Replies to post #7542 on Ameriguard Security Services Inc (AGSS)

[netmoney1999]

10Q is a mess... and from before the whole debacle with power struggle occurred.
Net Loss increased for the 2nd quarter to 2M.

They lost/forfeited their govt contracts with the Social Security Administration because of the board/leadership saga.

The results of the actions taken by Mr. Anderson and Mr. Honore’ have impacted the Company negatively in two ways. First, On July 1, 2025, the Company received notice that our Government Purchase Order/Receivables Financing Agreement (the “Financing Agreement”), dated as of February 5, 2025, between the Company and List Government Receivables Fund, LLC (the “Lender”), was in default and that no further funding would be available. A Form 8-K was filed July 10, 2025, detailing the event. The second event was this action taken by the Lender caused the Company to forfeit the three Social Security Administration contracts listed in Note 13 above effective June 30, 2025. The impact of the forfeiture was immediate, reducing monthly revenues by $1.2 million. This situation has put the operations of the Company in jeopardy.

Management has since begun a complete reorganization of operations which is ongoing. We have taken steps necessary to keep our Transportation company operating and have begun eliminating all non-vital expenses in all categories. Although we are optimistic that we will be able to continue, the future is not certain. We can operate profitably moving forward resulting in some free cash flow. Month to month expenses will be met. However, the amount of debt held by the Company and the amounts due to vendors is significant and may be more than the future operations can manage. The Company’s continued operations greatly depend upon the arrangements that can be made with the Lender and the patience of our vendors.

[Green doggie]

I agree, those filings aren’t cheap. While I am sure most know it’s a gamble, it’s not all gloom and doom from my viewpoint. They are still operating and they got financing. They still have contracts, and they still have TUS. The debt situation sux and is obviously a major negative. Yes it’s a long shot but I knew that already. The 3rd quarter filings are not too far away and they should be interesting, imo. Not sure how they are maintaining QX status with the current share price, but I am no expert on the rules. Maybe the grace period on that is longer than what I thought.