Company: AGSS
Filing Date: 2025-09-25
Form Type: 10-Q
Source: 0001213900-25-091579
Chunk: 22

Company: AMERIGUARD SECURITY SERVICES, INC.
Filing Date: 2025-09-25
Form: 10-Q
Item: Item 1
Chunk 22
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 operating results; (b) regulatory, competitive and contractual
risks; (c) development risks; (d) the ability to achieve strategic initiatives, including but not limited to the ability to achieve sales
growth, and (e) unknown litigation.

Corporate Structure

As previously mentioned, on December 9, 2022,
AGSS executed a reverse merger with AmeriGuard resulting in AGSS becoming the sole owner of AmeriGuard. This merger establishes AGSS as
a company operating a viable guard company with annual sales of approximately $24,000,000. On October 20, 2023, the Company executed
a share purchase agreement to acquire TransportUS Inc. TransportUS, Inc. was incorporated on October 24, 2018, with an S-Corp tax
election. The corporation was incorporated with the issuance of 1,000 shares with no-par par value stock held by Lawrence Garcia, President
and CEO. TransportUS Inc. provides human transportation services as a federal contractor, currently providing services in the state of
California. These two acquisitions within one year allows AGSS to access the capital market to generate the capital needed to continue
its growth strategy of mergers and acquisitions within related industries.

AGSS continues developing the leadership team
needed for success. We have in place a CEO with 20 years of experience in our industry who has experienced success in the government
contracting market. Our CFO has 20 years of experience in improving business performance as well as organizational growth across various
sectors. Our Senior Controller has over 35 years of business finance experience, the last 15 of which has been focused on organizational
development consulting across multiple industries.

14

Results of Operations for the six months
ending June 30, 2025

Revenues and Cost of Goods Sold

Through the second quarter of 2025 the Company
experienced a 21.6% increase in services revenue compared to the same time period of 2024 of approximately $2,630,000. The increase was
the result of two new Veterans Administration contracts awarded to TransportUS, Inc (TUS) that started in October 2024.

Along with the increase in revenue, AGSS experienced
an increase in the gross profit margin of approximately $212,000, due to an increase in direct expenses, that was less than the related
revenue increase. AGSS experienced increases in direct expenses such as labor, vehicles expenses and sub-contractor services that were
related to the additional contract