Ameriguard Narrows Losses to $845K, Cash Dwindles Amid Contract Reliance

TL;DR

**AGSS is burning cash and heavily reliant on a few federal contracts; despite narrowing losses, this stock is a high-risk gamble.**

AI Summary

AMERIGUARD SECURITY SERVICES, INC. (AGSS) reported a net loss of $845,858 for the nine months ended September 30, 2025, a significant improvement from the $2,137,236 net loss in the same period of 2024. Total revenue increased to $19,948,642 in 2025 from $19,229,817 in 2024, driven by a rise in service revenue to $19,894,769. Gross margin improved to $3,214,257 from $2,558,322 year-over-year. Operating expenses increased to $4,974,266 in 2025 from $4,721,705 in 2024, primarily due to higher salaries, payroll taxes, benefits, and general and administrative expenses. The company's cash position significantly decreased from $424,588 at December 31, 2024, to $36,019 at September 30, 2025. A key risk highlighted is the company's reliance on six federal contracts, which account for over 92% of total revenue, with no guarantee of extension. Strategic outlook involves continuous bidding for new government contracts to maintain and grow annual revenue.

Why It Matters

For investors, the narrowed net loss is a positive signal, but the precarious cash position of $36,019 and heavy reliance on six federal contracts (over 92% of revenue) present substantial liquidity and concentration risks. Employees might face uncertainty if key contracts are not renewed, potentially impacting job security. Customers, particularly federal agencies, benefit from AGSS's specialized security and transportation services, but contract non-renewal could disrupt service continuity. In the competitive security services market, AGSS's ability to consistently secure and extend government contracts is crucial for its long-term viability and market position, especially against larger, more diversified competitors.

Risk Assessment

Risk Level: high — The company's cash balance plummeted from $424,588 at December 31, 2024, to $36,019 at September 30, 2025, indicating severe liquidity issues. Furthermore, over 92% of its total revenue is derived from just six federal contracts, as described in Note 13, posing a significant concentration risk if any of these contracts are not extended.

Analyst Insight

Investors should exercise extreme caution and consider avoiding AGSS given its critical cash shortage and high revenue concentration risk. Await evidence of diversified revenue streams and a strengthened balance sheet before considering an investment. Monitor upcoming contract renewals closely.

Financial Highlights

debt To Equity

1.47

revenue

$19,948,642

operating Margin

-24.94%

total Assets

$8,231,398

total Debt

$12,136,402

net Income

-$845,858

eps

-$0.0095

gross Margin

16.11%

cash Position

$36,019

revenue Growth

3.74%

Revenue Breakdown

Key Numbers

• $845,858 — Net Loss (for the nine months ended September 30, 2025, improved from $2,137,236 in 2024)
• $19,948,642 — Total Revenue (for the nine months ended September 30, 2025, up from $19,229,817 in 2024)
• $36,019 — Cash at End of Period (as of September 30, 2025, down from $424,588 at December 31, 2024)
• 92% — Revenue Concentration (percentage of total revenue from six Federal contracts)
• $3,214,257 — Gross Margin (for the nine months ended September 30, 2025, up from $2,558,322 in 2024)
• $4,974,266 — Total Operating Expenses (for the nine months ended September 30, 2025, up from $4,721,705 in 2024)
• 89,348,478 — Common Shares Outstanding (as of September 30, 2025)
• $0.0095 — Net Loss per Common Share (for the nine months ended September 30, 2025)
• $12,136,402 — Total Liabilities (as of September 30, 2025)
• $8,231,398 — Total Assets (as of September 30, 2025)

Key Players & Entities

• AMERIGUARD SECURITY SERVICES, INC. (company) — registrant
• AGSS (company) — ticker symbol
• Lawrence Garcia (person) — President and CEO, shareholder
• Lillian Flores (person) — VP of Operations
• Health Revenue Assurance Holdings, Inc (company) — acquired public corporation
• Custodian Ventures LLC (company) — seller of Preferred A-1 Stock
• TransportUS Inc. (company) — acquired subsidiary
• SEC (regulator) — Securities and Exchange Commission
• FASB (regulator) — Financial Accounting Standards Board
• Enterprise Lease Management (company) — vehicle lessor

FAQ

Risk Factors

• Revenue Concentration [high — financial]: Over 92% of total revenue is derived from six federal contracts. There is no guarantee that these contracts will be extended, posing a significant risk to future revenue streams.
• Declining Cash Position [high — financial]: The company's cash position has drastically decreased from $424,588 at December 31, 2024, to $36,019 as of September 30, 2025. This sharp decline raises concerns about liquidity and the ability to meet short-term obligations.
• Reliance on Government Contracts [high — operational]: The company's business model is heavily dependent on securing and maintaining federal contracts. The strategic outlook emphasizes continuous bidding for new contracts, indicating a lack of diversification and inherent instability.
• Increasing Operating Expenses [medium — operational]: Total operating expenses rose to $4,974,266 for the nine months ended September 30, 2025, from $4,721,705 in the prior year. This increase, driven by salaries, payroll taxes, benefits, and G&A, outpaced revenue growth and impacted profitability.

