Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2023 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 333-173039 | |
Entity Registrant Name | AMERIGUARD SECURITY SERVICES, INC. | |
Entity Central Index Key | 0001514443 | |
Entity Tax Identification Number | 99-0363866 | |
Entity Incorporation, State or Country Code | NV | |
Entity Address, Address Line One | 5470 W. Spruce Avenue | |
Entity Address, Address Line Two | Suite 102 | |
Entity Address, City or Town | Fresno | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 93722 | |
City Area Code | (559) | |
Local Phone Number | 271-5984 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 94,471,302 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash | $ 1,557,724 | $ 1,227,654 |
Accounts receivable, net (note 1) | 1,764,579 | 1,869,268 |
Prepaid expenses and deposits | 178,560 | 110,829 |
Related Party Receivable (note 3) | ||
Total Current Assets | 3,500,863 | 3,207,751 |
Other Non-Current Assets | ||
Fixed assets, net depreciation (note 4) | 282,317 | 298,806 |
Operating Lease | 302,695 | 302,695 |
Total Non-Current Assets | 585,012 | 601,501 |
Total Assets | 4,085,875 | 3,809,252 |
Current Liabilities | ||
Accounts payable | 502,169 | 761,515 |
Accrued Interest Due (note 6) | 112,935 | 49,035 |
Accrued Payroll | 571,209 | 737,143 |
Payroll liability - Pension (note 5) | 360,208 | 453,965 |
Current portion of notes payable (note 6) | 719,563 | 719,563 |
Total Current Liabilities | 2,266,084 | 2,721,221 |
Long Term Liabilities | ||
Long term portion of notes payable (note 6) | 2,727,510 | 2,782,784 |
Operating Lease | 294,387 | 294,387 |
Total Liabilities | 5,287,981 | 5,798,393 |
Stockholders’ equity | ||
Common stock, $.001 par value, 93,471,302 shares issued and outstanding at June 30, 2023 and 2022 | 158,346 | 158,346 |
Retained (deficit) | (1,360,452) | (2,147,486) |
Total Stockholders’ Deficit | (1,202,106) | (1,989,140) |
Total Liabilities and Stockholders’ Equity | $ 4,085,875 | $ 3,809,252 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 93,471,302 | 93,471,302 |
Common stock, shares outstanding | 93,471,302 | 93,471,302 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||
Total Revenue | $ 15,702,392 | $ 18,791,279 |
Cost of Services | ||
Total Cost of Services | 14,590,497 | 16,174,378 |
Gross Margin | 1,111,895 | 2,616,901 |
Operating Expenses | ||
Salaries, payroll taxes and benefits | 1,196,291 | 834,229 |
Vehicle expense | 293,426 | 328,666 |
Professional services | 361,491 | 244,735 |
Cellular services | 85,318 | 80,136 |
General liability insurance | 125,023 | 79,515 |
Advertising and marketing | 87,322 | 84,923 |
General and administrative expenses | 604,400 | 456,934 |
Loan interest | 142,594 | 60,693 |
Depreciation expense | 29,334 | 33,282 |
Total Operating Expenses | 2,925,199 | 2,203,113 |
Net Income/(Loss) from Operations | (1,813,304) | 413,788 |
Other Income (Expenses) | ||
Other Income | 3,313,211 | 36,011 |
Other (Expense) | (712,873) | (259,935) |
Total Other Income (Expense) | 2,600,338 | (223,924) |
Net Income/(loss) before Income Taxes | 787,034 | 189,864 |
Income tax expense | ||
Net Income/(loss) | $ 787,034 | $ 189,864 |
Net Income/(loss) per Common Share - Basic | $ 0.0084 | $ 0.0020 |
Net Income/(loss) per Common Share - Diluted | $ 0.0084 | $ 0.0020 |
Weighted Average Number of Common Shares Outstanding - Basic | 93,417,302 | 93,417,302 |
Weighted Average Number of Common Shares Outstanding - Diluted | 93,417,302 | 93,417,302 |
Security Services [Member] | ||
Revenue | ||
Total Revenue | $ 15,526,866 | $ 18,607,576 |
Other Related Income [Member] | ||
Revenue | ||
Total Revenue | 175,526 | 183,703 |
Salaries And Related Taxes [Member] | ||
Cost of Services | ||
Total Cost of Services | 10,757,372 | 11,063,402 |
Employee Benefits [Member] | ||
Cost of Services | ||
Total Cost of Services | 2,189,414 | 2,267,629 |
Sub Contractor Payments [Member] | ||
Cost of Services | ||
Total Cost of Services | 1,331,446 | 2,595,784 |
Guard Training [Member] | ||
Cost of Services | ||
