Ameriguard's Revenue Soars 22%, But Net Loss Widens to $2M

TL;DR

**AGSS is burning cash and losing more money despite growing revenue; steer clear until they prove profitability.**

AI Summary

AMERIGUARD SECURITY SERVICES, INC. (AGSS) reported a significant increase in total revenue to $14,918,184 for the six months ended June 30, 2025, up from $12,250,166 in the prior year, representing a 21.7% increase. Despite this revenue growth, the company's net loss widened to $2,033,615 for the six months ended June 30, 2025, compared to a net loss of $1,331,224 for the same period in 2024. This deterioration was primarily driven by a substantial increase in total operating expenses, which rose to $3,774,473 from $3,011,383, and a new 'Loss on Deferred Liability Subsidiary' of $159,450. Key changes include a significant increase in current portion of notes payable to $6,448,685 from $2,854,977, and a decrease in cash to $302,483 from $424,588. The company relies heavily on six federal contracts, accounting for over 92% of total revenue, posing a significant concentration risk. Strategic outlook involves continuous bidding for new government contracts to maintain and grow annual revenue, while managing increased operational costs and a growing net loss.

Why It Matters

This filing reveals a company struggling to translate revenue growth into profitability, a critical concern for investors. While revenue increased by 21.7%, the net loss deepened by over 52%, indicating significant cost control issues or aggressive expansion. For employees, the increased 'Salaries and related taxes' and 'Employee benefits' in cost of services suggest continued employment, but the overall financial health could impact future stability. Customers, particularly federal contractors, might see continued service, but the company's reliance on a few large contracts introduces competitive vulnerability. The broader market might view this as a cautionary tale for service-based businesses with high operational leverage and dependence on government contracts.

Risk Assessment

Risk Level: high — The company's net loss widened significantly to $2,033,615 for the six months ended June 30, 2025, from $1,331,224 in the prior year, indicating deteriorating financial performance. Furthermore, over 92% of its total revenue is derived from six federal contracts, creating extreme customer concentration risk. The current portion of notes payable surged to $6,448,685 from $2,854,977, highlighting substantial short-term debt obligations.

Analyst Insight

Investors should exercise extreme caution and consider avoiding AGSS given the widening net losses and significant customer concentration risk. Monitor future filings for evidence of improved cost management, diversification of revenue streams, and a clear path to profitability before considering any investment.

Financial Highlights

debt To Equity

N/A

revenue

$14,918,184

operating Margin

-12.2%

total Assets

$9,956,093

total Debt

$18,872,916

net Income

-$2,033,615

eps

-$0.0214

gross Margin

12.6%

cash Position

$302,483

revenue Growth

+21.7%

Revenue Breakdown

Key Numbers

• $14,918,184 — Total Revenue (Increased from $12,250,166 in 2024, a 21.7% increase)
• $2,033,615 — Net Loss (Widened from $1,331,224 in 2024, a 52.8% increase in loss)
• $3,774,473 — Total Operating Expenses (Increased from $3,011,383 in 2024, contributing to wider net loss)
• $6,448,685 — Current Portion of Notes Payable (Significantly increased from $2,854,977 in December 2024)
• $302,483 — Cash at End of Period (Decreased from $424,588 at December 31, 2024)
• 92% — Revenue Concentration (Percentage of total revenue from six Federal contracts)
• $159,450 — Loss on Deferred Liability Subsidiary (New expense contributing to the net loss in 2025)
• $0.0214 — Net Loss per Common Share (Increased from $0.0140 in 2024)
• $3,131,627 — Net Cash Used in Operating Activities (Increased from $1,627,660 in 2024, indicating higher cash burn)
• 84,918,292 — Outstanding Shares (Number of common shares outstanding on June 30, 2025)

Key Players & Entities

• AMERIGUARD SECURITY SERVICES, INC. (company) — Registrant as specified in its charter
• Lawrence Garcia (person) — President and CEO, also involved in share retirement and TransportUS Inc. incorporation
• Lillian Flores (person) — VP of Operations and co-founder of AGS
• Health Revenue Assurance Holdings, Inc (company) — Public corporation acquired by AGS in a reverse merger
• Custodian Ventures LLC (company) — Seller of Preferred A-1 Stock to AGS
• TransportUS Inc. (company) — Subsidiary acquired by the Company on October 20, 2023
• Enterprise Lease Management (company) — Lessor for vehicles used in operations
• SEC (regulator) — Recipient of the stock name and ticker change report
• Nevada Secretary of State (regulator) — Filed Certificate of Amendment for HRAA name change

