SecureTech Swings to Profit on AI UltraProd Acquisition, Revenue Soars

TL;DR

**SCTH just went from zero to hero with the AI UltraProd acquisition, but watch that debt pile up.**

AI Summary

SecureTech Innovations, Inc. (SCTH) reported a significant turnaround for the nine months ended September 30, 2025, achieving a net profit of $354,800, a substantial improvement from a net loss of $258,892 in the same period of 2024. This was driven by a massive increase in revenues, which surged to $3,736,527 for the nine months ended September 30, 2025, compared to just $14,235 in the prior year, primarily due to the acquisition of AI UltraProd on June 23, 2025. Gross profit also saw a dramatic rise to $1,005,449 from $10,814 year-over-year. Total assets expanded significantly to $15,448,142 as of September 30, 2025, from $3,617 at December 31, 2024, largely attributable to the AI UltraProd acquisition, which brought in $8,450,439 in goodwill and $1,255,997 in inventories. The company's total liabilities increased to $4,487,339 from $443,659, mainly due to assumed liabilities from the acquisition, including $2,165,228 in short-term borrowings. Strategic outlook focuses on AI, industrial 3D printing, cybersecurity, and digital infrastructure through its subsidiaries like AI UltraProd, Piranha Blockchain, and Top Kontrol.

Why It Matters

This filing signals a pivotal shift for SecureTech Innovations, moving from a micro-cap with minimal revenue to a company with significant operations and a positive net income, largely due to the AI UltraProd acquisition. For investors, this demonstrates a clear execution of growth strategy, but also introduces substantial integration risks and increased debt. Employees of AI UltraProd are now part of a publicly traded entity, potentially impacting their compensation and future opportunities. Customers could benefit from SecureTech's expanded portfolio in AI-powered industrial 3D manufacturing, enhancing competitive offerings against larger, more established players in the tech sector. The broader market will watch if SCTH can successfully integrate its acquisitions and sustain profitability in highly competitive AI and cybersecurity landscapes.

Risk Assessment

Risk Level: medium — The risk level is medium due to the significant increase in liabilities, from $443,659 at December 31, 2024, to $4,487,339 at September 30, 2025, largely driven by $2,165,228 in assumed short-term borrowings from the AI UltraProd acquisition. While the company achieved a net profit of $354,800, the rapid expansion through acquisition introduces integration risks and financial leverage concerns, despite the substantial revenue growth to $3,736,527.

Analyst Insight

Investors should closely monitor SecureTech's ability to integrate AI UltraProd and manage its increased debt load. While the revenue and profit turnaround is positive, further due diligence on the sustainability of these gains and the company's cash flow generation post-acquisition is crucial before making significant investment decisions.

Financial Highlights

debt To Equity

0.41

revenue

$3,736,527

operating Margin

N/A

total Assets

$15,448,142

total Debt

$4,487,339

net Income

$354,800

eps

$0.01

gross Margin

26.91%

cash Position

$394,370

revenue Growth

N/A

Revenue Breakdown

Key Numbers

• $3,736,527 — Revenues for nine months ended Sep 30, 2025 (Increased from $14,235 in the prior year, primarily due to AI UltraProd acquisition.)
• $354,800 — Net profit for nine months ended Sep 30, 2025 (Turnaround from a net loss of $258,892 in the same period of 2024.)
• $15,448,142 — Total assets as of Sep 30, 2025 (Significantly increased from $3,617 at Dec 31, 2024, largely due to AI UltraProd acquisition.)
• $8,450,439 — Goodwill from AI UltraProd acquisition (A major component of the increase in non-current assets.)
• $4,487,339 — Total liabilities as of Sep 30, 2025 (Increased from $443,659 at Dec 31, 2024, mainly due to assumed liabilities from acquisition.)
• $2,165,228 — Short-term borrowings assumed from AI UltraProd (A significant portion of the increase in current liabilities.)
• 31,370,414 — Common shares outstanding as of Nov 19, 2025 (Reflects changes in share structure, including share exchanges.)
• $0.01 — Basic EPS for nine months ended Sep 30, 2025 (Positive EPS compared to negative EPS in the prior year.)

