SecureTech (OTC: SCTH) gains $4.9M sales but warns on going concern
Rhea-AI Filing Summary
SecureTech Innovations, Inc. (SCTH) reported its first meaningful operating scale from the AI UltraProd acquisition, with six‑month 2026 revenue of $4,852,716 versus no revenue a year earlier, producing gross profit of $1,073,080 but a net loss of $1,441,466 for the six months ended June 30, 2026.
Total assets were $20,910,360, including $3,301,693 of patents and $6,278,366 of goodwill from AI UltraProd, against $9,352,841 of total liabilities and $783,324 of mezzanine redeemable non‑controlling interests. Cash was $311,711, with net cash used in operations of $2,228,293 over six months, funded largely by new short‑term borrowings of $2,417,048 and multiple high‑discount convertible and structured notes.
SecureTech disclosed substantial doubt about its ability to continue as a going concern, citing continuing losses, limited cash, lack of committed financing, and near‑term obligations that cannot be met from existing liquidity alone. Management plans rely on raising additional equity and debt, restructuring short‑term bank loans, reducing costs, and scaling AI UltraProd, but stated these plans do not presently eliminate the going‑concern uncertainty.
Positive
- Commercial operations ramped rapidly after the AI UltraProd acquisition, with six‑month 2026 revenue of $4,852,716 versus $0 in 2025.
- SecureTech generated a positive gross profit of $1,073,080 for the first half of 2026, demonstrating margin on its new industrial technology offerings.
Negative
- Management disclosed substantial doubt about the Company’s ability to continue as a going concern due to ongoing losses, limited cash, and no committed financing.
- Net loss attributable to SecureTech shareholders widened to $1,431,385 for the first half of 2026, compared with $188,252 a year earlier.
- Operating activities consumed $2,228,293 of cash in six months, leaving cash and equivalents at only $311,711 as of June 30, 2026.
- The Company relies on high‑discount convertible notes and structured borrowings, recognizing $274,867 of fair‑value changes and multiple losses on issuance and extinguishment.
- Short‑term bank borrowings at AI UltraProd totaled $3,448,733, adding refinancing and interest‑rate risk alongside other current obligations.
Filing Explained
Series A preferred stock carries 10,000 votes per share, while several outstanding notes can convert into common stock at a 60% market-price discount.
This unaudited quarterly report shows SecureTech had
During the six months ended
The CFI, Labrys, Vista, Red Rock, and Willow Creek convertible notes described in the filing use conversion prices set at 60% of the company’s lowest trading price over the 15 trading days before conversion, with conversion beginning six months after issuance for the applicable notes. These terms create potential common-share issuance capacity rather than establishing that conversion shares have been issued.
At
Key Figures
Key Terms
going concern financial
mezzanine equity financial
redeemable non-controlling interests financial
contingent consideration financial
significant financing component financial
fair value option financial
Earnings Snapshot
FAQ
How much revenue did SecureTech (SCTH) generate in the first half of 2026?
Does SecureTech (SCTH) have a going concern warning?
What is SecureTech’s debt position, including short-term borrowings and convertible notes?
How much cash does SecureTech (SCTH) have, and what are its operating cash flows?
What goodwill and intangible assets does SecureTech carry from the AI UltraProd acquisition?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended:
or
For the transition period from ________ to ________
Commission File Number:
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification Number) |
(Address of principal executive offices)
Tel:
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act: None
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
N/A |
| N/A |
| N/A |
Securities registered pursuant to Section 12(g) of the Act: None
Title of each class |
| Trading Symbol(s) |
| Name of each exchange on which registered |
Common Stock, $0.001 par value |
| SCTH |
| OTCQB Venture Exchange |
Indicate by check mark whether the registrant (1) has filed all reports to be filed by Section 13 or Section 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large Accelerated Filer ¨ | Accelerated Filer ¨ |
Smaller Reporting Company | |
| Emerging Growth Company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).
Yes ¨
The number of shares outstanding of the Registrant’s common stock, $0.001 par value, as of August 19, 2026, was .
2
TABLE OF CONTENTS
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements5
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS7
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS8
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY9
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS12
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS14
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations35
Item 3. Quantitative and Qualitative Disclosures About Market Risk54
Item 4. Controls and Procedures54
PART II – OTHER INFORMATION
Item 1. Legal Proceedings56
Item 1A. Risk Factors56
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds56
Item 3. Default Upon Senior Securities56
Item 4. Mine Safety Disclosures56
Item 5. Other Information56
Item 6. Exhibits57
SIGNATURES59
3
Cautionary Note Regarding Forward-Looking Statements
This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “should,” “target,” “will,” or “would,” and other similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements (collectively, “forward-looking statements”), but the absence of these words does not mean that a statement is not forward-looking. Our actual results or outcomes could differ materially from those indicated in these forward-looking statements for a variety of reasons, including, among others:
·Our ability to execute our growth strategies
·Supply chain disruptions and general price inflation
·Our ability to maintain favorable relationships with suppliers and manufacturers
·Competition from more established and better financed competitors
·Our ability to attract and retain competent and qualified personnel
·Managing a “just right” product inventory size and mix
·Impacts on our business from epidemics, pandemics, or natural disasters
·Our ability to remediate the material weakness in our internal control over financial reporting or additional material weaknesses or other deficiencies in the future or to maintain effective disclosure controls and procedures and internal control over financial reporting.
You should not rely on forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, and operating results. The outcome of the events described in the 'Risk Factors' section of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as filed with the SEC, could cause actual results to differ materially from those described in the forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report. The results, events, and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results or outcomes could differ materially from those described in the forward-looking statements.
In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this Quarterly Report, and while we believe that information provides a reasonable basis for these statements, that information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to rely unduly on these statements.
The forward-looking statements made in this Quarterly Report are based on events or circumstances as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report to reflect events or circumstances after the date of this Quarterly Report or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments.
As used in this Quarterly Report, the terms "we," "us," "our," "SecureTech," “Registrant,” “Company,” and “Issuer” mean SecureTech Innovations, Inc. unless the context clearly requires otherwise.
4
PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
ASSETS
| Note | June 30, 2026 | December 31, 2025 | ||||||||||
| Current assets: | ||||||||||||
| Cash and equivalents | $ | $ | ||||||||||
| Accounts receivable, net | 5 | |||||||||||
| Amounts due from related parties | 10 | |||||||||||
| Inventories | 4 | |||||||||||
| Prepayments and other current assets | 11 | |||||||||||
| Total current assets | $ | $ | ||||||||||
| Non-current assets: | ||||||||||||
| Equipment and leasehold improvement | 1 | $ | $ | |||||||||
| Operating lease right-of-use, net | ||||||||||||
| Intangible assets, patents | ||||||||||||
| Goodwill | 3 | |||||||||||
| Accounts receivable, non-current portion | 5 | |||||||||||
| Deferred tax asset | ||||||||||||
| Total non-current assets | $ | $ | ||||||||||
| Total assets: | $ | $ | ||||||||||
The accompanying notes to the financial statements are an integral part of these statements.
5
Table of Contents
SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(CONTINUED)
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
LIABILITIES AND STOCKHOLDERS’ EQUITY
| Note | June 30, 2026 | December 31, 2025 | ||||||||||
| Current liabilities: | ||||||||||||
| Accounts payable | $ | $ | ||||||||||
| Accounts payable, related parties | 10 | |||||||||||
| Accrued payroll, related parties | ||||||||||||
| Amounts due to related parties | 10 | |||||||||||
| Contract liabilities | 6 | |||||||||||
| Notes payable | 13 | |||||||||||
| Notes payable, related parties | 10 | |||||||||||
| Operating lease liabilities, current portion | ||||||||||||
| Short-term borrowings | 7 | |||||||||||
| Accrued expenses and other current liabilities | ||||||||||||
| Total current liabilities | $ | $ | ||||||||||
| Non-current liabilities: | ||||||||||||
| Operating lease liabilities, net of current portion | $ | $ | ||||||||||
| Deferred tax liabilities | ||||||||||||
| Total non-current liabilities | $ | $ | ||||||||||
| Total liabilities: | $ | $ | ||||||||||
| Mezzanine equity: | ||||||||||||
| Mezzanine equity: Redeemable non-controlling interest | 14 | $ | $ | |||||||||
| Stockholders’ equity: | ||||||||||||
| Preferred stock, par value, shares authorized; and shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | ||||||||||||
| Common stock, par value, shares authorized; and shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | ||||||||||||
| Contingent consideration | 8 | |||||||||||
| Additional paid in capital | ||||||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||||||
| Accumulated other comprehensive gain | ||||||||||||
| Total equity attributable to: | ||||||||||||
| SecureTech shareholders | $ | $ | ||||||||||
| Non-controlling interests | ||||||||||||
| Total stockholders’ equity | $ | $ | ||||||||||
| Total liabilities, mezzanine equity, and stockholders’ equity | $ | $ | ||||||||||
The accompanying notes to the financial statements are an integral part of these statements.
6
Table of Contents
SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE LOSS
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues: | ||||||||||||||||
| Sales | $ | $ | $ | $ | ||||||||||||
| Cost of goods sold | ||||||||||||||||
| Gross profit | $ | $ | $ | $ | ||||||||||||
| Operating expenses: | ||||||||||||||||
| General and administrative | $ | $ | $ | $ | ||||||||||||
| Selling and marketing expenses | ||||||||||||||||
| Research and development | ||||||||||||||||
| Total operating expenses | $ | $ | $ | $ | ||||||||||||
| Loss from operations | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Other expense, net | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Loss before income taxes | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Provision (benefit) for income taxes | $ | $ | $ | ( | ) | $ | ||||||||||
| Net loss | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Less: Net profit (loss) attributable to redeemable non-controlling interests | $ | $ | $ | ( | ) | $ | ||||||||||
| Less: Net profit (loss) attributable to non-controlling interests | $ | $ | $ | ( | ) | $ | ||||||||||
Net loss attributable to SecureTech shareholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Loss per share: | ||||||||||||||||
| Loss per share: Basic | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Loss per share: Diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Weighted average common shares outstanding: Basic | ||||||||||||||||
| Weighted average common shares outstanding: Diluted | ||||||||||||||||
The accompanying notes to the financial statements are an integral part of these statements.
7
Table of Contents
SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net loss | $ | (1,039,954 | ) | $ | (93,887 | ) | $ | (1,441,466 | ) | $ | (188,252 | ) | ||||
| Other comprehensive income: | ||||||||||||||||
| Foreign currency translation adjustment | $ | 70,213 | $ | — | $ | 118,201 | $ | — | ||||||||
| Total other comprehensive income | $ | 70,213 | $ | — | $ | 118,201 | $ | — | ||||||||
| Total comprehensive loss before allocation to non-controlling interests | $ | (969,741 | ) | $ | (93,887 | ) | $ | (1,323,265 | ) | $ | (188,252 | ) | ||||
| Less: Total comprehensive income (loss) attributable to redeemable non-controlling interests | $ | 589 | $ | — | $ | (1,206 | ) | $ | — | |||||||
| Less: Total comprehensive income (loss) attributable to non-controlling interests | $ | 1,705 | $ | — | $ | (8,875 | ) | $ | — | |||||||
| Total comprehensive loss attributable to SecureTech shareholders | $ | (972,035 | ) | $ | (93,887 | ) | $ | (1,313,184 | ) | $ | (188,252 | ) | ||||
The accompanying notes to the financial statements are an integral part of these statements.
8
Table of Contents
SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
| v | ||||||||||||||||||||||||||||||||||||||||||||
Series A Preferred Stock | Common Stock | Additional Paid In | Contingent | Accumulated | Other Comprehensive | SecureTech | Non-Controlling | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Consideration | Deficit | Gain | Shareholders | Interests | Total | ||||||||||||||||||||||||||||||||||
Balance as of December | $ | $ | 31,377 | $ | $ | ($ | ) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Issuance of common shares to consultants | — | 16 | ||||||||||||||||||||||||||||||||||||||||||
| Shareholder contribution | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Share exchange | ( | ) | (4,900 | ) | ||||||||||||||||||||||||||||||||||||||||
| Share exchange, related parties | ( | ) | (9,400 | ) | ||||||||||||||||||||||||||||||||||||||||
| Accretions of redeemable NCI to redemption value | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||
Balance as of June 30, 2026 | $ | $ | 17,093 | $ | $ | ($ | ) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
9
Table of Contents
SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(CONTINUED)
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
Series A Preferred Stock | Common Stock | Additional Paid In | Contingent | Accumulated | Other Comprehensive | SecureTech | Non-Controlling | |||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Consideration | Deficit | Gain | Shareholders | Interests | Total | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2026
| $ | $ | 17,077 | $ | $ | ($ | ) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
| Shareholder contribution | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Issuance of common shares to consultants | — | 16 | ||||||||||||||||||||||||||||||||||||||||||
| Accretions of redeemable NCI to redemption value | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||
| Foreign currency translation adjustment | — | — | — | |||||||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||||||
Balance as of June 30, 2026 | $ | $ | 17,093 | $ | $ | ($ | ) | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
10
Table of Contents
SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(CONTINUED)
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
| Series A | Additional | Non- | ||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Paid In | Contingent | Accumulated | SecureTech | Controlling | ||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Consideration | Deficit | Shareholders | Interests | Total | |||||||||||||||||||||||||||||||
Balance as of December 31, 2024 | $ | $ | 78,087 | $ | ($ | ) | ($ | ) | $ | ($ | ) | |||||||||||||||||||||||||||||
| Issuance of common stock for settlement of accrued payroll expenses | — | 322 | ||||||||||||||||||||||||||||||||||||||
| Share exchange, unrelated party | ( | ) | (1,000 | ) | ||||||||||||||||||||||||||||||||||||
| Share exchange, related party | ( | ) | (42,100 | ) | ||||||||||||||||||||||||||||||||||||
| Issuance of common shares for cash | — | 3 | ||||||||||||||||||||||||||||||||||||||
| Issuance of preferred shares for acquisition | — | — | ||||||||||||||||||||||||||||||||||||||
| Imputed interest | — | — | — | |||||||||||||||||||||||||||||||||||||
| Net loss | — | — | — | ( | ) | ( | ) | ( | ) | |||||||||||||||||||||||||||||||
Balance as of June 30, 2025 | $ | $ | 35,312 | $ | $ | ($ | ) | $ | $ | $ | ||||||||||||||||||||||||||||||
| Series A | Additional | Non- | ||||||||||||||||||||||||||||||||||||||
| Preferred Stock | Common Stock | Paid In | Contingent | Accumulated | SecureTech | Controlling | ||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Consideration | Deficit | Shareholders | Interests | Total | |||||||||||||||||||||||||||||||
Balance as of March 31, 2025 | 17,710 | $ | 18 | 35,309,329 | $ | 35,309 | $ | 1,562,851 | $ | — | ($ | 1,808,933 | ) | ($ | 210,755 | ) | $ | — | ($ | 210,755 | ) | |||||||||||||||||||
| Issuance of common shares for cash | — | — | 2,500 | 3 | 4,997 | — | — | 5,000 | — | 5,000 | ||||||||||||||||||||||||||||||
| Issuance of preferred shares for acquisition | 185 | — | — | — | 8,565,500 | 1,652,910 | — | 10,218,410 | 719,376 | 10,937,786 | ||||||||||||||||||||||||||||||
| Imputed interest | — | — | — | — | 1,739 | — | — | 1,739 | — | 1,739 | ||||||||||||||||||||||||||||||
| Net loss | — | — | — | — | — | — | (93,887 | ) | (93,887 | ) | — | (93,887 | ) | |||||||||||||||||||||||||||
Balance as of June 30, 2025 | 17,895 | $ | 18 | 35,311,829 | $ | 35,312 | $ | 10,135,087 | $ | 1,652,910 | ($ | 1,902,820 | ) | $ | 9,920,507 | $ | 719,376 | $ | 10,639,883 | |||||||||||||||||||||
The accompanying notes to the consolidated financial statements are an integral part of these statements.
