Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 52

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 8
Chunk 52
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    -
    
        Oct
        2024 through Sep 2029
        Annual Revenue of approx. $2.6M

    **
    -
    See Moving Forward comments, ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                    AND RESULTS OF OPERATIONS for further information regarding forfeiture of this contract.  

NOTE 14 –
LITIGATION AND CLAIMS

 Since December 31, 2024, there are two employment
issues pending. The first is a Private Attorney General Act (“PAGA”) and Class Action lawsuit against AmeriGuard Security
Services, Inc for various wage & hour violations alleging the Company has failed to pay minimum wages, overtime, sick pay, meal period
violations, rest period violations, wage statement violations, waiting time penalties, failure to reimburse business related expenses
and violation of relevant unfair business practices acts filed in Fresno County Superior Court as Case #23CECG03540 . Management participated
in a mediation on March 20, 2025, and settled the matter. The Company believes this lawsuit has no merit, yet to avoid significant attorneys’
fees, expert fees and the cost of trial, the Company agreed to a settlement amount of $150,000.
The settlement process is expected to require at least 12 months to get through the court. The agreement required a $15,000
good faith deposit which is being held in trust. 

In May 2025, a second is a PAGA and Class Action
lawsuit against TransportUS for various wage & hour violations alleging the Company has failed to pay minimum wages, overtime, meal
period violations, rest period violations, wage statement violations, waiting time penalties, failure to reimburse business related expenses
and violation of relevant unfair business practices acts filed in San Bernardino Superior Court as Case No. CIVSB2515019#23CECG03540.
The Company responded to the lawsuit. No demand has been made. The parties have agreed to early mediation. The potential damages are unknown
at this time until an assessment of the evidence can be made as to the potential liability of the claims being alleged. No estimated settlement
range will be provided as it would negatively affect settlement discussions and successful resolution of the lawsuit.

As of September 30, 2025, there have been
no additional litigation matters of relevance.

NOTE 15 –
INCOME TAXES

 Due to the losses incurred during the tax year
ending 2023, and the