UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
For the three months ended
or
For the transition period from _________ to _________
Commission file number:
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation or organization) |
(IRS Employer Identification No.) |
(Address of Principal Executive Offices) (Zip Code)
Registrant’s telephone number, including the area code:
Securities registered pursuant to Section 12(b) of the Act:
Securities registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such report(s)), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| ☒ | Smaller reporting company | ||
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No
The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold on March 31, 2026, or the average bid and ask price of such common equity, as of the last business day of the registrant’s most recently completed fiscal quarter is $389,996.
The number of outstanding shares of the registrant’s common stock on March 31, 2026, was
Documents Incorporated by Reference: None.
FORM 10-Q QUARTERLY REPORT
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2026
TABLE OF CONTENTS
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FORWARD-LOOKING STATEMENTS
The statements contained in this report with respect to our financial condition, results of operations and business that are not historical facts are “forward-looking statements”. Forward-looking statements can be identified by the use of forward-looking terminology, such as “anticipate”, “believe”, “expect”, “plan”, “intend”, “seek”, “estimate”, “project”, “could”, “may” or the negative thereof or other variations thereon, or by discussions of strategy that involve risks and uncertainties. Management wishes to caution the reader of the forward-looking statements that any such statements that are contained in this report reflect our current beliefs with respect to future events and involve known and unknown risks, uncertainties and other factors, including, but not limited to, economic, competitive, regulatory, technological, key employees, and general business factors affecting our operations, markets, growth, services, products, licenses and other factors, some of which are described in this report including in “Risk Factors” in Item 1A and some of which are discussed in our other filings with the SEC. These forward-looking statements are only estimates or predictions. No assurances can be given regarding the achievement of future results, as actual results may differ materially as a result of risks facing our company, and actual events may differ from the assumptions underlying the statements that have been made regarding anticipated events.
These risk factors should be considered in connection with any subsequent written or oral forward-looking statements that we or persons acting on our behalf may issue. All written and oral forward-looking statements made in connection with this report that are attributable to our company or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given these uncertainties, we caution investors not to unduly rely on our forward-looking statements. We do not undertake any obligation to review or confirm analysts’ expectations or estimates or to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events, except as required by applicable law or regulation.
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PART I – Financial Information
Item 1. Financial Statements (unaudited)
AmeriGuard Security Services, Inc.
CONSOLIDATED BALANCE SHEETS
| March 31, | December 31, | |||||||
| 2026 | 2025 | |||||||
| Assets | ||||||||
| Current Assets | ||||||||
| Cash | $ | $ | ||||||
| Accounts Receivable, net | ||||||||
| Current Portion Related Party Note Receivable (note 3) | ||||||||
| Prepaid Expenses | ||||||||
| Deposits | ||||||||
| Related Party Transactions (note 4) | ||||||||
| Total Current Assets | ||||||||
| Other Non-Current Assets | ||||||||
| Fixed Assets, net depreciation (note 5) | ||||||||
| Related Party Note Receivable (note 3) | ||||||||
| Operating Lease (note 6) | ||||||||
| Goodwill (note 7) | ||||||||
| Total Non-Current Assets | ||||||||
| Total Assets | $ | $ | ||||||
| Liabilities | ||||||||
| Current Liabilities | ||||||||
| Accounts Payable | $ | $ | ||||||
| Accrued Payroll | ||||||||
| Payroll Liability - Pension (note 8) | ||||||||
| Deferred Liability Subsidiary (note 7) | ||||||||
| Current Portion Operating Lease (note 6) | ||||||||
| Current portion of notes payable (note 9) | ||||||||
| Total Current Liabilities | ||||||||
| Long Term Liabilities | ||||||||
