Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 68

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 2
Chunk 68
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137,128.

Liquidity
and Capital Resources

The Company’s principal sources of liquidity
include cash from operations and proceeds from debt financing. During the nine months ending September 30, 2025, operations generated
a net decrease in cash of approximately $751,000 while cash used by investing activities was approximately $346,000. Financing activities
added approximately $709,000. The net decrease in cash for the period was approximately $388,400.

On September 30, 2025, the Company had cash on
hand of $36,166 with total current assets of $2,048,856.

15

Moving
Forward

During June and July, several key events occurred
that have impacted the Company significantly and triggered a major reorganization of the Company, from the Board of Directors down to
the front-line staff. We have filed the required Form 8-K’s, and a summary of the events follows:

On June 10, 2025, the executive level management
and Board of directors experience a significant disruptive event. At a board Meeting held on that day, board members Douglas Anderson
and Russel Honore’ acting on the recommendation of the Audit Committee, on which they were appointed, made a motion to remove Mr.
Lawrence Garcia from the position of CEO. At the same time, they appointed board member Anderson as the temporary CEO. On June 12th,
Douglas Anderson filed a Form 8-K stating that Board of Directors (the “Board”) of AmeriGuard Security Services, Inc. (the
“Company”) removed Lawrence Garcia from the position of Chief Executive Officer of the Company, effective immediately, and
that the Board appointed as interim Chief Executive Officer Mr. Anderson, an independent director of the Board and member of the Audit
Committee and Compensation Committee.

On June 16, 2025, as previously reported on the
Company’s Current Report on Form 8-K filed on June 20, 2025, Mr. Garcia, pursuant to the Company’s bylaws, removed Mr. Anderson
and Russell Honore, an independent director of the Board and member of the Audit Committee and Compensation Committee, as board members
and appointed Wilhelm Cashen and Terry Slatic as board members to replace Messrs Anderson and Honore. On June 16, 2025, the Board also
removed Mr. Anderson from the position of Interim Chief Executive Officer, effective immediately, and appointed Mr. Garcia as Chairman
of the Board and Chief