Company: SCTH
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001017386-25-000148
Chunk: 3

Company: Securetech Innovations, Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 3
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 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. The Company treats these convertible notes as stock settled debt under ASC 480, “Distinguishing Liabilities from Equity” and measures the fair value of the notes at the time of issuance, which is the result of the share price discount at the time of conversion, and records the put premium as interest expense.
 
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
5
     -
     10
    years
Computer software and equipment
2
     -
     15
    years
Furniture, fixtures, and equipment
3
     -
     5
    years
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 remaining life of the related asset. Gains and losses on the disposition of equipment are reflected in operations. Depreciation is provided using the straight-line method over the estimated useful lives of the assets. 
 
Depreciation expenses totaled $18,395 and $737 for the nine months ended September 30, 2025 and 2024, respectively. Cumulative depreciation for each asset class is as follows:

    As of September 30, 2025 
    As of December 31, 2024

    Machinery equipment 
    $342,101  
    $—   
  
    Computer, software, and equipment 
     81,017  
     4,916 
  
    Furniture, fixtures, and equipment 
     94,555  
     —   
  
    Equipment 
    $517,673  
    $4,916 
  
    Less: Accumulated depreciation 
     (117,992) 
     (2,413)
  
    Equipment, net 
    $399,681  
    $2,503 

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