Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 587

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 9A
Chunk 587
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 on
the balance sheet.

Maturities of lease liabilities on December 31, 2024, are as follows:

    Schedule of maturities of lease liabilities 

     ●
    2025:  
    $860,542 
  
     ●
    2026: 
    $857,688 
  
     ●
    2027:  
    $807,260 
  
     ●
    2028: 
    $584,415 
  
     ●
    2029: 
    $151,510 
  
     ●
    Total 
    $3,261,415 

NOTE 7 – GOODWILL

On October 20, 2023, the Company acquired
TransportUS Inc. Allocation of the purchase price per ASC 805-20-25-1 yielded a goodwill amount of $1,795,406. The Company’s used
a discounted cash flow model which requires estimating future cash flows expected to be generated from the acquired entity, discounted
to their present value using a risk-adjusted discount rate, the Guideline Company’s method and the Guideline Transactions method,
incorporating the following key assumptions and market approach to acquire TransportUS Inc. 

Assessing the recoverability of goodwill requires
the Company to make estimates and assumptions about sales, operating margins, growth rates and discount rates based on its budgets, business
plans, economic projections, anticipated future cash flows and marketplace data. The company under ASC 350-20 did a qualitative assessment
to determine whether it is more likely than not that the fair value of the reporting unit is less than it’s carrying amount.

The fair
value of the reporting unit was determined using three valuation methods: the Discounted Cash Flow method, the Guideline Company’s
method and the Guideline Transactions method, incorporating the following key assumptions:

●Weighted
                                            Average Cost of Capital (WACC): 24.6%

●Forecast
                                            Horizon: 5 Years

    F-11

The estimated fair value of the reporting unit
is $8,240,000 compared to its carrying amount of $2,220,000. As a result, no impairment was recorded. The Company had no goodwill on
its balance sheet prior to the acquisition:

    Schedule of goodwill 

    Description 
    Amount
($) 
  
    Balance as of December 31, 2022 
    $- 
  
    Acquisition of TransportUS (