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SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation of property and equipment | ||||||||
| Amortization of intangible assets | ||||||||
| Loss on disposal of equipment | ||||||||
| Imputed and amortized interest | ||||||||
| Amortized interest from notes payable | ||||||||
| Loss on issuance of notes payable | ||||||||
| Change in fair value of notes payable | ||||||||
| Loss on extinguishment of notes payable | ||||||||
| Stock based compensation to consultants | ||||||||
| Amortization of operating lease right-of-use assets | ( | ) | ||||||
| Deferred income taxes | ( | ) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ||||||
| Inventories | ||||||||
| Amounts due from related parties | ( | ) | ||||||
| Prepayments and other current assets | ( | ) | ||||||
| Operating lease right-of-use assets, net | ||||||||
| Accounts receivable, non-current | ||||||||
| Accounts payable | ( | ) | ||||||
| Accounts payable, related parties | ||||||||
| Contract liabilities | ||||||||
| Amounts due to related parties | ( | ) | ( | ) | ||||
| Operating lease liabilities | ||||||||
| Accrued expenses and other current liabilities | ( | ) | ||||||
| Net cash used in operating activities | $ | ( | ) | $ | ( | ) | ||
| Cash flows from investing activities: | ||||||||
| Purchase of equipment | $ | ( | ) | $ | ( | ) | ||
| Cash acquired from the acquisition of AI UltraProd | ||||||||
| Net cash (used in) provided by investing activities | $ | ( | ) | $ | ||||
| Cash flows from financing activities: | ||||||||
| Issuance of common shares for cash | $ | $ | ||||||
| Proceeds from notes payable | ||||||||
| Increase in amounts due to related parties | ||||||||
| Redemption of notes payable | ( | ) | ||||||
| Proceeds from short-term borrowings | ||||||||
| Repayments on short-term borrowings | ( | ) | ||||||
| Proceeds from a non-controlling shareholder | ||||||||
| Net cash provided by financing activities | $ | $ | ||||||
The accompanying notes to the financial statements are an integral part of these statements.
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SECURETECH INNOVATIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(CONTINUED)
(Amount in U.S. Dollars, except for number of shares or otherwise noted)
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Net (decrease) increase in cash | $ | ( | ) | $ | ||||
| Cash and equivalents – beginning of period | $ | $ | ||||||
| Effects of exchange rate changes on cash | $ | $ | ||||||
| Cash and equivalents – end of period | $ | $ | ||||||
| Cash paid for income taxes | $ | $ | ||||||
| Cash paid for interest | $ | $ | ||||||
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Supplemental disclosure of non-cash investing and financing activities: | ||||||||
| Non-cash financing activities: | ||||||||
| Accretions of redeemable NCI to redemption value | $ | $ | ||||||
| Issuance of shares for accrued payroll | $ | — | $ | 322,448 | ||||
| Issuance of shares to consultants | $ | $ | ||||||
| Exchange of common shares for preferred shares | $ | 4,900 | $ | 1,000 | ||||
| Exchange of common shares for preferred shares, related party | $ | 9,400 | $ | 42,100 | ||||
The accompanying notes to the financial statements are an integral part of these statements.
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SECURETECH INNOVATIONS, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2026
NOTE 1 – Summary of Significant Accounting Policies
Organization
SecureTech Innovations, Inc. (“SecureTech” or the “Company”) was incorporated in the State of Wyoming on March 2, 2017, under the name SecureTech, Inc. On December 20, 2017, the Company amended its Articles of Incorporation to change its name to SecureTech Innovations, Inc.
The Company has established several wholly owned subsidiaries to support its strategic growth initiatives:
·On November 19, 2021, and November 25, 2021, the Company formed Piranha Blockchain, Inc., a Wyoming corporation, and Piranha Blockchain, Ltd., an Anguilla-based international business company, respectively (collectively, “Piranha”).
·On January 27, 2025, the Company incorporated two additional Wyoming-based subsidiaries: Terra Nova Technologies, Inc. and Top Kontrol, LLC.
·On June 6, 2025, the Company formed AI UltraProd, Inc., also a Wyoming corporation.
·On May 9, 2026, the Company’s Hong Kong subsidiary, Aiultraprod Group Limited, established a wholly owned subsidiary in China called AiUltraProd (Ningbo) Technology Co., Ltd.
·On May 21, 2026, the Company’s Hong Kong subsidiary, Aiultraprod Group Limited, established a majority owned subsidiary in China called AiUltraProd (Guangzhou) Technology Co., Ltd. SecureTech indirectly owns 51% of this newly created subsidiary.
On June 23, 2025, through its wholly owned subsidiary AI UltraProd, Inc., the Company acquired 100% of Aiultraprod Group Limited, a Hong Kong limited liability company. As of August 19, 2026, Aiultraprod Group Limited owns an 88.2% equity interest in Zhejiang Jizhu Technology Co., Ltd., a limited liability company organized under the laws of the People’s Republic of China (collectively, “AI UltraProd”).
The Company is a technology-focused company that develops and commercializes advanced solutions across several high-growth sectors, including artificial intelligence, industrial 3D printing and manufacturing, cybersecurity, and digital infrastructure. The Company’s business segments include:
• |
| AI UltraProd: Specializes in AI-powered industrial 3D manufacturing technologies. |
|
|
|
• |
| Piranha Blockchain: Develops Web3 security protocols, blockchain infrastructure, digital asset reserves and management systems, and cybersecurity solutions |
|
|
|
• |
| Top Kontrol: Offers a patented anti-theft and anti-carjacking system capable of autonomously disabling a vehicle during a carjacking attempt without requiring driver intervention. |
The Company’s mission is to develop and deploy innovative, real-world technologies that solve critical challenges across diverse industries. The Company is focused on advancing security, improving operational efficiency, and strengthening digital resilience through its portfolio of AI, blockchain, and cybersecurity solutions.
Unaudited Financial Information
The Company's unaudited condensed financial statements have been prepared per accounting principles generally accepted in the United States (“GAAP”) for financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. In the
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opinion of Management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.
The unaudited condensed consolidated balance sheet as of December 31, 2025, has been derived from audited financial statements.
Operating results for the three and six months ended June 30, 2026, are not necessarily indicative of results that may be expected for the year ending December 31, 2026. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2025, filed with the Company’s restated Annual Report on Form 10-K/A with the Securities and Exchange Commission on August 6, 2026.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“US GAAP”) for financial information and in accordance with the Securities and Exchange Commission’s (“SEC”) Regulation S-X. They reflect all adjustments which are, in the opinion of the Company’s Management, necessary for a fair presentation of the financial position and operating results as of and for the fiscal period ended June 30, 2026.
Use of Estimates
The accompanying financial statements of the Company have been prepared in accordance with US GAAP. Because the precise determination of many assets and liabilities depends on future events, the preparation of financial statements for a period necessarily involves the use of estimates that have been made using careful judgment. Significant estimates required to be made by management include, but are not limited to, the impairment of goodwill and impairment of intangible assets, patents, the allowance for receivables, and the fair value of the convertible notes. Actual results may differ from these estimates.
Cash and Equivalents
For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. As of June 30, 2026 and December 31, 2025, the Company had no cash equivalents.
Fair Value of Financial Instruments
ASC 820, “Fair Value Measurements,” and ASC 825, “Financial Instruments,” require an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value:
Level |
| Description |
|
|
|
Level 1 |
| Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. |
Level 2 |
| Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability, such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. |
Level 3 |
| Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Inventory and Cost of Sales
Inventories are stated at the lower of cost or realizable value, using the weighted average cost method. When an impairment indicator suggests that the carrying amounts of inventories might not be recoverable, the Company reviews such carrying amounts and estimates the net realizable value based on the most reliable evidence available at that time. An impairment loss is recorded if the net realizable value is less than the carrying value. Impairment indicators considered for these purposes are, among others, obsolescence, decrease in market prices, damage, and a firm commitment to sell.
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Derivative Instruments
ASC Topic 815, Derivatives and Hedging (“ASC Topic 815”), establishes accounting and reporting standards for derivative instruments and for hedging activities by requiring that all derivatives be recognized in the balance sheet and measured at fair value. Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings. On the date of conversion or payoff of debt, the Company records the fair value of the conversion shares, removes the fair value of the related derivative liability, removes any discounts, and records a net gain or loss on debt extinguishment.
Convertible Debt With Variable Conversion Options
The Company has issued convertible notes which contain variable conversion options, whereby the outstanding principal and accrued interest may be converted, by the holder, into shares of the Company’s common stock, par value $0.001 per share, at a fixed discount to the price of the common stock at or around the time of conversion. Certain convertible notes are measured at amortized cost using the effective interest method, with applicable discounts, premiums, and debt issuance costs amortized as interest expense over the term of the notes. For convertible notes for which the fair value option is elected under applicable U.S. GAAP, the notes are measured at fair value at each reporting date, with changes in fair value recognized in earnings.
Equipment and Depreciation
Equipment is recorded at cost and is depreciated using the straight-line method over its estimated useful life in years as follows:
Machinery equipment | - |
|||
Computer software and equipment | - |
|||
Furniture, fixtures, and equipment | - |
|||
Leasehold improvements | Life of Lease | |||
Repair and maintenance costs are expensed as incurred. Costs associated with improvements that extend the life, increase the capacity, or improve the efficiency of our property and equipment are capitalized and depreciated over the asset's remaining useful life. Gains and losses on the disposition of equipment are reflected in operations. Depreciation is provided using the straight-line method over the assets' estimated useful lives.
Depreciation expenses totaled $
| As of June 30, 2026 | As of December 31, 2025 | |||||||
| Machinery equipment | $ | $ | ||||||
| Leasehold improvements | ||||||||
| Computer, software, and equipment | ||||||||
| Furniture, fixtures, and equipment | ||||||||
| Equipment and leasehold improvements | $ | $ | ||||||
| Less: Accumulated depreciation | ( | ) | ( | ) | ||||
| Equipment and leasehold improvement | $ | $ | ||||||
Revenue Recognition
Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers.
Revenue is recognized when control of promised goods or services is transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Consideration may be received before or after revenue is recognized; amounts received in advance are recorded as contract liabilities.
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Revenue Recognition; ASC 606 Five-Step Model
Under ASC 606, the Company recognizes revenue by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations; (3) determine the transaction price; (4) allocate the transaction price to performance obligations; and (5) recognize revenue as, or when, control of each performance obligation is transferred.
For services transferred over time, revenue is recognized based on progress toward satisfaction of the performance obligation. For performance obligations satisfied at a point in time, revenue is recognized when control passes to the customer.
Practical Expedients and Policy Elections
The Company applies certain practical expedients and accounting policy elections permitted under ASC 606 and related guidance. The Company applies these elections consistently to contracts with similar characteristics and in similar circumstances.
(1)Significant financing component. The Company applies the practical expedient in ASC 606-10-32-18 and does not adjust consideration for a significant financing component when, at contract inception, the period between the transfer of the promised goods or services and the customer's payment is expected to be one year or less.
(2)Incremental costs of obtaining a contract. The Company applies the practical expedient in ASC 340-40-25-4 and expenses incremental costs of obtaining a contract when incurred if the amortization period of the related asset would be one year or less.
(3)Remaining performance obligations. The Company applies the practical expedient in ASC 606-10-50-14(a) and does not disclose information about remaining performance obligations for contracts with an original expected duration of one year or less.
(4)Taxes collected from customers. The Company has elected to exclude sales and similar taxes collected from customers from the transaction price in accordance with ASC 606-10-32-2A. Accordingly, revenue is presented net of such taxes.
Sales of Goods
The Company recognizes revenue from the sale of (i) robotic products and related hardware, (ii) derivative products, and (iii) Top Kontrol product line offerings when control of the goods transfers to the customer. For these arrangements, the Company’s performance obligation is satisfied upon completion of delivery and installation of the related hardware and software.
Hardware and software products are delivered using the Company’s employees and inventory purchased from third‑party vendors. The Company has concluded that it acts as the principal in these transactions because it controls the goods and services before they are transferred to the customer, is primarily responsible for fulfilling the promise to deliver and install the products, and bears the risk of loss while inventory is in transit. Accordingly, revenue is recognized on a gross basis at a point in time when control transfers to the customer.
Robotic products and hardware equipment include systems used in construction, renewable energy, port logistics, and autonomous warehousing. Sales revenue also includes turnkey hardware and equipment solutions for AI computing centers, smart hospitals, smart campuses, smart water management systems, and other intelligent infrastructure applications.
Derivative products include specialized 3D printing materials (such as Geo Mix and Geo Add), customized 3D‑printed finished goods, and spare parts and accessories for 3D printing and other robotic systems.
Top Kontrol products represent sales from the Company’s legacy Top Kontrol product line.
The Company accepts returns only for defective or non‑conforming products due to manufacturing or workmanship issues, typically within 10–30 days of customer receipt. For the six months ended June 30, 2026 and 2025, the Company was not aware of any material claims related to product returns. Warranty provisions as of June 30, 2026 and December 31, 2025 were immaterial.
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Service Revenue
The Company generates service revenue from technical, maintenance and consulting services related to its robotic and hardware product offerings.
Service arrangements are typically governed by tender documents or contracts that specify the transaction price, scope of services, and payment terms. Revenue from these services is recognized over time as the services are performed because the customer simultaneously receives and consumes the benefits of the Company’s performance. The primary performance obligation is the ongoing support and maintenance provided throughout the contract term, which is generally satisfied based on the passage of time. Standard payment terms are 30 days from the invoice date.
Software support and maintenance services are delivered using the Company’s employees and independent vendors. The Company has determined that it acts as the principal in these arrangements and therefore recognizes revenue on a gross basis.
Transaction prices are fixed and agreed upon before services are performed. Contracts do not include provisions for refunds or returns. For the six months ended June 30, 2026, SecureTech was not aware of any material claims related to repair or inspection services.
Contracts with Multiple Performance Obligations
Certain customer contracts include a combination of equipment, materials, and services (for example, the sale of 3D printing robots bundled with design services, materials, installation, and training). For these arrangements, the Company identifies each distinct performance obligation and allocates the transaction price based on the relative standalone selling prices of each component. Revenue is recognized for each performance obligation when the related goods or services are transferred to the customer.
