EDGAR 10-K Filing

Company CIK: 1514443
Filing Year: 2025
Filename: 1514443_10-K_2025_0001829126-25-003553.json

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ITEM 1. BUSINESS
ITEM 1. BUSINESS
Company History
Health Revenue Assurance Holding, Inc. (the “Company”), was incorporated in Nevada on December 13, 2010.
The Company intended to become a provider of revenue cycle services to a broad range of healthcare providers. Offering the customers integrated solutions designed around their specific business needs, including revenue cycle data analysis, contract and outsourced coding, billing, coding and compliance audits, coding education, coding consulting, physician coding services and ICD-10 education and transition services.
On February 10, 2012, the Company entered into an Agreement and Plan of Merger and Reorganization (the “Merger Agreement”) with Health Revenue Assurance Holdings, Inc. (formerly known as Anvex International, Inc., “HRAH”), a Nevada company, and its wholly-owned subsidiary Health Revenue Acquisition Corporation (“Acquisition Sub”), which was treated for accounting purposes as a reverse recapitalization with HRAA, considered the accounting acquirer. Each share of HRAA’s common stock was exchanged for the right to receive approximately 1,271 shares of HRAH’s common stock. Before their entry into the Merger Agreement, no material relationship existed between HRAH and Acquisition Sub or HRAA. On April 27, 2012, the Company completed a 12.98 to 1 forward stock split. On May 2, 2012, the Company changed its ticker symbol from ANVX to HRAA.
The Company then went dormant in August 2014.
On July 14, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A816259, Custodian Ventures LLC (“Custodian”) was appointed Custodian of the Company.
On July 15, 2020, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.
AmeriGuard Security Services, Inc. (“AmeriGuard”) was incorporated in California on November 14, 2002. The corporation was incorporated with the issuance of 1,000 common shares formerly held by Lawrence Garcia, President and CEO with 550 shares and Lillian Flores, former VP of Operations with 450 shares. On July 12, 2022, under the terms of a Settlement Agreement, Flores exchanged her 450 shares for the consideration of $3,384,950 and a promissory note in that amount secured by a stock pledge. AmeriGuard provides armed guard services as a federal contractor with licenses in 7 states and provides commercial guard services in California.
On September 8, 2021, under the terms of a private stock purchase agreement, 10,000,000 shares of Series A-1 Preferred Stock, $0.001 par value per share (the “Shares”) of the Company, were transferred from Custodian Ventures, LLC to AmeriGuard. As a result, AmeriGuard became holder of approximately 91% of the voting rights of the issued and outstanding share capital of the Company on a fully diluted basis of the Company and became the controlling shareholder. The consideration paid for the Shares was $500,000. In connection with the transaction, David Lazar forgave the Company all debts owed to him and/or Custodian Ventures, LLC.
On September 8, 2021, the Company accepted the resignation of David Lazar as the Company’s Chief Executive Officer, Chief Financial Officer, Treasurer, Secretary and as a Member of the Board of Directors. Effective on the same date to fill the vacancies created by Mr. Lazar’s resignations, the Company appointed Lawrence Garcia as the Company’s President, CEO, CFO, Treasurer, Secretary, and Chairman of the Board of Directors. These resignations are in connection with the consummation of the private stock purchase agreement and was not the result of any disagreement with Company on any matter relating to Company’s operations, policies or practices.
On March 11, 2022, the Company amended its articles of incorporation to change its name to AmeriGuard Security Services, Inc. (AGSS) from Health Revenue Assurance Holdings, Inc. The name was deemed effective by FINRA on March 17, 2022.
On December 9, 2022, AGSS entered into the Merger Agreement. AmeriGuard became a wholly owned subsidiary of AGSS, and AGSS is the only shareholder and will continue in its existence with one owner, AGSS. Pursuant to the Share Exchange, (a) the Majority Shareholder relinquished all of his 573 AmeriGuard common shares and the Minority Shareholders relinquished all of their 67 AmeriGuard common shares, constituting all issued and outstanding shares of AmeriGuard (the “AmeriGuard Shares”), and were issued an aggregate of 80,578,125 and 9,421,875 respectively of AGSS common shares, representing 86.26% and 10.09% of the outstanding Common Stock of AGSS and (b) AmeriGuard returned the A-1 Preferred Stock of AGSS for retirement. After the issuance of the common shares, the existing 3,417,302 common shares represent 3.66% of the outstanding common stock of AGSS.
Under the AGSS Merger Agreement, One Hundred Percent (100%) of the ownership interest of Ameriguard was exchanged for an aggregate of 90,000,000 shares of common stock of AGSS issued to the Majority Shareholders and the Minority Shareholders, in accordance with the AGSS Merger Agreement (the “AGSS Merger”). Also, as part of the AGSS Merger, Ameriguard cancelled the 10,000,000 shares of Series A-1 Preferred Stock it had purchased from Custodian Ventures, LLC. The former stockholders of Ameriguard acquired a majority of the issued and outstanding common stock as a result of the share exchange transaction. Lawrence Garcia currently owns 86.26% of the issued and outstanding voting stock of the Company and will be able to exert significant influence and control over the Company for the foreseeable future.
