SecureTech Innovations Reports Q2 2026 Financial Results
Rhea-AI Summary
SecureTech Innovations (OTCQB:SCTH) reported unaudited Q2 2026 revenue of $2.77 million, all from its AI UltraProd subsidiary, versus $0 in Q2 2025 and $2.08 million in Q1 2026. Product sales were $1.44 million and service revenue $1.33 million, driving gross profit of $887,754 and a 32.0% gross margin, up from 8.9% in Q1 2026.
For the first half of 2026, revenue was $4.85 million with gross profit of $1.07 million (22.1% margin). Q2 loss from operations was $323,876, while net loss was $1.04 million, mainly due to $652,828 in non‑cash charges related to notes payable within total other expense of $702,431. Cash stood at $311,711, total assets at $20.9 million and total liabilities at $9.35 million; working capital was $833,612.
Weighted average shares outstanding fell 78.1% year over year to 17.1 million. According to SecureTech, existing cash, operating cash flow and short‑term bank financing are not expected to be sufficient for the next 12 months, raising substantial doubt about its ability to continue as a going concern. The company decided to keep AI UltraProd as a permanent, wholly owned subsidiary and its Nasdaq Capital Market listing application remains under review.
Positive
- Q2 2026 revenue $2.77M, up 33.3% from Q1 2026 $2.08M
- Gross margin improved from 8.9% in Q1 2026 to 32.0% in Q2 2026
- First-half 2026 revenue $4.85M with gross profit of $1.07M (22.1% margin)
- Weighted average shares reduced 78.1% YoY to 17,091,843 from 78,073,914
- Total assets increased to $20.9M at June 30, 2026 from $19.2M at December 31, 2025
Negative
- Q2 2026 net loss $1.04M versus $93,887 in Q2 2025 and $1.44M loss for 6M 2026
- Other expense, net $702,431 in Q2 2026 driven by $652,828 in non-cash charges on notes payable
- Total liabilities rose to $9.35M from $7.12M, reflecting higher short-term borrowings and notes payable
- Stockholders’ equity decreased to $9.88M from $10.60M, mainly due to period net loss
- Going concern risk disclosed: existing cash, cash flow and short-term financing not expected to fund 12 months of operations and growth
AI-generated analysis. How Rhea-AI works. Not financial advice.
Company Posts Second Quarter Results with
ROSEVILLE, MN, Aug. 20, 2026 (GLOBE NEWSWIRE) -- SecureTech Innovations, Inc. (OTCQB: SCTH), a diversified technology holding company advancing artificial intelligence initiatives, industrial 3D printing and manufacturing technologies, and blockchain-based digital infrastructure and assets, announces its unaudited financial results for the three and six months ended June 30, 2026 (Q2 2026). SecureTech’s Quarterly Report on Form 10-Q for the period was filed with the Securities and Exchange Commission on August 19, 2026. This press release should be read together with, and is qualified in its entirety by reference to, that Form 10-Q, including the financial statements and notes, and Management’s Discussion and Analysis.
Consolidated revenue for Q2 2026 was
Q2 2026 Financial Highlights (All Amounts in USD, Unaudited):
- Q2 Revenue:
$2,772,981 , comprised of$1,443,939 in product sales and$1,329,042 in service revenue, both100% attributable to AI UltraProd — a33.3% increase over Q1 2026 revenue of$2,079,735 . - Q2 Gross Profit:
$887,754 , a gross margin of32.0% , compared to gross profit of$185,326 and a gross margin of8.9% in Q1 2026. - First-Half Revenue:
$4,852,716 for the six months ended June 30, 2026, with gross profit of$1,073,080 and a gross margin of22.1% . - Total Assets:
$20,910,360 as of June 30, 2026, compared to$19,190,202 at December 31, 2025. Cash and cash equivalents were$311,711 , compared to$233,825 . - Share Reduction Program: Weighted average shares outstanding were 17,091,843, a
78.1% reduction from 78,073,914 in Q2 2025.
Q2 2026 RESULTS OF OPERATIONS
| Financial Metric | Q2 2026 | Q2 2025 | 6M 2026 | 6M 2025 | ||||||||||||
| Total Revenue | $ | 2,772,981 | $ | — | $ | 4,852,716 | $ | — | ||||||||
| Sales of goods | $ | 1,443,939 | $ | — | $ | 3,403,191 | $ | — | ||||||||
| Service revenue | $ | 1,329,042 | $ | — | $ | 1,449,525 | $ | — | ||||||||
| Cost of Revenue | ($ | 1,885,227 | ) | $ | — | ($ | 3,779,636 | ) | $ | — | ||||||
| Gross Profit | $ | 887,754 | $ | — | $ | 1,073,080 | $ | — | ||||||||
| Gross Margin | 32.0 | % | N/A | 22.1 | % | N/A | ||||||||||
| Total Operating Expenses | ($ | 1,211,630 | ) | ($ | 89,003 | ) | ($ | 1,722,811 | ) | ($ | 179,938 | ) | ||||
| Loss from Operations | ($ | 323,876 | ) | ($ | 89,003 | ) | ($ | 649,731 | ) | ($ | 179,938 | ) | ||||
| Other Expense, Net | ($ | 702,431 | ) | ($ | 4,884 | ) | ($ | 791,845 | ) | ($ | 8,314 | ) | ||||
| (Provision) Benefit for Income Taxes | ($ | 13,647 | ) | $ | — | $ | 110 | $ | — | |||||||
| Net Loss | ($ | 1,039,954 | ) | ($ | 93,887 | ) | ($ | 1,441,466 | ) | ($ | 188,252 | ) | ||||
| Net Loss Attributable to SCTH Shareholders | ($ | 1,042,248 | ) | ($ | 93,887 | ) | ($ | 1,431,385 | ) | ($ | 188,252 | ) | ||||
| Loss Per Share (Basic & Diluted) | ($ | 0.06 | ) | ($ | 0.00 | ) | ($ | 0.08 | ) | ($ | 0.00 | ) | ||||
| Weighted Average Shares Outstanding | 17,091,843 | 78,073,914 | 17,637,604 | 46,000,410 | ||||||||||||
All figures unaudited. Prepared in accordance with U.S. GAAP.
