Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Jun. 30, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Annual Report | true | |
Document Transition Report | false | |
Document Period End Date | Dec. 31, 2023 | |
Document Fiscal Period Focus | FY | |
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 Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
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 Public Float | $ 4,021,596 | |
Entity Common Stock, Shares Outstanding | 94,971,302 | |
Documents Incorporated by Reference [Text Block] | None | |
ICFR Auditor Attestation Flag | false | |
Document Financial Statement Error Correction [Flag] | false | |
Auditor Name | BF Borgers CPA PC | |
Auditor Firm ID | 5041 | |
Auditor Location | Lakewood, CO |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash | $ 2,166,118 | $ 1,751,489 |
Accounts receivable, net (note 2) | 1,583,379 | 2,030,434 |
Current Portion Note Receivable (note 3) | 9,300 | 9,300 |
Prepaid Expenses | 327,147 | 185,501 |
Deposits | 61,575 | 38,000 |
Related Party Receivable (note 4) | ||
Total Current Assets | 4,147,519 | 4,014,724 |
Other Non-Current Assets | ||
Fixed assets, net depreciation (note 5) | 574,114 | 491,713 |
Note Receivable (note 3) | 340,700 | 340,700 |
Operating Lease | 1,005,633 | 302,695 |
Total Non-Current Assets | 1,920,447 | 1,135,108 |
Total Assets | 6,067,966 | 5,149,832 |
Current Liabilities | ||
Accounts payable | 449,921 | 824,098 |
Accrued Interest Due (note 9) | 49,035 | |
Accrued Payroll | 626,694 | 737,143 |
Deferred Revenue (note 7) | 722,327 | 887,327 |
Payroll liability - Pension (note 8) | 507,793 | 466,075 |
Current portion of notes payable (note 9) | 2,160,347 | 719,563 |
Total Current Liabilities | 4,467,082 | 3,683,241 |
Long Term Liabilities | ||
Long term portion of notes payable (note 9) | 2,034,493 | 2,782,784 |
Operating Lease | 1,060,015 | 294,387 |
Total Liabilities | 7,561,590 | 6,760,412 |
Stockholders’ equity | ||
Common stock, $.001 par value, 94,917,302 shares issued and outstanding at December 31, 2023 and 2022 (Note 7) | 159,846 | 159,346 |
Retained earnings/(defecit) | (1,653,470) | (1,769,926) |
Total Stockholders’ Equity | (1,493,624) | (1,610,580) |
Total Liabilities and Stockholders’ Equity | $ 6,067,966 | $ 5,149,832 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares par value | $ 0.001 | $ 0.001 |
Common stock, shares issued | 94,917,302 | 94,917,302 |
Common stock, shares outstanding | 94,917,302 | 94,917,302 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue | ||
Total Revenue | $ 24,350,618 | $ 29,139,403 |
Cost of Services | ||
Total Cost of Services | 22,308,494 | 25,959,005 |
Gross Margin | 2,042,124 | 3,180,399 |
Operating Expenses | ||
Salaries, payroll taxes and benefits | 1,604,520 | 1,161,982 |
Vehicle expense | 418,537 | 461,498 |
Professional services | 531,317 | 372,756 |
Communiction services | 160,621 | 130,239 |
General liability insurance | 160,431 | 120,485 |
Advertising and marketing | 144,747 | 137,175 |
Staff training | 185,004 | 75,802 |
Livescan services fees | 125,815 | 56,261 |
Licenses and permits | 108,749 | 43,128 |
General and administrative expenses | 646,509 | 526,580 |
Loan interest | 277,205 | 105,826 |
Depreciation expense | 110,581 | 89,016 |
Total Operating Expenses | 4,474,036 | 3,280,748 |
Net Income/(Loss) from Operations | (2,431,912) | (100,349) |
Other Income (Expenses) | ||
Other Income | 3,352,426 | 461,423 |
Other (Expense) | (775,115) | (743,643) |
Total Other Income/(Expense) | 2,577,311 | (282,220) |
Net Income/(loss) before Income Taxes | 145,399 | (382,569) |
Income tax expense | 22,763 | 10,350 |
Net Income/(loss) | $ 122,636 | $ (392,919) |
Net Income/(loss) per Common Share - Basic | $ 0.0013 | $ (0.0041) |
Net Income/(loss) per Common Share - Diluted | $ 0.0013 | $ (0.0041) |
Weighted Average Number of Common Shares Outstanding - Basic | 94,917,302 | 94,917,302 |
Weighted Average Number of Common Shares Outstanding - Diluted | 94,917,302 | 94,917,302 |
Services [Member] | ||
Revenue | ||
Total Revenue | $ 24,327,153 | $ 28,957,220 |
Discounts Aand Allowances [Member] | ||