Key Players & Entities

• SecureTech Innovations, Inc. (company) — Registrant and parent company
• AI UltraProd (company) — Acquired subsidiary specializing in AI-powered industrial 3D manufacturing
• Piranha Blockchain, Inc. (company) — Wholly owned subsidiary developing Web3 security protocols
• Top Kontrol, LLC (company) — Wholly owned subsidiary offering anti-theft vehicle systems
• Zhejiang Jizhu Technology Co., Ltd. (company) — 90% equity interest held by Aiultraprod Group Limited
• United States Securities and Exchange Commission (regulator) — Regulatory body for SEC filings
• Wyoming (other) — State of incorporation for SecureTech Innovations, Inc.
• Hong Kong (other) — Location of Aiultraprod Group Limited

FAQ

Risk Factors

• Integration of Acquired Businesses [high — operational]: The company has recently acquired AI UltraProd and formed several subsidiaries. Successful integration of these entities, including their operations, technologies, and personnel, is critical for realizing the expected synergies and achieving strategic objectives. Failure to integrate effectively could lead to operational disruptions and hinder growth.
• Reliance on Acquisition Financing [medium — financial]: The significant increase in liabilities, particularly short-term borrowings of $2,452,592 assumed from AI UltraProd, indicates a reliance on debt financing. Managing these debt obligations and ensuring sufficient cash flow to service them will be crucial for financial stability.
• Competition in High-Growth Sectors [medium — market]: SecureTech operates in competitive sectors such as AI, industrial 3D printing, cybersecurity, and digital infrastructure. The company faces competition from established players and emerging startups, requiring continuous innovation and effective market strategies to maintain and grow market share.
• Compliance in Diverse Geographies [medium — regulatory]: With subsidiaries and operations potentially spanning different jurisdictions (e.g., Hong Kong, China, Anguilla), SecureTech must navigate varying regulatory landscapes. Compliance with local laws and regulations in each operating region is essential to avoid legal issues and operational disruptions.
• Valuation of Acquired Assets (Goodwill) [medium — financial]: The acquisition of AI UltraProd resulted in $8,450,439 of goodwill. Impairment of this goodwill in the future, if the acquired business underperforms expectations, could lead to significant non-cash charges and negatively impact earnings.
• Dependence on Key Technologies [medium — operational]: The company's strategic focus on AI, blockchain, and patented systems (like Top Kontrol) means its success is tied to the development and market acceptance of these specific technologies. Rapid technological advancements and potential obsolescence pose risks.
• Stockholder Equity Deficit [low — financial]: Despite the recent turnaround, the company had an accumulated deficit of $(1,411,822) as of September 30, 2025. While improved from December 31, 2024, a history of losses can impact investor confidence and access to capital.

Industry Context

SecureTech Innovations operates in dynamic and competitive technology sectors including AI, industrial 3D printing, cybersecurity, and digital infrastructure. These markets are characterized by rapid innovation, significant R&D investment, and a landscape of both established players and agile startups. The company's strategy leverages acquisitions and subsidiary development to gain traction in these high-growth areas.

Regulatory Implications

Operating across multiple jurisdictions, including potential international operations (e.g., China via AI UltraProd), exposes SecureTech to a complex web of regulatory requirements. Compliance with data privacy, technology export controls, and financial reporting standards in each region is critical. The company's focus on cybersecurity also places it under scrutiny regarding data protection and security protocols.

What Investors Should Do

1. Monitor integration progress of AI UltraProd and other acquired/formed entities.
2. Analyze debt levels and cash flow generation capacity.
3. Evaluate the sustainability of revenue growth and profitability.
4. Assess the competitive positioning within its key technology segments.

Key Dates

• 2025-06-23: Acquisition of AI UltraProd — This acquisition was the primary driver for the massive surge in revenues and assets, transforming the company's financial performance.
• 2025-01-27: Incorporation of Terra Nova Technologies, Inc. and Top Kontrol, LLC — Indicates strategic expansion into new technology areas, aligning with the company's focus on AI, industrial 3D printing, and cybersecurity.
• 2025-06-06: Formation of AI UltraProd, Inc. — Establishment of a subsidiary dedicated to AI-powered industrial 3D manufacturing technologies, preceding the acquisition of Aiultraprod Group Limited.
• 2025-09-30: End of Nine-Month Period — Reporting period for the significant revenue growth and net profit turnaround, largely due to the AI UltraProd acquisition.
• 2024-12-31: End of Fiscal Year — Baseline for comparison, showing significantly lower assets and liabilities prior to the major acquisition.

Glossary

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its identifiable net assets. It represents the future economic benefits arising from assets acquired in a business combination that are not individually identified and separately recognized. (A significant component ($8,450,439) of SecureTech's assets post-acquisition, reflecting the premium paid for AI UltraProd.)

Accumulated Deficit

The cumulative net losses of a company that have not been offset by net income. It represents the total losses incurred by the company since its inception. (SecureTech had an accumulated deficit of $(1,411,822) as of September 30, 2025, indicating historical unprofitability, though it has improved.)

