Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 278

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 3
Chunk 278
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 $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 94,917,302
at 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 needs. As part of the preparation for the merger, these inter-company balances
were removed through the owner draw accounts. The total owner draw amount was $62,825
 for December 31, 2022.

From the reverse merger transaction in December 2022, there was a immaterial difference in the number of shares outstanding per our transfer
agent VStock Transfer LLC, and the internal records maintained by AGSS. It was decided to make the reconciliation adjustment for December
31, 2024, audit year and the immaterial difference of 990 shares were added to the Common Shares total bringing the total amount of outstanding
shares to 94,981,292. Matching the transfer agent’s shareholder listing of the same date.

NOTE 12 – COMMITMENTS AND CONTINGENCIES

The company has a multiple vehicle lease agreement with Enterprise Leasing. As of December 31, 2024, the company had 59 vehicles under lease. The lease agreement includes maintenance services and tracking. The terms of the lease agreement vary based on the date the vehicle was leased and the respective terms for each vehicle. The master lease is updated annually and requires annual internal financial reports and company tax return.

NOTE 13