We have 10,000,000 authorized and designated Series A-1 Preferred Stock which are entitled to seventy-two (72) votes per share of Series A-1 Preferred Stock on all matters on which stockholders may vote. While we currently have no such shares issued and outstanding, the voting rights afforded these Series A-1 Preferred Stock would give any future holders a disparate voting interest and allow them to potentially exert control over the actions of the Company.
Pursuant to the terms of a settlement agreement, by and among Garcia, AmeriGuard, and Lillian Flores (“Flores”), dated July 7, 2022 (the “Settlement Agreement”), AmeriGuard repurchased the 450 common shares of Flores for a total consideration of $3,384,950 payable in five equal annual installments compounded semi-annually at a three percent rate. The initial payment on July 8, 2022, of $686,990 reduced the balance to $2,697,960. The second through fifth installment are due on December 31, 2023, through December 31, 2026.
Prior to Merger, under the terms of a stock pledge agreement, by and among Garcia, Flores and AmeriGuard, dated July 7, 2022, 360 AmeriGuard common shares remained held in AmeriGuard treasury pledged to Flores. On Merger these pledged shares were substituted with 50,625,000 AGSS common stock of the 80,578,125 issued to Lawrence Garcia. These pledged shares are redeemed and returned to Garcia based on a stock redemption agreement, by and among Garcia, Flores and AmeriGuard, dated July 7, 2022.
The purposes of the transactions described in this Current Report were to complete a business combination by a stock for stock merger and complete a recapitalization of the company with the result being that AmeriGuard became a wholly owned subsidiary of AGSS, and AmeriGuards management will be the management of AGSS.
There was no offering with this merger. Effective immediately after the Share Exchange, the stock transfer books of AmeriGuard shall be closed.
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.
The purchase agreement was to issue 3,000,000 common shares to Lawrence Garcia in exchange for the 1,000 shares held from TransportUS, Inc. The agreement called for the immediate issuance of 1,500,000 shares when the agreement was executed with the remaining 1,500,000 shares to be issued contingent on TransportUS Inc., renewing its current transportation contract with the Veterans Administration in Long Beach California. The award of the contract is expected to occur in the third quarter of 2025.
Overview
The Company manages two separate subsidiaries: Ameriguard Security Services, Inc. (“AGS”) and TransportUS, Inc. (“TUS”).
AGS principally provides guard services for Federal, State and Local governmental entities, quasi-governmental entities and for commercial property. Guard services generated approximately $17.5 million in revenues for the fiscal year ended December 31, 2024. Guard services include, providing armed and unarmed uniformed security personnel for access control, mobile patrols, traffic control, security console/system operators, fire safety directors, communication, reception, concierge and front desk/doorman operations.
TUS provides ambulatory and non-ambulatory services for the Veterans Administration, in Long Beach CA, Central Los Angeles CA and Loma Linda CA. These three contracts generate approximately $9 million in revenues annually. TUS operates approximately70 vehicles, a mixture of sedans, minivans, and full-size vans with wheelchair lifts, along with a dispatch service available 24 hours a day, 365 days a year.
As we continue to push growth organically as well as through acquisition, we will be able to realize a greater market share in each of these two industries.
Corporation Information
Our principal executive offices are currently located at 5470 W Spruce Ave Suite 102 Fresno CA 93722.
Our website; www.ameriguardsecurity.com and www.transportus.us
Employees
As of December 31, 2024, AGSS had 6 administrative employees, AGS had 240 employees, 172 of these employees are represented by collective bargaining agreements and TUS had 72 employees. The Company considers relations with its employees to be very good.
Our Industries
Security
Security guard and related services in the US is comprised of over 11,000 companies and 900,000 officers. We compete with top firms, such as Allied Universal, Securitas, G4S and Prosegur Security, which control the majority of the industry. AGS revenue at approximately $17 million in annual revenue places it in a strong competitive position.
We believe that the top 40 companies have the resources to harness technology, to expand their business into related services other than guard services. Companies with over $50 million in revenue have, over the last 10 years, experienced steady growth while those guard companies between $15 million and $20 million, the remaining 9,900 firms, have experienced greater challenges to increase revenues. We believe that the principal reason for this is the steady diversification of security services away from the traditional guard services to areas of utilization of technology requiring capital. Along with this, we believe that the profitability challenges below $20 million annual sales are much more difficult than above $50 million is sales, largely due to the significant economies of scale achieve at the higher revenue levels.
The proliferation of technology while increasing efficacy in performance and inevitably lower costs in the future, the impact on the contract security industry will likely have mixed results - positive for companies who harness technology into their service delivery strategies - and negative for those companies who fail to invest in or adopt these service-enhancing capabilities. Despite the advances in the U.S. contract guarding business over recent years, there remains a question as to the industry’s viability in view of the increasing trend for integrating manned services with security systems (i.e. security video, access control and monitoring) along with the emergence of other new smart technology options and solutions (i.e. robotics, drones, cybersecurity and crowd sharing alert notification).
The recent merger and acquisition trend, primarily by the major national and international security organizations and fueled by investment and funding from private equity firms, is continuing. The underlying reason for this shift is less obvious and suggests an increasing number of sellers who concluded that their better option was to exit and sell rather than remain in the marketplace and try to compete and organically grow their market share.
