Company: SCTH
Filing Date: 2025-11-20
Form Type: 10-Q
Source: 0001017386-25-000148
Chunk: 35

Company: Securetech Innovations, Inc.
Filing Date: 2025-11-20
Form: 10-Q
Item: Part I, Item 8
Chunk 35
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9 million, inventories of $1.5 million, and prepayments of $2.4 million. Non‑current assets totaled $9.2 million, driven largely by goodwill recognized in connection with the acquisition of AI UltraProd.

Total current liabilities increased to $4.3 million at September 30, 2025, compared to $0.4 million at December 31, 2024. The increase was primarily attributable to short‑term borrowings of $2.5 million, accounts payable of $1.1 million, and accrued expenses of $0.2 million. Non‑current liabilities were $0.2 million, consisting of operating lease obligations. As a result, total liabilities were $4.5 million, and total stockholders’ equity improved to $11.0 million, compared to a deficit of $0.4 million at year‑end 2024.

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For the nine months ended September 30, 2025, SecureTech generated revenues of $3.7 million and reported net income attributable to shareholders of $0.3 million, compared to a net loss of $0.3 million for the same period in 2024. Gross profit was $1.0 million, reflecting a gross margin of approximately 27%. Operating cash flows for the period were impacted by working capital changes, including increases in receivables, inventories, and prepayments associated with scaling AI UltraProd operations.

Cash Flows

For the nine months ended September 30, 2025:

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Operating activities: Net cash provided by operating activities of approximately $0.35 million, compared to net cash used in operating activities of $0.26 million for the same period in 2024. 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