Company: SCTH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001017386-25-000073
Chunk: 3

Company: Securetech Innovations, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 3
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10

Table of Contents

    March 31, 2025 
    December 31, 2024

    Computer, software, and equipment 
    $4,916  
    $4,916 
  
    Furniture, fixtures, and equipment 
     —    
     —   
  
    Leasehold improvements 
     —    
     —   
  
    Accumulated depreciation 
    $(2,659) 
    $(2,413)
  
    PPE, net 
    $2,257  
    $2,503 

Revenue Recognition
 
Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers.
 
The Company’s primary revenue source is selling our Top Kontrol product, which we began selling in late April 2020.
 
Top Kontrol requires installation by a Certified Top Kontrol Technician. To become a Certified Top Kontrol Technician, an automotive technician must complete a one-day hands-on course hosted by the Company. Failure to have Top Kontrol installed by a Certified Top Kontrol Technician voids the product’s limited liability warranty.
 
Because of this professional installation requirement, the Company sells its products to and through Authorized Dealers and Certified Top Kontrol Technicians. In the instances where the Company sells directly to the end user, product installation must be performed by authorized Company personnel.
 
Revenue is recognized when performance obligations under a contract with our customers are satisfied. Revenue is recorded net of marketing allowances, volume discounts, and other forms of variable consideration. Generally, this occurs when we transfer control of our product to the customer and payment has been received. The Company presently does not offer terms or credit to any of its customers.
 
Revenue Recognition; ASC 606 Five-Step Model
 
Under ASC 606, the Company recognizes revenue from the sale of service contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied.
 
Revenue Recognition; General Right of Return
 
Customers are allowed to return defective goods (warranty returns). In some instances, customers may be allowed to return a limited number of units for periodic stock adjustment returns. Such stock adjustment returns would be limited to no more than 5% of their total units sold.
 
As is standard in