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 that was used to close out the Citibank loan in the amount of $312,339 with the remaining balance after expenses held in reserve. The SBA loan is a 10-year loan with monthly principal and interest payments. Interest rate is variable at prime rate plus 2.75%, adjusted every calendar quarter. Interest rate on September 30, 2023, and December 31, 2022, was 11.25% and 9% respectively. The balance remaining on the SBA loan was $749,113 and $785,988 as of September 30, 2023, and December 31, 2022, respectively.

On July 7, 2022, the Company entered into a buyout agreement with a shareholder Lillian Flores. The total buyout amount was $3,384,950 representing 45% of the calculated business value as of December 31, 2020. Following the initial payment of $686,990, the company agreed to make 4 equal instalments of principal and interest of $739,508 each December 31, starting 2023. Interest is calculated at a fixed rate of 3.110% compounded semi-annually. The company has accrued interest on September 30, 2023, of $112,935. Balance remaining in the amount of $2,697,960.

The following schedule details the loans active as of September 30, 2023, and December 31, 2022:

	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