Company: SCTH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001017386-25-000115
Chunk: 9

Company: Securetech Innovations, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 9
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 payment has been received from customers before the Company’s products or services are delivered. Contract liabilities amounted to $357,123 and $-0- as of June 30, 2025 and December 31, 2024, respectively.
 
Contract liabilities consist of the following:

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

Contract liabilities
$
357,123
$
-

NOTE 7 – SHORT-TERM BORROWINGS
 
As of June 30, 2025, the Company’s
subsidiary AI UltraProd had one-year loans with a total principal amount of RMB 15,500,000 (equivalent to US$2,165,228)
from banks in the PRC, with interest rates ranging from 3.6% to 5.6% per annum. Interest payments are due quarterly.
 
Short-term borrowings are as follows:

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

    Unsecured short-term borrowings from PRC banks 
    $2,165,228  
    $—   
  
    Total short-term borrowings, net 
    $2,165,228  
    $—   

NOTE 8 – STOCKHOLDERS’ EQUITY
 
Preferred stock
 
The Company has authorized 50,000,000 shares of preferred stock, $0.001 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 250,000 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.

Rank
 
The Preferred Stock shall rank superior to the Corporation’s common stock and all other classes