Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 47

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 47
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034,493 |     |      | 2,782,784 |
| Total Notes Payable         |     | $    | 4,194,840 |     | $    | 3,502,347 |

NOTE 12 – STOCKHOLDERS’ EQUITY/(DEFICIT)

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.

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 final result in the total number of shares outstanding is 93,417,302.

On October 20, 2023, the Company executed a purchase agreement to acquire a related company owned by Lawrence Garcia, CEO. TransportUS Inc. valued at $3,000,000. The company agreed to issue 3,000,000 shares, with 1,500,000 shares issued at time of purchase, and a bonus of 1,500,000 shares when TransportUS renews its main services contract with the Veterans Affairs Department of Long Beach, CA. The purchase created two assets for AGSS. Goodwill in the amount of $1,795,406 and an Investment in Subsidiary in the amount of $424,593. The 1,500,000 shares issued by AGSS and the 1,000 shares retired by TransportUs are reflected in the 2023 section of the Consolidated Statement of Stockholders Equity/(Deficit) report. Resulting in common stock outstanding of 94,917,302at year end.

There was another transaction that impacted stockholders’ equity that occurred to the Company’s equity section relating to owner draws and the merger with a related company. As a part of the normal activity of the privately held Company, an S-Corp, shareholders were distributed funds accounted for as Owner Draws. The owner draw accounts were used primarily for taxes paid by the shareholders due to profits of the S-Corp being transferred to their personal returns along with some personal expenses and personal cash