Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 241

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 3
Chunk 241
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 so does the revenue. For Commercial operations there is a lag between cost increases
and service rate increases. It’s our practice to adjust service rates annually in the month of February. Although we did increase
our billing rates for new contracts during 2024, the existing companies will not see an additional rate increase until February 2025.
Although demand for services has continued to increase in 2024, the expectations of the cost of those services is out of line with the
market expectations. As AGS deals with the increased labor costs, the customers are experiencing similar cost pressures and are less
willing to pay for our traditional services. This conflict with AGS needing to raise services fees and customers needing to pay less
has created challenges in the market. As a result, AGS has needed to shift its approach to protecting business assets from the traditional
standing guard to technology and patrol services. AGS has established a 24-hour dispatch department to monitor camera systems and direct
patrolling officers to the problem locations. Our patrol officers respond to all alarms regardless of cause within 15 minutes of activation.
This is a cost effect way for businesses to have protection without the high expense of a posted guard. The market continues to respond
positively to this new approach to protecting company assets.

Currently, we have six Federal contracts continuing
into 2025, that approximated 89% of our total services revenue for the year ended December 31, 2024. All federal contracts are awarded
with a term of 5 years, with annual renewals. At the end of each contract year the government has the option to renew, cancel or renegotiate.
Our six contracts and their respective terms are as follows:

    ●
    Social Security Administration, NSC
     
    -
    
    September 2022 through September 2027
    Annual Revenue of approx. $6.1M

    ●
    Social security Administration, SSC
     
    -
    
    June 2022 through June 2027
    Annual Revenue of approx. $5.4M

    ●
    Social Security Administration, WBDOC
     
    -
    
    June 2021 through July 2026
    Annual Revenue of approx. $3M

    ●
    Veterans Administration – Long Beach CA
     
    -
    
    Feb 2019 through September 2025
    Annual Revenue of approx. $9M

    ●
    Veterans Administration – Los Angeles CA