| Long Term Portion of Notes Payable (note 9) | ||||||||
| Long Term Portion Operating Lease (note 6) | ||||||||
| Total Liabilities | ||||||||
| Stockholders’ equity | ||||||||
| Common Stock, $ | ||||||||
| Retained Earnings/(Defecit) | ( | ) | ( | ) | ||||
| Total Stockholders’ Equity | ( | ) | ( | ) | ||||
| Total Liabilities and Stockholders’ Equity | $ | $ | ||||||
See accompanying notes to financial statements
1
AmeriGuard Security Services, Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ending
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| Revenue | ||||||||
| Services | $ | $ | ||||||
| Discounts and allowances | ( | ) | ||||||
| Other operational income | ||||||||
| Total Revenue | ||||||||
| Cost of Services | ||||||||
| Salaries and related taxes | ||||||||
| Employee benefits | ||||||||
| Sub-Contractor payments | ||||||||
| Training and direct expenses | ||||||||
| Vehicles and equipment expenses | ||||||||
| Total Cost of Services | ||||||||
| Gross Margin | ||||||||
| Operating Expenses | ||||||||
| Salaries, payroll taxes and benefits | ||||||||
| Vehicle expense | ||||||||
| Professional services | ||||||||
| Communiction services | ||||||||
| General liability insurance | ||||||||
| Advertising and marketing | ||||||||
| Staff training | ||||||||
| Livescan services fees | ||||||||
| Licenses and permits | ||||||||
| General and administrative expenses | ||||||||
| Loan interest | ||||||||
| Depreciation expense | ||||||||
| Total Operating Expenses | ||||||||
| Net Income/(Loss) from Operations | ( | ) | ( | ) | ||||
| Other Income (Expenses) | ||||||||
| Other Income | ( | ) | ||||||
| Loss on Deferred Liability Subsidiary | ||||||||
| Total Other Income/(Expense) | ( | ) | ||||||
| Net Income/(loss) before Income Taxes | ( | ) | ( | ) | ||||
| Income tax expense | ||||||||
| Net Income/(loss) | $ | ( | ) | $ | ( | ) | ||
| Net Income/(loss) per Common Share - Basic and Diluted | $ | ( | ) | $ | ( | ) | ||
| Weighted Average Number of Common Shares Outstanding - Basic and Diluted | ||||||||
See accompanying notes to financial statements
2
AmeriGuard Security Services, Inc.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
or the Three Months Ending March 31, 2026
| Common Stock | Additional Paid-In | Stockholders’ | Total Stockholders’ | |||||||||||||||||
| Shares | Amount | Capital | Equity | Equity | ||||||||||||||||
| Balance, December 31, 2025 | ( | ) | $ | ( | ) | |||||||||||||||
| Net Loss for the nine months ending March 31, 2026 | ( | ) | ( | ) | ||||||||||||||||
| Balance, Septmeber 30, 2025 | ( | ) | ( | ) | ||||||||||||||||
See accompanying notes to financial statements
3
AmeriGuard Security Services, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ending
| March 31, | March 31, | |||||||
| 2026 | 2025 | |||||||
| Cash Flows from Operating Activities | ||||||||
| Net Income/(Loss) | $ | ( | ) | $ | ( | ) | ||
| Adjustment to reconcile net loss from operations: | ||||||||
| Changes in Operating Assets and Liabilities | ||||||||
| Accounts receivable, net | ( | ) | ||||||
| Prepaid insurance | ( | ) | ( | ) | ||||
| Deposits | ( | ) | ||||||
| Accounts payable | ( | ) | ||||||
| Deferred revenue | ||||||||
| Accrued interest | ||||||||
| Accrued payroll | ||||||||
| Payroll liability - pension | ( | ) | ||||||
| Deferred liability subsidiary | ||||||||
| Depreciation | ||||||||
| Net Cash (Used)/provided in Operating Activities | ( | ) | ( | ) | ||||
| Cash Flows (Used)/Provided from Investing Activities | ||||||||
| Purchase of fixed assets, net retirements | ( | ) | ( | ) | ||||
| Building improvements | ||||||||
| Net Cash Used by Investing Activities | ( | ) | ( | ) | ||||
| Cash (Used)/Provided from Financing Activities | ||||||||
| Note receivable | ||||||||
| Operating Lease Liability | ( | ) | ||||||
| Financed Capital | ||||||||
| Loan principle payments | ( | ) | ||||||
| Payment for shareholder buyout | ( | ) | ||||||
| Common Share activity, Net | ||||||||
| Net Cash Provided by Financing Activities | ||||||||
| Net Increase (Decrease) in Cash | ( | ) | ( | ) | ||||
| Cash at Beginning of Period | ||||||||
| Cash at End of Period | $ | $ | ||||||
| Supplemental Cash Flow Information: | ||||||||
| Income taxes paid | $ | $ | ||||||
| Interest paid | $ | $ | ||||||
| Supplemental disclosure of non-cash financing activities: | ||||||||
| Shareholder loan | $ | $ | ||||||
| Operating leases - right of use asset | $ | $ | ||||||
| Operating leases - lease liability | $ | $ | ||||||
See accompanying notes to financial statements
4
AmeriGuard Security Services, Inc.
