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 $350,000. The relationship with AmeriGuard relates to the contract the Company holds with the Veteran’s Administration in Long Beach, California. The contract required this relationship with AmeriGuard, at the time of award. Funds from the contract were shared with AmeriGuard during the first 3.5 years of operations. The revenue sharing ended April 2022. As of December 31, 2022, the receivable was adjusted to $350,000 and a note payable from AmeriGuard was executed. The $350,000 note is amortized over 20 years, with a balloon payment December 31, 2032. The interest rate is 6%, with the monthly payment of $2,500. For March 31, 2026, the note receivable is presented with the current portion of $12,289, and long-term portion of $66,361. As of December 31, 2025, the short-term portion is $12,289 and a long-term portion of $66,361. No payments have been received from Ameriguard during the quarter due to Ameriguard making large additional principal payment in 2025. Payments are scheduled to resume July 2026.