Mon, May 19, 7:28 PM (56 days ago)
**AmeriGuard Security Services, Inc. (AGSS) - Q1 2025 Financial Summary** **Ticker: AGSS** **Financial Health & Performance:** - **Revenue:** $7,178,110 (up 21.7% YoY) driven by new Veterans Administration contracts. - **Gross Margin:** $601,379 (down $166,000 YoY) due to increased direct expenses. - **Net Income:** -$1,439,183 (wider loss compared to -$854,198 in Q1 2024). - **Cash Flow:** Net decrease of $1,787,370 from operations, with financing activities adding $1,650,302. - **Cash Position:** $270,484 at Q1 end, down from $424,588 at year-end 2024. **Key Metrics & Trends:** - **Profit Margins:** Decreased due to higher direct expenses, despite revenue growth. - **Earnings Changes:** Wider net loss YoY, primarily due to increased operating expenses and lower gross profit. - **Quarterly Performance:** Revenue growth driven by new contracts, but offset by increased expenses. - **Uncertainties:** Dependence on federal contracts (92% of revenue), regulatory risks, and litigation. **Future Operations & Impact:** - **Growth Strategy:** Focus on organic growth through bidding and winning contracts, and mergers & acquisitions. - **Cost Management:** Aiming to reduce direct expenses and operating expenses to improve profitability. - **Market Position:** Leveraging AI, robotics, and blockchain technologies for competitive advantage. - **Liquidity:** Secured a $7,000,000 credit line in February 2025 to manage debt and cash flow. **Risks & Challenges:** - **Concentration Risk:** Heavy reliance on federal contracts. - **Operational Risks:** Staffing shortages, regulatory changes, and inflation. - **Legal Risks:** Pending employment-related litigation. - **Financial Risks:** High debt levels and potential cash flow constraints. **Management's Outlook:** - Positive about profitable operations in the next 12 months. - Confident in growth opportunities in security and transportation industries. - Focus on cost savings, operational efficiencies, and strategic acquisitions.