Revenue | ||
Total Revenue | (99,004) | (10,534) |
Other Operational Income [Member] | ||
Revenue | ||
Total Revenue | 122,469 | 192,717 |
Salaries And Related Taxes [Member] | ||
Cost of Services | ||
Total Cost of Services | 16,170,868 | 17,026,802 |
Employee Benefits [Member] | ||
Cost of Services | ||
Total Cost of Services | 3,266,243 | 3,410,659 |
Sub Contractor Payments [Member] | ||
Cost of Services | ||
Total Cost of Services | 1,477,908 | 3,683,379 |
Training And Direct Expenses [Member] | ||
Cost of Services | ||
Total Cost of Services | 94,516 | 229,220 |
Vehicles And Equipment Expenses [Member] | ||
Cost of Services | ||
Total Cost of Services | $ 1,298,959 | $ 1,608,944 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Stockholders Equity [Member] | Total |
Beginning balance, value at Dec. 31, 2021 | $ 158,346 | $ 9,397,045 | $ (7,570,828) | $ 1,984,562 |
Beginning balance, Shares at Dec. 31, 2021 | 93,417,302 | |||
TransportUS Inc. Stockholders Equity (note 10) | $ 1,000 | 357,260 | 358,260 | |
TransportUS Inc. Stockholders Equity (note 10), shares | 1,000 | |||
Owner draws (pre-merger) | (78,063) | (78,063) | ||
Shareholder buyout (note 9) | (3,384,950) | (3,384,950) | ||
Retained Deficit of merger with related entity | (97,470) | (97,470) | ||
Equity purchase of TransportUS Inc, (note 10) | $ 1,500 | $ (1,500) | ||
Equity purchase of TransportUS Inc, (note 10), shares | 1,500,000 | |||
TransportUS Inc. Shares retired | (1,000) | 1,000 | ||
TransportUS Inc. Shares retired, shares | (1,000) | |||
Net Income for year ended December 31, 2023 | $ (392,919) | $ (392,919) | ||
Ending balance, value at Dec. 31, 2022 | $ 159,846 | 6,011,595 | (7,782,021) | (1,610,580) |
Ending balance, Shares at Dec. 31, 2022 | 94,917,302 | |||
Owner draws (pre-merger) | (5,679) | (5,679) | ||
Net Income for year ended December 31, 2023 | 122,636 | 122,636 | ||
Ending balance, value at Dec. 31, 2023 | $ 159,846 | $ 6,011,595 | $ (7,665,064) | $ (1,493,624) |
Ending balance, Shares at Dec. 31, 2023 | 94,917,302 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income/(Loss) | $ 122,636 | $ (392,919) |
Changes in Operating Assets and Liabilities | ||
Accounts receivable, net | 447,053 | 866,972 |
Prepaid insurance | (141,647) | 46,039 |
Deposits | (23,575) | |
Accounts payable | (374,207) | 286,903 |
Accrued Interest | (49,035) | 49,035 |
Accrued Payroll | (110,449) | 79,402 |
Deferred revenue | (165,000) | (200,000) |
Payroll liability - Pension | 41,717 | (198,703) |
Depreciation | 110,581 | 89,016 |
Operating lease liability | (702,937) | (79,358) |
Operating lease asset | 765,658 | 71,049 |
Net Cash (Used)/provided in Operating Activities | (79,205) | 617,436 |
Cash Flows (Used)/Provided from Investing Activities | ||
Purchase of fixed assets, net retirements | (142,980) | (66,956) |
Building improvements | (50,001) | (224,132) |
Net Cash Used by Investing Activities | (192,981) | (291,088) |
Cash (Used)/Provided from Financing Activities | ||
Note Receivable | 348,840 | |
Financed Capital | 766,667 | |
Payment for Shareholder buyout | (686,990) | |
Loan principle payments | (74,174) | (256,308) |
Common stock retired from merger | (1,000) | |
Owner distributions (prior to merger) | (4,678) | (78,063) |
Net Cash Provided by Financing Activities | 686,815 | (672,521) |
Net Increase (Decrease) in Cash | 414,629 | (346,173) |
Cash at Beginning of Period | 1,751,489 | 2,097,662 |
Cash at End of Period | 2,166,118 | $ 1,751,489 |
Supplemental Cash Flow Information: | ||
Income Taxes Paid | 22,763 | |
Interest Paid | 277,205 | |
Supplemental disclosure of non-cash financing activities: | ||
Shareholder Loan | 2,697,960 | |
Operating leases - right of use asset | 1,005,633 | |
Operating leases - lease liability | $ 1,060,015 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure [Table] | ||
