Financial Analysis

NOTE 12 COMMITMENTS AND CONTINGENCIES The company has a multiple vehicle lease agreement with Enterprise Leasing. As of December 31, 2025, the company had 57 vehicles under lease. The lease agreement includes maintenance services and tracking. The terms of the lease agreement vary based on the date the vehicle was leased and the respective terms for each vehicle. The master lease is updated annually and requires annual internal financial reports and company tax return. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 10 NOTES PAYABLE On February 05, 2025, the Company entered into a government purchase orders/receivables backed line of credit of $7,000,000 with a maturity date of August 5, 2026, with Legalist, Inc an investment firm specializing in alternative assets. The agreement requires the payments from the six Federal Contracts described in Note 13 Concentration of Sales, to go directly to the lenders, with the Company allowed to draw on the credit line every week as needed for operations. Interest on the outstanding balance is accrued daily at the U.S. Prime Rate plus .0246%. The effective interest rate as of March 31, 2025, was 16.5%. As an active line of credit, the balance is presented as current. The Company paid off all of its merchant advance debt and revenue purchase agreements that were taken out in December 2023 and January of 2024 totaling $1,475,000. The Company also paid off an SBA Loan that was entered into in June 2020, in the amount of $634,849. The Company also used the line of credit to pay off the two loans with First Class Industries in the amount of $496,000 and the loan with W.L.L Associates in the amount of $115,000. In June 2020, AmeriGuard Security Services, Inc. received an SBA Loan through Fresno First Bank in the amount of $1,080,000 that was used to close out a Citibank loan in the amount of $312,339 with the remaining balance after expenses held in reserve. The SBA loan is a 10-year loan with monthly principal and interest payments. Interest rate is …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 15 INCOME TAXES Due to the losses incurred during the tax year ending 2024, and the expected zero tax due for 2025, there is no estimated tax liability for 2024. 2025 has also resulted in a net loss. Therefore, no provision for income taxes has been included in the accompanying financial statements. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 6 OPERATING LEASES We have leased vehicles with terms greater than one year that are classified as operating leases per the guidelines. The lease terms vary between 48 and 60 months. At the end of the term the vehicle becomes the property of the Company. The capital lease value as calculated following FASB guidelines is presented as a non-current asset on the balance sheet. As of December 31, 2025, the value is calculated to be $2,642,589, and as of December 31, 2024, the value was $3,261,415. For the Operating Lease liability, the amount of $2,642,589 was calculated as of December 31, 2025, and was $3,261,415 as of December 31, 2024. The Operating Lease liability is presented as current and long term. The current portion of the Operating Lease liability for December 31, 2025, is $903,648, with the long-term portion of $1,738,941. For December 31, 2024, the current portion is $924,808, with the long-term portion of $2,366,607. The cause for the decrease in both the Operating Lease asset and liability as of December 31, 2025, is due to the removal of several vehicles used by AGC for the guard contracts that were forfeited. The discount rate is the interest rate that equates the present value of future lease payments to the Right-of-Use (ROU) asset or lease liability. The leasehold amortization was calculated using an incremental borrowing rate based on the 7-year risk-free Treasury rate as of the month the lease began. This rate was applied to determine the present value …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

NOTE 4 RELATED PARTY TRANSACTION 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. These expenses were eliminated when the two companies were consolidated for the financial statement presentation. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 8 DEFERRED REVENUE During the first three years of operations of TransportUS Inc, Secure Transportation, Inc. (Secure), a subcontractor, advanced funds to TransportUS Inc. with the expectation of future services provided for Secure. This arrangement ended, December 31, 2021, after Secure had advanced $1,087,327. The agreement moving forward requires TransportUS to provide services in the amount of $15,000 per month or return funds to secure in that same amount. Since 2022, TransportUS has returned funds in the amount of $430,000, leaving a balance of $657,327 as of December 31, 2024. During 2025, Secure was sold at near bankruptcy. There was no written agreement with Secure, only a verbal agreement with the owner. Once the owner sold the company the deferred Revenue agreement ended and the remaining balance was written off as debt forgiveness. …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include estimated useful lives and potential impairment of property and equipment, along with the collectability of some receivables from customers. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On December 31, 2025, and December 31, 2024, the Company had cash and cash equivalents totaling $728,915 and $424,588 respectively. Accounts Receivable We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and is charged to bad debt expense. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our customers. With over ninety percent of year end accounts receivable balance from Fede …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 11 STOCKHOLDERS DEFICIT On December 9, 2022, AGS executed a reverse merger agreement with AGSS resulting in significant adjustments to the equity section of both companies. The result of the merger was AGSS became the sole owner of AGS. Although the merger is dated December 9, 2022, for financial statement presentation purposes, we have presented the Equity Section as if the merger occurred in 2021. The first significant impact on stockholders equity was the issuance of 90,000,000 AGSS shares to the shareholders of Ameriguard Security Services, Inc., in exchange for 1000 shares of AGS, adding a net increase in common shares outstanding of 89,999,000. Next was the cancelation and conversion of series 675,000 A-1 preferred shares held by AGSS on December 31, 2020. The final result in the total number of shares outstanding is 93,417,302. On October 20, 2023, the Company executed a purchase agreement to acquire a related company owned by Lawrence Garcia, CEO. TransportUS Inc. valued at $3,000,000. The company agreed to issue 3,000,000 shares, with 1,500,000 shares issued at time of purchase, and a bonus of 1,500,000 shares when TransportUS renews its main services contract with the Veterans Affairs Department of Long Beach, CA. The purchase created two assets for AGSS. Goodwill in the amount of $1,795,406 and an Investment in Subsidiary in the amount of $424,593. The 1,500,000 shares issued by AGSS and the 1,000 shares retired by TransportUS are reflected in the 2023 section …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 16 SUBSEQUENT EVENTS As a result of the premature end of three Social Security Administration contracts discussed in Item 7, Managements Discussion and Analysis section, Management Dispute and Interruption of Credit Line with Legalist , the Company has been notified of a significant liability. When the Company lost its operational funding and had to forfeit the SSA contracts, the Federal Department of Labor (DOL) takes on the responsibility of ensuring the guards are paid during the transition to a new contractor. Any remaining amounts due to the exiting contractor are forwarded to the DOL. In February 2026, the company was notified by the DOL that there is a wage payment shortage of $356,741 and the Company is required to reimburse the DOL this amount. The Company notified the DOL that it is unable to pay the requested amount in full and requested a payment schedule. As of the filing of this 10-K the schedule has not been finalized with the DOL. However, since the liability is certain it is included as a vendor payable on December 31, 2025, consolidated balance sheet. On April 1, 2026, the Company received notice that an employment lawsuit was filed on behalf of a former employee. 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. Management believes there is no merit in this case …