Total Cost of Services | 142,780 | 99,497 |
Vehicles And Equipment Expenses [Member] | ||
Cost of Services | ||
Total Cost of Services | $ 169,485 | $ 148,066 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - 9 months ended Sep. 30, 2023 - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Stockholders Equity [Member] | Total |
Beginning balance, value at Dec. 31, 2022 | $ 158,346 | $ 6,012,095 | $ (8,159,580) | $ (1,989,140) | |
Beginning balance, Shares at Dec. 31, 2022 | 93,417,302 | ||||
Net Income for the period | 787,034 | 787,034 | |||
Ending balance, value at Sep. 30, 2023 | $ 158,346 | $ 6,012,095 | $ (7,372,546) | $ (1,202,106) | |
Ending balance, Shares at Sep. 30, 2023 | 93,417,302 |
STATEMENTS OF CASH FLOWS (Unaud
STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flows from Operating Activities | ||
Net Income/(Loss) | $ 787,034 | $ 189,864 |
Changes in Operating Assets and Liabilities | ||
Accounts receivable, net | 104,689 | 186,784 |
Prepaid insurance | (43,855) | (20,496) |
Deposits | (23,873) | |
Depreciation | 29,334 | 58,559 |
Accounts payable | (261,152) | 349,002 |
Accrued Interest | 63,900 | 21,300 |
Accrued Payroll | (164,130) | |
Payroll liability - Pension | (93,757) | (230,035) |
Net Cash (Used)/provided in Operating Activities | 398,189 | 554,979 |
Cash Flows Used/(Provided) from Investing Activities | ||
Building improvements | (505) | (130,129) |
Equipment | (12,340) | (31,576) |
Sales of Vehicle | 21,500 | |
Net Cash Used by Investing Activities | (12,845) | (140,205) |
Cash Provided/(Used) from Financing Activities | ||
Loan principle payments | (55,274) | (85,112) |
Payment for shareholder buyout | (686,990) | |
Net adjustments, Equity | (110,296) | |
Net Cash Provided by Financing Activities | (55,274) | (882,398) |
Net Increase (Decrease) in Cash | 330,070 | (467,624) |
Cash at Beginning of Period | 1,227,654 | 2,129,801 |
Cash at End of Period | 1,557,724 | 1,662,177 |
Supplemental Cash Flow Information: | ||
Income Taxes Paid | ||
Interest Paid | 142,594 | 60,693 |
Supplemental disclosure of non-cash financing activities: | ||
Operating leases - right of use asset | 302,695 | |
Operating leases - lease liability | $ 294,387 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS AmeriGuard Security Services, Inc. (the Company), was incorporated on November 14, 2002, with an S-Corp tax election. The corporation was incorporated with the issuance of 1,000 550 450 On July 7, 2021, the Company, entered into an agreement to gain 100% control of Health Revenue Assurance Holdings, Inc (HRAA) a public corporation, incorporated in Nevada, by the purchase of 10,000,000 On December 9, 2022, the Company executed the reverse merger agreement and became the subsidiary of AGSS. 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. The Company’s accounting year end is December 31. Basis of Presentation These 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 86% The process required to acquire a government contract takes several months to complete starting with the preparation of the proposal, delivery of the proposal to the agency and awaiting notice from the agency of the contract award. Due to the time span required, 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 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 September 30, 2023, and December 31, 2022, the Company had cash and cash equivalents totaling $ 1,557,724 1,227,654 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 86% percent of accounts receivable balance from Federal contracts that require payment, and the uncollectable amount historically has been less than 1%. As of September 30, 2023, and December 31, 2022, an allowance for estimated uncollectible accounts was determined to be unnecessary. 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 is 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 5 10 Operating Leases In February 2016, FASB ASU No. 2016-02 established ASC Topic 842, Leases, which sets out the principles for the 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. 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. Revenue Recognition We recognize revenue when the Invoice for contracted services is issued as stipulated by the contract. Other services provided are recognized at the time the service is provided. 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 September 30, 2023, or 2022 since it does no 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 non-performance. 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 September 30, 2023, and December 31, 2022, due to the short-term nature of these instruments. |
