Company: SCTH
Filing Date: 2025-08-19
Form Type: 10-Q
Source: 0001017386-25-000115
Chunk: 29

Company: Securetech Innovations, Inc.
Filing Date: 2025-08-19
Form: 10-Q
Item: Part I, Item 8
Chunk 29
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 payables and other liabilities.

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Investing activities provided $363,521 of cash, consisting of $364,311 of cash acquired in the AI UltraProd acquisition, partially offset by $790 of capital expenditures.

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Financing activities provided $134,645 of cash, primarily from $5,000 in common stock issuances for cash, $26,372 in new notes payable, and $103,273 in net advances from related parties.

Liquidity Outlook

We expect our primary liquidity needs over the next 12 months to include: 

(i)funding operating losses as AI UltraProd’s revenues ramp and we invest in growth; 

(ii)financing working capital, including the conversion of advances to suppliers into inventory and fulfillment of contract liabilities; 

(iii)servicing short‑term borrowings and related‑party notes; and 

(iv)funding general corporate expenses, public company compliance, and integration costs.  

Based on our current cash on hand, expected operating cash flows, and access to external financing, we believe we will require additional capital to fund our plan of operations. We are actively evaluating equity and debt financing alternatives, strategic partnerships, and other capital sources to support operations and growth initiatives. There can be no assurance that additional financing will be available on acceptable terms, or at all. Absent sufficient additional capital and/or a timely increase in revenues and gross profit, we may be required to curtail or delay certain activities, which could materially affect our business, results of operations, and financial condition.

As discussed in Note 2 to our consolidated financial statements, our recurring losses from operations and limited operating cash flows raise substantial doubt about our ability to continue as a going concern. Management’s plans to alleviate this doubt include pursuing capital raises, executing on our sales pipeline (including the conversion of advances to suppliers into 

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revenue‑generating inventory), and continuing disciplined cost management. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

We do not have any off‑balance sheet arrangements. We lease office and production facilities in the United States, Hong Kong, and the PRC. We intend to evaluate and, if required, recognize lease liabilities and right‑of‑use assets under ASC 842 to the extent not already reflected. We had no material capital expenditure commitments as of June 30, 2025, and we are not party to any long‑term take‑or‑