Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 11, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 000-55927 | |
Entity Registrant Name | SecureTech Innovations, Inc. | |
Entity Central Index Key | 0001703157 | |
Entity Tax Identification Number | 82-0972782 | |
Entity Incorporation, State or Country Code | WY | |
Entity Address, Address Line One | 2355 Highway 36 West | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Roseville | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 55113 | |
City Area Code | (651) | |
Local Phone Number | 317-8990 | |
Title of 12(b) Security | Common Stock, $0.001 par value | |
Trading Symbol | SCTH | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 111,749,800 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and equivalents | $ 197,169 | $ 214,026 |
Inventories | 35,083 | 39,975 |
Total current assets | 232,252 | 254,001 |
Property and equipment, net | 3,309 | |
Total assets | 235,561 | 254,001 |
Current liabilities: | ||
Accounts payable | 1,268 | 1,160 |
Credit cards payable | 10,765 | |
Taxes payable | 2,547 | 2,337 |
Total current liabilities | 14,580 | 3,497 |
Total liabilities | 14,580 | 3,497 |
Stockholders’ equity: | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized | ||
Common stock, $0.001 par value, 500,000,000 shares authorized; 111,749,800 and 113,336,300 shares issued and outstanding, respectively | 111,750 | 113,336 |
Additional paid-in capital | 726,474 | 592,899 |
Accumulated deficit | (617,243) | (455,731) |
Total stockholders’ equity | 220,981 | 250,504 |
Total liabilities and stockholders’ equity | $ 235,561 | $ 254,001 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Shares, Issued | 111,749,800 | 113,336,300 |
Common Stock, Shares, Outstanding | 111,749,800 | 113,336,300 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||
Sales | $ 7,803 | $ 9,482 | $ 17,153 | $ 20,532 |
Cost of goods sold | 2,068 | 2,534 | 4,690 | 5,506 |
Gross profit | 5,735 | 6,948 | 12,463 | 15,026 |
Expenses: | ||||
General and administrative | 103,647 | 31,533 | 166,238 | 49,008 |
Research and development | 5,302 | 77 | 8,952 | 77 |
Total expenses | 108,949 | 31,610 | 175,190 | 49,085 |
(Loss) from operations | (103,214) | (24,662) | (162,727) | (34,059) |
Other income (expense) | 1,215 | 1,215 | ||
Provision for income taxes | ||||
Net (loss) | $ (101,999) | $ (24,662) | $ (161,512) | $ (34,059) |
(Loss) per common share, basic and diluted | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 111,657,284 | 170,785,937 | 112,076,577 | 170,615,068 |
CONSOLIDATED STATEMENT OF STOCK
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 170,442 | $ 312,543 | $ 347,018 | $ 135,967 |
Shares, Issued at Dec. 31, 2020 | 170,442,300 | |||
Issuance of common shares for cash | $ 889 | 221,361 | 222,250 | |
Issuance of common shares for cash, shares | 889,000 | |||
Exercise of $0.20 warrants into common shares | $ 5 | 995 | 1,000 | |
Exercise of $0.20 warrants into common shares, shares | 5,000 | |||
Cancellation of common shares | $ (58,000) | 58,000 | ||
Cancellation of common shares, shares | (58,000,000) | |||
Net loss | (108,713) | (108,713) | ||
Ending balance, value at Dec. 31, 2021 | $ 113,336 | 592,899 | 455,731 | 250,504 |
Shares, Issued at Dec. 31, 2021 | 113,336,300 | |||
Issuance of common shares for cash | $ 114 | 113,387 | $ 113,501 | |
Issuance of common shares for cash, shares | 113,500 | 113,500 | ||
Cancellation of common shares | $ (1,700) | 1,700 | ||
Cancellation of common shares, shares | (1,700,000) | (1,700,000) | ||
Net loss | (161,512) | $ (161,512) | ||
Stock option expense | 18,488 | 18,488 | ||
Ending balance, value at Jun. 30, 2022 | $ 111,750 | $ 726,474 | $ 617,243 | $ 220,981 |
Shares, Issued at Jun. 30, 2022 | 111,749,800 |
CONSOLIDATED STATEMENT OF STO_2
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (Parenthetical) | Dec. 31, 2021 $ / shares |
Statement of Stockholders' Equity [Abstract] | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.20 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net (loss) | $ (161,512) | $ (34,059) |
Adjustments to reconcile net (loss) to net cash used in operating activities: | ||
Depreciation | 114 | |
Stock option expense | 18,488 | |
Changes in operating assets and liabilities: | ||
Decrease (Increase) in inventories | 4,892 | 5,594 |
Increase (decrease) in accounts payable | 108 | 115 |
Increase (decrease) in credit cards payable | 10,765 | |
Increase (decrease) in taxes payable | 210 | 16 |
Net cash used in operating activities | (126,935) | (28,334) |
Cash flows from investing activities: | ||