Net Income (Loss) Attributable to Parent | $ 122,636 | $ (392,919) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | ORGANIZATION AND DESCRIPTION OF BUSINESS AmeriGuard Security Services, Inc. (AGS), 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, AGS, 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, 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 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. 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. The financial statements and notes include TransportUS Inc.’s financial results for 2022 and 2023. 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 87% 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. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 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 December 31, 2023, and December 31, 2022, the Company had cash and cash equivalents totaling $ 2,166,118 1,751,489 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 1%. As of December 31, 2023, and 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 15 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. We have leased vehicles that are classified as operating leases per the guidelines. The capital lease value as calculated following FASB guidelines is presented as a non-current asset on the balance sheet. As of December 31, 2023, the value is calculated to be $ 1,005,633 302,695 1,060,015 294,387 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 no 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 nonperformance. 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, 2022, and December 31, 2023, due to the short-term nature of these instruments. |
NOTE RECEIVABLE
NOTE RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Note Receivable Abstract | |
NOTE RECEIVABLE | NOTE 3 – 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 3.5 350,000 20 6% 2,500 1,750 9,300 340,700 |
RELATED PARTY RECEIVABLE
RELATED PARTY RECEIVABLE | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY RECEIVABLE | NOTE 4 – RELATED PARTY RECEIVABLE On July 7, 2021, AGS 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 balance on December 31, 2023, and 2022 was $ 57,971 |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
FIXED ASSETS | NOTE 5 – FIXED ASSETS Fixed assets consist of the following on December 31, 2023, and 2022: Schedule of fixed assets 2023 2022 Leasehold Improvements 274,133 224,132 Machinery and Equipment 290,892 278,551 Vehicles 635,172 546,371 Total Fixed Assets 1,200,197 1,049,054 Accumulated Depreciation (626,083 ) (557,341 ) Fixed Assets, Net $ 574,114 $ 491,713 |
DEFERRED REVENUE
DEFERRED REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED REVENUE | NOTE 7 – DEFERRED REVENUE During the first three years of operations of TransportUS Inc, Secure Transportation, Inc. (Secure), a subcontractor, advanced funds to TransportUS Inc. with the expectation of future services provided for Secure. This arrangement ended, December 31, 2021, after Secure had advanced $ 1,087,327 15,000 365,000 722,327 |
PAYROLL LIABILITY _ PENSION
PAYROLL LIABILITY – PENSION | 12 Months Ended |
Dec. 31, 2023 | |
Payroll Liability Pension | |
PAYROLL LIABILITY – PENSION | 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 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 December 31, 2023, and 2022 for all plans were $ 507,793 466,075 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE | NOTE 9 – 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% 9% 730,213 804,387 On July 7, 2022, the Company entered into a buyout agreement with shareholder Lillian Flores. The total buyout amount was $3,384,950 45% 686,990 the company agreed to make 4 equal installments of principal and interest of $739,508 each December 31, starting 2023. 3.110% 49,035 2,697,960 0 On December 20, 2023, the company entered into a short-term loan agreement collateralized by accounts receivable from TVT Capital LLC. The agreement encumbered $ 1,199,200 800,000 $49,967 766,667 The following schedule details the loans active as of December 31, 2023, and 2022: Schedule of the loan active 2023 2022 Current Portion: Notes and loans payable $ 2,160,347 $ 719,563 Long term Portion: Notes and loans payable 2,034,493 2,782,784 Total Notes Payable $ 4,194,840 $ 2,782,784 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 10 – STOCKHOLDERS’ EQUITY On December 9, 2022, AGS executed a reverse