RELATED PARTY RECEIVABLE
RELATED PARTY RECEIVABLE | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY RECEIVABLE | NOTE 3 – RELATED PARTY RECEIVABLE On July 7, 2021, the company 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 The receivable balances on September 30, 2023, and December 31, 2022, were $ 57,971 |
FIXED ASSETS
FIXED ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 4 – FIXED ASSETS Fixed assets consist of the following on September 30, 2023, and December 31, 2022: Schedule of fixed assets 2023 2022 Leasehold Improvements 224,637 224,132 Machinery and Equipment 290,891 278,551 Vehicles 110,742 110,274 Total Fixed Assets 625,802 612,957 Accumulated Depreciation (343,485 ) (314,151 ) Fixed Assets, Net $ 282,317 $ 298,806 |
PAYROLL LIABILITY _ PENSION
PAYROLL LIABILITY – PENSION | 9 Months Ended |
Sep. 30, 2023 | |
Payroll Liability Pension | |
PAYROLL LIABILITY – PENSION | NOTE 5 – 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 5% of employee salary. Federal contracts have union agreements that define the pension calculation and due dates. It is the responsibility of the company to calculate the pension benefit amount each month and contribute the amount due to the plan designated. The pension balances due on September 30, 2023, and December 31, 2022, for all plans were $ 360,208 453,965 |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 6 – NOTES PAYABLE In June 2020, AmeriGuard Security Services, Inc. received an SBA Loan through Fresno First Bank in the amount of $ 1,080,000 312,339 10 prime rate plus 2.75% 11.25% 9% 749,113 785,988 On July 7, 2022, the Company entered into a buyout agreement with a shareholder Lillian Flores. The total buyout amount was $ 3,384,950 45% 686,990 3.110% 112,935 2,697,960 The following schedule details the loans active as of September 30, 2023, and December 31, 2022: Schedule of the loan active 2023 2022 Current Portion: Notes and loans payable $ 719,563 $ 719,563 Total Current Portion 719,563 719,563 Long term Portion: Notes and loans payable 2,727,510 2,782,784 Total Long-term Portion 2,727,510 2,782,784 $ 3,447,073 $ 3,502,347 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 7 – STOCKHOLDERS’ EQUITY From December 31, 2022, to September 30,2023 the only impact to equity was the Net Income for the period of $ 787,034 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8 – COMMITMENTS AND CONTINGENCIES The company has a multiple vehicle lease agreement with Enterprise Leasing. As of September 30, 2023, the company had 19 vehicles under lease. The lease agreement includes maintenance services. The terms of the lease agreement varies based on the date vehicle were leased and the respective terms for each vehicle. The master lease is updated annually and requires annual internal financial reports and company tax return. |
CONCENTRATION OF SALES
CONCENTRATION OF SALES | 9 Months Ended |
Sep. 30, 2023 | |
Concentration Of Sales | |
CONCENTRATION OF SALES | NOTE 9 – CONCENTRATION OF SALES The company generated approximately $ 15,468,700 18,578,000 87% ● Social Security Administration, NSC - September 2022 through September 2027 Nine-month revenue - $ 4,444,400 ● Social security Administration, SSC - June 2022 through June 2027 Nine-month revenue - $ 3,754,300 ● Social Security Administration, WBDOC - June 2021 through July 2026 Nine-month revenue - $ 2,289,500 ● National Institute of Health- EPA - May 2020 through May 2023 Nine-month revenue - $ 2,904,000 |
OTHER INCOME (EXPENSE)
