Company: SCTH
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001017386-25-000148
Chunk: 17

Company: Securetech Innovations, Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 17
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 $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.
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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 nine months ended September 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 September 30, 2025, the receivable balance of $69,900 was reported as amounts due from related parties.

NOTE 11 – PREPAYMENTS AND OTHER ASSETS

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

    Advances to suppliers 
    $2,394,639  
    $—   
  
    Deductible VAT 
     19,697  
     —   
  
    Deposits 
     1,114  
     —   
  
    Prepayments and other assets 
    $2,415,450  
    $—   

Advances to suppliers of $2,394,639 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 13 – EARNINGS (LOSS) PER SHARE
 
Basic earnings (loss) per share is computed by dividing net income (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 earnings (loss) per share is computed in a manner consistent with that of basic earnings per share while giving effect to all