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NOTE 2 – GOING CONCERN
6 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NOTE 2 – GOING CONCERN

NOTE 2 – GOING CONCERN

 

The accompanying condensed consolidated financial statements have been prepared assuming that the Company will continue as a going concern. In accordance with ASC 205-40, the Company has evaluated whether conditions or events exist that raise substantial doubt about its ability to continue as a going concern within one year after the date these financial statements are issued.

 

For the six months ended June 30, 2026, the Company incurred a net loss of $1,441,466, of which $1,431,385 was attributable to SecureTech shareholders, and used $2,228,293 of cash in operating activities. As of June 30, 2026, the Company had cash and equivalents of $311,711 and an accumulated deficit of $3,033,176. The Company has no committed source of additional financing, and its cash on hand is not sufficient to fund operations at the current rate of use for the twelve months following the date these financial statements are issued.

 

As of June 30, 2026, the Company had current assets of $9,458,668 and current liabilities of $8,625,056. Although current assets exceeded current liabilities, current assets consist principally of accounts receivable, inventories and prepayments rather than cash, and the Company does not expect to convert those assets to cash quickly enough to meet its obligations as they come due.

 

These conditions raise substantial doubt about the Company’s ability to continue as a going concern.

 

Management’s plans to address these conditions include raising additional capital through the issuance of equity securities, obtaining additional debt financing, refinancing or extending the maturities of the Company’s short-term bank borrowings, reducing operating expenditures, and increasing revenue as the AI UltraProd operations scale. The Company has not obtained commitments for additional financing, and there can be no assurance that management’s plans will be implemented successfully or on terms acceptable to the Company. Accordingly, management has concluded that its plans do not alleviate the substantial doubt about the Company’s ability to continue as a going concern.

 

The condensed consolidated financial statements do not include any adjustments to the amounts or classification of assets or liabilities that might be necessary should the Company be unable to continue as a going concern.