OTHER INCOME (EXPENSE) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE) | NOTE 10 – OTHER INCOME (EXPENSE) The company received an Employee Retention Tax Credit of (ERTC) payment of $3,288,000 from the tax year 2021. The company also experienced a related expense of approximately $ 473,000 191,500 |
LITIGATION AND CLAIMS
LITIGATION AND CLAIMS | 9 Months Ended |
Sep. 30, 2023 | |
Litigation And Claims | |
LITIGATION AND CLAIMS | NOTE 11 – LITIGATION AND CLAIMS As of September 30, 2023, there is one employment lawsuit pending. The issue involves an employee who resigned and is claiming various wage and hour discrepancies. There have been no negotiations or settlement efforts to date, the only activity has been providing the employee’s counsel with requested employment documents. There are 4 other employees who have also requested similar employment records and it is not clear how, or if, they intend to move forward. The company will defend its position and intends to prevail in the lawsuit. As of December 31, 2022, there was one employment issue pending. The issue involves a terminated employee alleging discrimination and wrongful termination. A lawsuit has not been filed, only a demand letter has been presented. Management has been working with the attorneys to find a reasonable settlement to this dispute without going to trial. After several months of discussion and negotiation it appears that the complaint will be settled for $23,000. As of March 31, 2023, the final agreement was signed which pays out the $ 23,000 settlement in three monthly installments starting May 15, 2023, Per Attorney letters received there are no other pending cases or legal matters. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | 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 | 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 September 30, 2023, and December 31, 2022, the Company had cash and cash equivalents totaling $ 1,557,724 1,227,654 |
Accounts Receivable | 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 86% percent of accounts receivable balance from Federal contracts that require payment, and the uncollectable amount historically has been less than 1%. As of September 30, 2023, and December 31, 2022, an allowance for estimated uncollectible accounts was determined to be unnecessary. |
Property and Equipment | 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 is 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 5 10 |
Operating Leases | Operating Leases In February 2016, FASB ASU No. 2016-02 established ASC Topic 842, Leases, which sets out the principles for the 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. |
Net Income/(Loss) per Share | 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. |
Revenue Recognition | Revenue Recognition We recognize revenue when the Invoice for contracted services is issued as stipulated by the contract. Other services provided are recognized at the time the service is provided. 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 September 30, 2023, or 2022 since it does no |
Fair Value of Financial Instruments | 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 non-performance. 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 September 30, 2023, and December 31, 2022, due to the short-term nature of these instruments. |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Schedule of fixed assets 2023 2022 Leasehold Improvements 224,637 224,132 Machinery and Equipment 290,891 278,551 Vehicles 110,742 110,274 Total Fixed Assets 625,802 612,957 Accumulated Depreciation (343,485 ) (314,151 ) Fixed Assets, Net $ 282,317 $ 298,806 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of the loan active | Schedule of the loan active 2023 2022 Current Portion: Notes and loans payable $ 719,563 $ 719,563 Total Current Portion 719,563 719,563 Long term Portion: Notes and loans payable 2,727,510 2,782,784 Total Long-term Portion 2,727,510 2,782,784 $ 3,447,073 $ 3,502,347 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - shares | Nov. 14, 2022 | Sep. 30, 2023 | Jul. 07, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Number of shares issued | 1,000 | ||