Significant financing components
The Company generally does not intend to provide financing to its clients, as financing arrangements are not contemplated as part of the negotiated terms of contracts between the Company and its clients. Although there may be an intervening period between the delivery of the software and the payment, typically in term software sales arrangements, the purpose of that timing difference is to align the client’s payment with the timing of the use of the software license . In certain circumstances, however, there are instances where revenue recognition timing differs from the timing of payment due to extended payment terms or fees that are non-proportional to the associated usage of software licenses. In these instances, the Company evaluates whether a significant financing component exists. This evaluation includes determining the difference between the consideration the client would have paid when the performance obligation was satisfied and the amount of consideration paid. Contracts that include a significant financing component are adjusted for the time value of money at the rate inherent in the contract, the client’s borrowing rate, or the Company’s incremental borrowing rate, depending upon the recipient of the financing. During the three and six months ended June 30, 2026 and 2025, financing components were not significant.
Warranty Policy
The Company provides standard assurance-type warranties: generally one year of free after-sales service for the developed application system. These warranties are not sold separately and only ensure that delivered products and services conform to agreed-upon specifications and are not accounted for as separate performance obligations under ASC 606.
Warranty costs are treated as accrued performance costs. Historically, claims have been infrequent and immaterial to the Company’s financial position and results of operations. Accordingly, no warranty liabilities were recorded in the consolidated balance sheets as of June 30, 2026 and December 31, 2025. Management continues to evaluate potential warranty exposure based on historical experience, the nature of the Company’s offerings, and other relevant factors.
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The following table disaggregates the Company’s revenues for the six months ended June 30, 2026 and 2025:
| For the six months ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Sales of goods | ||||||||
| Provision of services | ||||||||
| Net revenues | $ | $ | ||||||
Contract Balances
Timing of revenue recognition was once the Company has determined that the customer has obtained control over the product or service. Accounts receivable represents revenues recognized for the amounts invoiced and/or prior to invoicing when the Company has satisfied its performance obligation and has an unconditional right to the payment.
Contract liabilities primarily represent the Company’s obligation to transfer additional goods or services to a customer for which the Company has received consideration. The consideration received remains a contractual liability until goods or services have been provided to the customer. Contract liabilities amounted to $
Income Taxes
The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences.
The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws.
Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate.
Principles of Consolidation
A subsidiary is an entity in which (i) the Company directly or indirectly controls more than 50% of the voting power, or (ii) the Company has the power to appoint or remove the majority of the members of the board of directors, to cast a majority of votes at board meetings, or to govern the financial and operating policies of the investee pursuant to a statute or under an agreement among the shareholders or equity holders.
The accompanying consolidated financial statements include the consolidated financial statements of the Company and its wholly owned subsidiaries. Subsidiaries are entities over which the Company has control. Control is achieved when the Company has power over the investee, is exposed to, or has rights to, variable returns from its involvement with the investee, and has the ability to use its power to affect those returns.
Subsidiaries are consolidated from the date on which the Company obtains control. The Company reassesses whether it controls an investee if facts and circumstances indicate changes to one or more of the three elements of control listed above.
All inter-company balances and transactions are eliminated upon consolidation. The results of subsidiaries acquired are recorded in the consolidated statements of operations from the effective date of acquisition, as appropriate.
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The accompanying consolidated financial statements include the accounts of the following majority-owned subsidiaries as of June 30, 2026:
Subsidiary (Entity Name) |
|
Jurisdiction |
| SecureTech Ownership |
|
Principal Activity |
|
|
|
|
|
|
|
AI UltraProd, Inc. |
| Wyoming |
| 100.0% |
| US holding company for AI 3D printing and additive manufacturing assets |
Aiultraprod Group Limited |
| Hong Kong |
| 100.0% |
| IP holding & Asia-Pacific sales hub |
Zhejiang Jizhu Technology Company Limited |
| PRC |
| 88.2% (indirect) |
| R&D, 3D printing, robotics manufacturing, and materials |
AiUltraProd (Ningbo) Technology Co., Ltd. |
| PRC |
| 100.0% (indirect) |
| Facilitate expansion capital integration and future investments |
AiUltraProd (Guangzhou) Technology Co., Ltd. |
| PRC |
| 51.0% (indirect) |
| Guangzhou-based JV project delivering intelligent integrated systems |
Jizhu Technology (Huzhou) Company Limited |
| PRC |
| 89.3% (indirect) |
| Scientific research and technical services |
Piranha Blockchain, Inc. |
| Wyoming |
| 100.0% |
| Cybersecurity & blockchain platforms |
Piranha Blockchain, Ltd. |
| Anguilla |
| 100.0% |
| International digital-asset services |
Terra Nova Technologies, Inc. |
| Wyoming |
| 100.0% |
| Top Kontrol brand holding entity |
Top Kontrol, LLC |
| Wyoming |
| 100.0% |
| Anti-theft/anti-carjacking systems |
Acquisition of AI UltraProd Group of Companies
On June 23, 2025, the Company, through its wholly owned subsidiary AI UltraProd, Inc., acquired 100 percent of the equity of Aiultraprod Group Limited, a Hong Kong limited liability company. Aiultraprod Group Limited holds 88 percent of Zhejiang Jizhu Technology Company Limited (“Jizhu PRC”), which in turn holds 80.4 percent of Jizhu Technology (Huzhou) Company Limited (“Jizhu Huzhou”).
The transaction was completed entirely through the issuance of equity securities. It was accounted for as a business combination under ASC 805, Business Combinations. In accordance with ASC 810‑10, Consolidation, the Company evaluated its relationships with each entity in the acquired group to determine whether consolidation was required. Control exists when an investor (i) has the power to direct the activities of an entity that most significantly affect its economic performance, (ii) is exposed to or has rights to variable returns from its involvement with the entity, and (iii) has the ability to use its power to affect those returns.
The Company determined that it holds, directly or indirectly, a controlling financial interest in each of the acquired entities because it owns more than 50 percent of the voting equity and has the ability to appoint the majority of board members and direct key operating and financial policies. Accordingly, the Company consolidates Aiultraprod Group Limited, Jizhu PRC, and Jizhu Huzhou from the acquisition date forward.
The portion of equity interests in consolidated subsidiaries not attributable, directly or indirectly, to the Company is presented as non‑controlling interests (“NCI”) or redeemable non-controlling interests (“Redeemable NCI”) in the consolidated balance sheets and statements of operations, in accordance with ASC 810. NCI acquired in a business combination are initially measured at fair value as of the acquisition date. Redeemable NCI that contains redemption features not solely within the control of the Company are classified outside of permanent equity as Redeemable NCI in the mezzanine section of the consolidated balance sheets in accordance with ASC 480-10-S99, Distinguishing Liabilities from Equity. Subsequent to initial recognition, the Company adjusts the carrying amount of Redeemable NCI to the greater of (i) the carrying amount adjusted for the NCI holders’ share of the subsidiary’s earnings or losses, contributions, and distributions, or (ii) the redemption value applicable at the reporting date per relevant contract terms. The accretions were recorded against retained earnings, or in the absence of retained earnings, by charges against additional paid-in capital. Once additional paid-in capital had been exhausted, additional charges were recorded by increasing the accumulated deficit.
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The results of operations of the acquired entities are included in the Company’s consolidated statements of operations beginning June 23, 2025. The allocation of the purchase price resulted in recognition of $6,278,366 of goodwill, as described in Note 3, and $1,652,910 of contingent consideration related to a potential issuance of Series A Preferred Stock.
Subsequently, on July 14, 2025, Jizhu PRC acquired an additional 8.9% interest in Jizhu Huzhou from a minority shareholder in exchange for a one-time cash payment of 100,000 RMB (~US$14,030).
On April 3, 2026, the registration of a capital increase for Jizhu PRC was completed with the applicable market supervision authority in the People's Republic of China. Under the transaction, a new investor, Xiangshan Hongri Equity Investment Fund Partnership (Limited Partnership), contributed RMB (approximately US$) to Jizhu PRC in exchange for a newly issued equity interest. As a result, Jizhu PRC's registered capital increased from RMB 11,110,974 to RMB 11,341,952, an increase of RMB 230,978, with the remaining RMB 4,769,022 of the contribution recorded as additional paid-in capital. Following the transaction, the new investor holds approximately 2.0% of Zhejiang Jizhu's registered capital, and the Company's ownership interest in Jizhu PRC decreased correspondingly to approximately 88.2%. Because the Company retains control of Zhejiang Jizhu, the change in ownership interest is accounted for as an equity transaction, with additional paid in capital increased $558,209, non-controlling interest increased $172,032, no gain or loss recognized in the condensed consolidated statements of operations and a corresponding adjustment to noncontrolling interest.
Foreign Currency Translation and Transactions
The Company presents its financial information in United States Dollars (“USD”). The functional currency for the Company is USD, while its Hong Kong subsidiary uses Hong Kong Dollars (“HKD”) as its functional currency, and the PRC subsidiaries use RMB. The assessment of each entity’s functional currency is performed according to the requirements of Accounting Standards Codification (“ASC”) Topic 830, Foreign Currency Matters.
In the consolidated financial statements, transactions conducted in currencies other than the applicable functional currencies are recorded using exchange rates effective on the transaction dates. At each balance sheet date, monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing on that date. Resulting exchange gains and losses are included in the consolidated statements of operations and comprehensive loss for the period in which they arise.
Entities in the PRC use RMB as their functional currency, while those in Hong Kong use HKD. Financial statements are translated into USD with assets and liabilities at period-end rates, revenue and expenses at average rates, and shareholders’ equity at historical rates. Translation adjustments are shown as a separate item in accumulated other comprehensive loss under shareholders’ equity.
The following exchange rates are used for translation:
| For the six months ended June 30, 2026 | ||||||||
| Currency Exchange | Period End | Average Rate | ||||||
| USD to RMB | 6.7851 | 6.8624 | ||||||
| USD to HKD | 7.842 | 7.8243 | ||||||
| For the three months ended June 30, 2026 | ||||||||
| Currency Exchange | Period End | Average Rate | ||||||
| USD to RMB | 6.7851 | 6.8048 | ||||||
| USD to HKD | 7.842 | 7.8347 | ||||||
Mezzanine Equity
Equity interests that are redeemable at the option of the holder, or upon the occurrence of events that are not solely within the Company’s control, are not reported as permanent equity. The Company reports these interests as mezzanine equity — also called temporary equity — in a separate section of the consolidated balance sheets between total liabilities and stockholders’ equity, in accordance with ASC 480-10-S99. The purpose of this presentation is to show the reader that the interest may not
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remain part of equity and could require the Company to pay out cash or other assets in the future. Because redemption depends on events that may not occur, and on whether the holder chooses to demand redemption, these interests are not mandatorily redeemable and are not reported as liabilities.
The Company’s mezzanine equity consists of redeemable non-controlling interests in its subsidiary Zhejiang Jizhu Technology Co., Ltd., which the Company assumed on June 23, 2025 in connection with its acquisition of Aiultraprod Group Limited. The holders may require these interests to be redeemed if specified events occur, including a failure to complete an initial public offering or to meet defined operating targets. The redemption amount is the holder’s original investment plus a simple annual return of 6% or 8%, depending on the agreement. See Note 15.
The Company initially measured these interests at their acquisition-date fair value under ASC 805. At each subsequent reporting date, the Company first attributes the subsidiary’s net income or loss to the interests under ASC 810, and then measures them at the greater of:
(i)their carrying amount as adjusted for the holders’ share of the subsidiary’s net income or loss, other comprehensive income, and other changes in equity; or
(ii)their redemption value at that date, calculated under the redemption provisions of the applicable investment agreement.
Because measurement is at the greater of these two amounts, the carrying amount of a redeemable non-controlling interest is never reduced below the amount in clause (i).
The Company records accretion as a deemed dividend. Because the Company has an accumulated deficit and no retained earnings, accretion is charged to additional paid-in capital; if additional paid-in capital is exhausted, further accretion increases the accumulated deficit. Accretion does not affect net income or loss, but it is deducted from net income or loss attributable to SecureTech shareholders in calculating income available to common stockholders for purposes of earnings per share. See Note 13.
Fiscal Year
The Company elected December 31st for its fiscal year end.
Recent Accounting Pronouncements Not Yet Adopted
From time to time, new accounting pronouncements are issued by the Financial Accounting Standard Board (“FASB”) or other standard setting bodies and adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on its financial position or results of operations upon adoption.
In October 2023, the FASB issued Accounting Standards Updates (“ASU”) No. 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative, which amends the disclosure or presentation requirements related to various subtopics in the FASB Accounting Standards Codification (the “Codification”). This update will improve disclosure and presentation requirements of a variety of topics and align the requirements in the FASB codification with the SEC’s regulations. The Company is currently evaluating the potential effect of this ASU on its consolidated financial statements, but does not expect the impact to be material.
In March 2024, the FASB issued ASU No. 2024-02, which removes references to the Board’s concepts statements from the FASB Accounting Standards Codification (the “Codification” or ASC). The ASU is part of the Board’s standing project to make “Codification updates for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or the structure of guidance, and other minor improvements.” The Company does not believe the adoption of ASU 2024-02 will have a material impact on its consolidated financial statements and disclosures.
In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. ASU 2024-03 requires public companies to disclose, in the notes to the financial statements, specific information about certain costs and expenses at each interim and annual reporting period. This includes disclosing amounts related to employee compensation, depreciation, and intangible asset amortization. In addition, public companies will need to provide qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively. ASU 2024-03 is effective for public business entities for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. In January 2025, the FASB issued ASU 2025-01, “Income Statement — Reporting Comprehensive Income
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— Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date.” ASU 2025-01 amends the effective date of ASU 2024-03 to clarify that all public business entities are required to adopt the guidance in annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Implementation of ASU 2024-03 may be applied prospectively or retrospectively. Early adoption of ASU 2024-03 is permitted. The Company does not expect the adoption of ASU 2024-03 to have a material impact on its consolidated financial statements.
In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. The amendment provides (1) all entities with a practical expedient to assume that current conditions as of the balance sheet date do not change for the remaining life of the assets and (2) entities other than public business entities with an accounting policy election to consider collection activity after the balance sheet date when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. This guidance is effective for annual reporting periods beginning after December 15, 2025 and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently reviewing the provisions of this guidance, has not yet adopted the standard, and does not currently expect adoption of ASU 2025-05 to have a material effect on the consolidated financial statements.
Except for the above-mentioned pronouncements, there are no new recently issued accounting standards that will have a material impact on the consolidated balance sheets, statements of operations, and cash flows.
NOTE 2 – GOING CONCERN
The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. In accordance with ASC 205-40, the Company has evaluated whether conditions or events exist that raise substantial doubt about its ability to continue as a going concern within one year after the date these financial statements are issued.
For the six months ended June 30, 2026, the Company incurred a net loss of $
As of June 30, 2026, the Company had current assets of $
These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Management’s plans to address these conditions include raising additional capital through the issuance of equity securities, obtaining additional debt financing, refinancing or extending the maturities of the Company’s short-term bank borrowings, reducing operating expenditures, and increasing revenue as the AI UltraProd operations scale. The Company has not obtained commitments for additional financing, and there can be no assurance that management’s plans will be implemented successfully or on terms acceptable to the Company. Accordingly, management has concluded that its plans do not alleviate the substantial doubt about the Company’s ability to continue as a going concern.
The condensed consolidated financial statements do not include any adjustments to the amounts or classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern.
NOTE 3 – GOODWILL
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. As of June 30, 2026, the Company’s goodwill balance was $
The goodwill is attributable primarily to the expected synergies from integrating AI UltraProd’s proprietary technologies, assembled workforce, and established market presence with the Company’s existing operations.