Acquisition of office equipment | (3,423) | |
Net cash used in investing activities | (3,423) | |
Cash flows from financing activities: | ||
Issuance of common stock for cash | 113,501 | 172,250 |
Net cash provided by financing activities | 113,501 | 172,250 |
Net increase (decrease) in cash | (16,857) | 143,916 |
Cash – beginning of period | 214,026 | 89,804 |
Cash – end of period | 197,169 | 233,720 |
Non-cash financing activities: | ||
Cancellation of common shares | $ 1,700 |
NOTE 1 _ Summary of Significant
NOTE 1 – Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
NOTE 1 – Summary of Significant Accounting Policies | NOTE 1 – Summary of Significant Accounting Policies Organization SecureTech Innovations, Inc. (“ Company SecureTech Piranha SecureTech is an emerging growth company focused on developing and marketing advanced security and safety technologies. SecureTech’s products preserve life, protect property, and prevent crime. Under the Top Kontrol brand, SecureTech currently sells the world’s only anti-theft and anti-carjacking automobile security and safety system. Under its wholly owned Piranha subsidiaries, SecureTech intends to develop and acquire secure green energy data centers, advanced cybersecurity technologies, and blockchain and cryptocurrency systems and platforms for mining, storage, and trading exchanges. Unaudited Interim Financial Information The unaudited condensed interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“ GAAP The balance sheet as of December 31, 2021, has been derived from audited financial statements. Operating results for the six months ended June 30, 2022, are not necessarily indicative of results that may be expected for the year ending December 31, 2022. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2021, filed with the Company’s Annual Report on Form 10-K with the Securities and Exchange Commission on March 30, 2022. Impact of the COVID-19 (Coronavirus) Pandemic In December 2019, a novel strain of coronavirus, which causes the disease known as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 coronavirus has spread globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic causing the U.S. government to impose travel restrictions between the United States, Europe, and many other countries worldwide, which have subsequently cycled between being lifted, reimposed, and modified on an ongoing basis. As of June 30, 2022, the effects of the COVID-19 situation continue to negatively affect the global economy, significantly disrupt global supply chains, and create major financial and retail marketplace disruptions. Because we began manufacturing and selling Top Kontrol during the fiscal year ended December 31, 2020, we cannot determine, compare, or estimate with any degree of accuracy to what extent the pandemic may be hindering our sales efforts. While we believe this pandemic has had a material impact on our business, particularly relating to sales of Top Kontrol, we do not have enough operating history to accurately evaluate or quantify the extent to which this pandemic may have impacted the following areas of our business: • Raw material and component supply chains • Product sales • Training and educating prospective Top Kontrol Certified Technicians • Marketing and advertising efficiencies Uncertainties regarding the economic impact of COVID-19 are likely to result in sustained market turmoil through the fiscal year ending December 31, 2022, while many businesses continue to operate at diminished capacities and the global supply chain remains fractured. Even though medical experts have a growing consensus that the pandemic is becoming more of an endemic, many market experts still believe businesses will continue to experience adverse effects and supply chain disruptions resulting from the prolonged repercussions of the COVID-19 pandemic into the fiscal year ending December 31, 2023. Basis of Presentation US GAAP SEC Use of Estimates The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these estimates. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. As of June 30, 2022, the Company had no cash equivalents. Fair Value of Financial Instruments ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: Level Description Level 1 Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. Inventory and Cost of Sales Inventories are stated at the lower of cost or realizable value, using the weighted average cost method. When an impairment indicator suggests that the carrying amounts of inventories might not be recoverable, the Company reviews such carrying amounts and estimates the net realizable value based on the most reliable evidence available at that time. An impairment loss is recorded if the net realizable value is less than the carrying value. Impairment indicators considered for these purposes are, among others, obsolescence, decrease in market prices, damage, and a firm commitment to sell. Net Loss per Share Calculation Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per shares is calculated similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. SecureTech excludes all potentially dilutive securities from its diluted net loss per share computation since their effect would be anti-dilutive because SecureTech recorded a loss for the six months ended June 30, 2022. Revenue Recognition Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. The Company’s primary source of revenue is from the sale of our Top Kontrol product. We began selling Top Kontrol in late April 2020. Top Kontrol requires installation by a Certified Top Kontrol Technician. To become a Certified Top Kontrol Technician, an automotive technician must complete a one-day hands-on course hosted by the Company. Failure to have Top Kontrol installed by a Certified Top Kontrol Technician voids the product’s limited liability warranty. Because of this professional installation requirement, the Company sells its products to and through Authorized Dealers and Certified Top Kontrol Technicians. In the instances where the Company sells directly to the end-user, product installation must be performed by authorized Company personnel. Revenue is recognized when performance obligations under the terms of a contract with our customers are satisfied. Revenue is recorded net of marketing allowances, volume discounts, and other forms of variable consideration. Generally, this occurs with the transfer of control of our product to the customer and payment has been received. The Company presently does not offer terms or credit to any of its customers. Revenue Recognition; ASC 606 Five-Step Model Under ASC 606, the Company recognizes revenue from the sale of service contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. Revenue Recognition; General Right of Return Customers are allowed to return goods that are defective (warranty returns). In some instances, customers may be allowed to return a limited number of units for periodic stock adjustment returns. Such stock adjustment returns would be limited to no more than 5% of their total units sold. As is standard in the industry, we only will accept returns from active customers. If a customer discontinues conducting business with us, we have no further obligation to accept additional product returns from that customer. Income Taxes The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the following majority-owned subsidiaries as of June 30, 2022: Subsidiary Percentage Owned Piranha Blockchain, Inc. 100.0% Piranha Blockchain, Ltd. 100.0% Fiscal Year The Company elected December 31st for its fiscal year-end. Recent Accounting Pronouncements There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
NOTE 2 _ GOING CONCERN
NOTE 2 – GOING CONCERN | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 2 – GOING CONCERN | NOTE 2 – GOING CONCERN The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the ordinary course of business. As shown in the accompanying financial statements during the fiscal period ended June 30, 2022, the Company has not established a source of revenues sufficient to cover its operating costs. As such, it has incurred an operating loss since its inception. Further, as of June 30, 2022, the Company had an accumulated deficit of ($617,243) The Company’s existence depends on Management’s ability to develop profitable operations and obtain additional financing sources. There can be no assurance that the Company’s financing efforts will result in profitable operations or resolve the Company’s liquidity problems. The accompanying statements do not include any adjustments that might result should the Company be unable to continue as a going concern. |
NOTE 3 _ INVENTORIES
NOTE 3 – INVENTORIES | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
NOTE 3 – INVENTORIES | NOTE 3 – INVENTORIES Inventory is stated at the lower of cost or realizable value, using the weighted average cost method. When an impairment indicator suggests that the carrying amounts of inventories might not be recoverable, the Company reviews such carrying amounts and estimates the net realizable value based on the most reliable evidence available at that time. An impairment loss is recorded if the net realizable value is less than the carrying value. Impairment indicators considered for these purposes are, among others, obsolescence, decrease in market prices, damage, and a firm commitment to sell. The following table summarizes the Company’s inventories as of June 30, 2022 and December 31, 2021: June 30, 2022 December 31, 2021 Inventories: Raw materials and work-in-progress $ 1,754 $ 1,955 Finished goods 33,329 38,020 Gross inventories 35,083 39,975 Inventory valuation reserves — — Inventories, net $ 35,083 $ 39,975 |