Despite its low barriers of entry and nominal capital requirements, the security guard business has become more challenging for the smaller owner/operator. The traditionally historic advantage of the smaller operator’s ability to offer relationship-driven customized services is no longer totally sufficient for sustainable growth - especially with the increasing regulatory challenges of the Affordable Care Act, federal and state minimum wage laws, Family Medical Leave Act and state laws (i.e. meal and rest break reporting and now, predictive scheduling).
Even stronger local and smaller regional companies are finding it more difficult to protect their client base and grow revenues under increasing regulatory as well as competitive pressures. Larger regional and national organizations are dealing with the regulatory climate while growing market share by leveraging infrastructure, technology, economies of scale with more aggressive pricing and better service reliability. This approach appears to offer a more compelling value proposition from the client’s perspective, which seems evident by the higher client retention rates reported by the major security companies.
However, this consolidation trend may not be inevitable for the future as newer, more tech-savvy owner/operators enter the business and recognize how to adopt best practices with a variety of sophisticated third-party software platforms and applications to help level the playing field. These include talent management and on-boarding applications to attract, hire and maintain a more skilled and reliable workforce; integrated labor management platforms to control scheduling, compliance, operations, payroll, billing and financial reporting; and state-of-the-art social media marketing applications.
The contract security industry should now be able to more effectively capitalize on and penetrate opportunities in a $20 billion in-house market - especially for those companies who have invested and integrated technology into a more highly reliable ecosystem of protective services.
For the foreseeable future, the U.S. manned guarding business seems likely for continued sustainable growth. While the technology/manpower ratio may shift the revenue mix going forward, based on today’s currently expanding U.S. economy, the prospects for an aggregate growth rate of four percent or more seem realistic and perhaps even conservative, especially for ownership who have prudently invested in technology enhancements to their core guarding operations.
Providing these strategies can yield an attractive ROI, increase operating profits (EBITDA ranges of four to six percent and higher) and enterprise valuations, this industry seems not only viable but also opportune for further investment consideration.
(The above industry data taken from https://www.nasco.org/wp-content/uploads/2021/08/2021-Bob-Perry-Contract-Security-Industry-White-Paper-1.pdf)
Non-Emergency Medical Transportation
The non-emergency medical transportation (NEMT) industry is a fast-growing industry. A review of multiple publications available online indicates the North American market was approximately $6.4 billion in 2022 with a compound annual growth rate of between 7.5% and 9%. This provides TUS with a market of approximately $7.6 billion in 2024. As a relatively new company, it is positioned to grow rapidly in the governmental NEMT market and is focused on expanding its market share in southern CA.
TUS has an excellent reputation in the industry and will take advantage of this status as it bids on contracts moving forward. TUS will continue to focus on providing high quality service with our excellent staff and improving the quality of our fleet. Taking advantage of the capital markets available to AGSS, TUS will be able to enter more markets and be very competitive and profitable. TUS won two additional contracts with the Department of Veteran’s Administration in 2024.

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ITEM 1A. RISK FACTORS
ITEM 1A. RISK FACTORS
AS A SMALLER REPORTING COMPANY, WE ARE NOT REQUIRED TO PROVIDE A STATEMENT OF RISK FACTORS.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B. UNRESOLVED STAFF COMMENTS.
None.

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ITEM 2. PROPERTIES
ITEM 2. PROPERTIES
The Company’s corporate headquarters is located at 5470 W. Spruce Avenue, Suite 102, Fresno CA. The lease is currently month to month. Landlord has not indicated a desire for a new lease. Our lease payments are a total of $55,767 for the entire term (or, $4,230 per month). The Company believes that this rent expense is reasonable and comparable to the rent that would be charged to a third party.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3. LEGAL PROCEEDINGS
Involvement in Certain Legal Proceedings
To our knowledge, during the past ten years, none of our directors, executive officers, promoters, control persons, or nominees has:
● been convicted in a criminal proceeding or been subject to a pending criminal proceeding (excluding traffic violations and other minor offenses)
● had any bankruptcy petition filed by or against the business or property of the person, or of any partnership, corporation or business association of which he was a general partner or executive officer, either at the time of the bankruptcy filing or within two years prior to that time;
● been found by a court of competent jurisdiction in a civil action or by the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;
● been the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated (not including any settlement of a civil proceeding among private litigants), relating to an alleged violation of any federal or state securities or commodities law or regulation, any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
● been the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
As of December 31, 2024, there are three employment issues pending. The issues revolve around terminated employees alleging the Company has failed to pay minimum wages, sick pay wages, meal period violations, rest period violations, wage statement violations and violation of the unfair business practices act. A lawsuit has been filed in the Fresno County Superior Court, but it is early in the process and the attorneys cannot comment on the merits at this time. The Company believes the suit has no merit and intends to resolve it before a trial, if possible.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
As of the date of this report, the Company’s common stock is quoted on OTC Markets, symbol AGSS.
The high and low bid prices of our common stock following such date is as follows:
Quarter Ended High Low
March 28, 2024 $ .57 $ .37
June 28, 2024 $ .28 $ .28
September 30, 2024 $ .18 $ .18
December 30, 2024 $ .11 $ .07
The last reported sales price of our common stock on the OTC Markets on April 28, 2025, is $.30.
