Company: AGSS
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001829126-25-003800
Chunk: 14

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 2024, the Company entered into an agreement with Lillian Flores regarding the
deferral of the required shareholder buyout payment of $611,253 due
December 31, 2023. The deferral of the principal payment was requested by the Company for the purpose of capital retention. The
agreement allows for a $16,500 monthly principal and interest payment starting in January 2024 through
June 2024. Monthly interest is calculated at $1,585,
leaving $14,915 applied
to the principal. The agreement requires the remaining deferred principal of $521,763 to
be paid by the Company on or before June 30, 2024. On June 30, 2024, Lillian Flores agreed to continue the extension
payments of $16,500 amortized at 5%, with the remaining amount due December 31, 2026. Balance due March 31, 2025, was
$2,513,378 and was $2,531,096, December 31, 2024.

On December 20, 2023, the company entered
into a short-term loan agreement collateralized by accounts receivable from TVT Capital LLC. The agreement encumbered $1,199,200 of
receivables resulting in a note payable of $800,000;
the repayment term requires $49,967 per
week for 24 weeks. As of December 31, 2023, the balance of $766,667
was outstanding, and is included as current portion of notes payable. During 2024, the Company was unable to pay the weekly payments
as required by the note and went into default in April 2024. Negotiations for lower payments and total interest due continued
throughout the following months and a final settlement was achieved in February 2025. Balance due December 31, 2024, of $580,000
includes all principal and interest due per final settlement, presented as current.

On January 2, 2024, the Company entered into
a short-term loan agreement collateralized by accounts receivable with Cedar Advance Capital. The agreement encumbered $719,250 of receivables,
resulting in a note payable of $525,000; the repayment term requires $22,477 per week for 32 weeks. During 2024, the Company was unable
to pay the weekly payments as required by the note and went into default in April 2024