Notes to Condensed Consolidated Financial Statements
NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS
AmeriGuard Security Services, Inc. (“AGS”), was incorporated on
On July 7, 2021, AGS, entered into an agreement to gain
On December 9, 2022, AGS executed the reverse merger agreement and became the subsidiary of AGSS (the “Company”). From that point forward, the financial statement filings will be the consolidation of Ameriguard Security Services, Inc, a Nevada company, with Ameriguard Security Services, Inc., a California company.
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
The Company’s accounting year end is December 31.
Basis of Presentation
These consolidating financial statements are presented in United States dollars and have been prepared in accordance with United States generally accepted accounting principles.
Risks and Uncertainties
The risks and uncertainties described below may not be the only ones we are or may face in the future. If any of the following do occur, our business, financial condition or results of operations could be materially adversely affected.
The company receives over
The process required to acquire a government contract takes several months to complete prior to delivery of the proposal to the contracting agency. Due to the time span required to prepare a proposal and winning the contract is not guaranteed, the Company maintains a department of individuals who monitor and write proposals for all government contracts that become open for bid on a continuing basis. It is important to the Company that new contracts are acquired consistently to maintain and grow annual revenue.
Other risks to operations consist of State and Federal regulations, staffing shortages, accelerating inflation, and overall business environment issues we cannot foresee.
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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 $
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 receivable balance from Federal contracts that require payment, and the uncollectable amount historically has been less than
Property and Equipment
Property and equipment are recorded at cost. Expenditures for major additions and improvements are capitalized, and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment are retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful life for Machinery and Equipment, and Vehicles is
Operating Leases
In February 2016, FASB ASU No. 2016-02 established ASC Topic 842, Leases, which sets out the principles for recognition, measurement, presentation, and disclosure of leases for both lessees and lessors. Effective December 31, 2022, we have implemented ASU No. 2016-02 and booked the operating lease asset and the related liability.
The Company is a lessee with Enterprise Lease Management for vehicles used in operations, under an all-inclusive master lease. The Company determines if an arrangement is a lease, or contains a lease, at inception of a contract and when the terms of an existing contract are changed. The Company recognizes a lease liability and a right-of-use (ROU) asset at the commencement date. The lease liability is initially and subsequently recognized based on the present value of its future lease payments. Variable payments are included in the future lease payments when those variable payments depend on an index or a rate. 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. The rate chosen was the
The Company has elected, for all underlying classes of assets, not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less at lease commencement. As of March 31, 2026, the Company does not have any leases that qualify for this election.
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Revenue Recognition
The Company recognizes revenue under ASC 606, Revenue from contracts with customers. The core principle of the revenue standard is that a company should recognize revenue to depict the transfer of services to customers in an amount that reflects the consideration to which the company expects to be entitled for those services. There are five steps or qualifiers that determine the timing and amount of Revenue Recognition. Those five steps are:
| 1. | Identifying the contract with a customer. |
| 2. | Identifying the performance obligation in the contract. |
| 3. | Determine the transaction price. |
| 4. | Allocate the transaction price to performance obligations. |
| 5. | Recognize the revenue when the entity satisfies the performance obligation. |
The Company generates and recognizes revenue in three sales categories. Those being, Formal Contracts, Sales Agreements and Retail activities. For the retail activities, the revenue is recognized on a cash basis at the time of sale. For the other two categories, the customers are billed at the end of the month the services have been performed.
The formal contract and sales agreements stipulate the exact services to be performed and the rate the services are to be billed, as per steps 1, 2 and 3. The Company provides details of services provided with each billing invoice for customer review and approval. Any differences are resolved prior to payment, Step 4. The Company recognizes revenue in the month the services stipulated in the agreement have been provided, Step 5.
Ninety eight percent of revenues are billed monthly and recognized in the month the services were provided. Refunds and returns, which are minimal, are recorded as a reduction of revenue. The Company has not recorded a reserve for returns on March 31, 2025, nor December 31, 2025, since it does not believe such returns will be material.
Net Income/(Loss) per Share
Net income/(loss) per common share is computed by dividing net income or loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share”. Basic earnings/(loss) per common share (“EPS”) calculations are determined by dividing net income/(loss) by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
Fair Value of Financial Instruments
The Company applies the accounting guidance under Financial Accounting Standards Board (“FASB”) ASC 820-10, “Fair Value Measurements”, as well as certain related FASB staff positions. This guidance defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact business and considers assumptions that marketplace participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance.