merger agreement with AGSS resulting in significant adjustments to the equity section of both companies. The result of the merger was AGSS became the sole owner of AGS. Although the merger is dated December 9, 2022, for financial statement presentation purposes, we have presented the Equity Section as if the merger occurred in 2021. The first significant impact on stockholders’ equity was the issuance of 90,000,000 1000 89,999,000 675,000 93,417,302 On October 20, 2023, the Company executed a share purchase agreement to acquire a related company owned by Lawrence Garcia, CEO. TransportUS Inc. was acquired with 3,000,000 shares with the initial 1,500,000 shares to purchase the company and a bonus of 1,500,000 shares when TransportUS renews its main services contract with the Veterans Affairs Department of Long Beach, CA. There were two other transactions that impacted stockholders’ equity that occurred to the Company’s equity section relating to owner draws and the merger with a related company. As a part of the normal activity of the privately held Company, an S-Corp, shareholders were distributed funds accounted for as Owner Draws. The owner draw accounts were used primarily for taxes paid by the shareholders due to profits of the S-Corp being transferred to their personal returns along with some personal expenses and personal cash needs. For 2021, there was approximately $ 105,000 5,679 78,063 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 11 – COMMITMENTS AND CONTINGENCIES The company has a multiple vehicle lease agreement with Enterprise Leasing. As of December 31, 2023, the company had 23 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. |
CONCENTRATION OF SALES
CONCENTRATION OF SALES | 12 Months Ended |
Dec. 31, 2023 | |
Concentration Of Sales | |
CONCENTRATION OF SALES | NOTE 12 – CONCENTRATION OF SALES The company generated approximately $ 24,354,000 29,139,000 87% ● Social Security Administration, NSC - September 2022 through September 2027 Annual Revenue of approx. $3M ● Social security Administration, SSC - June 2022 through June 2027 Annual Revenue of approx. $5M ● Social Security Administration, WBDOC - June 2021 through July 2026 Annual Revenue of approx. $5.8M ● National Institute of Health- EPA - May 2020 through March 2023 Annual Revenue of approx. $2.8M ● Veterans Administration – Long Beach CA - Feb 2019 through March 2024 Annual Revenue of approx. $4.4M |
LITIGATION AND CLAIMS
LITIGATION AND CLAIMS | 12 Months Ended |
Dec. 31, 2023 | |
Litigation And Claims | |
LITIGATION AND CLAIMS | NOTE 13 – LITIGATION AND CLAIMS As of December 31, 2023, there are three 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. A lawsuit has been filed, but it is early in the process and the attorneys cannot comment on the merits at this time. The Company believes the suit has no merit and intends to resolve it before a trial, if possible. Per Attorney letters issued there are no other pending cases or legal matters. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14 – INCOME TAXES Due to the losses incurred during the tax year ending 2022, and the expected zero tax due for 2023, there is no |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15 – SUBSEQUENT EVENTS On January 2, 2024, the Company entered into a short-term loan agreement collateralized by accounts receivable with Cedar Advance Capital. The agreement encumbered $ 719,250 525,000 22,477 565,150 412,500 17,660 On January 22, 2024, the Company entered into an agreement with Lillian Flores regarding the deferral of the required shareholder buyout payment of $ 611,253 December 31, 2023 16,500 1,585 14,915 521,763 Late January 2024, the Company was notified that TransportUS, Inc. was awarded a transportation contract from the Veterans Administration for the central Los Angeles region. The total value of the contract is estimated at $7.5 million over 4.5 years. The original start date of February 1, 2024, was delayed until the start of the second quarter. The annual impact of this contract will be approximately $1.6 million in increased revenue. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 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 December 31, 2023, and December 31, 2022, the Company had cash and cash equivalents totaling $ 2,166,118 1,751,489 |