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In accordance with ASC 350, goodwill is not amortized but is tested for impairment at least annually, or more frequently if events or changes in circumstances indicate that it is more likely than not that the fair value of a reporting unit is below its carrying amount. The Company performs its annual goodwill impairment test and evaluates potential impairment indicators on an interim basis.
Based on the quantitative assessment performed, the Company determined that the estimated fair value of AI UltraProd’s reporting unit exceeded its carrying amount as of June 30, 2026. Accordingly, no goodwill impairment loss was recognized during the three and six months ended June 30, 2026.
NOTE 4 – INVENTORIES
Inventory is stated at the lower of cost or net realizable value, using the weighted average cost method. When an indicator suggests that the carrying amount of inventories may not be recoverable, the Company reviews such carrying amount and estimates the net realizable value based on the most reliable evidence available at that time. A write-down is recorded if the net realizable value is less than the carrying value. Write-down indicators considered for these purposes are, among others, obsolescence, a decrease in market prices, damage, and a firm commitment to sell. The Company did not record any inventory write-downs during the six months ended June 30, 2026 or the fiscal year ended December 31, 2025. The following table summarizes the Company's inventories as of June 30, 2026 and December 31, 2025:
As of June 30, 2026 | As of December 31, 2025 | |||||||
| Inventories: | ||||||||
| Finished goods | ||||||||
| Raw materials and work-in-progress | $ | $ | ||||||
| Inventories | $ | $ | ||||||
NOTE 5 – ACCOUNTS RECEIVABLE
Accounts receivable consist of the following:
As of June 30, 2026 | As of December 31, 2025 | |||||||
| Accounts receivable | $ | $ | ||||||
| Allowance for credit losses | — | — | ||||||
| Total accounts receivable | $ | 3,278,581 | $ | 3,118,318 | ||||
| Accounts receivable, net | $ | $ | ||||||
| Accounts receivable, non-current portion | $ | $ | ||||||
NOTE 6 – CONTRACT LIABILITIES
The Company’s contract liabilities primarily relate to unsatisfied performance obligations when payment has been received from customers before the Company’s products or services are delivered. Contract liabilities amounted to $
NOTE 7 – SHORT-TERM BORROWINGS
As of June 30, 2026, the Company’s subsidiary AI UltraProd had one-year loans with a total principal amount of RMB
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NOTE 8 – STOCKHOLDERS’ EQUITY
Preferred stock
The Company has authorized shares of preferred stock, par value. The Company’s Board of Directors is authorized, without further action by the shareholders, to issue shares of preferred stock and to fix the designations, number, rights, preferences, privileges, and restrictions thereof, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences, and sinking fund terms.
On May 31, 2023, the Company’s Board of Directors created a new class of preferred stock designated as Series A Preferred Stock, $0.001 par value. The Company may issue up to shares of Series A Preferred Stock with the following terms, rights, and privileges:
Designation and Amount |
| This class of preferred stock shall be designated Series A Preferred Stock (“Preferred Stock”), $0.001 par value. The Corporation’s Board of Directors may issue up to two-hundred fifty thousand (250,000) shares of this Preferred Stock. |
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Rank |
| The Preferred Stock shall rank superior to the Corporation’s common stock and all other classes, including currently outstanding or future preferred stock designations. |
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Dividends |
| The Preferred Stock is eligible for all legal dividends as may be approved by the Corporation’s Board of Directors. If a dividend is declared across multiple classes of stock, the amount of any dividend to be received by holders of the Preferred Stock shall be calculated on a fully diluted, pro-rata basis with the other classes of stock participating in said dividend. |
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Voting Rights |
| Holders of the Preferred Stock shall have the right to vote on all matters with holders of common stock (and other eligible classes of preferred stock, if any) by aggregating votes into one (1) voting class of stock. Each share of Preferred Stock shall have ten thousand (10,000) votes for any election or other voting matter placed before the shareholders of the Corporation, regardless if the vote is taken with or without a shareholders’ meeting. Holders of the Preferred Stock may not cumulate their votes in any voting matter. |
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Redemption by the Company |
| After a minimum period of one (1) year from the date of issue the Company may, at its sole discretion, redeem some or all of the Preferred Stock in either cash (the then market value), the Company’s common stock at a fixed ratio of ten thousand (10,000) shares of common stock for each share of Preferred Stock redeemed, or a combination thereof. |
Series A Preferred Stock Issuances
During the six months ended June 30, 2026, the Company issued an aggregate of shares of Series A Preferred Stock pursuant to three Share Exchange Agreements; shares of Series A Preferred Stock were issued to an unrelated party stockholder, and shares of Series A Preferred Stock were issued to two related party stockholders.
During the six months ended June 30, 2025, the Company issued an aggregate of shares of Series A Preferred Stock pursuant to four Share Exchange Agreements; shares of Series A Preferred Stock were issued to two unrelated party stockholders, and shares of Series A Preferred Stock were issued to two related party stockholders.
Also during the six months ended June 30, 2025, the Company also issued shares of its Series A Preferred Stock in conjunction with its acquisition of 100% of Aiultraprod Group Limited. These shares were valued at US$
As of June 30, 2026, the Company had one class of preferred stock, Series A Preferred Stock, and shares of it issued and outstanding.
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Common stock
The Company has authorized shares of common stock with a par value of per share.
Share Exchange and Cancellations
During the six months ended June 30, 2026, the Company issued an aggregate of 1,430 shares of Series A Preferred Stock in exchange for an aggregate of shares of its common stock pursuant to Share Exchange Agreements; 490 shares of Series A Preferred Stock were issued to an unrelated party stockholder, and 940 shares of Series A Preferred Stock were issued to two related party stockholders.
During the six months ended June 30, 2025, the Company issued an aggregate of 4,310 shares of Series A Preferred Stock in exchange for an aggregate of shares of its common stock pursuant to Share Exchange Agreements; 100 shares of Series A Preferred Stock were issued to two unrelated party stockholders, and 4,210 shares of Series A Preferred Stock were issued to two related party stockholders.
All shares of common stock received in these stock exchanges were subsequently canceled in January 2026. No consideration was paid or received in connection with the share exchanges.
Share Issuances to Consultants
During the six months ended June 30, 2026, the Company issued an aggregate of shares of common stock to two independent consultants. These shares were aggregately valued at $
Share Issuances for Settlement of Accrued Payroll
During the six months ended June 30, 2026, the Company issued no shares to settle accrued payroll.
During the six months ended June 30, 2025, the Company issued shares of common stock as payment in place of cash to settle $322,448 in unpaid wages and commissions owed to employees and an independent sales representative. The value of the common stock issued was based on the closing price of the Company’s common stock on the date of issuance, which was $1.00 per share, and no gain or loss was recognized as a result.
As of June 30, 2026, the Company had shares of common stock issued and outstanding.
Contingent Consideration
On June 23, 2025, as part of the Company’s 100% acquisition of Aiultraprod Group Limited and related to the Acquisition and Stock Purchase Agreement, a provision was established for the potential issuance of additional Series A Preferred Stock. If all parties to the transaction unanimously agree to waive the intended spin-off of AI UltraProd, Inc. (WY) as a separate NYSE or NASDAQ-listed entity in the future, the Company would be required to issue an additional 357 shares of Series A Preferred Stock, $0.001 par value, under the no spin-off earnout provision.
Based on the terms, the instrument is classified in equity, and accordingly, was measured at its fair value at the acquisition date and will not be subsequently remeasured. As of the transaction date, the Company assessed a 10% probability that all parties would agree to exercise this provision. Consequently, contingent consideration was recorded in the amount of , calculated as potential shares multiplied by the $46,300 share price and the 10% likelihood factor.
NOTE 9 – SEGMENT INFORMATION
The Company’s Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”), evaluates the Company’s financial performance and allocates resources based on a consolidated view of the business. Consequently, the Company operates as a single reportable segment under the guidelines of ASC 280, Segment Reporting. The CODM classifies this segment as Industrial Technology.
The Company’s operations, which include marketing, purchasing and procurement, and research and development, are managed centrally. The CODM assesses financial performance using metrics such as revenue, operating profit, and key operating expenses, which are outlined below as the primary cost components for evaluating the Company’s performance.
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Additionally, the CODM measures income generated from the Company’s assets by focusing on net income as a key performance indicator. This metric is used to assess the return on assets and supports strategic decision-making.
| For the Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Revenue from external customers | $ | $ | ||||||
| Reconciliation of revenue: | ||||||||
| Less: Cost of goods sold | ||||||||
| Segment gross profit | $ | $ | ||||||
| Less: | ||||||||
| Salaries and payroll | ||||||||
Other segment items(1) | ||||||||
| Segment net loss | $ | ( | ) | $ | ( | ) | ||
| Reconciliation of loss: | ||||||||
Other expense, net(2) | ( | ) | ( | ) | ||||
| Net loss before income taxes | $ | ( | ) | $ | ( | ) | ||
(1)Other segment items comprising segment net loss include depreciation and amortization expenses, professional fees, marketing expenses, miscellaneous leasehold occupancy expenses, travel expenses, research and development expenses, and certain overhead expenses.
(2)Other expenses, net is comprised of change in fair value of notes payable of $274,867, loss on issuance of notes payable of $250,997, loss on extinguishment of notes payable of $138,365, government grants of $30,750, interest income of $183, interest expense of $155,792, and other, net of $2,757.
NOTE 10 – RELATED PARTY TRANSACTIONS
Founder’s Shares
On March 2, 2017, the Company issued an aggregate of shares of its common stock, par value, as Founder’s Shares with $-0- value.
Of these Founder’s Shares, were issued to the Company’s officers, to an entity controlled by one of the Company’s directors, and to outside consultants who assisted with the Company’s formation and early organization.
As of June 30, 2026, an aggregate of Founder’s Shares have been returned to the Company and cancelled, including pursuant to a series of Share Exchange Agreements described below.
Share Exchange and Cancellations
During the fiscal year ended December 31, 2023, the Company entered into a Share Exchange Agreement with one of its Founders, Kao Lee, whereby it issued shares of its Series A Preferred Stock in exchange for an aggregate of shares of its common stock.
During the fiscal year ended December 31, 2025, the Company entered into Share Exchange Agreements with two of its Founders, Kao Lee and Abdikarim Farah, whereby it issued an aggregate of 4,210 shares of its Series A Preferred Stock in exchange for an aggregate of shares of its common stock.
During the six months ended June 30, 2026, the Company entered into Share Exchange Agreements with two of its Founders, Kao Lee and Anthony Vang, whereby it issued an aggregate of 940 shares of its Series A Preferred Stock in exchange for an aggregate of shares of its common stock.
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All shares of common stock received in these stock exchanges were subsequently canceled in January 2026. No consideration was paid or received in connection with the share exchanges.
Amounts Due From Related Parties
During the six months ended June 30, 2026, Aiultraprod Group Limited, a subsidiary acquired on June 23, 2025, advanced $112,880 to related parties for business expenditures paid on behalf of the Company. As of June 30, 2026, the receivable balance of $112,880 was reported as amounts due from related parties.
During the six months ended June 30, 2025, Aiultraprod Group Limited, a subsidiary acquired on June 23, 2025, advanced $69,900 to related parties for business expenditures paid on behalf of the Company. As of June 30, 2025, the receivable balance of $69,900 was reported as amounts due from related parties.
Accrued Payroll
As of June 30, 2026, the Company had aggregated $
As of June 30, 2025, the Company had aggregated $
Notes payables due to Related Parties and Accured Interest
As of June 30, 2026, the Company had outstanding notes due to related parties aggregating $
As of December 31, 2025, the Company had outstanding amounts due to related parties aggregating $
Patent Royalties
On March 2, 2017, the Company entered into a Patent License Agreement with Shongkawh, LLC, which is controlled by our executive officers Kao Lee and Anthony Vang (and directly owned by Mr. Lee and his brother, Thao Lee). Under this agreement, ShongKawh is to receive a royalty of 2% of all products manufactured under this covered patent.
On March 13, 2024, the Company and Shongkawh amended the Patent License Agreement to adjust royalty payments due under this agreement to $1 per annum, payable within ten business days of the end of each fiscal year.
No Top Kontrol units were manufactured pursuant to this patent during the six months ended June 30, 2026 and 2025.
Accounts Payable, Related Parties
As of June 30, 2026, the Company had accounts payable to Taurus Financial Partners, LLC ("Taurus"), a related party, of $
As of December 31, 2025, the Company had accounts payable to related party Taurus of $63,113.
Amounts Due to Related Parties and Imputed Interest
As of June 30, 2025, the Company had outstanding amounts due to related parties aggregating $
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NOTE 11 – PREPAYMENTS AND OTHER ASSETS
As of June 30, 2026 | As of December 31, 2025 | |||||||
| Advances to suppliers | $ | $ | ||||||
| Deductible VAT | ||||||||
| Deposits | ||||||||
| Prepayments and other assets | $ | $ | ||||||
Advances to suppliers of $5,778,384 primarily relate to deposits for components, materials, and manufacturing services expected to be received and utilized within the next 12 months. Management monitors supplier performance and credit risk and evaluates advances for impairment if recovery becomes doubtful.
Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding. Shares issued during the period and shares canceled during the period are weighted for the portion of the period that they were outstanding. Diluted loss per share is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive shares of common stock outstanding during the period, which include the assumed conversion of all outstanding convertible securities. Diluted loss per share was the same as basic net loss per share for the three and six months ended June 30, 2026 and 2025, as the inclusion of shares issuable upon the conversion of the then-outstanding convertible securities were anti-dilutive as a result of the net loss incurred for those periods.
The table below sets forth the computation of basic and diluted loss per share:
For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Numerator: | ||||||||||||||||||||
| Net loss attributable to SecureTech shareholders | $ | ( | ) | $ | ( | ) | $ | ( | ) | $( | ||||||||||
| Deduct: Accretions of redeemable NCI to redemption value | ||||||||||||||||||||
| Net loss attributable to common stock for EPS calculation | ( | ) | ( | ) | ( | ) | ( | |||||||||||||
| Denominator: | ||||||||||||||||||||
| Basic – weighted average shares outstanding | ||||||||||||||||||||
| Diluted – weighted average shares outstanding | ||||||||||||||||||||
| Loss per share: | ||||||||||||||||||||
Basic | $ | ( | ) | $ | ( | ) | $ | ( | ) | $( | ||||||||||
Diluted | $ | ( | ) | $ | ( | ) | $ | ( | ) | $( | ||||||||||
NOTE 13 – CONVERTIBLE DEBT AND DERIVATIVE LIABILITY
CFI Capital LLC Convertible Note
On September 18, 2025, the Company issued a $
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The total gross proceeds from the note were $150,000. However, the Company received net cash proceeds of $
The Company elected the fair value model to account for the convertible note. The fair value was calculated using Monte Carlo valuation method. The fair value on issuance day was $
On May 11, 2026, the Company repaid this note for $
On June 5, 2026, the Company issued a $
The total principle of the note were $150,000. However, the Company received net cash proceeds of $
The Company elected the fair value model to account for the convertible note. The fair value was calculated using Monte Carlo valuation method. The fair value on issuance day was $
As of June 30, 2026, fair value was estimated as $
Labry’s Fund II Convertible Note
On December 10, 2025, the Company issued a $
The total gross proceeds from the note were $150,000. However, the Company received net cash proceeds of $
The Company elected the fair value model to account for the convertible note. The fair value was calculated using Monte Carlo valuation method. The fair value on issuance day was $
On June 15, 2026, the Company has repaid this note for $
Boot Capital LLC and Vanquish Funding Group Inc.