Authorized Capital Stock
Our authorized capital stock consists of five hundred million (500,000,000) shares of common stock, par value $0.001 per share. Immediately after giving effect to the Merger and related transactions, there were 94,918,292 shares of our common stock issued and outstanding.
Dividend Policy
We have not declared or paid dividends on our common stock since our formation, and we do not anticipate paying dividends in the foreseeable future. Declaration or payment of dividends, if any, in the future, will be at the discretion of our Board of Directors and will depend on our current financial condition, results of operations, capital requirements and other factors deemed relevant by the Board of Directors. There are no contractual restrictions on our ability to declare or pay dividends.
Holders
As of December 31, 2024, there were 94,918,292 shares of common stock issued and outstanding, which were held by 92 stockholders of record, with 3,261,930 shares held by over 700 individuals in private brokerage accounts.
Transfer Agent
The transfer agent for our common stock is V-Stock Transfer, and its telephone number is (727) 289-0010.
Equity Compensation Plans
We do not have any equity compensation plans.
Purchases of Equity Securities by the Small Business Issuer and Affiliated Purchasers
None.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6. SELECTED FINANCIAL DATA.
Smaller reporting companies are not required to provide the information required by this Item 6.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Item 7 contains forward-looking statements. Forward-looking statements in this Annual Report on Form 10-K are subject to a number of risks and uncertainties, some of which are beyond our control. Our actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which we are not currently aware or which we currently deem immaterial could also cause our actual results to differ, including those discussed in the section entitled “Forward-Looking Statements” included elsewhere in this Annual Report.
Management’s Discussion and Analysis should be read in conjunction with the financial statements included in this Annual Report on Form 10-K (the “Financial Statements”). The financial statements have been prepared in accordance with generally accepted accounting policies in the United States (“GAAP”). Except as otherwise disclosed, all dollar figures included therein and in the following management discussion and analysis are quoted in United States dollars.
The following discussion of the Company’s financial condition and the results of operations should be read in conjunction with the Financial Statements and footnotes thereto appearing elsewhere in this Report.
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. In order to comply with the terms of the safe harbor, the Company notes that in addition to the description of historical facts contained herein, this report contains certain forward-looking statements that involve risks and uncertainties as detailed herein and from time to time in the Company’s other filings with the Securities and Exchange Commission and elsewhere. Such statements are based on management’s current expectations and are subject to a number of factors and uncertainties, which could cause actual results to differ materially from those described in the forward-looking statements. These factors include, among others: (a) the Company’s fluctuations in sales and 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. It also is in the position to access the capital market to generate the capital needed to begin its growth strategy of mergers and acquisitions within the security industry.
On 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.
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 new contracts during 2024, the existing companies will not see an additional rate increase until February 2025. Although demand for services has continued to increase in 2024, the expectations of the cost of those services is out of line with the market expectations. As AGS deals with the increased labor costs, the customers are experiencing similar cost pressures and are less willing to pay for our traditional services. This conflict with AGS needing to raise services fees and customers needing to pay less has created challenges in the market. As a result, AGS has needed to shift its approach to protecting business assets from the traditional standing guard to technology and patrol services. AGS has established a 24-hour dispatch department to monitor camera systems and direct patrolling officers to the problem locations. Our patrol officers respond to all alarms regardless of cause within 15 minutes of activation. This is a cost effect way for businesses to have protection without the high expense of a posted guard. The market continues to respond positively to this new approach to protecting company assets.
Currently, we have six Federal contracts continuing into 2025, that approximated 89% of our total services revenue for the year ended December 31, 2024. All federal contracts are awarded with a term of 5 years, with annual renewals. At the end of each contract year the government has the option to renew, cancel or renegotiate. Our six contracts and their respective terms are as follows:
● Social Security Administration, NSC
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September 2022 through September 2027
Annual Revenue of approx. $6.1M
● Social security Administration, SSC
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June 2022 through June 2027
Annual Revenue of approx. $5.4M
● Social Security Administration, WBDOC
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June 2021 through July 2026
Annual Revenue of approx. $3M
● Veterans Administration - Long Beach CA
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Feb 2019 through September 2025
Annual Revenue of approx. $9M
● Veterans Administration - Los Angeles CA
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Oct 2024 through Sep 2029
Annual Revenue of approx. $720K
● Veterans Administration - Loma Linda CA
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Oct 2024 through Sep 2029
Annual Revenue of approx. $2.1M
As with all professional service industries, most of the expense is direct labor and expenses associated with that labor. We are not an exception. Our direct expenses average around 89% of revenues. Total direct cost of services was approximately $23,400,000 in 2024 and approximately $19,160,000 in 2023.
The total direct cost of services saw an increase of approximately $4,300,000, or 22%. This increase was expected due to the direct expenses of labor and vehicles of including a full year of TUS direct expenses. The Company acquired TUS in the fourth quarter of 2023, so there were only 2 months of expenses reflected in 2023. The increase is the net result of an increase in direct labor expenses in the amount of $2,700,000, an increase of approximately $2,000,000 in vehicle expenses. These increases were offset by a decrease in total subcontractor expenses of approximately $483,000. The gross margin increased approximately $1,200,000, a 66% increase. As a percentage, the gross margin percentage increased to 11.3% in 2024 from 8.6% in 2023.
