Company: AGSS
Filing Date: 2025-05-08
Form Type: 10-K/A
Source: 0001829126-25-003478
Chunk: 32

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-08
Form: 10-K/A
Chunk 32
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 accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Ameriguard
Security Services, Inc. is not required to have, nor were we engaged to perform, an audit of its internal control over financial
reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not
for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting.
Accordingly, we express no such opinion.

Our audits
included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or
fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding
the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and
significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical
audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated
or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the
financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of critical
audit matters does not alter in any way our opinion on the financial statements, taken as a whole8, and we are not, by communicating
the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to
which they relate.

<div align='center'>F-2</div>

Business Combination

As discussed
in Notes 6 of the financial statements, the Company’s total goodwill amount was approximately $1.8 million on December 31,
2023.

We identified
the Company’s goodwill as a critical audit matter due to the significant judgment and estimation involved in management’s
annual impairment assessment. Specifically, the evaluation of goodwill for the TransportUS reporting unit required the use of unobservable
inputs and complex assumptions, including forecasts of future economic and market conditions, revenue growth rates, profit margins,
and the selection of an appropriate discount rate. These factors, along with the sensitivity of the impairment analysis to changes
in key assumptions, resulted in a high degree of auditor effort and subject