On December 18, 2025, the Company issued a $
On the same date, the Company issued a $
Both notes include a conversion feature that becomes exercisable upon the occurrence of certain events of default as stipulated in the respective agreements. Management concluded that the likelihood of such default events occurring is remote; therefore, the value of the conversion feature was determined to be minimal.
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For the six months ended June 30, 2026, the Company recognized interest expense of $
Vista Capital Investment Convertible Note
On January 7, 2026, the Company issued a $
The total gross proceeds from the note were $110,000. However, the Company received net cash proceeds of $
The Company elected the fair value model to account for the convertible note. The fair value was calculated using Monte Carlo valuation method. The fair value on issuance day was $
As of June 30, 2026, fair value was estimated as $
GS Capital Partners Self-Amortization Note
On April 16, 2026, the Company issued a $
The sales price for the note were $
For the six months ended June 30, 2026, the Company recognized interest expense of $
Red Rock Development Group, LLC Convertible Note
On May 8, 2026, the Company issued a $
The total net cash proceeds from the note were $
The Company elected the fair value model to account for the convertible note. The fair value was calculated using Monte Carlo valuation method. The fair value on issuance day was $
As of June 30, 2026, fair value was estimated as $653,069.
Willow Creek Capital Holdings, LLC Convertible Note
On May 8, 2026, the Company issued a $
The total net cash proceeds from the note were $
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The Company elected the fair value model to account for the convertible note. The fair value was calculated using Monte Carlo valuation method. The fair value on issuance day was $
As of June 30, 2026, fair value was estimated as $165,102.
Vanquish Funding Group Inc.
On June 3, 2026, the Company issued a $
The Vanquish note includes a conversion feature that becomes exercisable upon the occurrence of certain events of default as stipulated in the respective agreements. Management concluded that the likelihood of such default events occurring is remote; therefore, the value of the conversion feature was determined to be minimal.
For the six months ended June 30, 2026, the Company recognized interest expense of $
Repayment Contingency
If the Company elects to repay the convertible notes in cash prior to the date the conversion feature becomes exercisable (six months after the issuance date), the embedded derivative would expire unexercised. In such an event, the derivative liability would be derecognized, and the note would be settled at its principal amount plus any accrued interest through the repayment date. No further remeasurement or fair value adjustments would be required after settlement.
NOTE 14 – REDEEMABLE NON-CONTROLLING INTEREST
The Company consolidates Zhejiang Jizhu Technology Co., Ltd. (“Zhejiang Jizhu”) following the acquisition of Aiultraprod Group Limited. Certain minority investors of Zhejiang Jizhu hold noncontrolling equity interests with redemption features not solely within the Company’s control. Accordingly, these non-controlling interests are classified outside permanent equity as redeemable non-controlling interests (temporary equity) in accordance with ASC 480-10-S99.
The redeemable non-controlling interests represent equity interests held by certain minority investors of Zhejiang Jizhu. Holders of these interests retain rights to participate in Zhejiang Jizhu’s residual net assets on the same basis as other equity holders. However, pursuant to investment agreements entered into in December 2024, such investors have the right to require redemption of their equity interests upon the occurrence of certain contingent events, including failure to complete an initial public offering, failure to satisfy specified contractual conditions, or failure to achieve certain operational performance targets of Zhejiang Jizhu.
The redemption amount is determined in accordance with the contractual provisions and is generally calculated based on the original investment amount plus a simple annual return of 6% or 8%, as applicable. The redemption obligation is primarily attributable to the founder, and Zhejiang Jizhu has joint liability under the agreement.
At each reporting date, the Company evaluates the carrying amount of the redeemable non-controlling interests. The redeemable non-controlling interests are subsequently measured at the greater of:
(i) the carrying amount recognized upon acquisition, adjusted for the redeemable non-controlling interest holders’ proportionate share of net income or loss, other comprehensive income, and other changes in equity; or
(ii) the redemption value determined in accordance with the contractual redemption provisions.
Any increases required to accrete the carrying amount of redeemable noncontrolling interests to their redemption value are recorded as adjustments to retained earnings, or, in the absence of retained earnings, as adjustments to additional paid-in capital, and are not recognized in consolidated net income.
Changes in the Company's redeemable non-controlling interests during the six months ended June 30, 2026 and 2025 were as follows:
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For the six months ended June 30, 2026 | For the six months ended June 30, 2025 | |||||||
| Redeemable non-controlling interest at the beginning of the period | $ | $ | — | |||||
| Redeemable non-controlling interest acquired in business combination | ||||||||
| Net loss attributable to redeemable non-controlling interests | ( | ) | ||||||
| Accretions adjustment to the redemption value | ||||||||
| Redeemable non-controlling interest at the ending of the period | $ | $ | ||||||
NOTE 15 – CONTINGENCY/LEGAL
As of June 30, 2026, no director, executive officer, or promoter has been involved in legal proceedings requiring disclosure under Item 103 of Regulation S‑K during the past ten years. From time to time, the Company may be subject to routine litigation incidental to its business. The Company is not a party to any pending legal proceedings that, individually or in the aggregate, are expected to have a material adverse effect on its business, financial condition, results of operations, or cash flows.
NOTE 16 – SUBSEQUENT EVENTS
In accordance with ASC Topic 855, “Subsequent Events”, which establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before the unaudited condensed consolidated financial statements are issued, the Company has evaluated all events or transactions that occurred after June 30, 2026, up to August 19, 2026 that the unaudited condensed consolidated financial statements were available to be issued.
Conversion of Convertible Note — Vista Capital Investments, LLC
On June 30, 2026, the Company delivered notice to Vista Capital Investments, LLC ("Vista") of its intention to repay in full the outstanding balance of its convertible note originally issued on January 7, 2026. Vista declined the cash repayment and instead elected to exercise its unilateral right to convert the note into common stock. On July 6, 2026, Vista delivered a notice of conversion for $
Related Party Promissory Note
On July 6, 2026, the Company entered into a promissory note with Taurus Financial Partners, LLC, a related party, where it received $
Labry’s Fund II Convertible Note
On July 22, 2026, the Company issued a $
The purchase price of the note was $
Share Issuances to Consultant
On July 31, 2026, the Company issued an aggregate of shares of common stock to an independent consultant. These shares were valued at $
As of August 19, 2026, the Company had shares of common stock issued and outstanding.
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Permanent Subsidiary and Earnout Election — AI UltraProd
On August 13, 2026, the Company entered into a Permanent Subsidiary and Earnout Election Agreement with AI UltraProd, Inc., Aiultraprod Group Limited, AIUP Holding Limited, and Zhejiang Jizhu Technology Co., Ltd., pursuant to which the parties unanimously elected to forgo the previously contemplated spin-off of the AI UltraProd business and to retain it as a permanent subsidiary of the Company. In connection with the election, the Company exercised the "No Spin-Off Earnout" under the Acquisition and Stock Purchase Agreement dated June 23, 2025 and issued 357 shares of its Series A Preferred Stock to AIUP Holding Limited in settlement of the contingent consideration established at the acquisition date. The contingent consideration had been recognized at the acquisition date at its fair value of $
As of August 19, 2026, the Company had shares of Series A Preferred Stock issued and outstanding.
The Company evaluated subsequent events through the date these financial statements were issued and concluded that, other than the matters noted above, there were no additional events requiring recognition or disclosure.
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is intended to provide readers with an understanding of the business activities, financial position, and operating results of SecureTech Innovations, Inc. (“SecureTech” or the “Company”). This MD&A should be read together with our unaudited consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited financial statements for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on Form 10-K on March 25, 2026, as amended by Amendment No. 1 thereto on Form 10-K/A filed with the SEC on August 5, 2026.
This discussion contains forward-looking statements that reflect our current plans, expectations, and assumptions. Actual results may differ materially from those described due to various risks and uncertainties. These statements are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are identified by words such as “anticipate,” “believe,” “expect,” “intend,” and similar expressions. You are cautioned not to place undue reliance on these statements, which speak only as of the date hereof.
In Management’s opinion, all necessary adjustments of a normal and recurring nature have been included to present fairly our financial condition and results of operations for the three-month periods reported.
Business Overview
SecureTech Innovations, Inc. is a technology-driven company focused on developing and commercializing artificial intelligence–driven manufacturing systems, blockchain‑based digital infrastructure, and innovative automotive safety technologies. Our mission is to deliver secure, efficient, and scalable technology solutions across industrial, digital, and consumer markets. We operate through three primary business units—AI UltraProd, Piranha Blockchain, and Terra Nova Technologies (Top Kontrol product line)—each addressing distinct high‑growth sectors with significant long‑term demand drivers. Our portfolio includes:
·AI UltraProd, acquired on June 23, 2025, now serves as our primary operating business and currently generates substantially all of our consolidated revenues.
·Piranha Blockchain, an early‑stage enterprise that is focused on building digital‑asset infrastructure and cybersecurity capabilities.
·Terra Nova Technologies (Top Kontrol product line), a legacy product line undergoing restructuring in preparation for a planned spin‑off onto the OTCQB marketplace.
AI UltraProd’s operating results were first consolidated in our financial statements beginning on June 23, 2025, the date we completed the acquisition. As a result, the quarter ended June 30, 2025 included only a few days of AI UltraProd’s post acquisition activity. The quarter ended September 30, 2025 is therefore the first full fiscal quarter that reflects AI UltraProd’s results for the entire period.
Our business segments continue to pursue distinct commercial strategies. SecureTech provides centralized oversight of finance, governance, SEC compliance, and merger and acquisition activities, with the objective of enhancing long term shareholder value.
Corporate History
SecureTech was incorporated in the State of Wyoming on March 2, 2017, under the name SecureTech, Inc. On December 20, 2017, the Company amended its Articles of Incorporation to change its name to SecureTech Innovations, Inc.
SecureTech has established several wholly owned subsidiaries to support its strategic growth initiatives:
·On November 19, 2021, and November 25, 2021, SecureTech formed Piranha Blockchain, Inc., a Wyoming corporation, and Piranha Blockchain, Ltd., an Anguilla-based international business company, respectively (collectively, “Piranha”).
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·On January 27, 2025, SecureTech incorporated two additional Wyoming-based subsidiaries: Terra Nova Technologies, Inc. and Top Kontrol, LLC.
·On June 6, 2025, SecureTech formed AI UltraProd, Inc., also a Wyoming corporation.
·On May 9, 2026, SecureTech’s Hong Kong subsidiary, Aiultraprod Group Limited, established a wholly owned subsidiary in China called AiUltraProd (Ningbo) Technology Co., Ltd.
·On May 21, 2026, SecureTech’s Hong Kong subsidiary, Aiultraprod Group Limited, established a majority owned subsidiary in China called AiUltraProd (Guangzhou) Technology Co., Ltd. SecureTech indirectly owns 51% of this newly created subsidiary.
On June 23, 2025, through its wholly owned subsidiary AI UltraProd, Inc., SecureTech acquired 100% of Aiultraprod Group Limited, a Hong Kong limited liability company. As of June 30, 2026, Aiultraprod Group Limited owns a 88.2% equity interest in Zhejiang Jizhu Technology Co., Ltd., a limited liability company organized under the laws of the People’s Republic of China (collectively, “AI UltraProd”).
Corporate Structure
The following diagram illustrates our corporate structure as of June 30, 2026:
Recent Developments
Appointment of New President and Chief Executive Officer
On January 14, 2025, SecureTech appointed J. Scott Sitra as its new President, Chief Executive Officer, Principal Executive Officer, and member of the Board of Directors. Mr. Sitra brings executive leadership and strategic guidance across SecureTech’s portfolio. Concurrently, Kao Lee, who previously served in those roles, transitioned to the position of General Manager of Top Kontrol, and now serves as President and CEO of Top Kontrol. Mr. Lee’s responsibilities now focus
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exclusively on advancing the development and commercialization of the Top Kontrol product line. Mr. Sitra will oversee SecureTech’s enterprise-level operations, business strategy, and execution.
Completion of Share Reduction Program (78% Reduction in Common Shares)
Over the course of the year, SecureTech reduced its issued and outstanding shares of common stock by approximately 61 million, representing a 78% reduction and aligning the capital structure with long-term shareholder interests. The Company reduced the shares of common stock by entering into share exchange agreements with certain of its shareholders and issuing shares of its Series A Preferred Stock for the common stock. As of August 19, 2026, SecureTech had 17,129,717 shares of its common stock issued and outstanding and 20,082 shares of its Series A Preferred Stock issued and outstanding.
Completed Landmark Acquisition of Aiultraprod Group Limited and Subsidiaries
On June 23, 2025, through its wholly owned subsidiary AI UltraProd, Inc., SecureTech acquired 100% of the equity interests of Aiultraprod Group Limited, a Hong Kong limited liability company. As part of this acquisition, SecureTech also assumed indirect majority ownership in two operating subsidiaries, Zhejiang Jizhu Technology Co., Ltd. and Jizhu Technology (Huzhou) Co., Ltd., each a limited liability company organized under the laws of the People’s Republic of China.
This acquisition was completed under an Acquisition and Stock Purchase Agreement (“Acquisition Agreement”) dated June 23, 2025. Under the terms of the Acquisition Agreement, SecureTech issued 185 unregistered shares of its Series A Preferred Stock, $0.001 par value per share, to the Seller. These shares were valued at $8,565,500, equating to a per-share value of $46,300
Key highlights of this transaction include:
·FY2025 Revenue (audited): $7.7 million
·Technology Differentiation: AI-powered industrial 3D printing and robotic systems that deliver scalable, high-precision manufacturing solutions.
·Intellectual Property Portfolio: 12 issued patents and 13 software copyrights. AI UltraProd presently has three additional patent applications pending and two additional software copyrights pending.
·Growth Strategy: SecureTech intends to pursue aggressive expansion of AI UltraProd operations, including a potential spin-off and uplisting to the NASDAQ Capital Market as a standalone public company, subject to applicable regulatory approvals and market conditions.
Uplisting to OTCQB Venture Market
On August 1, 2025, SecureTech’s common stock commenced trading on the OTCQB® Venture Market under the ticker symbol “SCTH”. The OTCQB is recognized by the SEC as an established public market and serves as the initial tier for early-stage and smaller reporting companies within the OTC framework. Companies listed on the OTCQB must meet rigorous financial reporting standards, maintain current filings with the SEC or a U.S. banking regulator, and annually verify company information and management certification. SecureTech’s uplist from the OTCID to OTCQB provides enhanced transparency, increased liquidity, and stronger visibility within the capital markets.
Craft Capital Management, LLC Engagement
On August 7, 2025, SecureTech engaged Craft Capital Management, LLC as its exclusive investment banking partner to support capital formation, uplisting to a national securities exchange, and strategic mergers and acquisitions. This partnership aims to strengthen SecureTech’s financial position and accelerate its growth initiatives following its recent acquisition of AI UltraProd. The collaboration is expected to enhance shareholder value and position SecureTech for scalable expansion in advanced technology sectors.