Holder ownership | 86% | ||
Custodian Ventures [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Preferred A-1 stock, shares authorized | 10,000,000 | ||
Chief Executive Officer [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Number of shares issued | 550 | ||
Lillian Flores [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Number of shares issued | 450 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Cash and cash equivalents | $ 1,557,724 | $ 1,227,654 | |
Reserve for returns | $ 0 | $ 0 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years |
RELATED PARTY RECEIVABLE (Detai
RELATED PARTY RECEIVABLE (Details Narrative) - USD ($) | Jul. 07, 2021 | Sep. 30, 2023 | Dec. 31, 2022 |
Related Party Transactions [Abstract] | |||
Consideration paid | $ 500,000 | ||
Notes receivable related party | $ 57,971 | $ 57,971 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 625,802 | $ 612,957 |
Accumulated Depreciation | (343,485) | (314,151) |
Fixed Assets, Net | 282,317 | 298,806 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 224,637 | 224,132 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 290,891 | 278,551 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 110,742 | $ 110,274 |
PAYROLL LIABILITY _ PENSION (De
PAYROLL LIABILITY – PENSION (Details Narrative) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Payroll Liability Pension | ||
Pension balances | $ 360,208 | $ 453,965 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Total Current Portion | $ 719,563 | $ 719,563 |
Total Long-term Portion | 2,727,510 | 2,782,784 |
Notes Payable | 3,447,073 | 3,502,347 |
Notes And Loans Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Total Current Portion | 719,563 | 719,563 |
Total Long-term Portion | $ 2,727,510 | $ 2,782,784 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jul. 07, 2022 | Dec. 31, 2020 | Jun. 30, 2020 | Sep. 30, 2023 | Dec. 31, 2022 | |
Short-Term Debt [Line Items] | |||||
Notes Payable | $ 3,447,073 | $ 3,502,347 | |||
Accrued interest | $ 112,935 | $ 49,035 | |||
Lillian Flores [Member] | |||||
Short-Term Debt [Line Items] | |||||
Principal amount | $ 3,384,950 | ||||
Interest rate | 3.11% | 45% | |||
Notes Payable | $ 2,697,960 | ||||
Initial payment | $ 686,990 | ||||
SBA Loan [Member] | |||||
Short-Term Debt [Line Items] | |||||
Principal amount | $ 1,080,000 | ||||
Expenses held in reserve | $ 312,339 | ||||
Term | 10 years | ||||
Interest rate is variable | prime rate plus 2.75% | ||||
Interest rate | 11.25% | 9% | |||
Notes Payable | $ 749,113 | $ 785,988 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Equity [Abstract] | |
Net Income/(loss) | $ 787,034 |
CONCENTRATION OF SALES (Details
CONCENTRATION OF SALES (Details Narrative) - USD ($) | 9 Months Ended | 37 Months Ended | 61 Months Ended | 62 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | May 31, 2023 | Sep. 30, 2027 | Jun. 30, 2027 | Jul. 31, 2026 | |
Revenues | $ 15,702,392 | $ 18,791,279 | ||||
Social Security Administration, NSC [Member] | ||||||
Revenues | $ 4,444,400 | |||||
Social security Administration, SSC [Member] | ||||||
Revenues | $ 3,754,300 | |||||
Social Security Administration, WBDOC [Member] | ||||||
Revenues | $ 2,289,500 | |||||
National Institute of Health- EPA [Member] | ||||||
Revenues | $ 2,904,000 | |||||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Guard Service [Member] | ||||||
Concentration Risk, Percentage | 87% | 87% | ||||
Guard Service [Member] | ||||||
Revenues | $ 15,468,700 | $ 18,578,000 |
OTHER INCOME (EXPENSE) (Details
OTHER INCOME (EXPENSE) (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Other Income and Expenses [Abstract] | |
Other income expenses | $ 473,000 |
Additional other expenses | $ 191,500 |
LITIGATION AND CLAIMS (Details
LITIGATION AND CLAIMS (Details Narrative) | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Litigation And Claims | |
Litigation settlement amount | $ 23,000 |