SubsequentEventsTextBlock · excerpt; the full note is in the filing

NOTE 11 COMMITMENTS AND CONTINGENCIES The company has a multiple vehicle lease agreement with Enterprise Leasing. As of March 31, 2026, the company had 40 vehicles under lease. The lease agreement includes maintenance services and tracking. The terms of the lease agreement vary based on the date the vehicle was leased and the respective terms for each vehicle. The master lease is updated annually and requires annual internal financial reports and company tax return. …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 9 NOTES PAYABLE On February 05, 2025, the Company entered into a government purchase orders/receivables backed line of credit of $7,000,000 with a maturity date of August 5, 2026, with Legalist, Inc an investment firm specializing in alternative assets. The agreement requires the payments from the six Federal Contracts described in Note 13 Concentration of Sales, to go directly to the lenders, with the Company allowed to draw on the credit line every week as needed for operations. Interest on the outstanding balance is accrued daily at the U.S. Prime Rate plus .0246%. The effective interest rate as of March 31, 2026, was 14.5%. Balance as of March 31, 2025, and December 31, 2025, were $4,123,550, and $3,994,097respectively. As an active line of credit, the balance is presented as current. On July 7, 2022, the Company entered into a buyout agreement with shareholder Lillian Flores. The total buyout amount was $3,384,950 representing 45% of the calculated business value as of December 31, 2020. Following the initial payment of $686,990, the company agreed to make 4 equal installments of principal and interest of $739,508 each December 31, starting 2023. Interest is calculated at a fixed rate of 3.110% compounded semi-annually. The company accrued interest on December 31, 2022, of $49,035. Balance remains in the amount of $2,697,960. All interest due was paid December 28, 2023, resulting in a balance of $0 on December 31, 2023. The Company requested a deferral of the paymen …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 14 INCOME TAXES Due to the losses incurred during the tax year ending 2023, and the expected zero tax due for 2024, there is no estimated tax liability as of March 31, 2026. Therefore, no provision for income taxes has been included in the accompanying financial statements. …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 6 OPERATING LEASES We have leased vehicles with terms greater than one year that are classified as operating leases per the guidelines. The lease terms vary between 48 and 60 months. At the end of the term the vehicle becomes the property of the Company. The capital lease value is calculated following FASB guidelines annually and is presented as a non-current asset on the balance sheet. As of December 31, 2025, the value is calculated to be $2,642,589. The Operating Lease liability is presented as current and long term. The current portion of the Operating Lease liability for December 31, 2025, is $903,648, and the long-term portion is $1,738,941. The non-current operating lease asset is $2,642,589 as of March 31, 2026, and the current portion of the Operating Lease Liability is $903,648, with long-term Operating Lease Liability of $1,738,941. Since there is no income statement impact of the capital lease calculations, management has chosen to make the adjustment annually. However, if a significant event impacts the capital lease values, management will recalculate the lease values in the quarter of the event. The discount rate is the interest rate that equates the present value of future lease payments to the Right-of-Use (ROU) asset or lease liability. The leasehold amortization was calculated using an incremental borrowing rate based on the 7-year risk-free Treasury rate as of the month the lease began. This rate was applied to determine the present value of the lease …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

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. These expenses were eliminated when the two companies were consolidated for the financial statement presentation. …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates In preparing financial statements in conformity with United States generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Significant estimates include estimated useful lives and potential impairment of property and equipment, along with the collectability of some receivables from customers. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On March 31, 2026, and December 31, 2025, the Company had cash and cash equivalents totaling $215,949 and $728,915 respectively. Accounts Receivable We record accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts to reflect any loss anticipated on the accounts receivable balances and is charged to other bad debt expense. We calculate this allowance based on our history of write-offs, the level of past-due accounts based on the contractual terms of the receivables, and our relationships with, and the economic status of, our customers. With over eighty-seven percent of year end accounts recei …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

NOTE 10 STOCKHOLDERS EQUITY The only change to Stockholders Deficit through 1st Quarter 2026 is the inclusion of the consolidated net loss of $842,927. …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing