Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 20, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
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 | 94,471,302 | ||
Auditor Name | BF Borgers CPA PC | ||
Auditor Firm ID | 5041 | ||
Auditor Location | Lakewood, CO |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash | $ 1,227,654 | $ 2,129,801 |
Accounts receivable, net (note 1) | 1,869,268 | 2,215,197 |
Prepaid insurance | 110,829 | 107,884 |
Related Party Receivable (note 3) | ||
Total Current Assets | 3,207,751 | 4,452,882 |
Other Non-Current Assets | ||
Fixed assets, net depreciation (note 4) | 298,806 | 132,802 |
Operating Lease | 302,695 | |
Total Non-Current Assets | 601,501 | 132,802 |
Total Assets | 3,809,252 | 4,585,684 |
Current Liabilities | ||
Accounts payable | 761,516 | 418,342 |
Accrued Interest Due (note 6) | 49,035 | |
Accrued Payroll | 737,143 | 657,741 |
Payroll liability - Pension (note 5) | 453,965 | 616,579 |
Current portion of notes payable (note 6) | 719,563 | 127,615 |
Total Current Liabilities | 2,721,222 | 1,820,277 |
Long Term Liabilities | ||
Long term portion of notes payable (note 6) | 2,782,784 | 780,845 |
Operating Lease | 294,387 | |
Total Liabilities | 5,798,393 | 2,601,122 |
Stockholders’ equity | ||
Common stock, $.001 par value, 94,471,302 shares issued and outstanding at December 31, 2022 and 2021 (Note 7) | 158,346 | 158,346 |
Retained earnings/(defecit) | (2,147,486) | 1,826,216 |
Total Stockholders’ Equity | (1,989,140) | 1,984,562 |
Total Liabilities and Stockholders’ Equity | $ 3,809,253 | $ 4,585,684 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common Stock, Shares Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Issued | 94,471,302 | 94,471,302 |
Common Stock, Shares Outstanding | 94,471,302 | 94,471,302 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Total Revenue | $ 24,947,401 | $ 22,442,513 |
Cost of Services | ||
Total Cost of Services | 21,948,618 | 20,628,996 |
Gross Margin | 2,998,783 | 1,813,517 |
Operating Expenses | ||
Salaries, payroll taxes and benefits | 1,161,982 | 365,433 |
Vehicle expense | 433,424 | 295,054 |
Professional services | 361,314 | 318,442 |
Cellular services | 106,382 | 112,140 |
General liability insurance | 87,119 | 111,287 |
Advertising and marketing | 128,544 | 77,349 |
General and administrative expenses | 645,268 | 294,062 |
Loan interest | 105,826 | 59,439 |
Depreciation expense | 42,927 | 52,273 |
Total Operating Expenses | 3,072,786 | 1,685,479 |
Net Income/(Loss) from Operations | (74,003) | 128,038 |
Other Income (Expenses) | ||
Other Income | ||
Other (Expense) | (344,105) | |
Total Other Income | (344,105) | |
Net Income/(loss) before Income Taxes | (418,108) | 128,038 |
Income tax expense | 10,350 | 33,923 |
Net Income/(loss) | $ (428,458) | $ 94,115 |
Net Income/(loss) per Common Share - Basic and Diluted | $ (0.0046) | $ 0.0010 |
Weighted Average Number of Common Shares Outstanding - Basic and Diluted | 93,417,302 | 93,417,302 |
Security Services [Member] | ||
Revenue | ||
Total Revenue | $ 24,643,096 | $ 22,418,328 |
Other Related Income [Member] | ||
Revenue | ||
Total Revenue | 304,305 | 24,185 |
Salaries And Related Taxes [Member] | ||
Cost of Services | ||
Total Cost of Services | 15,030,738 | 13,873,241 |
Employee Benefits [Member] | ||
Cost of Services | ||
Total Cost of Services | 3,052,774 | 2,915,322 |
Sub Contractor Payments [Member] | ||
Cost of Services | ||
Total Cost of Services | 3,467,391 | 3,433,959 |
Guard Training [Member] | ||
Cost of Services | ||
Total Cost of Services | 202,826 | 222,298 |
Vehicles And Equipment Expenses [Member] | ||
Cost of Services | ||
Total Cost of Services | $ 194,889 | $ 184,176 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($) | Common Stock [Member] | Preferred Stock [Member] | Additional Paid-in Capital [Member] | Stockholders Equity [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 69,346 | $ 10,000 | $ 9,976,045 | $ (7,191,705) | $ 2,863,685 |
Beginning balance, Shares at Dec. 31, 2020 | 2,743,302 | 675,000 | |||
Owner draws (pre-merger) | (473,238) | (473,238) | |||
Equity Merger | $ 89,000 | $ (10,000) | (579,000) | (500,000) | |
Equity Merger, Shares | 89,999,000 | ||||
Cancelation and conversion of preferred stock, Shares | 675,000 | (675,000) | |||
Net (Loss) for year ended December 31, 2022 | 94,115 | 94,115 | |||
Ending balance, value at Dec. 31, 2021 | $ 158,346 | 9,397,045 | (7,570,828) | 1,984,562 | |
Ending balance, Shares at Dec. 31, 2021 | 93,417,302 | ||||
Owner draws (pre-merger) | (62,824) | (62,824) | |||
Shareholder buyout | (3,384,950) | (3,384,950) | |||
Retained Deficit of merger with related entity | (97,470) | (97,470) | |||
Net (Loss) for year ended December 31, 2022 | (428,458) | (428,458) | |||
Ending balance, value at Dec. 31, 2022 | $ 158,346 | $ 6,012,095 | $ (8,159,580) | $ (1,989,140) | |
Ending balance, Shares at Dec. 31, 2022 | 93,417,302 | 93,417,302 |
STATEMENT OF CASH FLOWS
STATEMENT OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows from Operating Activities | ||
Net Income/(Loss) | $ (428,458) | $ 94,115 |
Adjustment to reconcile net loss from operations: | ||
Accounts receivable, net | 345,929 | (23,372) |
Prepaid insurance | (2,945) | (32,949) |
Depreciation | 42,927 | 52,273 |
Accounts payable | 343,173 | 33,742 |
Accrued Interest | 49,035 | |
Accrued Payroll | 79,402 | 75,693 |
Payroll liability - Pension | (162,614) | 77,237 |
Net Cash (Used)/provided in Operating Activities | 266,449 | 276,739 |
Cash Flows Used from Investing Activities | ||
Purchase of fixed assets | (6,043) | (24,552) |
Building improvements | (224,132) | |
Operating lease liability | (79,358) | |
Purchase of Shell Corporations - AGSS | (500,000) | |
Payment for Shareholder buyout | (686,990) | |
Loan principle payments | (180,298) | (227,097) |
Owner distributions | (62,824) | (473,238) |
Net Cash Used by Investing Activities | (1,239,644) | (1,224,887) |
Cash Provided from Financing Activities | ||
Secure Transportation vehicle loan | 21,500 | |
Operating lease asset | 71,049 | |
Net Cash Provided by Financing Activities | 71,049 | 21,500 |
Net Increase (Decrease) in Cash | (902,147) | (926,648) |
Cash at Beginning of Period | 2,129,801 | 3,056,449 |
Cash at End of Period | 1,227,654 | 2,129,801 |
Supplemental Cash Flow Information: | ||
Income Taxes Paid | 10,350 | 33,923 |
Interest Paid | 105,826 | $ 59,439 |
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 | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | 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 90 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 wining 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, the ongoing impact of COVID, accelerating inflation, and overall business environment issues we cannot foresee. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, and December 31, 2021, the Company had cash and cash equivalents totaling $ 1,227,654 2,129,801 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 ninety 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, 2022, and 2021, 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 December 31, 2022, or 2021 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 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, 2021 and December 31, 2022, due to the short-term nature of these instruments. |
RELATED PARTY RECEIVABLE
RELATED PARTY RECEIVABLE | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY RECEIVABLE | NOTE 3 – RELATED PARTY RECEIVABLE On July 7, 2021, the company has entered into an agreement to purchase 100% of the Preferred A-1 Stock of Health Revenue Assurance Holdings, Inc. a SEC registered company for $ 450,000 The receivable balances on December 31, 2022, and 2021 were $ 57,971 10,596 |
FIXED ASSETS
FIXED ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Fixed Assets | |
FIXED ASSETS | NOTE 4 – FIXED ASSETS Fixed assets consist of the following on December 31, 2022, and 2021: Schedule of Fixed assets 2021 2020 Leasehold Improvements 224,132 - Machinery and Equipment 278,551 246,974 Vehicles 110,274 131,775 Total Fixed Assets 612,957 378,749 Accumulated Depreciation (314,151 ) (245,947 ) Fixed Assets, Net $ 298,806 $ 132,802 |
PAYROLL LIABILITY _ PENSION
PAYROLL LIABILITY – PENSION | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022, and 2021 for all plans was $ 453,965 616,579 |
NOTES PAYABLE
NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2022 | |
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% 9 4.01 804,387 888,845 In January 2020, the Company entered into a financing agreement with Master Security Company for the purchase of vehicles, guns, and guard equipment for the National Institute of Health USEPA contract which began May 2020. The principal financed was $ 150,000 4 21 7,406 0 7,729 In December 2021, the Company entered into a financing agreement with Secure Transportation Inc. for the purchase of three used vehicles in the amount of $ 21,500 1,900 5 0 19,615 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 49,035 2,697 The following schedule details the loans active as of December 31, 2022, and 2021: Schedule of the loan active 2022 2021 Current Portion: Notes and loans payable $ 719,563 $ 127,615 Total Current Portion 719,563 127,615 Long term Portion: Notes and loans payable 2,782,784 780,845 Total Long-term Portion 2,782,784 780,845 $ 3,502,347 $ 908,460 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 7 – STOCKHOLDERS’ EQUITY On December 9, 2022, the Company 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 the Company. 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 The next part of stockholder’s equity impacted was Additional Paid-in Capital. The impact was a reduction of Paid-in Capital of $ 579,000 his reduction was caused by an $89,999 impact of issuing new shares, a $10,000 impact form the cancelation of preferred shares and finally the $500,000 cost of the Company’s purchase of AGSS, formally Heath Revenue Assurance Holdings, Inc. 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 $ 105,000 473,238 62,824 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022, the company had 19 vehicles under lease. The lease agreement includes maintenance services along physical damage insurance. The term 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 | 12 Months Ended |
Dec. 31, 2022 | |
Concentration Of Sales | |
CONCENTRATION OF SALES | NOTE 9 – CONCENTRATION OF SALES The company generated approximately $ 24,600,000 22,100.000 92 ● Social Security Administration, NSC - September 2022 through September 2027 ● Social security Administration, SSC - June 2022 through June 2027 ● Social Security Administration, WBDOC - June 2021 through July 2026 ● National Institute of Health- EPA - May 2020 through March 2025 |
LITIGATION AND CLAIMS
LITIGATION AND CLAIMS | 12 Months Ended |
Dec. 31, 2022 | |
Litigation And Claims | |
LITIGATION AND CLAIMS | NOTE 10 – LITIGATION AND CLAIMS 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 Per Attorney letters received there are no other pending cases or legal matters. |
INCOME TAXE
INCOME TAXE | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXE | NOTE 11 – INCOME TAXE Prior to the merger the Company had elected, with the consent of its stockholders, to be treated as an S Corporation under the Internal Revenue Code. In lieu of corporate income taxes, the stockholders of an S Corporation are taxed on their proportionate share of the Company’s income. As a result of the merger on December 9, 2022, the S Corporation status ends, and the consolidated 2022 tax return will be filed as a standard corporation. However, due to the losses incurred during the tax year ending 2022, there will be no |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS On March 22, 2023, The Company was notified by the Contracting Officer of National Institute of Health-EPA our contract with them was not continuing and they were invoking the 45 days cancelation clause in the contract. As a result, the company will transition the closure of the contract on or about April 30, 2023. This will reduce on our annual revenue in the amount of approximately $ 5,122,000 4,650,000 On March 23, 2023, the board of directors approved the purchase of TransportUS, Inc., a California Corporation, with a valuation of approximately $3.72 million, for $3 million. The purchase will be made with restricted common stock only based on market price at the date of closure. Estimated number of shares for purchase is to be 1.5 million. TransportUS Inc. has annual revenues of approximately $4,350,000 with operating net income potential of 10%. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, and December 31, 2021, the Company had cash and cash equivalents totaling $ 1,227,654 2,129,801 |
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 ninety 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, 2022, and 2021, 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 December 31, 2022, or 2021 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 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, 2021 and December 31, 2022, due to the short-term nature of these instruments. |
FIXED ASSETS (Tables)
FIXED ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fixed Assets | |
Schedule of Fixed assets | Schedule of Fixed assets 2021 2020 Leasehold Improvements 224,132 - Machinery and Equipment 278,551 246,974 Vehicles 110,274 131,775 Total Fixed Assets 612,957 378,749 Accumulated Depreciation (314,151 ) (245,947 ) Fixed Assets, Net $ 298,806 $ 132,802 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of the loan active | Schedule of the loan active 2022 2021 Current Portion: Notes and loans payable $ 719,563 $ 127,615 Total Current Portion 719,563 127,615 Long term Portion: Notes and loans payable 2,782,784 780,845 Total Long-term Portion 2,782,784 780,845 $ 3,502,347 $ 908,460 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Narrative) - shares | Nov. 14, 2021 | 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 | 90% | ||
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, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Cash | $ 1,227,654 | $ 2,129,801 |
Reserve for returns | $ 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 | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | |||
Consideration paid | $ 450,000 | ||
Notes receivable related party | $ 57,971 | $ 10,596 |
FIXED ASSETS (Details)
FIXED ASSETS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 612,957 | $ 378,749 |
Accumulated Depreciation | (314,151) | (245,947) |
Fixed Assets, Net | 298,806 | 132,802 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 224,132 | |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | 278,551 | 246,974 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total Fixed Assets | $ 110,274 | $ 131,775 |
PAYROLL LIABILITY _ PENSION (De
PAYROLL LIABILITY – PENSION (Details Narrative) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Payroll Liability Pension | ||
Pension balances | $ 453,965 | $ 616,579 |
NOTE PAYABLE (Details)
NOTE PAYABLE (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Short-Term Debt [Line Items] | ||
Total Current Portion | $ 719,563 | $ 127,615 |
Total Long-term Portion | 2,782,784 | 780,845 |
Notes Payable | 3,502,347 | 908,460 |
Notes And Loans Payable [Member] | ||
Short-Term Debt [Line Items] | ||
Total Current Portion | 719,563 | 127,615 |
Total Long-term Portion | $ 2,782,784 | $ 780,845 |
NOTES PAYABLE (Details Narrativ
NOTES PAYABLE (Details Narrative) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jul. 07, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jan. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Short-Term Debt [Line Items] | |||||||
Notes Payable | $ 908,460 | $ 3,502,347 | $ 908,460 | ||||
Accrued interest | 49,035 | ||||||
Master Security Company [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Principal amount | $ 150,000 | ||||||
Term | 21 months | ||||||
Interest rate | 4% | ||||||
Notes Payable | $ 7,729 | 0 | 7,729 | ||||
Periodic payment | $ 7,406 | ||||||
Secure Transportation Inc [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Interest rate | 5% | ||||||
Notes Payable | $ 19,615 | $ 0 | $ 19,615 | ||||
Periodic payment | 1,900 | ||||||
Lillian Flores [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Principal amount | $ 3,384,950 | ||||||
Interest rate | 3.11% | 45% | |||||
Notes Payable | $ 2,697 | ||||||
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 | 9% | 4.01% | |||||
Notes Payable | 804,387 | $ 888,845 | $ 804,387 | ||||
Secure Transportation Inc [Member] | |||||||
Short-Term Debt [Line Items] | |||||||
Principal amount | $ 21,500 | $ 21,500 |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | 12 Months Ended | |||
Nov. 14, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Number of shares issued | 1,000 | |||
Shares Outstanding | 93,417,302 | |||
Reduction of Paid-in Capital | $ 579,000 | |||
Equity description | his reduction was caused by an $89,999 impact of issuing new shares, a $10,000 impact form the cancelation of preferred shares and finally the $500,000 cost of the Company’s purchase of AGSS, formally Heath Revenue Assurance Holdings, Inc. | |||
Related party receivables | $ 105,000 | |||
Owner draws (pre-merger) | $ 473,238 | $ 62,824 | ||
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 |
CONCENTRATION OF SALES (Details
CONCENTRATION OF SALES (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 24,947,401 | $ 22,442,513 |
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Guard Service [Member] | ||
Concentration Risk, Percentage | 92% | 92% |
Guard Service [Member] | ||
Revenues | $ 24,600,000 | $ 22,100 |
LITIGATION AND CLAIMS (Details
LITIGATION AND CLAIMS (Details Narrative) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Litigation And Claims | |
Litigation settlement amount | $ 23,000 |
INCOME TAXE (Details Narrative)
INCOME TAXE (Details Narrative) | Dec. 31, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Tax liability | $ 0 |
SUBSEQUENT EVENTS (Details Narr
SUBSEQUENT EVENTS (Details Narrative) - Subsequent Event [Member] | 1 Months Ended |
Mar. 23, 2023 USD ($) | |
Subsequent Event [Line Items] | |
Annual revenue reduced | $ 5,122,000 |
Reduction in direct expenses | $ 4,650,000 |
Subsequent event description | board of directors approved the purchase of TransportUS, Inc., a California Corporation, with a valuation of approximately $3.72 million, for $3 million. The purchase will be made with restricted common stock only based on market price at the date of closure. Estimated number of shares for purchase is to be 1.5 million. TransportUS Inc. has annual revenues of approximately $4,350,000 with operating net income potential of 10%. |