Company: AGSS
Filing Date: 2025-05-12
Form Type: 10-K
Source: 0001829126-25-003553
Chunk: 57

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-05-12
Form: 10-K
Item: Item 1A
Chunk 57
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 October 20, 2023, the Company executed
a share purchase agreement to acquire TransportUS Inc. This brings the second entity under the ownership and management of AGSS. TransportUS
Inc., adds an opportunity to increase revenues in the more profitable federal contracts requiring non-emergency medical transportation.
As mentioned earlier, this industry is projected to grow at 9% year over year through 2032. AGSS will be a strong participant in the industry
and will grow via contract awards and additional acquisitions within the industry. The addition of TransportUS Inc increased total
revenue for 2024 to approximately $26,000,000.

AGSS continues developing the leadership team
needed for success. We have in place a CEO with 22 years of experience in our industry and has been very successful in the government
contracting market. Our new CFO has 22 years of experience in improving business performance as well as organizational growth across various
sectors. Our Senior Controller has over 38 years of business finance experience, the last 15 of which he has been focusing on organizational
development consulting across multiple industries, and an Operations team on the east coast managing IT and our federal contracts, and
we have engaged legal and SEC compliance professionals. We have a Board of Directors with Wall Street and government security experience
making us well positioned to aggressively grow the business.

8

Results of Operations for
the fiscal year ending December 31, 2024

Revenues and Cost of Services

For 2024 the Company experienced a 26% overall
increase in operational revenue, totaling approximately $5,465,000. The increase results from the inclusion of a full year of revenue
from TransportUS Inc. (TUS). The increase over revenue received in 2023 totaled approximately $8,100,000, and a decrease in total guard
services revenue from AmeriGuard Security Services Inc. (AGS) of approximately $2,700,000. The revenue decrease experienced by AGS was
mainly from the loss of the contract with the Environmental Protection Authority, EPA, that ended in May 2023. All other revenue
items had only minor changes with no significant impact on total revenue.

For the federal guard contracts, as the costs
of labor increases within the unionized contract 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