7
The guidance also establishes a fair value hierarchy for measurements of fair value as follows:
| ● | Level 1 - quoted market prices in active markets for identical assets or liabilities. | |
| ● | Level 2 - inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. | |
| ● | Level 3 - unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
The carrying amount of the Company’s financial instruments approximates their fair value as of December 31, 2025, and March 31, 2026, due to the short-term nature of these instruments.
NOTE 3 – RELATED PARTY NOTE RECEIVABLE
On December 31, 2022, TransportUS held a receivable from a related company, AmeriGuard Security Systems, Inc (AmeriGuard) in the amount of $
NOTE 4 – RELATED PARTY TRANSACTIONS
On July 7, 2021, AGS entered into an agreement to purchase
NOTE 5 – FIXED ASSETS
Fixed assets consist of the following on March 31, 2026, and December 31, 2025:
| 2026 | 2025 | |||||||
| Leasehold Improvements | ||||||||
| Machinery and Equipment | ||||||||
| Vehicles | ||||||||
| Total Fixed Assets | ||||||||
| Accumulated Depreciation | ( | ) | ( | ) | ||||
| Fixed Assets, Net | $ | $ | ||||||
8
NOTE 6 – OPERATING LEASES
We have leased vehicles with terms greater than
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 $
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
Maturities of lease liabilities on December 31, 2025, are as follows:
| ● | 2026: | $ | ||||
| ● | 2027: | $ | ||||
| ● | 2028: | $ | ||||
| ● | 2029: | $ | ||||
| ● | Total | $ |
NOTE 7 – GOODWILL
As of March 31, 2026, the Company’s goodwill totaled $
On October 20, 2023, the Company acquired TransportUS Inc. Allocation of the purchase price per ASC 805-20-25-1 yielded a goodwill amount of $
9
Assessing the recoverability of goodwill requires the Company to make estimates and assumptions about sales, operating margins, growth rates and discount rates based on its budgets, business plans, economic projections, anticipated future cash flows and marketplace data. The company under ASC 350-20 did a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than it’s carrying amount.
The fair value of the reporting unit was determined using three valuation methods: the Discounted Cash Flow method, the Guideline Company’s method and the Guideline Transactions method, incorporating the following key assumptions:
| ● | Weighted Average Cost of Capital (WACC): |
| ● | Forecast Horizon: |
The estimated fair value of the reporting unit is $
| Description | Amount ($) | |||
| Balance as of December 31, 2023 | $ | |||
| Impairment | ||||
| Balance as of December 31, 2024 | ||||
| Impairment | ||||
| Balance as of December 31, 2025 | $ | |||
As indicated the agreement generated a Goodwill asset of $
As of December 31, 2025, the Deferred Liability in Subsidiary decreased by $
10
NOTE 8 – PAYROLL LIABILITY – PENSION
The company offers various pension plans to employee groups based on location of employment. Corporate office employees and guards have an option to participate in a 401K sponsored by the company with a matching program up to
NOTE 9 – NOTES PAYABLE
On February 05, 2025, the Company entered into a government purchase orders/receivables backed line of credit of $
On July 7, 2022, the Company entered into a buyout agreement with shareholder Lillian Flores. The total buyout amount was $
The following schedule details the loans active as of March 31, 2026, and December 31, 2025:
| 2026 | 2025 | |||||||
| Current Portion: | ||||||||
| Notes and loans payable | $ | $ | ||||||
| Long term Portion: | ||||||||
| Notes and loans payable | ||||||||
| Total Notes Payable | $ | $ | ||||||
NOTE 10 – STOCKHOLDERS’ EQUITY
The only change to Stockholders Deficit through 1st Quarter 2026 is the inclusion of the consolidated net loss of $
11
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.
NOTE 12 – CONCENTRATION OF SALES
The company generated approximately $
| ● | Veterans Administration – Central Los Angeles CA | - | Annual Revenue of approx. $ | ||
| ● | Veterans Administration – Long Beach CA | - | Total 2026 Revenue approx. $ | ||
| ● | Veterans Administration – Loma Linda CA | - | Annual Revenue of approx. $ |
NOTE 13 – LITIGATION AND CLAIMS
As of December 31, 2025, there were two 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. One of the employment issues was rolled into the lawsuit against Ameriguard Security of California, Inc, and the other lawsuit was against TransportUS, Inc. In March of 2025, the lawsuit against AGC was settled for $
On June 12, 2025, Douglass Anderson and Russel Honore, on behalf of the Board of Directors of the Company, removed Lawrence D. Garcia from the position of Chief Executive Officer of the Company and appointed Douglas Anderson, an independent director of the Board and member of the Audit Committee and Compensation Committee, as interim Chief Executive Officer.