FAQ

Risk Factors

• Deteriorating Profitability Despite Revenue Growth [high — financial]: Total revenue increased by 21.7% to $14,918,184 for the six months ended June 30, 2025. However, the net loss widened by 52.8% to $2,033,615 due to a 25.3% increase in total operating expenses to $3,774,473 and a new loss of $159,450 from a deferred liability subsidiary.
• Increased Short-Term Debt Obligations [high — financial]: The current portion of notes payable has surged by 125.9% from $2,854,977 to $6,448,685. This significant increase in short-term debt obligations, coupled with a decrease in cash to $302,483, raises concerns about liquidity and the company's ability to meet its immediate financial obligations.
• High Revenue Concentration on Federal Contracts [high — operational]: Over 92% of total revenue is derived from six federal contracts. This heavy reliance creates a significant concentration risk, as the loss or non-renewal of any of these contracts could severely impact the company's financial performance and operational stability.
• Increased Cash Burn from Operations [medium — financial]: Net cash used in operating activities has nearly doubled from $1,627,660 in the prior year to $3,131,627. This indicates a substantially higher rate of cash consumption to fund operations, which, if sustained, could deplete cash reserves.
• Growing Net Loss Per Share [medium — financial]: The net loss per common share increased from $0.0140 to $0.0214, reflecting the widening net loss. This trend is unfavorable for shareholders and may impact the company's ability to attract future investment.
• Rising Operating Expenses [medium — operational]: Total operating expenses increased by 25.3% to $3,774,473. Key drivers include increases in salaries, payroll taxes and benefits (up 27.8%), professional services (up 26.8%), and general and administrative expenses (up 136.3%).

Industry Context

The security services industry is characterized by its reliance on contracts, particularly government contracts, which can offer stability but also concentration risk. Companies in this sector often face pressure to manage labor costs, invest in technology, and maintain compliance with various regulations. Competition can be intense, with success often depending on bidding capabilities and client relationships.

Regulatory Implications

As a significant portion of revenue comes from federal contracts, AMERIGUARD is subject to government procurement regulations and oversight. Changes in government spending priorities or contract award processes could directly impact the company's revenue streams. Compliance with labor laws and security clearances for personnel are also critical regulatory considerations.

What Investors Should Do

1. Monitor contract renewals and new federal contract awards closely.
2. Analyze the sustainability of revenue growth against rising operating expenses.
3. Assess the company's liquidity and debt management strategy.
4. Evaluate the drivers behind the increased cash burn from operations.

Key Dates

• 2025-06-30: Six months ended June 30, 2025 — Reporting period showing significant revenue growth but a widening net loss and increased operating expenses.
• 2024-06-30: Six months ended June 30, 2024 — Prior year comparison period for revenue, net loss, and operating expenses.
• 2025-12-31: As of December 31, 2024 — Balance sheet comparison point for current assets, liabilities, and debt.

Glossary

Deferred Revenue

Revenue that has been received by the company but not yet earned. It is recorded as a liability until the services are rendered or goods are delivered. (The company has $657,327 in deferred revenue, which represents future revenue to be recognized.)

Deferred Liability Subsidiary

A liability related to a subsidiary that has been deferred, meaning its recognition or settlement is postponed. (A new loss of $159,450 was recognized related to this item, contributing to the increased net loss.)

Current Portion of Notes Payable

The amount of long-term debt that is due within the next year. (This has significantly increased to $6,448,685, indicating a substantial short-term debt obligation.)

Net Cash Used in Operating Activities

The amount of cash a company has spent on its operations over a period. A negative number indicates cash outflow. (The increase to $3,131,627 shows a higher cash burn rate for operations.)

Retained Earnings/(Deficit)

The cumulative amount of net income or loss that a company has retained over time, after dividends have been paid. (The company has a significant accumulated deficit of $5,303,591, indicating historical unprofitability.)

Year-Over-Year Comparison

Compared to the prior year, AMERIGUARD SECURITY SERVICES, INC. has demonstrated robust revenue growth of 21.7%, reaching $14,918,184 for the six months ended June 30, 2025. However, this top-line expansion has been overshadowed by a significant widening of the net loss, which increased by 52.8% to $2,033,615. This deterioration is primarily attributed to a substantial 25.3% rise in total operating expenses and the introduction of a new 'Loss on Deferred Liability Subsidiary'. Furthermore, the company's financial position shows increased short-term debt obligations, with the current portion of notes payable more than doubling, while cash reserves have declined.