Engagement of Ajene Watson, LLC
On October 6, 2025, SecureTech engaged Ajene Watson, LLC (“AWLLC”), a business management and financial services consultancy specializing in development-stage and microcap companies. The nine-month engagement is designed to:
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·Establish a Bitcoin and Ethereum treasury management strategy;
·Facilitate introductions to potential strategic partners and distribution channels to support AI UltraProd’s planned 2026 entry into the U.S. market; and
·Enhance investor communications and disclosure practices to align with SEC expectations and improve transparency.
AWLLC will also advise management on capital markets positioning and best practices for microcap issuers.
The nine‑month agreement includes strategic consulting services related to capital formation, disclosure practices, establishing a Bitcoin and Ethereum treasury, and AI UltraProd’s U.S. market entry. AWLLC is compensated through a combination of cash, restricted equity, and key performance incentives. AWLLC acts strictly as an independent contractor.
Nomination of Three Independent Director Candidates
Between March 31, 2026 and April 14, 2026, SecureTech announced the nomination of three independent director candidates — Brian Zucker, CPA; Robert V. Castro, CPA/CGMA; and Robert J. Williams, CPA — each to serve as an independent director and as a member of the Audit, Nominating, and Compensation Committees. Each nominee has agreed to serve on the Board of Directors and such committees upon formal appointment. SecureTech intends to formally seat all three independent directors as promptly as practicable, and in any event concurrently with or prior to the effectiveness of any national securities exchange listing, with such seating not contingent upon approval of any such listing.
Appointment of Anthony Vang as Chief Financial Officer
On June 5, 2026, SecureTech formally appointed Anthony Vang as its Chief Financial Officer. Mr. Vang, a SecureTech co-founder, has served as Principal Financial Officer, Secretary, Treasurer, and a director since the Company's inception, and will retain those positions in addition to his new role. Mr. Vang will initially serve as Chief Financial Officer without compensation, pending the formal constitution of SecureTech's Compensation Committee. At that time, an appropriate compensation arrangement will be established and further disclosed in accordance with applicable SEC reporting requirements.
2026 Roadmap: Driving Innovation and Growth
Under the leadership of our newly appointed President and Chief Executive Officer, J. Scott Sitra, SecureTech is repositioning its strategic focus to support accelerated growth, operational efficiency, and long-term shareholder value. In 2026, the Company is executing on a defined set of core initiatives, each aimed at transforming its business platform and expanding its market presence.
The principal strategic objectives include:
·Complete NASDAQ Uplisting (Anticipated 2026): SecureTech is working toward completing its planned uplisting to the NASDAQ Capital Market in 2026, subject to meeting all applicable listing requirements and regulatory approvals.
·AI UltraProd Expansion into U.S. and Indonesian Markets: AIUP is actively entering the U.S. and Indonesian markets, leveraging its advanced AI-driven manufacturing technologies to serve high-growth industrial sectors.
·Launch Investor Awareness Program: Beginning in late February, SecureTech will initiate a structured investor awareness and communications program to enhance visibility and broaden outreach to the investment community.
·Evaluate Additional M&A Opportunities: SecureTech will continue reviewing acquisition candidates with $5–$10 million in annual revenue, strong intellectual property, and experienced management teams capable of scaling into new markets and regions.
·Complete the Top Kontrol Spin-Off: The company plans to finalize the previously announced spin-off of its Top Kontrol safety device business onto the OTCQB, creating a dedicated platform for growth while providing value to SecureTech shareholders.
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·Establish a Bitcoin Treasury Under Piranha Blockchain: As part of its digital-infrastructure strategy, SecureTech intends to establish a BTC treasury reserve within its Piranha Blockchain subsidiary, aligning with emerging trends in digital asset management and treasury diversification.
AI UltraProd
AI UltraProd is dedicated to building an industrial customized solutions platform that connects creativity, intelligence, and advanced manufacturing. AI UltraProd provides end-to-end solutions covering concept design, manufacturing technology development, product realization, and delivery management.
Guided by a philosophy of deep integration and innovation, AI UltraProd tightly couples artificial intelligence, digitalization, and next-generation manufacturing technologies to serve global manufacturing enterprises.
Business Model
As an industrial customized solutions provider bridging creativity, intelligence, and manufacturing, AI UltraProd leverages artificial intelligence, digitalization, and advanced manufacturing technologies to deliver comprehensive solutions to traditional industries.
AI UltraProd provides full-process services ranging from customized solution design and technical implementation to integrated software/hardware products and supporting services, addressing complex and systemic challenges faced by clients.
AI UltraProd’s value proposition lies not in the performance of a single product, but in delivering sustained value through customized solution design, system integration, and professional delivery services.
Currently, AI UltraProd has established industry leadership in construction 3D printing robotics and has expanded into AI computing infrastructure and algorithm development, smart city solutions, intelligent healthcare and community systems, renewable energy, port logistics, and autonomous warehousing robotics.
Core Capabilities and Value Proposition
1. Robotics Product Matrix for Construction, Renewable Energy, Port Logistics, and Autonomous Warehousing
AI UltraProd has independently developed a series of 3D printing robots (including the GR1, RF1, RC1, and RT1 series), integrated with AI-driven design solutions and proprietary advanced 3D printing materials such as Geo Mix and Geo Add.
This integrated approach has created a new paradigm in the construction industry, where AI UltraProd continues to maintain a leading position.
The core value of AI UltraProd’s 3D printing technology lies in its exceptional efficiency in constructing vertical building structures (walls), which represents the largest and most direct cost-saving component in building projects.
In traditional construction budgets, structural framing (wood or masonry) and wall systems account for approximately 20%–25% of total project costs. With 3D printing technology, this cost can be reduced to 15% or lower. These savings are primarily driven by:
·Labor Reduction: Large teams of carpenters or masons are replaced by a small team of three to four technicians operating the printing system.
·Efficiency Improvement: The walls of a 2,000-square-foot house can be printed within a few days, significantly shortening the construction cycle and reducing financial and management costs.
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·Material Optimization: 3D printing places material only where needed, nearly eliminating the waste commonly found on traditional construction sites.
Building upon its success in construction 3D printing robotics, AI UltraProd has accumulated deep technical expertise and industrial application capabilities. The company has expanded its robotics portfolio into renewable energy, port logistics, and autonomous warehousing, delivering integrated robotic solutions supported by coordinated software and hardware systems.
2. Artificial Intelligence and Large-Scale Computing Infrastructure
Beyond its advanced manufacturing capabilities, AI UltraProd’s success in 3D printing is supported by AI-driven design systems that form a strong technological moat.
Leveraging its expertise in AI algorithms and accumulated industry resources, AI UltraProd provides clients with comprehensive solutions based on algorithm platforms, including system design, technical support, and integrated software and hardware services.
3. Comprehensive Intelligent Scenario Solutions
Through the integration of advanced manufacturing (3D printing), artificial intelligence, and traditional industry sectors, AI UltraProd has pioneered an innovative model that empowers conventional industries with intelligent and digital technologies.
In addition to construction, the company actively develops solutions for cities, healthcare institutions, schools, and communities. By delivering holistic intelligent solutions—covering system design, integrated hardware and software development, debugging, and delivery services—AI UltraProd enables clients to achieve sustainable growth and operational excellence.
Core Business Segments
Based on its established capability system, AI UltraProd currently operates three primary business segments:
1. Robotics and Hardware Equipment
AI UltraProd provides robotic products for construction, renewable energy, port logistics, and autonomous warehousing. The company also supplies hardware and turnkey equipment systems for AI computing centers, smart hospitals, smart campuses, smart water management systems, and other intelligent scenarios.
2. Robotics and Hardware-Related Derivative Businesses
AI UltraProd offers supporting businesses related to robotics and hardware products, including:
·Specialized printing materials for 3D printing robots
·Highly customized 3D printing services (delivered as finished products)
·Spare parts and accessories for 3D printing and other robotic systems
·Robotics leasing services
3. Robotics and Hardware-Related Technical Services
The company provides comprehensive technical and maintenance support services, including:
·Installation and commissioning of robotic and hardware equipment
·3D detailed engineering design services required for 3D printing applications
·On-site technical support and professional training
·Overall solution design for AI computing centers and intelligent transformation of traditional sectors (such as smart hospitals, campuses, and water systems)
·Equipment upgrades, maintenance, and repair services
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Products and Application Scenarios
|
| Model: GEO RC1 KC20 (Concrete) |
|
Movable and liftable, adaptable to various operating conditions. Suitable for the trial production and manufacturing of prefabricated building components, various landscape parts, urban furniture, special-shaped sculptures, retaining walls, etc. | |
|
|
|
|
| Model: GEO RT1 KC20 (Concrete) |
|
The guide rail is expandable, and the robot can move along the rail. Suitable for the mass production of prefabricated building components, various concrete landscape parts, urban furniture, special-shaped sculptures, etc. | |
|
|
|
|
| Model: GEO RF1 KC20 (Concrete)
Highly integrated, enabling rapid and precise construction of concrete structures. Suitable for the trial production and manufacturing of various small and medium-sized concrete components. |
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|
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|
| Model: GEO RF1 KP10 (Polymer) |
|
Highly integrated, enabling rapid and precise construction. Suitable for the trial production and manufacturing of various small and medium-sized polymer products. | |
|
|
|
|
| Model: GEO RT1 KP10 (Polymer) |
|
The guide rail is expandable, and the robot can move along the rail. Suitable for the mass production of prefabricated polymer components, various landscape decorations, urban furniture, special-shaped sculptures, etc. | |
|
|
|
|
| Model: GEO GD1 (Concrete) |
|
A laboratory research device suitable for teaching and scientific research, material R&D, and landscape ornament printing. It features flexible layout and simple operation. |
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|
|
|
|
| Model: GEO GD2 (Concrete) |
|
High precision, flexibility, easy operation, strong environmental adaptability – for trial production/manufacturing of small and medium-sized concrete components. |
Foundations of AI UltraProd’s Success
1. Solving Complex Problems and Creating Higher Value
Clients purchase not merely isolated software or hardware products, but measurable outcomes that ensure smooth business operations.
For example, in the 3D printing robotics business, AI UltraProd not only supplies the equipment, but also provides the required 3D detailed design services and proprietary printing materials. If clients lack experienced operational teams, AI UltraProd dispatches professional engineers for training and on-site support, ensuring clients can generate tangible value from this technology.
This transforms AI UltraProd from a product supplier into a long-term value partner, enabling higher margins and stronger strategic positioning.
2. Building Strong Customer Stickiness
AI UltraProd supports clients not only in deploying solutions but also in continuously extracting value from them. Because its solutions address multidimensional operational needs and deliver concrete results, the switching costs—both direct and indirect—for customers are significantly high, fostering long-term, stable partnerships.
3. Cross-Industry Ecosystem Synergy
By collaborating with leading AI algorithm and computing companies, top software providers, hardware manufacturers, and service partners, AI UltraProd integrates cutting-edge technologies into traditional industry scenarios.
This ecosystem approach enables clients to build competitive advantages that competitors find difficult to replicate, strengthening their long-term strategic moat.
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Piranha Blockchain
SecureTech is advancing its commitment to digital security and decentralized infrastructure through its wholly owned subsidiaries operating under the Piranha Blockchain brand. Piranha is focused on developing next-generation blockchain, Web3, and cybersecurity platforms that enable secure digital asset management, enhance online privacy, and protect users from emerging cyber threats.
·Data Centers: Development of secure, low-cost data centers powered by renewable energy, designed to support blockchain operations while minimizing environmental impact.
·Advanced Cybersecurity Solutions: Deployment of proprietary cybersecurity hardware and software to protect client data, digital identities, and assets from theft, ransomware, and other malicious attacks.
·Blockchain Infrastructure & Crypto Platforms: Creation of robust systems for cryptocurrency mining, digital asset storage, and trading exchanges, supporting the evolving needs of the blockchain ecosystem.
Revenue Model
Piranha intends to generate revenue through four primary channels:
·Product Sales: One-time sales of cybersecurity hardware and software applications.
·Subscription Services: Recurring revenue from cybersecurity subscriptions and hosting services.
·Cryptocurrency Ventures: Mining operations, third-party rig hosting, and joint venture initiatives.
·Transaction Fees: Fees from crypto exchanges, trading, and fiat conversions.
Growth Strategy
Piranha’s expansion strategy combines internal innovation with targeted acquisitions:
·Internal Development: Investment in proprietary technologies and product innovation to drive organic growth.
·Strategic Acquisitions: Identification and acquisition of synergistic businesses to accelerate market penetration and expand capabilities.
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Top Kontrol Product Line
Top Kontrol® is a next-generation automotive security system engineered to prevent both passive theft and active carjacking—without requiring any action from the driver. Unlike conventional vehicle immobilizers, Top Kontrol is designed to protect occupants during real-time threats, making it the most advanced anti-theft and anti-carjacking solution available today.
Key Features and Benefits
Top Kontrol’s patented technology delivers comprehensive protection through:
·Anti-Theft Circuits: Actively prevent unauthorized vehicle access and operation.
·Idle Theft Prevention: Automatically stops theft even when keys are in the ignition and the engine is idling.
·Carjacking Defense: Detects and responds to carjacking attempts with both active and passive countermeasures.
·Non-Interference Design: Seamlessly integrates without disrupting OEM vehicle systems.
·Universal Compatibility: Works with most car and truck makes and models.
·Manual Engine Kill Switch: Enables manual engine shutdown for added control.
·Wireless Code Security: Blocks attempts to intercept or spoof wireless security signals.
·Battery-Independent Operation: Functions even when the vehicle’s battery is disabled.
Market Landscape and Competitive Advantage
According to the National Insurance Crime Bureau, a motor vehicle was stolen every 48 seconds in the United States in 2025, with 659,880 vehicles reported stolen nationwide for the year — down 23% from 2024 but still a significant and persistent crime affecting hundreds of thousands of vehicle owners annually. Top Kontrol competes with brands such as Viper, Clifford, and OEM-integrated immobilizers. Its key differentiator is automated anti-carjacking defense—a feature unmatched by competitors and increasingly vital in high-risk urban environments.
Corporate Strategy and Spin-Off Plans
SecureTech Innovations is currently restructuring Top Kontrol under its wholly owned subsidiary, Terra Nova Technologies, Inc., in preparation for a planned spin-off on the OTCQB Venture Market. SecureTech plans to finalize the spin‑off in Fall 2026. Following the spin‑off, SecureTech shareholders are expected to receive shares in the newly public entity, and SecureTech’s balance sheet will reflect ownership of equity in a separate public company, which may enhance long‑term shareholder value.
Competition
SecureTech, through its subsidiaries AI UltraProd, Piranha Blockchain, and Top Kontrol, operates in highly competitive industries. Success depends on our ability to continuously develop innovative technologies and market them effectively. Our strategy centers on attracting a substantial customer base to support sustained profitability.
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We face intense competition from established companies with significant financial resources, deep operating histories, and strong market presence. Their advantages in marketing, purchasing power, and negotiating leverage present ongoing challenges. Furthermore, emerging startups and lesser-known rivals continue to enter the space with disruptive solutions.
Despite the breadth and scale of our target markets offering room for successful competition, technological evolution remains rapid and unpredictable. To remain relevant and resilient, SecureTech prioritizes adaptability and continuous innovation across all its business segments.
Manufacturing
SecureTech’s manufacturing operations span multiple geographies.