On June 16, 2025, Lawrence Garcia, as a majority shareholder, pursuant to Section 3.6 of the Company’s bylaws, removed Mr. Anderson and Mr. Honore as board members. In addition, on June 16, 2025, Mr. Garcia, pursuant to the bylaws, appointed Wilhelm Cashen and Terry Slatic, as board members. The Board of Directors removed Douglas Anderson from the position of Interim Chief Executive Officer of the Company and re-appointed Mr. Garcia as Chief Executive Officer. At the same time, the Board of Directors appointed Terry Slatic and Wilhelm Cashen to be the members of the Audit Committee.
On June 17, 2025, the Company and Mr. Garcia filed a Complaint in the District Court, Clark County, Case No. A-25-921392-B (Dept. 31) (the “Complaint”), against its former directors, Douglas Anderson and Russell Honore. The Complaint seeks declaratory relief to declare that the Board’s earlier purported removal of Mr. Garcia from the Company’s Board of Directors on June 12, 2025, was in violation of the Company’s Bylaws and invalid; that Mr. Anderson and Mr. Honore are no longer members of the Board, nor of any board committees; that the Board of Directors is comprised of three directors – Mr. Garcia, Mr. Slatic, and Mr. Cashen; that Mr. Garcia is the Company’s Chief Executive Officer; and other relief. The Complaint also seeks damages and injunctive relief against Mr. Anderson and Mr. Honore for conduct, alleged to have been in violation of the Company’s Bylaws. A copy of the Complaint is attached as Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed on July 15, 2025 (the “July 15, 2025 Form 8-K).
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On June 23, 2025, Mr. Anderson and Mr. Honore, on their own behalf and purportedly on behalf of the Company, filed an Answer and Counterclaim against Mr. Garcia, Mr. Cashen, Mr. Slatic, and the Company’s Controller, Michael Goossen. The Counterclaim alleges, among other things, that Mr. Garcia failed to disclose his arrest at an airport TSA checkpoint for carrying a firearm in his backpack; failed to disclose the suspension of a security guard and patrol business license in North Carolina, and that Mr. Garcia paid over $
On June 26, 2025, Mr. Anderson and Mr. Honore, on their own behalf and purportedly on behalf of the Company, filed an Application for Temporary Restraining Order and Motion for Preliminary Injunction against Mr. Garcia, Mr. Cashen, Mr. Slatic, and Mr. Goossen prohibiting the appointment of Mr. Cashen and Mr. Slatic to the Board of Directors, prohibiting the removal of Mr. Anderson and Mr. Honore from the Board, prohibiting the reinstitution of Mr. Garcia as Chief Executive Officer, prohibiting Mr. Garcia, Mr. Cashen, and Mr. Slatic from making or publishing any further false statements regarding their purported positions at and on the Board; prohibiting Mr. Garcia, Mr. Cashen, and Mr. Slatic from taking any further action on behalf of the Company. The Application for Temporary Restraining Order and Motion for Preliminary Injunction is attached as Exhibit 10.4 to the July 15, 2025 Form 8-K.
On July 1, 2025, Garcia filed an Opposition to Counterclaimants’ Application for Temporary Restraining Order and Motion for Preliminary Injunction.
On July 2, 2025, the Court denied Mr. Anderson’s and Mr. Honore’s Application for Temporary Restraining Order and Motion for Preliminary Injunction against Mr. Garcia, Mr. Cashen, Mr. Slatic, and Mr. Goossen. The Findings of Fact, Conclusions of Law, and Order Denying Counterclaimants’ Application for Temporary Restraining Order, Scheduling Supplemental Briefing and Setting Evidentiary Hearing on Counterclaimants’ Motion for Preliminary Injunction is attached as Exhibit 10.5 to the July 15, 2025 Form 8-K.