Key Financial Figures

• $1,185,758 — ntly completed second fiscal quarter is $1,185,758. The number of outstanding shares of t

Filing Documents

• ea0258134-10q_ameri.htm (10-Q) — 396KB
• ea025813401ex21-1_ameri.htm (EX-21.1) — 2KB
• ea025813401ex31-1_ameri.htm (EX-31.1) — 11KB
• ea025813401ex31-2_ameri.htm (EX-31.2) — 11KB
• ea025813401ex32-1_ameri.htm (EX-32.1) — 5KB
• ea025813401ex32-2_ameri.htm (EX-32.2) — 5KB
• 0001213900-25-091579.txt ( ) — 3047KB
• agss-20250630.xsd (EX-101.SCH) — 40KB
• agss-20250630_cal.xml (EX-101.CAL) — 31KB
• agss-20250630_def.xml (EX-101.DEF) — 105KB
• agss-20250630_lab.xml (EX-101.LAB) — 219KB
• agss-20250630_pre.xml (EX-101.PRE) — 200KB
• ea0258134-10q_ameri_htm.xml (XML) — 250KB

Financial Statements (unaudited)

Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets - June 30, 2025 1 Condensed Consolidated Statements of Income – for the six months ended June 30, 2025 2 Condensed Consolidated Statements of Stockholders Equity for the six months ended June 30, 2025 3 Condensed Consolidated Statements of Cash Flows – for the six months ended June 30, 2025 4 Notes to Condensed Consolidated Financial Statements 5 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations. 14 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk. 17 Item 4.

Controls and Procedures

Controls and Procedures. 17 PART II Other Information Item 1.

Legal Proceedings

Legal Proceedings 18 Item1A.

Risk Factors

Risk Factors 18 Item 6. Exhibits 20 i

FORWARD-LOOKING STATEMENTS

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 "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 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 d

– Financial

PART I – Financial Information

Financial Statements (unaudited)

Item 1. Financial Statements (unaudited) AmeriGuard Security Services, Inc. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2025 2024 Assets Current Assets Cash $ 302,483 $ 424,588 Accounts Receivable, net 3,150,275 2,335,712 Current Portion Note Receivable (note 3) 12,289 12,289 Prepaid Expenses 312,874 414,288 Deposits 17,000 107,489 Related Party Transaction (note 4) - - Total Current Assets 3,794,921 3,294,366 Other Non-Current Assets Fixed Assets, net depreciation (note 5) 1,090,679 1,175,547 Related Party Note Receivable (note 3) 214,406 288,459 Operating Lease (note 6) 3,060,681 3,261,415 Goodwill (note 7) 1,795,406 1,795,406 Total Non-Current Assets 6,161,172 6,520,827 Total Assets $ 9,956,093 $ 9,815,194 Liabilities Current Liabilities Accounts Payable $ 1,172,374 $ 1,601,752 Accrued Payroll 727,906 730,110 Deferred Revenue (note 8) 657,327 657,327 Payroll Liability - Pension (note 9) 338,839 708,120 Deferred Liability Subsidiary (note 7) 280,950 121,500 Current Portion Operating Lease (note 6) 915,408 924,808 Current portion of notes payable (note 10) 6,448,685 2,854,977 Total Current Liabilities 10,541,488 7,598,594 Long Term Liabilities Long Term Portion of Notes Payable (note 10) 2,423,077 3,000,123 Long Term Portion Operating Lease (note 6) 2,145,274 2,336,607 Total Liabilities 15,109,839 12,935,324 Stockholders' equity Common Stock, $. 001 par value, 84,917,302 shares issued and outstanding at December 31, 2023 and 2022 (Note 11) 149,846 159,846 Retained Earnings/(Defecit) ( 5,303,591 ) ( 3,279,976 ) Total Stockholders' Equity ( 5,153,745 ) ( 3,120,130 ) Total Liabilities and Stockholders' Equity $ 9,956,094 $ 9,815,194 See accompanying notes to financial statements 1 AmeriGuard Security Services, Inc. CONSOLIDATED STATEMENTS OF OPERATIONS For the Six Months Ending June 30, June 30, 2025 2024 Revenue Services $ 14,827,668 $ 12,196,315 Discounts and allowances ( 4,146 ) ( 13,002 ) Ot

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