AI UltraProd Products
AI UltraProd’s additive construction systems are assembled in Ningbo and Hangzhou, PRC, using a modular supply chain of local CNC, laser, and materials vendors. AI UltraProd maintains ISO 9001-certified quality processes and leases 128 m² of office space for its headquarters and 197 m² of production space in Zhejiang Province. AI UltraProd does not operate any long-term take-or-pay material contracts and sources metal powders from qualified domestic mills under annual framework agreements.
Top Kontrol Products
Top Kontrol is manufactured by US-based contract manufacturers, with the final assembly taking place at our Minnesota headquarters. We deliberately avoid long-term or exclusivity agreements to preserve flexibility in selecting partners and responding to market demands.
Government Regulation
SecureTech products meet all applicable regulatory requirements. We actively monitor changes in the regulatory landscape to ensure ongoing compliance.
AI UltraProd
Compliant with ISO 9001 and CE directives for exported equipment. Construction-grade UHPC is certified under PRC GB/T 50082 2019 durability standards. Export classifications fall under U.S. BIS EAR99. No current products are subject to ITAR or EU dual use regulations, to the Company’s knowledge.
Piranha Blockchain
Actively monitors and aligns with SEC and CFTC digital asset regulations, FinCEN AML/KYC guidelines, and OFAC sanctions lists. Compliance personnel review protocol updates quarterly.
Top Kontrol
Certified by the Federal Communications Commission (FCC) with a Declaration of Conformity issued in March 2020.
Compliance with Environmental Laws
As of June 30, 2026, SecureTech has not incurred material expenses related to environmental compliance. We anticipate no such costs in the foreseeable future and remain in full compliance with existing environmental regulations.
Intellectual Property Rights and Proprietary Information
Innovation is a core pillar of SecureTech’s competitive strategy. We protect our technologies using a combination of patents, trademarks, trade secrets, and contractual safeguards, including nondisclosure agreements.
Notably, SecureTech holds a portfolio of issued and licensed patents, each with specific dates of issuance:
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·SecureTech holds an exclusive license to U.S. Patent No. 8,436,721 — "Automobile Theft Protection and Disablement System" — issued on May 7, 2013 to Shongkawh, LLC, a related party controlled by co-founder Kao Lee. This license extends through the patent’s expiration on March 19, 2030.
·AI UltraProd holds 12 issued PRC patents, including CN219214112U for quick-release large-format build plates, and has three additional patent applications pending. It also owns 13 copyrighted software packages for generative design, slicing, simulation, and robotic control, with two additional software copyrights pending.
Patent Strategy
We actively pursue patent applications for novel product features, disclosing critical components to our patent counsel under confidentiality prior to public release. Patent applications may not always be granted or may exclude key claims.
Trademark Protection
SecureTech owns federally registered trademarks, including SECURETECH INNOVATIONS® and TOP KONTROL®. Trademark applications for PIRANHA BLOCKCHAIN and AI ULTRAPROD are currently pending with the U.S. Patent and Trademark Office (USPTO).
Confidentiality Agreements
All employees, consultants, and third-party vendors are bound by nondisclosure agreements, prohibiting the disclosure of confidential company information during and after their engagement.
Employees
As of June 30, 2026, SecureTech employed 26 individuals across all business units, comprised of 25 full-time employees and one part-time employee. The geographic breakdown of our employees is as follows:
·United States: Three employees, comprised of three full-time employees.
·Hong Kong & Mainland China: 23 employees, comprised of 22 full-time employees and one part-time employee.
Properties
SecureTech’s principal executive offices are in leased office space located at 2355 Highway 36 West, Suite 400, Roseville, MN 55113.
AI UltraProd leases executive office space in Hong Kong and operates production facilities from leased industrial premises in Zhejiang Province, PRC.
SecureTech does not own or lease any other property or equipment.
Legal Proceedings
During the past ten years no director, person nominated to become a director or executive officer, or promoter of SecureTech has been involved in any legal proceeding that would require disclosure hereunder.
From time to time, we may become subject to various legal proceedings and claims that arise in the ordinary course of our business activities. However, litigation is subject to inherent uncertainties for which the outcome cannot be predicted. Any adverse result in these or other legal matters could arise and cause harm to our business. We currently are not party to any claim or litigation the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our business.
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Available Information
We maintain a website with the address www.securetechinnovations.com. We make available free of charge through our Internet website our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, Proxy Statements, and any amendments thereto, as soon as reasonably practicable after we electronically file such material with, or furnish such material to, the SEC. We are not including the information on our website as a part of, nor incorporating it by reference into, this report. Additionally, the SEC maintains a website that contains annual, quarterly, and current reports, proxy statements, and other information that issuers, including us, file electronically with the SEC. The SEC’s website address is www.sec.gov.
Results of Operations
Comparison of the Three Months Ended June 30, 2026 and 2025
The following table sets forth the results of our operations for the three months ended June 30, 2026, and 2025.
|
| Three Months Ended June 30, | |||
|
|
2026 |
|
2025 | |
Sales | $ | 2,772,981 | $ | - | |
Cost of goods sold |
| (1,885,227) |
| - | |
Gross profit |
| 887,754 |
| - | |
Operating expenses |
| (1,211,630) |
| (89,003) | |
Loss from operations |
| (323,876) |
| (89,003) | |
Other expense, net |
| (702,431) |
| (4,884) | |
Provision for income taxes |
| 13,647 |
| - | |
Net loss | $ | (1,039,954) | $ | (93,887) | |
| Less: net profit attributable to redeemable non-controlling interests |
| 589 |
| - |
| Less: net profit attributable to non-controlling interests |
| 1,705 |
| - |
Net loss attributable to SecureTech shareholders | $ | (1,042,248) | $ | (93,887) | |
Sales
Sales for the three months ended June 30, 2026, totaled $2,772,981, compared to $-0- for the same period in 2025. All sales are the result of SecureTech’s acquisition of AI UltraProd.
Sales were attributable as follows:
|
| Three Months Ended June 30, | ||
|
|
2026 |
|
2025 |
AI UltraProd products | $ | 1,443,939 | $ | - |
AI UltraProd services |
| 1,329,042 |
| - |
Total sales | $ | 2,772,981 | $ | - |
Cost of Goods Sold
Cost of goods sold for the three months ended June 30, 2026, was $1,885,227, compared to $-0- for the same period in 2025. As a percentage of overall sales, the cost of goods sold was 68.0% during the three months ended June 30, 2026.
Gross Profit
Gross profit for the three months ended June 30, 2026, was $887,754, compared to $-0- for the same period in 2025. Our gross profit margin was 32.0% during the three months ended June 30, 2026.
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Operating Expenses
|
| Three Months Ended June 30, | |||
|
|
2026 |
|
2025 | |
Operating expenses: |
|
|
|
| |
| General and administrative | $ | 607,523 | $ | 86,857 |
| Selling and marketing expenses |
| 471,514 |
| - |
| Research and development |
| 132,593 |
| 2,146 |
| Operating expenses | $ | 1,211,630 | $ | 89,003 |
Our operating expenses for the fiscal period consisted of three components: general and administrative expenses, selling and marketing expenses, and research and development expenses. Total operating expenses were $1,211,630 during the three months ended June 30, 2026, compared to $89,003 for the same period of 2025, representing an increase in operating expenses of $1,122,627, or 1,261.3%, from the three months ended June 30, 2025. The increase in operating expenses is a result of SecureTech’s acquisition of AI UltraProd.
Loss From Operations
As a result of the foregoing, our loss from operations was $323,876 during the three months ended June 30, 2026, compared with an operating loss of $89,003 for the same period of 2025. The $234,873, or 263.9%, increase in operating loss is the result of increased operating activities derived from SecureTech’s acquisition of AI UltraProd.
Other Expense, Net
|
| Three Months Ended June 30, | |||
|
|
2026 |
|
2025 | |
Other income (expense): |
|
|
|
| |
| Change in fair value of notes payable | $ | (263,467) | $ | - |
| Loss on issuance of notes payable |
| (250,997) |
| - |
| Loss on extinguishment of notes payable |
| (138,365) |
| - |
| Government grants |
| 21,912 |
| - |
| Interest income |
| 63 |
| - |
| Interest expense |
| (87,621) |
| (4,884) |
| Others, net |
| 16,044 |
| - |
| Other expense, net | $ | (702,431) | $ | (4,884) |
Our other expense, net is comprised of various elements including change in fair value of notes payable, loss on issuance of notes payable, losses on extinguishment of notes payable, government grants, bank interest received on cash deposits, interest paid on outstanding loans, and other non-operating items. During the three months ended June 30, 2026, we had $702,431 in other expense, net compared to $4,884 in other expense, net for the same period in 2025, representing an increase in other expense, net of $697,547, or 14,282.3%. The increase in other expense, net is largely due to increased borrowing costs tied to short-term bridge capital notes and SecureTech’s acquisition of AI UltraProd.
Provision for Income Taxes
During the three months ended June 30, 2026, we recorded a provision for income taxes of $13,647, compared to no provision for income taxes during the same period of 2025. The provision for income taxes is connected to SecureTech’s acquisition of AI UltraProd, as AI UltraProd generated profit before income taxes during the period.
Net Loss
The result was that our net loss was $1,039,954 during the three months ended June 30, 2026, compared with a net loss of $93,887 for the same period of 2025. After taking into consideration aggregate allocation to non-controlling interests of $2,294
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for the three months ended June 30, 2026, SecureTech generated a net loss of $1,042,248 that was attributable to SecureTech’s shareholders, and is the result of SecureTech’s acquisition of AI UltraProd.
Comparison of the Six Months Ended June 30, 2026 and 2025
The following table sets forth the results of our operations for the six months ended June 30, 2026, and 2025.
|
| Six Months Ended June 30, | |||
|
|
2026 |
|
2025 | |
Sales | $ | 4,852,716 | $ | - | |
Cost of goods sold |
| (3,779,636) |
| - | |
Gross profit |
| 1,073,080 |
| - | |
Operating expenses |
| (1,722,811) |
| (179,938) | |
Loss from operations |
| (649,731) |
| (179,938) | |
Other expense, net |
| (791,845) |
| (8,314) | |
Benefit for income taxes |
| (110) |
| - | |
Net loss | $ | (1,441,466) | $ | (188,252) | |
| Less: net loss attributable to redeemable non-controlling interests |
| (1,206) |
| - |
| Less: net loss attributable to non-controlling interests |
| (8,875) |
| - |
Net loss attributable to SecureTech shareholders | $ | (1,431,385) | $ | (188,252) | |
Sales
Sales for the six months ended June 30, 2026, totaled $4,852,716, compared to $-0- for the same period in 2025. All sales are the result of SecureTech’s acquisition of AI UltraProd.
Sales were attributable as follows:
|
| Six Months Ended June 30, | ||
|
|
2026 |
|
2025 |
AI UltraProd products | $ | 3,403,191 | $ | - |
AI UltraProd services |
| 1,449,525 |
| - |
Total sales | $ | 4,852,716 | $ | - |
Cost of Goods Sold
Cost of goods sold for the six months ended June 30, 2026, was $3,779,636, compared to $-0- for the same period in 2025. As a percentage of overall sales, the cost of goods sold was 77.9% during the six months ended June 30, 2026.
Gross Profit
Gross profit for the six months ended June 30, 2026, was $1,073,080, compared to $-0- for the same period in 2025. Our gross profit margin was 22.1% during the six months ended June 30, 2026.
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Operating Expenses
|
| Six Months Ended June 30, | |||
|
|
2026 |
|
2025 | |
Operating expenses: |
|
|
|
| |
| General and administrative | $ | 1,049,716 | $ | 177,792 |
| Selling and marketing expenses |
| 473,649 |
| - |
| Research and development |
| 199,446 |
| 2,146 |
| Operating expenses | $ | 1,722,811 | $ | 179,938 |
Our operating expenses for the fiscal period consisted of three components: general and administrative expenses, selling and marketing expenses, and research and development expenses. Total operating expenses were $1,722,811 during the six months ended June 30, 2026, compared to $179,938 for the same period of 2025, representing an increase in operating expenses of $1,542,873, or 857.4%, from the six months ended June 30, 2025. The increase in operating expenses is a result of SecureTech’s acquisition of AI UltraProd.
Loss From Operations
As a result of the foregoing, our loss from operations was $649,731 during the six months ended June 30, 2026, compared with an operating loss of $179,938 for the same period of 2025. The $469,793, or 261.1%, increase in operating loss is the result of increased operating activities derived from SecureTech’s acquisition of AI UltraProd.
Other Expense, Net
|
| Six Months Ended June 30, | |||
|
|
2026 |
|
2025 | |
Other income (expense): |
|
|
|
| |
| Change in fair value of notes payable | $ | (274,867) | $ | - |
| Loss on issuance of notes payable |
| (250,997) |
| - |
| Loss on extinguishment of notes payable |
| (138,365) |
| - |
| Government grants |
| 30,750 |
| - |
| Interest income |
| 183 |
| - |
| Interest expense |
| (155,792) |
| (8,314) |
| Others, net |
| (2,757) |
| - |
| Other expense, net | $ | (791,845) | $ | (8,314) |
Our other expense, net is comprised of various elements including change in fair value of notes payable, loss on issuance of notes payable, losses on extinguishment of notes payable, government grants, bank interest received on cash deposits, interest paid on outstanding loans, and other non-operating items. During the six months ended June 30, 2026, we had $791,845 in other expense, net compared to $8,314 in other expense, net for the same period in 2025, representing an increase in other expense, net of $783,531, or 9,424.2%. The increase in other expense, net is largely due to increased borrowing costs tied to short-term bridge capital notes and SecureTech’s acquisition of AI UltraProd.
Benefit for Income Taxes
During the six months ended June 30, 2026, we recorded a deferred income tax benefit of $110, compared to no provision for income taxes during the same period of 2025. The benefit for income taxes is connected to SecureTech’s acquisition of AI UltraProd, including the utilization of AI UltraProd’s prior-year tax losses and the reversal of deferred tax liabilities resulting from the amortization of intangible assets recognized in connection with the acquisition..
Net Loss
The result was that our net loss was $1,441,466 during the six months ended June 30, 2026, compared with a net loss of $188,252 for the same period of 2025. After taking into consideration aggregate net loss attributed to non-controlling interests
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of $10,081 for the six months ended June 30, 2026, SecureTech generated a net loss of $1,431,385 that was attributable to SecureTech’s shareholders, and is the result from SecureTech’s acquisition of AI UltraProd.
Total Stockholders’ Equity
Total stockholders’ equity attributable to SecureTech was $9,876,396 as of June 30, 2026, compared to stockholders’ equity of $10,602,113 on December 31, 2025.
Liquidity and Capital Resources
Our principal liquidity needs are to fund inventory and manufacturing, support the growth of our AI UltraProd operations, meet our debt service and regulatory compliance costs, and provide for general corporate purposes. We have historigcally funded these needs through cash flow from operations, short-term bank borrowings, notes payable, and sales of our securities.
As of June 30, 2026, we had cash and cash equivalents of $311,711, compared to $233,825 as of December 31, 2025. We had total current assets of $9.5 million and total current liabilities of $8.6 million, resulting in working capital of approximately $0.9 million. Our current assets consisted primarily of accounts receivable of $2.1 million, inventories of $1.1 million, and prepayments and other current assets of $5.8 million. Our current liabilities consisted primarily of short-term bank borrowings of $3.4 million, notes payable of $1.7 million, contract liabilities of $1.5 million, and accounts payable of $1.1 million.