Following a two-day evidentiary hearing on July 29 and 31, 2025, the Court denied Mr. Anderson’s and Mr. Honore’s motion for a preliminary injunction without prejudice, concluding, among other things, that Mr. Anderson and Mr. Honore failed to show a likelihood of success on the merits of their claims. However, the Court allowed them to provide additional proof that Mr. Garcia was not the controlling shareholder as of June 16, 2025. There is a court date set in February 2027. Both parties have agreed to a mediation, which is scheduled to occur in May 2026. The mediation did occur and the Company was awarded $
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 estimated tax liability as of March 31, 2026. Therefore, provision for income taxes has been included in the accompanying financial statements.
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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Item 2 contains forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q 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 sections entitled “Forward-Looking Statements” and “Risk Factors” included elsewhere in this Quarterly Report.
Management’s Discussion and Analysis should be read in conjunction with the financial statements included in this Quarterly Report on Form 10-Q (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. 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 for 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 over 35 years of corporate financial management experience along with improving business performance as well as organizational growth across various sectors. The last 15 of which has been focused on organizational development consulting across multiple industries. Our Operations Manager has over 30 years of experience in the Security industry with a focus on human resources and employee effectiveness and efficiency.
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Results of Operations for the three months ending March 31, 2026
Revenues and Cost of Goods Sold
During the first quarter of 2026 the Company experienced a 52.2% decrease in total revenue compared to the same time period of 2025 of approximately $3,742,000. The decrease is the result of losing three federal guard contracts in July 2025. The reasons for losing the contracts are described in some detail in Note – 13 Litigation and Claims. The result of actions taken by the previous board members, Mr. Anderson and Mr. Honore, was the Accounts Receivable credit line provider declared the Company in default and cancelled all further funding, making it impossible for the company to meet operational cash needs in July 2025.
The government contract revenue category decrease accounted for the entire decline in total revenues. The decreased government revenue impacted the Gross Profit Margin as well. The Company experienced a decline in gross profit by over $429,000 in 2026 over that in 2025.
Operating Expenses and Other Expense
Operation expenses decreased in 2026 over 2025 by 45.3%, an amount of approximately $884,000. This decrease was the result of decreases in nearly all operating expense categories, except for minor increases in General Liability insurance, Licenses and Permits and Depreciation Expense. All other expense categories declined by amounts as small as $8,200 up to $281,000. In percentages the declines were from 16% to 77%. These declines are traceable directly to the three federal guard contracts lost in July 2025.
Management is focused on reducing operating expenses wherever possible to increase the bottom line.
Net (Loss) from Operations and Net (Loss) before Taxes
Net loss from operations through March 31, 2026, decreased approximately $454,000, over the loss during the same period of 2025. Although the Company experience a decline in Gross profit in 2026 and compared to the same period in 2025, the much greater decline in operational expenses allowed for the reduced loss in 2026 compared to 2025.
Liquidity and Capital Resources
The Company’s principal sources of liquidity include cash from operations and proceeds from debt financing. During the three months ending March 31, 2026, operations generated a net decrease in cash of approximately $610,000 while cash used by investing activities was approximately $26,300. Financing activities added approximately $123,400. The net decrease in cash for the period was approximately $513,000.
On March 31, 2026, the Company had cash on hand of $215,949 with total current assets of $2,293,092.
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Moving Forward
Management has developed a strategic plan moving forward in 2026.
There are three avenues for AGSS to achieve the significant success it seeks for our shareholders. Those are:
| 1. | Grow the Transportation company through new federal contracts and local private party services |
| 2. | Adapt to and drive the need for high tech security services as the leader in the industry |
| 3. | Acquiring industry related companies |
All three of these strategies require capital to accelerate success. Which is why a large portion of the executive management team and the board’s focus is exploring every opportunity to find a willing partner investor to join AGSS and help AGSS achieve the goal of becoming an active company trading on the NASDAQ market.
The first avenue is rather routine for the transportation company, TransportUS Inc. (TUS). That is submitting bids on every VA contract that is announced. TUS has established a duplicatable structure and system allowing us to establish an operation anywhere in the USA. We can do this without a significant amount of capital, but investment capital would allow TUS own vehicles rather than leasing them, allowing for better contract pricing increasing the odds of being awarded new contracts. TUS currently has four outstanding bids and two more being prepared. In the next twelve months management anticipates approximately 6-10 RFP’s to be put out by the VA. Additionally, the market is expanding to accommodate individual’s needs for non-emergency medical transportation. TUS has been looking into ways to meet this need in a profitable way. It appears the best approach is to focus on private pay transportation. A part of our strategic plan is to first develop this service in the Fresno area and then expand by adding the service to the team in southern CA. There is a need for new capital to help develop this service.
