Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 860

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 8
Chunk 860
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 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-7

NOTE 2 – 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 differ from those estimates. Significant estimates include estimated useful lives and potential impairment of property and equipment, along with the collectability of some receivables from customers.

Cash and Cash Equivalents

The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents.
On December 31, 2024, and December 31, 2023, the Company had cash and cash equivalents totaling $424,588 and $2,166,118 respectively.

Accounts Receivable

We record accounts receivable at net realizable value. This value includes
an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and
is charged to bad debt expense. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on
the contractual terms of the receivables, and our relationships with, and the economic status of, our customers. With over eighty-nine
percent of year end accounts receivable balance from Federal contracts that require payment, and the uncollectable amount historically
has been less than 1%. As of December 31, 2024, and 2023, an allowance for estimated uncollectible accounts was determined to be
unnecessary.

Property and Equipment

Property and equipment are recorded at cost.
Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to
expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are
removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period.
Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial
statement purposes.