Summary of Cash Flows
|
| Six Months Ended June 30, | |||
|
|
2026 |
|
2025 | |
|
|
|
|
| |
| Net cash used in operating activities | $ | (2,228,293) | $ | (124,330) |
| Net cash (used in) provided by investing activities | $ | (52,222) | $ | 363,522 |
| Net cash provided by financing activities | $ | 2,242,702 | $ | 134,645 |
For the six months ended June 30, 2026, net cash used in operating activities was $2.2 million (2025: $0.1 million); net cash used in investing activities was $52,222 (2025: $363,522 provided); net cash provided by financing activities was $2.3 million (2025: $134,645); and the effect of exchange-rate changes on cash was $115,699.
·Operating activities: Net cash used in operating activities was $2.2 million, compared to $0.1 million in the prior-year period, which preceded our acquisition of AI UltraProd. The FY2026 usage was driven primarily by our net loss and by a $2.4 million increase in prepayments to suppliers and a $1.27 million decrease in accounts payable and accrued liabilities as we scaled production, partially offset by a $1.4 million increase in contract liabilities and a $0.9 million reduction in inventories.
·Investing activities: Net cash used in investing activities was $52,222, consisting of equipment purchases. In the prior-year period, investing activities provided $363,522, substantially all of which was cash acquired in the AI UltraProd acquisition.
·Financing activities: Net cash provided by financing activities was $2.3 million, consisting of $2.4 million in proceeds from short-term bank borrowings, repayment of short-term bank borrowings of $1.5 million, $1.0 million in proceeds from notes payable, redemption of notes payable of $0.4 million, and $0.7 million contributed by a noncontrolling shareholder of our Zhejiang Jizhu subsidiary. In the prior-year period, financing activities provided $134,645.
·Overall change in cash: As a result of the foregoing, cash and equivalents increased to $311,711 as of June 30, 2026, compared to $233,825 as of December 31, 2025.
Liquidity Outlook
We do not expect that our existing cash, cash flow from the operations of AI UltraProd, and access to short-term bank financing will, by themselves, be sufficient to fund our operations and growth strategy for the next twelve months. Our strategy – including our planned uplisting to a national securities exchange, continued acquisition activity, and the planned spin-off of our Top Kontrol business – will require additional capital, which we expect to seek through a combination of short-term bridge
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financing, longer-term debt facilities, and equity issuances. Since June 30, 2026, we have raised additional debt capital, including a $370,008 related-party promissory note issued on July 6, 2026 and a $245,300 convertible note issued on July 22, 2026. There can be no assurance that additional financing will be available on acceptable terms, or at all. If we are unable to raise capital when needed, we may be required to delay or curtail our growth initiatives.
SecureTech's ability to continue as a going concern depends on the successful execution of its business plan, the generation of consistent positive cash flows from operations, and the securing of additional financing as needed. Management continues to monitor liquidity closely and is committed to aligning expenditures with available resources while pursuing strategic growth opportunities. See Note 2 — Going Concern in the notes to the financial statements in this Quarterly Report for additional information.
Going Concern Consideration
Our former independent registered public accounting firm, Gary Cheng CPA Limited, issued a going concern opinion in their audit report dated March 24, 2026. This report is included in our Annual Report on Form 10-K filed with the SEC on March 25, 2026, as amended by Amendment No. 1 thereto on Form 10-K/A filed with the SEC on August 5, 2026. This opinion indicates that our former auditor believed there is substantial doubt about our ability to continue as an ongoing business for the next 12 months.
As of June 30, 2026, the Company had current assets of $9,458,668 and current liabilities of $8,625,056. Although current assets exceeded current liabilities, current assets consist principally of accounts receivable, inventories and prepayments rather than cash, and the Company does not expect to convert those assets to cash quickly enough to meet its obligations as they come due.
These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Off-Balance Sheet Operations
As of June 30, 2026, we had no off-balance sheet activities or operations.
Critical Accounting Policies And Estimates
We prepare our financial statements in conformity with the U.S. GAAP, which require us to make judgments, estimates, and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past fiscal year, we continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience, and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates.
We believe the following critical accounting policies involve the most significant estimates and judgments used in the preparation of our consolidated financial statements.
Intangible Assets
Intangible assets with finite useful lives are stated at cost, less accumulated amortization and impairment losses, if any. Amortization is recognized on a straight-line basis over the estimated useful lives of the assets, unless another method better reflects the pattern in which the economic benefits are consumed.
The Company evaluates finite-lived intangible assets for impairment when events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment loss is recognized when the carrying amount of an asset group exceeds the estimated undiscounted cash flows expected to result from the use and eventual disposition of the asset group. The impairment loss is measured as the amount by which the carrying amount exceeds its fair value.
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Goodwill
Goodwill represents the excess of the purchase price and other consideration transferred over the fair value of identifiable net assets acquired in a business combination. Goodwill is not amortized but is tested for impairment at least annually and more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable.
Goodwill is tested for impairment at the reporting unit level. The Company may first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment indicates that it is more likely than not that impairment exists, or if the Company elects to bypass the qualitative assessment, the Company performs a quantitative impairment test by comparing the reporting unit’s fair value with its carrying amount, including goodwill. An impairment loss is recognized to the extent that the reporting unit’s carrying amount exceeds its fair value, limited to the amount of goodwill allocated to that reporting unit.
The determination of the fair value of reporting units and intangible assets requires the Company to make significant estimates and assumptions, including projected revenues and cash flows, growth rates, discount rates, and other market and economic factors. Changes in these assumptions could materially affect the estimated fair values and the amount of any impairment recognized.
Recent Accounting Pronouncements
There are various updates recently issued, most of which represent technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on SecureTech’s financial position, results of operations or cash flows.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Not applicable since we are a smaller reporting company.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our management, under the supervision and with the participation of our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of June 30, 2026. Based on that evaluation, and because of the material weaknesses in our internal control over financial reporting described below, our principal executive officer and principal financial officer concluded that, as of June 30, 2026, our disclosure controls and procedures were not effective in ensuring that information required to be disclosed in the reports we file and submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and is accumulated and communicated to management as appropriate to allow timely decisions regarding required disclosure.
Material Weaknesses in Internal Control over Financial Reporting
Management is responsible for establishing and maintaining effective internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). Because of inherent limitations, internal control over financial reporting may not prevent or detect misstatements and can provide only reasonable assurance of achieving the desired control objectives. Based on management's evaluation, using the criteria set forth in Internal Control—Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, management identified the following material weaknesses as of June 30, 2026:
·We do not have an audit committee; and
·We do not have an independent Board of Directors, nor a board member designated as an independent financial expert. The Board is comprised of two members, both of whom also serve as executive officers, resulting in a lack of independent oversight of management, a lack of independent review of our operating and financial results, and a lack of independent review of our disclosures.
These weaknesses have existed since SecureTech's inception on March 2, 2017 and had not been remediated as of June 30, 2026.
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In addition, on August 5, 2026, SecureTech filed amendments restating its Quarterly Report on Form 10-Q for the period ended June 30, 2025, its Quarterly Report on Form 10-Q for the period ended September 30, 2025, its Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and its Quarterly Report on Form 10-Q for the period ended March 31, 2026 (collectively, the "Restatement"). In connection with the Restatement, management identified an additional material weakness relating to its controls over the accounting for complex equity instruments and the classification of balance-sheet items, specifically the classification of redeemable noncontrolling interests and the current versus non-current classification of certain assets.
·We did not maintain effective controls over the accounting for non-routine and complex transactions. We did not have personnel with sufficient US GAAP technical accounting expertise, or a formal process for the review of significant or unusual transactions, to identify and apply the applicable accounting requirements for complex equity instruments and for the classification of assets as current or non-current.
Remediation
Management is committed to remediating the identified material weaknesses and has taken, and intends to take, the following steps.
To address the governance-related material weaknesses, management intends to expand the Board to include additional independent directors and to establish an audit committee comprised solely of independent directors, at least one of whom will qualify as an audit committee financial expert. As of the date of this report, the Company has nominated three independent director candidates, each of whom is a certified public accountant:
·Brian Zucker, CPA — nominated as an independent director and member of the Audit, Nominating, and Compensation Committees (announced March 31, 2026);
·Robert V. Castro, CPA/CGMA — nominated as an independent director and committee member (announced April 7, 2026); and
·Robert J. Williams, CPA — nominated as an independent director and committee member (announced April 14, 2026).
Each nominee has agreed to serve upon formal appointment. The Company intends to seat all three independent directors as promptly as practicable, and in any event concurrently with or prior to the effectiveness of any national securities exchange listing. Seating is not contingent upon approval of such a listing; however, it remains subject to the Company obtaining Directors and Officers (D&O) liability insurance coverage.
To address the material weakness identified in connection with the Restatement, management is enhancing its technical accounting review, including by adopting formal accounting policies for complex equity instruments and mezzanine-classified redeemable noncontrolling interests, implementing additional levels of review over the classification of balance-sheet items between current and non-current categories, and engaging outside technical accounting resources to assist in the evaluation of complex or non-routine transactions. The Company engaged external technical accounting assistance in connection with the Restatement and intends to continue using such resources as needed.
Management believes that these measures, once fully implemented, are designed to remediate the identified material weaknesses. The material weaknesses will not be considered remediated, however, until the applicable controls have operated for a sufficient period and management has concluded, through testing, that they are operating effectively. The Company will continue to evaluate its disclosure controls and internal control over financial reporting and will report on its remediation progress in future filings.
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Changes in Internal Control over Financial Reporting
Other than the remediation activities described above, there were no changes in our internal control over financial reporting during the fiscal quarter ended June 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
PART II – OTHER INFORMATION
Item 1. Legal Proceedings
During the past ten years, no director, person nominated to become a director or executive officer, or promoter of SecureTech has been involved in any legal proceeding that would require disclosure hereunder.
From time to time, we may become subject to various legal proceedings and claims that arise in the ordinary course of our business activities. However, litigation is subject to inherent uncertainties for which the outcome cannot be predicted. Any adverse result in these or other legal matters could arise and cause harm to our business. We currently are not a party to any claim or litigation, the outcome of which, if determined adversely to us, would individually or in the aggregate be reasonably expected to have a material adverse effect on our business.
Item 1A. Risk Factors
As a smaller reporting company, we are not required to include a full risk factor section in this Quarterly Report on Form 10-Q. However, we are required to disclose any material changes to the risk factors previously described in our Amendment No. 1 to the Annual Report on Form 10-K/A for the fiscal year ended December 31, 2025, filed with the SEC on August 8, 2026. There have been no developments occurring during or subsequent to the quarter ended June 30, 2026 that would represent a material change to, or require an update to, the risk factors previously disclosed.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
During the three months ended June 30, 2026, SecureTech issued the following unregistered equity securities, each of which was previously reported on a Current Report on Form 8-K filed with the SEC. The following disclosure is provided pursuant to Item 701 of Regulation S-K.
On April 6, 2026, the Board of Directors approved the issuance of an aggregate of 15,326 shares of common stock, $0.001 par value per share, to Craft Capital Management, LLC and Ajene Watson, LLC as compensation for services rendered, valued at $75,485 in the aggregate (an average of approximately $4.93 per share, based on the invoiced amounts). This issuance was reported on a Current Report on Form 8-K filed with the SEC.
The shares of common stock issued in these transactions were issued as compensation for services rendered; no cash consideration was paid to SecureTech in connection with any of the foregoing transactions. Such shares were not registered under the Securities Act of 1933, as amended (“Securities Act”). SecureTech relied upon the exemption from registration provided by Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated thereunder, on the basis that the transactions did not involve a public offering, each recipient had access to information about SecureTech equivalent to that which would be included in a registration statement, and each recipient represented that they were acquiring the securities for investment purposes and not with a view to distribution. No underwriters were engaged, and no underwriting discounts or commissions were paid in connection with any of these transactions.
Item 3. Default Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Not Applicable.
Item 5. Other Information
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None.
Item 6. Exhibits
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| Incorporated by Reference | ||||||
Exhibit Number |
|
Exhibit Description |
| Filed Herewith |
|
Form |
|
File No. |
|
Exhibit |
| Filing Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1 |
| Articles of Incorporation |
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S-1 |
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333-223078 |
|
3.1 |
|
2/16/2018 |
3.2 |
| Bylaws |
|
|
| S-1 |
| 333-223078 |
| 3.2 |
| 2/16/2018 |
3.3 |
| Amendment to Articles of Incorporation dated December 20, 2017 |
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S-1 |
|
333-223078 |
|
3.3 |
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2/16/2018 |
3.4 |
| Certificate of Designation of Series A Preferred Stock |
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8-K |
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3.4 |
|
6/2/2023 |
10.1 |
| Patent License Agreement between SecureTech, Inc. and Shongkawh, LLC dated March 2, 2017 |
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S-1 |
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333-223078 |
|
10.1 |
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2/16/2018 |
10.2 |
| Amendment No. 1 to Patent License Agreement between SecureTech, Inc. and Shongkawh, LLC dated March 13, 2024 |
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10-Q |
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10.2 |
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5/15/24 |
10.3 |
| Acquisition and Stock Purchase Agreement dated June 23, 2025 |
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8-K |
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10.3 |
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6/24/25 |
10.4 |
| Incubation Operating Agreement dated June 23, 2025 |
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8-K |
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10.4 |
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6/24/25 |
10.5 |
| Amendment No. 1 (dated July 14, 2025) to the Incubation Operating Agreement (dated June 23, 2025) |
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8-K |
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10.5 |
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7/16/25 |
14.1 |
| Code of Ethics adopted May 12, 2022 |
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|
8-K |
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14.1 |
|
5/16/2022 |
31.1 |
| Certification of J. Scott Sitra, Principal Executive Officer pursuant to Exchange Act Rules 13a‑14(a)/15d‑14(a) |
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X |
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31.2 |
| Certification of Anthony Vang, Principal Financial Officer pursuant to Exchange Act Rules 13a‑14(a)/15d‑14(a) |
|
X |
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32.1 |
| Certification of J. Scott Sitra, Principal Executive Officer, pursuant to 18 U.S.C. Section 1350 |
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X |
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32.2 |
| Certification of Anthony Vang, Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 |
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X |
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101.INS |
| XBRL Instance Document |
|
X |
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101.SCH |
| XBRL Taxonomy Extension Schema Document |
|
X |
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101.CAL |
| XBRL Taxonomy Extension Calculation Linkbase Document |
|
X |
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101.LAB |
| XBRL Taxonomy Extension Labels Linkbase Document |
|
X |
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101.PRE |
| XBRL Taxonomy Extension Presentation Linkbase Document |
|
X |
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101.DEF |
| XBRL Taxonomy Extension Definition Linkbase Document |
|
X |
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104 |
| Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
|
X |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
SECURETECH INNOVATIONS, INC.
Dated: August 19, 2026 | By: | /s/ J. Scott Sitra |
|
| President, Chief Executive Officer, Principal Executive Officer, and Director |
Dated: August 19, 2026 | By: | /s/ Anthony Vang |
|
| Chief Financial Officer, Treasurer, Secretary, Principal Financial Officer, Principal Accounting Officer, and Director |
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