Contingent Consideration

An additional amount of payment that may be made to the seller of a business if certain future conditions are met. It is often included in acquisition agreements. (SecureTech recorded $1,652,910 in contingent consideration, suggesting potential future payments related to the AI UltraProd acquisition based on performance.)

Operating lease right-of-use asset

An asset representing a lessee's right to use an underlying asset for the lease term. It is recognized on the balance sheet under ASC 842. (SecureTech has recognized $311,384 in these assets, indicating the company has entered into operating leases for assets.)

Derivative Liability

A liability arising from financial instruments whose value is derived from an underlying asset, index, or rate. These can include options, futures, or certain convertible debt features. (SecureTech has a derivative liability of $84,326, which could be related to financial instruments associated with its financing or acquisitions.)

Non-controlling interests

The portion of equity in a subsidiary that is not attributable to the parent company. It represents the ownership interest of other shareholders in a consolidated subsidiary. (SecureTech has $534,977 in non-controlling interests, indicating it consolidates subsidiaries where it does not own 100% of the equity, such as the 90% stake in Zhejiang Jizhu Technology Co., Ltd. via AI UltraProd.)

Year-Over-Year Comparison

Compared to the fiscal year ended December 31, 2024, SecureTech Innovations, Inc. has experienced a dramatic transformation. Total assets have surged from $3,617 to $15,448,142, primarily due to the AI UltraProd acquisition which added substantial goodwill and inventories. Total liabilities also increased significantly from $443,659 to $4,487,339, reflecting assumed acquisition-related debt. Most notably, the company has shifted from a net loss of $258,892 for the nine months ended September 30, 2024, to a net profit of $354,800 for the same period in 2025, driven by a massive revenue increase from $14,235 to $3,736,527, largely attributable to the same acquisition.

Key Financial Figures

• $0.001 — nge on which registered Common Stock, $0.001 par value SCTH OTCQB Exchange Indica
• $0.005 — 221,422,582 78,170,883 * Less than US$0.005 The accompanying notes to the financia
• $18,395 — assets. Depreciation expenses totaled $18,395 and $737 for the nine months ended Sept
• $737 — preciation expenses totaled $18,395 and $737 for the nine months ended September 30,

Filing Documents

• scth_form10q09302025.htm (10-Q) — 797KB
• ex311.htm (EX-31.1) — 9KB
• ex312.htm (EX-31.2) — 9KB
• ex321.htm (EX-32.1) — 4KB
• ex322.htm (EX-32.2) — 4KB
• stsec10q9302510q93025v4_1.jpg (GRAPHIC) — 46KB
• stsec10q9302510q93025v4_2.jpg (GRAPHIC) — 295KB
• stsec10q9302510q93025v4_3.jpg (GRAPHIC) — 25KB
• stsec10q9302510q93025v4_4.jpg (GRAPHIC) — 66KB
• stsec10q9302510q93025v4_5.jpg (GRAPHIC) — 83KB
• 0001017386-25-000148.txt ( ) — 5042KB
• scth-20250930.xsd (EX-101.SCH) — 25KB
• scth-20250930_cal.xml (EX-101.CAL) — 50KB
• scth-20250930_def.xml (EX-101.DEF) — 61KB
• scth-20250930_lab.xml (EX-101.LAB) — 208KB
• scth-20250930_pre.xml (EX-101.PRE) — 173KB
• scth_form10q09302025_htm.xml (XML) — 449KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Financial Statements 5

Item 1. Financial Statements 5 CONSOLIDATED BALANCE SHEETS 5 CONSOLIDATED STATEMENTS OF OPERATIONS 7 CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) 8 CONSOLIDATED STATEMENTS OF CASH FLOWS 10