Operating Expenses and Other Expense
Operation expenses increased in 2024 over 2023 by approximately $2,168,000. The largest category of increase was in loan interest, of approximately $1,220,000, resulting from utilizing several high-interest loans necessary to cover the operational capital needs. Professional services experienced an increase of approximately $529,000. Approximately $250,000 of this increase resulted from a class action lawsuit filed alleging labor law violations. Additionally, there was an increase in the general and administrative expenses of approximately $157,000. Within the general and administrative expenses, outside services expenses increased approximately $100,000. Advertising and marketing experience and increase of approximately $120,000. TUS expenses the graphics put on the vans in this category and added 41 vans in 2024, total cost $90,235. AGC redesigned its website and added social media advertising to increase guard services revenue. This program ended in October. There were increases in other operating expense categories such as vehicle expense, general liability insurance, licenses and permits and depreciation totaling approximately $354,000, which was offset by a decrease in administrative salaries and payroll taxes by approximately $240,000.
At this time, our operating structure and current level of expense can handle twice the revenue stream with minor increases to our operating overhead expenses. This allows the entire gross profit of any new contract or company acquisition to go straight to the bottom line, providing a consistent return on investment.
Net (Loss) from Operations and Other Income
The Company experience a significant net loss from operations of $3,403,601 for the year ending December 31, 2024, compared to a loss of $2,428,682 for the year ending December 31, 2023. Other income for 2024 was $1,070,866, including a gain on deferred liability subsidiary of $1,018,500, while 2023 had other income of $2,561,555 from the Employee Retention Tax Credit received by AGS in June 2023. Resulting in a pre-tax net loss of $2,332,735 for 2024 and a pre-tax net income of $103,615 for 2023.
Liquidity and Capital Resources
The Company’s principal sources of liquidity include cash from operations and proceeds from debt financing. During the year ended December 31, 2024, operations generated net cash decrease of $2,611,537 while cash used from investing activities during the same period was $839,504. Cash provided from financing activities was $1,709,511. The main source of cash from financing activities was short-term loans received in the amount of $4,420,385. Financing activities usage was total loan payments of $2,760,126.
On December 31, 2024, the Company had cash on hand of $424,588, with total current assets of $3,294,366.
Moving Forward
During the past twenty-four months we have worked diligently to set up our corporate structure, systems and implement our strategy as a public company to expand our business. Our current overhead expense structure has significant excess capacity positioning us to manage two to three times the revenues from one of two strategic sources. We have two contracts that were won and commenced during the second half of 2024 that we will realize the impact of the full annual revenue increase in 2025.
Our first source is to continue our historical strategy of seeking organic growth through bidding and winning contracts that meet our criteria for both AGS and TUS. As of December 31, 2024, we had four bids submitted totaling over $12M in revenues. We have continued to submit bids each month, resulting in 5-10 bids in review at all times. We are confident with our history of excellent service and strategic bids that we should add new contracts to the company. We continue to seek new ways to meet the growing security needs of commercial businesses. Management anticipates that our access to capital markets, allows AGSS to encompass advanced AI-driven digital security and robotics, delivering it to the security industry, as well as our non-emergency medical transportation logistics. These advancements serve as catalysts for immediate performance improvements in short term and long-term growth supporting the federal and private sectors. By leveraging cutting-edge blockchain, AI, and robotics technologies, our company is uniquely positioned to reduce labor and operational costs while delivering a high level of security innovation that differentiates us from conventional human-based security and transportation firms. Our proactive AI technical approach not only enhances our operational efficiency but also enables us to deploy scalable, automated security solutions nationwide, that adapt to rapidly evolving threats in the digital and physical realms. As the market begins to demand greater efficiency from our industry, AI robotic security will continue to expand, our integrated technology platforms position us at the forefront of the industry. This strategic advantage not only allows us to capitalize on emerging market opportunities but also provides significant cost savings, operational efficiencies, and the potential for robust revenue growth. Our leadership in the industries of security and transportation and logistics will bring cost savings, and greater profits for our company.
Our second source of growth is through merger and acquisitions. With the capital market available to us and our industry being positioned for long term growth, there’s opportunity for acquisitions. The security industry continues to expand, and at the same time there’s a lot of consolidation occurring. The security industry is no different than many others. Several privately held firms equal to our size and larger are looking for a buyout allowing the owner to retire. Our experience allows AGSS to be the company acquiring others, which can quickly double our revenues with one or two key acquisitions. After which we will see all the gross profit from those companies going directly to our bottom line. There are also potential acquisition opportunities in several other industries that could fit our business model. Those include transportation, cyber security, private security, ammunition manufacturing, and surveillance.
Management is very positive regarding profitable operations for the next twelve months based on the following:
● Both industries that AGSS currently operates in, are growing industries.
● The security industry is somewhat recession proof.
● The non-emergency transportation market is growing at an annual rate of over 7.5%.
● There are over 10,000 security companies operating in our market, with 50% available for acquisition.
● Our management team, Board of Directors and supporting equity professionals can get the job done.
● We negotiated a full refinance agreement of our debt in March 2025, allowing for better control of debt payments and cash flow.
