Company: SCTH
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001017386-25-000073
Chunk: 24

Company: Securetech Innovations, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 24
---
•
 
SecureTech's system of internal controls failed to identify multiple journal entries that were identified by the SecureTech's external auditor;

•
 
SecureTech has no formal control process related to the identification and approval of related party transactions;

•
 
SecureTech could not maintain any segregation of duties within our financial operations due to our reliance on limited personnel in the finance function;

•
 
SecureTech lacks sufficient resources to perform the internal audit function and does not have an Audit Committee;

•
 
We do not have an independent Board of Directors, nor do we have a board member designated as an independent financial expert to SecureTech. The Board of Directors is comprised of two (2) members, both of whom also serve as executive officers. As a result, there is a lack of independent oversight of the management team, a lack of independent review of our operating and financial results, and a lack of independent review of disclosures made by SecureTech; and

•
 
Documentation of all proper accounting procedures is not yet complete.

These weaknesses have existed since SecureTech’s inception on March 2, 2017, and have not been remedied as of March 31, 2025.

Management believes in order to cure the aforementioned material weaknesses, SecureTech needs to take the following steps:

•
 
Engage outside consultants to ensure consistency in accounting policies and procedures across the organization. This step would enhance our control over financial statement disclosures;

•
 
Hire additional qualified financial personnel, including a full-time Chief Financial Officer;

•
 
Expand our current board of directors to include additional independent individuals who are willing to perform directorial functions; and

•
 
Increase our workforce to accommodate growing sales and higher volumes.

28

Management believes that effectively addressing these material weaknesses would necessitate the addition of at least three independent board members and one executive financial officer who is not a board member. We estimate that SecureTech’s minimum annual expense to retain qualified personnel to fill these vacant roles would be at least $650,000, possibly even more.

Given that these remedial actions require hiring additional personnel at a substantial cost, these material weaknesses are likely to remain unremediated until SecureTech can generate sufficient revenues or raise significant outside funding necessary to address them. In the meantime, we will continue to rely on the limited advice of outside professionals and consultants.

Changes in Controls and Procedures

No changes in our internal control over financial reporting occurred during the period covered by this report that have materially affected or are reasonably likely to affect our internal control over