Company: SCTH
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001017386-25-000148
Chunk: 58

Company: Securetech Innovations, Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 2
Chunk 58
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 The improvement reflects positive net income attributable to shareholders of $0.30 million, offset by working capital changes, including increases in accounts receivable, inventories, and prepayments associated with scaling AI UltraProd operations. These increases in current assets reflect the SecureTech’s growth trajectory but also represent near‑term liquidity demands..

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Investing activities: Net cash used in investing activities during the nine months ended September 30, 2025, was primarily related to the acquisition of AI UltraProd and capital expenditures for equipment. Goodwill of $8.5 million and equipment of $0.4 million were recorded in connection with these activities. We did not have material investing cash flows in the prior year period.

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Financing activities: Net cash provided by financing activities during the nine months ended September 30, 2025, was driven by short‑term borrowings of $2.5 million, issuance of preferred shares in connection with the AI UltraProd acquisition, and issuance of common shares for cash. These financing activities were critical to supporting operations and funding strategic initiatives. In the prior year period, financing cash flows were limited to small issuances of common stock.

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Overall change in cash: As a result of the above activities, cash and cash equivalents increased to $394,370 at September 30, 2025, compared to no cash balances at December 31, 2024. Management believes that existing cash resources, together with anticipated operating cash flows, will be sufficient to meet near‑term obligations. However, execution of our growth strategy — including planned uplisting to a national exchange, continued M&A activity, and the spin‑off of Top Kontrol — will require additional capital. We expect to pursue a combination of bridge financing, longer‑term debt facilities, and equity issuances to support these initiatives..

Liquidity Outlook

Management believes that existing cash resources, together with anticipated revenues from AI UltraProd and other subsidiaries, will be sufficient to meet operating needs over the next twelve months. However, the Company’s growth strategy — including planned uplisting to a national exchange, continued M&A activity, and the spin‑off of Top Kontrol — will require additional capital. We expect to pursue a combination of short‑term bridge financing, longer‑term debt facilities, and equity issuances to support these initiatives. There can be no assurance that such financing will be available on favorable terms, or at all.

SecureTech’s ability to continue as a going concern is dependent upon successful