● We have been and will continue to be a company that is very conservative with our resources and will use every available dollar providing strength, and good return to our investors.
● We are in it for the long haul.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller reporting company and are not required to provide the information required by this item.

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Our consolidated balance sheets, as of December 31, 2024, and 2023, and the related consolidated statements of operations and comprehensive loss, stockholders’ deficit and cash flows for each of the two years in the period ending December 31, 2024, and 2023, together with the related notes and the report of our independent registered public accounting firm, are set forth on the “F” pages of this report.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
On May 3, 2024, the Securities and Exchange Commission (the “Commission”) entered an order instituting settled administrative and cease-and-desist proceedings against BF Borgers and its sole audit partner, Benjamin F. Borgers CPA, permanently barring Mr. Borgers and BF Borgers from appearing or practicing before the Commission as an accountant (the “Order”). As a result of the Order, BF Borgers may no longer serve as the independent registered public accounting firm for the Company, nor can BF Borgers issue any audit reports included in Commission filings or provide consents with respect to audit reports. In light of the Order, on May 6, 2024, the Board of Directors of the Company terminated the engagement of BF Borgers as its independent registered accounting firm.
BF Borgers’s reports on the Company’s financial statements for the fiscal years ended December 31, 2023 and 2022 did not contain an adverse opinion or a disclaimer of opinion and was not qualified or modified as to uncertainty, audit scope or accounting principles.
There have been no “disagreements” (as that term is defined in Item 304(a)(1)(iv) of Regulation S-K) and no “reportable event” occurred (as that term is defined in Item 304(a)(1)(v) of Regulation S-K) during the fiscal years ended December 31, 2023 and 2022 and the subsequent interim period up to and including May 6, 2024, the date of BF Borgers’s dismissal, between the Company and BF Borgers on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which, if not resolved to the satisfaction of BF Borgers, would have caused them to make reference to the subject matter of the disagreement in connection with their report on the Company’s financial statements for those periods.
In the May 3, 2024 “Staff Statement on the Issuer Disclosure and Reporting Obligations in Light of Rule 102(e) Order Against BF Borgers CPA PC” (the “Staff Statement”), the Commission advised registrants that they may indicate in their Commission filing that BF Borgers is not currently permitted to appear or practice before the Commission for reasons described in the Order, in lieu of including a letter from BF Borgers stating whether it agrees with our disclosures under Item 304 of Regulation S-K. In light of the Order and the Staff Statement, we are not requesting BF Borgers to furnish the Company with such letter.
On May 8, 2024, the Board of Directors of the Company appointed Bush & Associates CPA, LLC (“Bush & Associates”) as the Company’s new independent registered accounting firm. During the Company’s two most recent fiscal years and through May 8, 2024, neither the Company nor anyone acting on the Company’s behalf consulted Bush & Associates with respect to any of the matters or reportable events set forth in Item 304(a)(2)(i) and (ii) of Regulation S-K.

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended, or the “Exchange Act”) that are designed to ensure that information that would be required to be disclosed in the Exchange Act reports is recorded, processed, summarized and reported within the time period specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including to our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
As required by Rule 13a-15 under the Exchange Act, our management, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2024. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of December 31, 2024, our disclosure controls and procedures were effective to satisfy the objectives for which they are intended. The Company appointed an independent audit committee June 14, 2023.
Internal Control over Financial Reporting and Attestation Report of Registered Public Accounting Firm
This annual report does not include a report of management’s assessment regarding internal control over financial reporting (“ICFR”) or an attestation report of the Company’s independent registered public accounting firm on ICFR due to a transition period established by rules of the Securities and Exchange Commission (the “SEC”) for newly public companies. The SEC has adopted a transition period permitting a newly public company to wait until its second annual report to comply with Section 404(a) of Sarbanes-Oxley Act of 2002 (“SOX”). After that point, issuers that are emerging growth companies, or are not large, accelerated filers or accelerated filers are exempt from the requirements of SOX 404(b). As such, if the Company continues to satisfy as being an emerging growth company or other exemption standards as listed above, it will continue to be exempted from filing attestation report of the Company’s independent registered public accounting firm regarding ICFR.
Changes in Internal Controls over Financial Reporting
There were no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our last fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
ITEM 9B. OTHER INFORMATION
None.

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
Set forth below is information regarding our directors and executive officers as of December 31, 2024:
The following persons are executive officers and directors upon completion of the Merger, and hold the positions set forth opposite their respective names, including shares held.
Name
Age
Position
Common
shares held
Percentage of
Class(1)
Lawrence Garcia
Chairman of the Board, President and Chief Executive Officer
Chief Operating Officer, Chief Marketing Officer, Secretary, Treasurer and Director
82,078,125
86.47 %
Jason Bovell, CPA
Chief Financial Officer
1,000,000
1.05 %
Douglas Anderson
Director
3,515,625
3.70 %
Russel Honore’
Director
562,500
.59 %
(1) Based on 94,918,292 shares of common stock outstanding as of December 31, 2024
Lawrence Garcia is the CEO and President of AmeriGuard Security Service, Inc incorporated in state of California in 2002. Lawrence is a disabled veteran of the United States Navy and of Hispanic dissent. He has led the company from a small local guard company to a national company currently managing five Federal Government armed guard contracts with annual revenue of over $24 million. Mr. Garcia has twice been named, “Businessman of the Year” in the State of California.
