Company: AGSS
Filing Date: 2025-11-17
Form Type: 10-Q
Source: 0001213900-25-111597
Chunk: 40

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-11-17
Form: 10-Q
Item: Item 8
Chunk 40
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 little or no market activity and that are significant to the fair value of the assets or liabilities.

The carrying amount of the Company’s financial
instruments approximates their fair value as of December 31, 2024, and September 30, 2024, due to the short-term nature of these
instruments.

NOTE 3 –
RELATED PARTY NOTE RECEIVABLE

 On December 31, 2022, TransportUS held a
receivable from a related company, AmeriGuard Security Systems, Inc (AmeriGuard) in the amount of $350,000.
The relationship with AmeriGuard relates to the contract the Company holds with the Veteran’s Administration in Long Beach, California.
The contract required this relationship with AmeriGuard, at the time of award. Funds from the contract were shared with AmeriGuard during
the first 3.5 years
of operations. The revenue sharing ended April 2022. As of December 31, 2022, the receivable was adjusted to $350,000
and a note payable from AmeriGuard was executed. The $350,000
note is amortized over 20
years, with a balloon payment December 31, 2032. The interest rate is 6%,
with the monthly payment of $2,500.
For September 30, 2025, the note receivable is presented with the current portion of $12,289,
and long-term portion of $66,361.
As of December 31, 2024, the short-term portion is $12,289
and a long-term portion of $288,459.
During the nine months ending September 30, 2025, Ameriguard Security Systems prepaid principal in the amount of $205,200.

NOTE 4 –
RELATED PARTY TRANSACTIONS

 On July 7, 2021, AGS entered into an agreement
to purchase 100%
of the Preferred A-1 Stock of Health Revenue Assurance Holdings, Inc. a SEC registered company for $500,000.
In March 2022, Health Revenue Assurance Holdings, Inc. name was changed to Ameriguard Security Services Inc. (AGSS). On December 9,
2022, we signed the definitive merger agreement initiating a reverse merger with AGSS, resulting in AGS becoming a 100%
owned subsidiary of AGSS. Prior to the merger, AGS funded the operational expenses of AGSS and treated these expenses as related party
expenses.