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

Company: Securetech Innovations, Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 10
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15, 2025 and interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company is currently evaluating the impact of the above new accounting pronouncements or guidance on the combined financial statements.
 
Except for the above-mentioned pronouncements, there are no new recently issued accounting standards that will have a material impact on the combined balance sheets, statements of operations and cash flows.

NOTE 2 – GOING CONCERN
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. Historically, the Company has experienced negative cash flows from operations. As of September 30, 2025, however, the Company reported net income attributable to shareholders of $302,746 for the nine‑month period and positive gross profit of $1,005,449. Cash and cash equivalents totaled $394,370 at quarter‑end, compared to no cash balances at December 31, 2024.
 
Despite these improvements, the Company’s ability to continue as a going concern is dependent upon successfully executing its growth strategy, maintaining profitability, and securing additional financing to fund working capital requirements and strategic initiatives. Current liabilities of $4,288,523 exceed cash on hand, and management anticipates the need for bridge financing, longer‑term debt facilities, and/or equity issuances to support operations, planned uplisting to a national exchange, and the spin‑off of Top Kontrol.
 
These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year after the date the financial statements are issued. Management is actively pursuing financing arrangements and implementing cost controls to mitigate these uncertainties. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOTE 3 – GOODWILL
 
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in business combinations. As of September 30, 2025, the Company’s goodwill balance was $8,450,439, all of which arose from the acquisition of Aiultraprod Group Limited and its subsidiaries (collectively, “AI UltraProd”) on June 23, 2025.
 
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.
 
In accordance with ASC 350, goodwill is not amortized but is tested for impairment at least annually, or more frequently if