Management is taking steps to increase revenue from our subsidiary Ameriguard Security of California, Inc (AGC), by focusing on our very successful combination of portable surveillance system, 24/7 monitoring and security guard response. This three-part approach to protecting business assets meets the needs of most businesses and is very affordable over the traditional night guard. It allows AGC to support the customers’ needs, using our portable high-tech camera systems at a much lower cost to the customer. At the same time AGC benefits from fewer guards to cover more companies. Immediately, AGSS is launching a new marketing campaign, opening a sales office in Las Vegas, and hiring two individuals to our sales team. This will provide the sales needed to cover our operational cash needs, while we develop the next level of high-tech business asset protection. The Las Vegas office was established during this quarter, and a sales team is in place. We have begun the sales process and there appear to be a significant opportunity in Las Vegas. Although there hasn’t been a new service agreement achieved to date, management is certain of sales before the end of the second quarter.
Management continues complete reorganization of operations which is ongoing. We have taken steps necessary to keep our Transportation company operating and have begun eliminating all non-vital expenses in all categories and companies. Although we are optimistic that we will be able to continue, the future is not certain. We can operate profitably moving forward resulting in some free cash flow. Month to month expenses will be met. However, the amount of debt held by the Company and the amounts due to vendors is significant and may be more than the future operations can manage. The Company’s continued operations greatly depend upon the arrangements that can be made with the Lender and the patience of our vendors.
As the reorganization efforts continue. Management has managed to reduce operational expenses and direct expenses, while at the same time increased non-government contracting revenue relating to guard services. As a result, future months will be operating profitably providing some free cash flow.
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ITEM 3. 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.
ITEM 4. 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 March 31, 2026. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that as of March 31, 2026, our disclosure controls and procedures were not effective to satisfy the objectives for which they are intended due to a weakness in our internal control over financial reporting discussed below.
The framework our management uses to evaluate the effectiveness of our internal control over financial reporting is based on the guidance provided by the Committee of Sponsoring Organizations (COSO) of the Treadway Commission in its 1992 report: INTERNAL CONTROL - INTEGRATED FRAMEWORK. Based on our evaluation under the framework described above, our management has concluded that our internal control over financial reporting was ineffective as of March 31, 2026, due to the same weaknesses that rendered our disclosure controls and procedures ineffective. The Company’s internal control over financial reporting is not effective due to a lack of sufficient resources to hire support staff to separate duties between different individuals. The Company plans to address these weaknesses as resources become available by hiring additional professional staff, as funding becomes available, outsourcing certain aspects of the recording and reporting functions, and separating responsibilities. We have identified the following material weakness.
As of March 31, 2026, we did not maintain effective controls over the control environment. The Board of Directors has not established an audit committee as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness.
Because of these weaknesses, management has concluded that the Company did not maintain effective internal control over financial reporting as of March 31, 2026, based on the criteria established in “INTERNAL CONTROL-INTEGRATED FRAMEWORK” issued by the COSO. Management believes that the weaknesses set forth above did not have an effect on our financial results because the activity during this period was nominal. However, management believes that the lack of a functioning audit committee results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods. Management will further recruit qualified individuals, establish an audit committee, and ensure that board members have current and pertinent financial experience.
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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PART II – Other Information
ITEM 1. 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. |
See Note 13 – Litigation and Claims for details on all legal proceedings at this time.
ITEM 1A. RISK FACTORS
AS A SMALLER REPORTING COMPANY, WE ARE NOT REQUIRED TO PROVIDE A STATEMENT OF RISK FACTORS.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| AMERIGUARD SECURITY SERVICES, INC. | |||
| Date: June 30, 2026 | By: | /s/ Lawrence Garcia | |
| Name: | Lawrence Garcia | ||
| Title: | Chief Executive Officer | ||
| (principal executive officer) | |||
| Date: June 30, 2026 | By: | /s/ Michael Goossen | |
| Name: | Michael Goossen | ||
| Title: | Chief Financial Officer | ||
| (principal financial officer and principal accounting officer) | |||
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AMERIGUARD SECURITY SERVICES, INC.
Exhibit Index to Quarterly Report on Form 10-Q
For the Three Months Ended March 31, 2026
| * | Exhibits filed herewith. |
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