Company: SCTH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001017386-25-000115
Chunk: 14

Company: Securetech Innovations, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 14
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 maturity dates without penalty until the Company raises sufficient funds.
 
As of June 30, 2024, the Company had outstanding notes payable to Kao Lee aggregating $14,042 for expenses paid on behalf of the Company, which has been accounted for as short-term notes payable to a related party.
 
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.
 
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.

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NOTE 11 – PREPAYMENTS AND OTHER ASSETS

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

    Advances to suppliers 
    $2,883,606  
    $—   
  
    Deductible VAT 
     32,536  
     —   
  
    Prepayments and other assets 
    $2,916,142  
    $—   

Advances to suppliers of $2,883,606 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.

NOTE 12 – CONTINGENCY/LEGAL
 
As of June 30, 2025, 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