Jason Bovell, CPA, Jason has been a CPA over 20 years. From 2013 to 2023, he was a Managing Director at Bovell Financial a full-service accounting firm and provided services such as Advisory, CFO Services, and Tax services to businesses, funds, and governmental agencies. From 2010 to 2013, he served as a Controller, Senior Auditor, Cost Analyst and Tax Senior at several government agencies and Cox Enterprises. Prior to this, Mr. Bovell worked for PWC in the tax practice and audit practice. Mr. Bovell received a BA in Business Administration and Accounting from Morehouse College and a MA in Taxation from the University of Denver
Douglas Anderson, Board Director. Mr. Anderson is the CEO of Wall Street Capital Partners and has been involved in or exposed to most aspects of corporate finance with over 20 years on Wall Street. Prior to his work in corporate finance, he served in the U.S. Marine Corps, including the elite Marine Reconnaissance Battalion. He held a Top-Secret clearance while serving operationally in the U.S. State Department at American Embassies overseas, as well as at the U.N. in New York, where he participated in Security Enhancement programs. Mr. Anderson was formally trained on Wall Street as an Underwriter. He has been interviewed and broadcast nationally and internationally, many times as an expert both on NASDAQ and at the NYSE. Mr. Anderson earned his undergraduate degree from the University of Washington and postgraduate graduate education includes executive education from Harvard in Finance and Texas A&M in Agriculture Science. Mr. Anderson has served as an Advisor, Director, public company CEO and public company Board Director over his career.
General Russel Honore’, Board Director. General Russel Honore is a decorated 37-year army veteran and a global authority on leadership, disaster management, and climate preparedness. At the request of the Speaker of the House, the General led Task Force 1-6 Capitol Security Review to improve Capitol security following the attacks on January 6, 2021. As the commander of Joint Task Force Katrina, he became known as the “Category 5 General” for his leadership in coordinating military relief efforts in post-hurricane New Orleans. General Honore knows that the future of our national security depends on protecting our environment, and he’s fighting for a brighter future for us all. A Louisiana native, he founded GreenARMY, a coalition of environmental experts and advocates, to protect against pollution while fighting climate change and the natural disasters it causes. During his military career, General Honore held numerous commands, including Vice Director for Operations for the Joint Chiefs of Staff and Commander of the Standing Joint Force Headquarters-Homeland Security.
Term of Office
Our directors are appointed to hold office until the next meeting of our shareholders or until removed from office in accordance with our bylaws.
Family Relationships
There are no family relationships between any of our directors or executive officers.
Our directors do not hold any directorships in other reporting companies and does not qualify as an “independent director” under the Rules of NASDAQ, Marketplace Rule 4200(a)(15).
To our knowledge, during the last ten years, none of our directors and executive officers (including those of our subsidiaries) have:
(a) had a bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.
(b) been convicted in a criminal proceeding or been subject to a pending criminal proceeding, excluding traffic violations and other minor offenses.
(c) been subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities.
(d) been found by a court of competent jurisdiction (in a civil action), the SEC, or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
Director or Officer Involvement in Certain Legal Proceedings
To our knowledge, our directors and executive officers were not involved in any legal proceedings as described in Item 401(f) of Regulation S-K in the past ten years.
Section 16(a) Beneficial Ownership Reporting Compliance
The Company is not subject to Section 15(d) of the Securities Exchange Act Exchange Act.
Code of Ethics
A code of business conduct and ethics is a written standard designed to deter wrongdoing and to promote (a) honest and ethical conduct, (b) full, fair, accurate, timely and understandable disclosure in regulatory filings and public statements, (c) compliance with applicable laws, rules and regulations, (d) the prompt reporting violation of the code and (e) accountability for adherence to the code. We are not currently subject to any law, rule or regulation requiring that we adopt a code of ethics; however, we intend to adopt one in the near future.
Insider Trading
Arrangements and Policies
We have not yet adopted an insider trading policy, but we do plan to adopt such a policy by the end of the fiscal year 2025.
Board of Directors
All directors hold office until the next annual meeting of shareholders and until their successors have been duly elected and qualified, or until their earlier death, resignation or removal. Officers are elected by and serve at the discretion of the board.
Our directors are reimbursed for expenses incurred by them in connection with attending board meetings and receive a monthly honorarium for serving on the board.
Lawrence Garcia, CEO and majority Shareholder is our only non-independent director.
Because our common stock is not currently listed on a national securities exchange, we have used the definition of “independence” of The NASDAQ Stock Market to make this determination. NASDAQ Listing Rule 5605(a)(2) provides that an “independent director” is a person other than an officer or employee of the company or any other individual having a relationship which, in the opinion of the company’s board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director. The NASDAQ listing rules provide that a director cannot be considered independent if:
● the director is, or at any time during the past three years was, an employee of the Company;
● the director or a family member of the director accepted any compensation from the Company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board or board committee service);
● a family member of the director is, or at any time during the past three years was, an executive officer of the Company;
● the director or a family member of the director is a partner in, controlling stockholder of, or an executive officer of an entity to which the Company made, or from which the Company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient’s consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);
● the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers of the Company served on the compensation committee of such other entity; or
● the director or a family member of the director is a current partner of the Company’s outside auditor, or at any time during the past three years was a partner or employee of the Company’s outside auditor, and who worked on the company’s audit.