Industry Context

AMERIGUARD SECURITY SERVICES, INC. operates in the security services industry, which is characterized by its reliance on contracts, particularly government contracts. The industry faces competition from both large established players and smaller niche providers. Trends include increasing demand for specialized security solutions and the impact of technology on service delivery.

Regulatory Implications

As a significant portion of revenue comes from federal contracts, AMERIGUARD is subject to government procurement regulations and compliance requirements. Changes in government spending priorities or contract award processes could materially impact the company's financial performance.

What Investors Should Do

1. Monitor contract renewals and new federal contract awards.
2. Assess the sustainability of the improved net loss.
3. Evaluate the company's cash management and liquidity.
4. Analyze the trend in operating expenses relative to revenue growth.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC) that provides a continuing view of a company's financial position during the year. (This document provides the latest unaudited financial information and operational updates for AMERIGUARD SECURITY SERVICES, INC.)

Gross Margin

The difference between revenue and cost of goods sold, expressed as a percentage of revenue. It indicates how efficiently a company manages its direct costs of production. (Improved to $3,214,257 (16.11%) for the nine months ended September 30, 2025, up from $2,558,322 (13.30%) in the prior year, showing better cost management relative to revenue.)

Operating Expenses

Costs incurred by a company in its normal course of business, excluding cost of goods sold. This includes salaries, rent, utilities, and administrative costs. (Increased to $4,974,266 for the nine months ended September 30, 2025, primarily due to higher personnel and G&A costs, impacting the net loss.)

Net Loss

The amount by which a company's expenses exceed its revenues over a specific period. (The company reported a net loss of $845,858 for the nine months ended September 30, 2025, a significant improvement from the $2,137,236 loss in the same period of 2024.)

Forward-Looking Statements

Statements in a report that are not historical facts and are based on current expectations, forecasts, and projections about future events. (The company includes a disclaimer about these statements, cautioning investors that actual results may differ materially due to various risks and uncertainties.)

Year-Over-Year Comparison

For the nine months ended September 30, 2025, AMERIGUARD SECURITY SERVICES, INC. reported a total revenue of $19,948,642, a modest increase of 3.74% from $19,229,817 in the same period of 2024. The company significantly reduced its net loss to $845,858 from $2,137,236, indicating improved operational efficiency or cost management. Gross margin also saw a healthy increase to 16.11% from 13.30%. However, operating expenses rose by 5.35%, and the cash position deteriorated sharply, falling from $424,588 to $36,019, presenting a key concern.

Key Financial Figures

• $342,046 — ntly completed second fiscal quarter is $342,046. The number of outstanding shares of t

Filing Documents

• ea0265432-10q_ameriguard.htm (10-Q) — 420KB
• ea026543201ex21-1_ameri.htm (EX-21.1) — 2KB
• ea026543201ex31-1_ameri.htm (EX-31.1) — 11KB
• ea026543201ex31-2_ameri.htm (EX-31.2) — 11KB
• ea026543201ex32-1_ameri.htm (EX-32.1) — 5KB
• ea026543201ex32-2_ameri.htm (EX-32.1) — 5KB
• 0001213900-25-111597.txt ( ) — 3285KB
• agss-20250930.xsd (EX-101.SCH) — 41KB
• agss-20250930_cal.xml (EX-101.CAL) — 32KB
• agss-20250930_def.xml (EX-101.DEF) — 136KB
• agss-20250930_lab.xml (EX-101.LAB) — 240KB
• agss-20250930_pre.xml (EX-101.PRE) — 211KB
• ea0265432-10q_ameriguard_htm.xml (XML) — 263KB

Financial Statements

Financial Statements (unaudited) 1 Condensed Consolidated Balance Sheets – September 30, 2025 1 Condensed Consolidated Statements of Income – for the nine months ended September 30, 2025 2 Condensed Consolidated Statements of Stockholders Equity for the nine months ended September 30, 2025 3 Condensed Consolidated Statements of Cash Flows – for the nine months ended September 30, 2025 4 Notes to Condensed Consolidated Financial Statements 5 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. 14 Item 3. Quantitative and Qualitative Disclosures about Market Risk. 17 Item 4. Controls and Procedures. 17 PART II Other Information 18 Item 1. Legal Proceedings 18 Item1A. Risk Factors 18 Item 6. Exhibits 20 i FORWARD-LOOKING 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

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View this 10-Q filing on SEC EDGAR