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 eighty-seven percent of year end accounts receivable balance from Federal contracts that require payment, and the uncollectable amount historically has been less than 1%. As of December 31, 2023, and 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 15 |
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. We have leased vehicles that are classified as operating leases per the guidelines. The capital lease value as calculated following FASB guidelines is presented as a non-current asset on the balance sheet. As of December 31, 2023, the value is calculated to be $ 1,005,633 302,695 1,060,015 294,387 |
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 no 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 nonperformance. 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, 2022, and December 31, 2023, due to the short-term nature of these instruments. |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of fixed assets | Schedule of fixed assets 2023 2022 Leasehold Improvements 274,133 224,132 Machinery and Equipment 290,892 278,551 Vehicles 635,172 546,371 Total Fixed Assets 1,200,197 1,049,054 Accumulated Depreciation (626,083 ) (557,341 ) Fixed Assets, Net $ 574,114 $ 491,713 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of the loan active | Schedule of the loan active 2023 2022 Current Portion: Notes and loans payable $ 2,160,347 $ 719,563 Long term Portion: Notes and loans payable 2,034,493 2,782,784 Total Notes Payable $ 4,194,840 $ 2,782,784 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - shares | Nov. 14, 2022 | Sep. 08, 2021 | Jul. 07, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Number of share issued | 1,000 | ||
Holder ownership | 87% | ||
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 share issued | 550 | ||
Lillian Flores [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Number of share issued | 450 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Cash | $ 2,166,118 | $ 1,751,489 |
Operating leases | 1,005,633 | 302,695 |
Operating lease liability | 1,060,015 | 294,387 |
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 | 15 years |
NOTE RECEIVABLE (Details Narrat
NOTE RECEIVABLE (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Note receivable current portion | $ 9,300 | $ 9,300 |
Note receivable long-term portion | $ 340,700 | 340,700 |
Ameri Guard [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Note receivable | $ 350,000 | |
Term | 3 years 6 months | |
Note receivable adjustment | $ 350,000 | |
Amortized over | 20 years | |
Interest rate | 6% | |
Monthly payment | $ 2,500 | |
Interest payment | $ 1,750 |
RELATED PARTY RECEIVABLE (Detai
RELATED PARTY RECEIVABLE (Details Narrative) - USD ($) | Jul. 07, 2021 | Dec. 31, 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 ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 1,200,197 | $ 1,049,054 |
Accumulated Depreciation | (626,083) | (557,341) |
Fixed Assets, Net | 574,114 | 491,713 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 274,133 | 224,132 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 290,892 | 278,551 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 635,172 | $ 546,371 |
DEFERRED REVENUE (Details Narra
DEFERRED REVENUE (Details Narrative) - Transport U S Inc [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Deferred revenue | $ 722,327 | $ 1,087,327 | |
Deferred income | $ 15,000 | ||
Return funds amount | $ 365,000 | $ 365,000 |
PAYROLL LIABILITY _ PENSION (De
PAYROLL LIABILITY – PENSION (Details Narrative) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Payroll Liability Pension | ||
Pension balances | $ 507,793 | $ 466,075 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Short-Term Debt [Line Items] | ||
Total Long-term Portion | $ 2,034,493 | $ 2,782,784 |
Total Notes Payable | 4,194,840 | 2,782,784 |
Notes And Loans Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Total Current Portion | 2,160,347 | 719,563 |
