Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 50

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 8
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STOCKHOLDERS’ EQUITY

On December 9, 2022, AGS executed a reverse
merger agreement with AGSS resulting in significant adjustments to the equity section of both companies. The result of the merger was
AGSS became the sole owner of AGS. Although the merger is dated December 9, 2022, for financial statement presentation purposes,
we have presented the Equity Section as if the merger occurred in 2021.

 The first significant impact on stockholders’
equity was the issuance of 90,000,000
AGSS shares to the shareholders of Ameriguard Security Services, Inc., in exchange for 1000
shares of AGS, adding a net increase in common shares outstanding of 89,999,000.
Next was the cancelation and conversion of series 675,000
A-1 preferred shares held by AGSS on December 31, 2020. The result in the total number of shares outstanding is 93,417,302.

 On October 20, 2023, the Company executed
a share purchase agreement to acquire a related company owned by Lawrence Garcia, CEO. TransportUS Inc. was acquired with 3,000,000
shares with the initial 1,500,000
shares to purchase from the company and a bonus of 1,500,000
shares when TransportUS renews its main services contract with the Veterans Affairs Department of Long Beach, CA. As of June 30,
2025, the Department of Veterans affairs in Long Beach, CA has not awarded a contract but has issued an extension of the contract to the
Company through September 2025. 

 Late March 2025, Lawrence Garcia, the majority
shareholder, agreed to retire 10,000,000
of his shares in anticipation of finding a major investor for future AGSS Acquisitions. The retiring of the shares is reflected in the
Stockholders Deficit report. 

12

 In July 2025, 1800 Diagonal Lending LLC (lender)
initiated the conversion right of the loan allowing for the outstanding loan balance to be converted to AGSS shares if payment is delinquent.
The conversion rate is 71%
of the share value averaged over the previous 10 trading days. The lender converted $20,000
of the loan balance into 495,894
shares. In August 2025, the lender converted the remaining balance of the loan of $40,984