SELECTED BALANCE SHEET DATA
| Balance Sheet Metric | June 30, 2026 | December 31, 2025 | ||||||
| Cash and Cash Equivalents | $ | 311,711 | $ | 233,825 | ||||
| Total Current Assets | $ | 9,458,668 | $ | 7,520,769 | ||||
| Total Assets | $ | 20,910,360 | $ | 19,190,202 | ||||
| Total Current Liabilities | $ | 8,625,056 | $ | 6,372,234 | ||||
| Total Liabilities | $ | 9,352,841 | $ | 7,115,144 | ||||
| Redeemable Non-Controlling Interest (Mezzanine) | $ | 783,324 | $ | 738,303 | ||||
| Total Stockholders’ Equity (SCTH) | $ | 9,876,396 | $ | 10,602,113 | ||||
| Total Equity (incl. Non-Controlling Interests) | $ | 10,774,195 | $ | 11,336,755 | ||||
Balance sheet data as of June 30, 2026 (unaudited) and December 31, 2025 (audited). Amounts as of December 31, 2025 reflect the restatement described in Amendment No. 1 to the Company’s Annual Report on Form 10-K, filed with the SEC on August 5, 2026, and therefore differ from certain amounts previously reported, including in the Company’s earnings release for the first quarter of 2026.
Discussion of Key Highlights for Q2 2026
Service revenue represented approximately
Total operating expenses were
Other expense, net was
Total liabilities were
As announced on August 17, 2026, SecureTech has elected to retain AI UltraProd as a permanent, wholly owned subsidiary rather than pursue a previously contemplated spin-off of that business as a separate, independently listed public company. SecureTech holds full voting and management control of AI UltraProd and its operating subsidiaries. The Company’s application to list its common stock on the Nasdaq Capital Market remains under review. There can be no assurance that the Company’s Nasdaq listing application will be approved or that a listing will be obtained.
J. Scott Sitra, SecureTech’s President and Chief Executive Officer, commented: “Q2 2026 was a quarter of real operational progress. We generated
"I also want to be direct about the loss," added Mr. Sitra. "Our net loss widened to approximately
This press release is not an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About SecureTech Innovations
SecureTech Innovations, Inc. (OTCQB: SCTH) is a diversified technology holding company whose subsidiaries operate across artificial intelligence-driven manufacturing, blockchain-based digital infrastructure and cybersecurity, and patented vehicle security systems. Its portfolio companies include AI UltraProd, which develops AI-powered industrial 3D manufacturing solutions; Piranha Blockchain, which focuses on Web3 security architecture, digital asset infrastructure, and cybersecurity systems; and Top Kontrol, which holds patented vehicle anti-theft and anti-carjacking technology. SecureTech’s mission is to deliver practical, transformative technologies that improve safety, automation, and digital resilience across multiple industries.
For further information, visit our websites:
securetechinnovations.com | aiultraprod.com | piranhablockchain.com | topkontrol.com
Disclaimer & Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and may include, but are not limited to, statements regarding the Company’s expectations as to revenue, gross profit, and gross margin; the anticipated variability of AI UltraProd’s project-based revenue mix and gross margin from period to period; the Company’s liquidity, capital resources, and ability to obtain additional financing; the Company’s plans to seek listing on the Nasdaq Capital Market; the anticipated benefits of retaining AI UltraProd as a permanent, wholly owned subsidiary; AI UltraProd’s planned expansion of operations in the United States and other markets; the Company’s plans to remediate the material weaknesses in its internal control over financial reporting; and the Company’s business, growth, and strategic outlook. These statements are often identified by words such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “projects,” “intends,” “potential,” “may,” “could,” “might,” “will,” “should,” “approximately,” and similar expressions.
Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, events, or circumstances to differ materially from those expressed or implied, including: the substantial doubt about the Company’s ability to continue as a going concern described in the Form 10-Q; the risk that the Company will require additional capital and that such capital may not be available on acceptable terms, or at all; the risk that the Company’s gross margin in any future period will be lower than the gross margin achieved in Q2 2026; the Company’s dependence on AI UltraProd for all of its current revenue; the Company’s ability to sustain revenue growth; the risk that the Company’s Nasdaq listing application may not be approved; the risk that the material weaknesses in the Company’s internal control over financial reporting are not remediated on the anticipated timeline or at all, and that additional material weaknesses or restatements may occur; the dilutive effect of the Company’s outstanding convertible notes, which may convert at a discount to the market price of the Company’s common stock; the risk that the Company’s planned U.S. and international expansion may be delayed or may not materialize as expected; and other risks described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K, as amended, and its Quarterly Reports on Form 10-Q, as amended. The financial information in this press release is unaudited and is qualified in its entirety by reference to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2026. The Company’s SEC filings are available at www.sec.gov. SecureTech undertakes no obligation to update any forward-looking statement to reflect new information, future events, or otherwise, except as required by applicable law.
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Media Contact
SecureTech Innovations, Inc.
Email: ir@securetechinnovations.com
Phone: (651) 317-8990
Website: www.securetechinnovations.com