Compensation committee
The board of directors established a compensation committee as required by Sarbanes-Oxley Act. The committee will make compensation recommendations to the board.
2025 Equity Incentive Plan
Our Board of Directors and stockholders owning a majority of our outstanding shares plans to adopt an Equity Incentive Plan during 2025. Details of the plan will be developed with the input of the Board of Directors along with the then established compensation committee.
Code of Ethics
We have not adopted a code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer, or persons performing similar functions, because of the small number of persons involved in the management of the Company.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11. EXECUTIVE COMPENSATION
Executive positions and salaries:
Name and Position
Year
Salary
($)
Bonus
($)
Other
Compensation
($)
Total
($)
Lawrence Garcia - CEO
188,351
21,279
259,630
188,351
50,000
21,279
259,630
Jason Bovell, CPA - CFO - contract employee
240,000
Michael Goossen, CPA - former CFO
150,000
20,000
1,038
171,038
Employment Agreements
As of December 31, 2024, there are no employment agreements in place. It is the intention of ownership to rely on the recommendation of the compensation committee appointed by the Board of Directors.
Outstanding Equity Awards at Fiscal Year-End
There were no outstanding equity awards held by our officers as of December 31, 2024.
Long-Term Incentive Plans and Awards
There were no awards made to a named executive officer in fiscal 2024 and 2023 under any long-term incentive plan.
Director Compensation
Directors are permitted to receive fixed fees and other compensation for their services as directors. The Board of Directors has the authority to fix the compensation of directors.
Payments to Directors totaled $135,000 for the year ended December 31, 2024, and $120,000 for the year ended December 31, 2023.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
Beneficial ownership is determined in accordance with SEC rules and generally includes voting or investment power with respect to securities. All share ownership figures include shares of our Common Stock issuable upon securities convertible or exchangeable into shares of our Common Stock within sixty (60) days of March 31, 2025 which are deemed outstanding and beneficially owned by such person for purposes of computing his or her percentage ownership, but not for purposes of computing the percentage ownership of any other person.
Name and Address Beneficial
Ownership
Percentage
of Class(1)
Lawrence Garcia 80,578,125 86.47 %
Jason Bovell, CPA 1,000,000 1.05 %
Douglas Anderson* 3,515,625 3.70 %
Russel Honore’ 562,500 .59 %
All officers/directors as a group (4 people) 85,656,250 91.81 %
(1) Based on 94,918,292 shares of common stock outstanding as of December 31, 2024.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
Related Party Transactions
As of December 31, 2024, the subsidiary TransportUS Inc., has a note receivable from AmeriGuard Security Systems, Inc. (SYS). SYS is a California Corporation, owned 100% by Lawrence Garcia, the majority shareholder of AGSS. See financial statement Note 3 for additional information.
Independence of the Board of Directors
For a director to be “independent” under these standards, the Board must affirmatively determine that the director has no material relationship with us, either directly or as a partner, shareholder, or officer of an organization that has a relationship with us. Applying corporate governance standards, and all other applicable laws, rules and regulations, the Board of Directors has determined that one of our directors is independent. This does not constitute an independent board of directors.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
We were billed by our independent public accountants for the following professional services it performed for us during the fiscal year ended December 31, 2024, and 2023, as set forth in the table below:
Audit Fees
$
$ 115,500
Audit Related Fees
$
$
Tax Fees
$
$
All other fees
$ 94,000
$ 79,500
TOTAL FEES
$ 195,000
$ 103,400
Audit Fees - This category includes the audit of our annual financial statements and services that are normally provided by independent auditors in connection with engagements for those fiscal years.
Audit-Related Fees - This category consists of assurance and related services by the independent auditors that are reasonably related to the performance of the audit or review of our financial statements and are not reported above under “Audit Fees”.
Tax Fees - This category consists of professional services rendered by the Company’s independent registered public accounting firm for tax compliance and tax advice. The services for the fees disclosed under this category include tax return preparation and technical tax advice.
All Other Fees - This category consists of fees for other miscellaneous items such as financial statements reviews and quarterly filing reviews.
Pre-Approval Policies and Procedures
All of the services rendered to us by our independent registered public accountants were pre-approved by the Board.
PART IV

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
(a) The following documents are filed as part of this report:
Financial Statements
The following financial statements of Ameriguard Security Services, Inc. and Report of Independent Registered Public Accounting Firm are presented in the “F” pages of this report:
Page
Report of Independent Registered Public Accounting Firm
Audited Consolidated Balance Sheets as of December 31, 2024 and 2023
Audited Consolidated Statements of Operations and Comprehensive Loss for the Years Ended December 31, 2024 and 2023
Audited Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended December 31, 2024 and 2023
Audited Consolidated Statements of Cash Flows for the Years Ended December 31, 2024 and 2023
Notes to Audited Consolidated Financial Statements
(b) Exhibits
See the Exhibit Index following the signature page of this report, which Index is incorporated herein by reference.