as of March 31,
2025, due to the same weaknesses that rendered our disclosure controls and procedures ineffective. The Company’s internal control
over financial reporting is not effective due to a lack of sufficient resources to hire support staff to separate duties between different
individuals. The Company plans to address these weaknesses as resources become available by hiring additional professional staff, as funding
becomes available, outsourcing certain aspects of the recording and reporting functions, and separating responsibilities. We have identified
the following material weakness.

As of March 31, 2025, we did not maintain
effective controls over the control environment. The Board of Directors has not established an audit committee as defined in Item 407(d)(5)(ii)
of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these
circumstances constitute a material weakness.

Because of these weaknesses, management has concluded that the Company
did not maintain effective internal control over financial reporting as of March 31, 2025, based on the criteria established in “INTERNAL
CONTROL-INTEGRATED FRAMEWORK” issued by the COSO. Management believes that the weaknesses set forth above did not have an effect
on our financial results because the activity during this period was nominal. However, management believes that the lack of a functioning
audit committee results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which
could result in a material misstatement in our financial statements in future periods. Management will further recruit qualified individuals,
establish an audit committee, and ensure that board members have current and pertinent financial experience.

Changes in Internal Controls over Financial Reporting

There were no changes in our internal control over