Total Long-term Portion | $ 2,034,493 | $ 2,782,784 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 07, 2022 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 20, 2023 | |
Short-Term Debt [Line Items] | ||||||
Notes payable | $ 4,194,840 | $ 2,782,784 | ||||
Accrued interest | $ 49,035 | |||||
Lillian Flores [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Interest rate | 3.11% | 45% | ||||
Notes payable | $ 2,697,960 | |||||
Total buyout amount | $ 3,384,950 | |||||
Initial payment | $ 686,990 | |||||
Installments payment description | the company agreed to make 4 equal installments of principal and interest of $739,508 each December 31, starting 2023. | |||||
Secure Transportation Inc [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Notes payable | $ 0 | |||||
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% | 9% | ||||
Notes payable | $ 730,213 | $ 804,387 | ||||
Short Term Loan Agreement [Member] | ||||||
Short-Term Debt [Line Items] | ||||||
Notes payable | $ 800,000 | |||||
Note receivable | 1,199,200 | |||||
Weekly payment | $ 49,967 | |||||
Notes payable current portion | $ 766,667 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Nov. 14, 2022 | Oct. 20, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Number of shares issued | 1,000 | |||||
Related party receivables | $ 105,000 | |||||
Owner draws (pre-merger) | $ 5,679 | $ 78,063 | ||||
Lawrence Garcia [Member] | ||||||
Share purchase agreement description | TransportUS Inc. was acquired with 3,000,000 shares with the initial 1,500,000 shares to purchase the company and a bonus of 1,500,000 shares when TransportUS renews its main services contract with the Veterans Affairs Department of Long Beach, CA. | |||||
Ameriguard Security Services [Member] | ||||||
Number of shares issued | 90,000,000 | |||||
Number of shares exchanged | 1,000 | |||||
Increase in common shares outstanding | 89,999,000 | |||||
Conversion of shares | 675,000 | |||||
Shares Outstanding | 93,417,302 |
CONCENTRATION OF SALES (Details
CONCENTRATION OF SALES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues | $ 24,350,618 | $ 29,139,403 |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Guard Service [Member] | ||
Concentration Risk, Percentage | 87% | 87% |
Guard Service [Member] | ||
Revenues | $ 24,354,000 | $ 29,139,000 |
INCOME TAXES (Details Narrative
INCOME TAXES (Details Narrative) | Dec. 31, 2023 USD ($) |
Income Tax Disclosure [Abstract] | |
Tax liability | $ 0 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - USD ($) | 1 Months Ended | 6 Months Ended | |||||
Jan. 30, 2024 | Jan. 22, 2024 | Jun. 30, 2024 | Jan. 02, 2024 | Dec. 31, 2023 | Dec. 20, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | |||||||
Loan receivable | $ 9,300 | $ 9,300 | |||||
Note payable | $ 4,194,840 | $ 2,782,784 | |||||
Short Term Loan Agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Note payable | $ 800,000 | ||||||
Weekly payment | $ 49,967 | ||||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Subsequent event description | The total value of the contract is estimated at $7.5 million over 4.5 years. The original start date of February 1, 2024, was delayed until the start of the second quarter. The annual impact of this contract will be approximately $1.6 million in increased revenue. | ||||||
Subsequent Event [Member] | Lillian Flores [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Deferral payment | $ 611,253 | ||||||
Due date | Dec. 31, 2023 | ||||||
Monthly principal and interest payment | $ 16,500 | ||||||
Monthly interest | $ 1,585 | ||||||
Deferred principal amount | $ 14,915 | $ 521,763 | |||||
Subsequent Event [Member] | Short Term Loan Agreement [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loan receivable | $ 719,250 | ||||||
Note payable | 525,000 | ||||||
Weekly payment | 22,477 | ||||||
Subsequent Event [Member] | Short Term Loan Agreement [Member] | Velocity Capital Group [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Loan receivable | 565,150 | ||||||
Note payable | 412,500 | ||||||
Weekly payment | $ 17,660 |