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 12

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 12

Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 26

Quantitative and Qualitative Disclosures About Market Risk 41

Item 3. Quantitative and Qualitative Disclosures About Market Risk 41

Controls and Procedures 41

Item 4. Controls and Procedures 41

– OTHER INFORMATION

PART II – OTHER INFORMATION

Legal Proceedings 42

Item 1. Legal Proceedings 42

Risk Factors 42

Item 1A. Risk Factors 42

Unregistered Sales of Equity Securities and Use of Proceeds 42

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 42

Default Upon Senior Securities 43

Item 3. Default Upon Senior Securities 43

Mine Safety Disclosures 43

Item 4. Mine Safety Disclosures 43

Other Information 43

Item 5. Other Information 43

Exhibits 43

Item 6. Exhibits 43 SIGNATURES 45 3 Cautionary Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical fact contained in this Quarterly Report on Form 10-Q, including statements regarding our future results of operations or financial condition, business strategy, and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," or "would," and other similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements (collectively, " forward-looking statements "), but the absence of these words does not mean that a statement is not forward-looking. Our actual results or outcomes could differ materially from those indicated in these forward-looking statements for a variety of reasons, including, among others: Our ability to execute our growth strategies Supply chain disruptions and general price inflation Our ability to maintain favorable relationships with suppliers and manufacturers Competition from more established and better financed competitors Our ability to attract and retain competent and qualified personnel Regulatory changes and developments affecting our business Our ability to obtain additional capital to finance operations Managing a "just right" product inventory size and mix Impacts on our business from epidemics, pandemics, or natural disasters Our ability to remediate the material weakness in our internal control over financial reporting or additional material weaknesses or other deficienci

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION I tem 1. Financial Statements SECURETECH INNOVATIONS, INC. CONSOLIDATED BALANCE SHEETS (Amount in U.S. Dollars, except for number of shares or otherwise noted) ASSETS Note September 30, 2025 (unaudited) December 31, 2024 (audited) Current assets: Cash and equivalents $ 394,370 — Accounts receivable, net 5 1,864,333 — Amounts due from related parties 10 106,703 — Inventories 4 1,505,782 — Prepayments and other current assets 11 2,415,450 1,114 Total current assets $ 6,286,638 $ 1,114 Non-current assets: Equipment, net 1 $ 399,681 $ 2,503 Operating lease right-of-use, net 311,384 — Goodwill 3 8,450,439 — Total non-current assets $ 9,161,504 $ 2,503 Total assets: $ 15,448,142 $ 3,617 The accompanying notes to the financial statements are an integral part of these statements. 5 Table of Contents SECURETECH INNOVATIONS, INC. CONSOLIDATED BALANCE SHEETS (CONTINUED) (Amount in U.S. Dollars, except for number of shares or otherwise noted) LIABILITIES AND STOCKHOLDERS ' EQUITY Note September 30, 2025 (unaudited) December 31, 2024 (audited) Current liabilities: Accounts payable $ 1,112,702 14,205 Accounts payable, related parties 46,598 50,978 Contract liabilities 6 87,996 — Notes payable 27,124 — Notes payable, related parties 188,914 39,611 Convertible debt, net 14 38,955 — Derivative liability 14 84,326 — Operating lease liabilities, current portion 98,894 Short-term borrowings 7 2,452,592 — Accrued expenses and other current liabilities 150,422 338,865 Total current liabilities $ 4,288,523 $ 443,659 Non-current liabilities: Operating lease liabilities, net of current portion $ 198,816 $ — Total non-current liabilities $ 198,816 $ — Total liabilities: $ 4,487,339 $ 443,659 Stockholders' equity (deficit): Preferred stock, $ 0.001 par value, 50,000,000 shares authori

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 2025 (unaudited) NOTE 1 – Summary of Significant Accounting Policies Organization SecureTech Innovations, Inc. (" SecureTech " or the " Company ") was incorporated in the State of Wyoming on March 2, 2017, under the name SecureTech, Inc. On December 20, 2017, the Company amended its Articles of Incorporation to change its name to SecureTech Innovations, Inc. The Company has established several wholly owned subsidiaries to support its strategic growth initiatives: On November 19, 2021, and November 25, 2021, the Company formed Piranha Blockchain, Inc., a Wyoming corporation, and Piranha Blockchain, Ltd., an Anguilla-based international business company, respectively (collectively, " Piranha "). On January 27, 2025, the Company incorporated two additional Wyoming-based subsidiaries: Terra Nova Technologies, Inc. and Top Kontrol, LLC. On June 6, 2025, the Company formed AI UltraProd, Inc., also a Wyoming corporation. On June 23, 2025, through its wholly owned subsidiary AI UltraProd, Inc., the Company acquired 100% of Aiultraprod Group Limited, a Hong Kong limited liability company. Aiultraprod Group Limited owns a 90% equity interest in Zhejiang Jizhu Technology Co., Ltd., a limited liability company organized under the laws of the People's Republic of China (collectively, " AI UltraProd "). SecureTech is a technology-focused company that develops and commercializes advanced solutions across several high-growth sectors, including artificial intelligence, industrial 3D printing and manufacturing, cybersecurity, and digital infrastructure. The Company's business segments include: AI UltraProd: Specializes in AI-powered industrial 3D manufacturing technologies. Piranha Blockchain: Develops Web3 security protocols, blockchain infrastructure, digital asset reserves and management systems, and cybersecurity solutions Top Kontrol: Offers a patented anti-theft and anti-carjacking system capable of autono

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