NOTE 4 _ STOCKHOLDERS_ EQUITY
NOTE 4 – STOCKHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
NOTE 4 – STOCKHOLDERS’ EQUITY | NOTE 4 – STOCKHOLDERS’ EQUITY Preferred stock The Company has authorized 50,000,000 $0.001 As of June 30, 2022, the Company had no classes and - 0 Common stock The Company has authorized 500,000,000 $0.001 Share Issuances During the six months ended June 30, 2022, the Company sold 113,500 $0.001 $1.00 Share Cancellations During the six months ended June 30, 2022, the Company canceled an aggregate of 1,700,000 As of June 30, 2022, the Company had 111,749,800 |
NOTE 5 _ WARRANTS
NOTE 5 – WARRANTS | 6 Months Ended |
Jun. 30, 2022 | |
Note 5 Warrants | |
NOTE 5 – WARRANTS | NOTE 5 – WARRANTS The following table summarizes information with respect to outstanding warrants to purchase shares of the Company’s common stock as of June 30, 2022. Exercise Price Number Outstanding Expiration Date $ 0.50 439,300 December 31, 2022 439,300 Warrant Issuances, Exercises, and Expirations Private Placement Warrant Issuances During the fiscal year ended December 31, 2020, the Company undertook a private placement of its securities through a private placement Unit offering. Each Unit included one share of the Company's common stock and four stock purchase warrants with incremental exercise prices and expiration dates. An aggregate of 1,757,200 The warrants were valued using the Black-Scholes model with a 53.0 0.16% 0.21 19,257 Warrant Expirations During the fiscal period ended June 30, 2022, an aggregate of 878,600 warrants expired with an average exercise price of $0.35 a share. A summary of the warrant activity for the fiscal period ended June 30, 2022, is as follows: The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on warrants with an exercise price less than the Company’s stock price of $1.75 (based on the bid price quoted on the OTC Pink Tier of the OTC Market Group, Inc.) as of June 30, 2022, which the warrant holders would have received had those warrant holders exercised their warrants as of that date. |
NOTE 6 _ STOCK OPTIONS
NOTE 6 – STOCK OPTIONS | 6 Months Ended |
Jun. 30, 2022 | |
Note 6 Stock Options | |
NOTE 6 – STOCK OPTIONS | NOTE 6 – STOCK OPTIONS Employee Stock Options Issuances During the fiscal period ended June 30, 2022, the Company issued an aggregate of 1,500,000 1.35 The warrants were valued using the Black-Scholes model with a 316.0% 2.8% 18,488 The following table summarizes information with respect to outstanding stock options to purchase shares of the Company’s common stock as of June 30, 2022. Outstanding Stock Options Exercise Price Number Outstanding Vesting Date Remaining Life in Years $ 1.35 50,000 December 31, 2022 10.5 $ 1.35 75,000 December 31, 2023 10.5 $ 1.35 100,000 December 31, 2024 10.5 $ 1.35 125,000 December 31, 2025 10.5 $ 1.35 150,000 December 31, 2026 10.5 $ 1.35 200,000 December 31, 2027 10.5 $ 1.35 200,000 December 31, 2028 10.5 $ 1.35 200,000 December 31, 2029 10.5 $ 1.35 200,000 December 31, 2030 10.5 $ 1.35 200,000 December 31, 2031 10.5 Total 1,500,000 |
NOTE 7 _ RELATED PARTY FOUNDER_
NOTE 7 – RELATED PARTY FOUNDER’S SHARE ISSUANCES | 6 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
NOTE 7 – RELATED PARTY FOUNDER’S SHARE ISSUANCES | NOTE 7 – RELATED PARTY FOUNDER’S SHARE ISSUANCES On March 2, 2017, the Company issued an aggregate of 175,000,000 0.001 0 Of these original Founder’s Shares 80,000,000 75,000,000 20,000,000 |
NOTE 8 _ CONTINGENCY_LEGAL
NOTE 8 – CONTINGENCY/LEGAL | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
NOTE 8 – CONTINGENCY/LEGAL | NOTE 8 – CONTINGENCY/LEGAL As of June 30, 2022, and during the preceding ten years, no director, person nominated to become a director or executive officer, or promoter of the Company has been involved in any legal proceeding that would require disclosure hereunder. From time to time, the Company may become subject to various legal proceedings and claims that arise in the ordinary course of our business activities. However, litigation is subject to inherent uncertainties for which the outcome cannot be predicted. Any adverse result in these or other legal matters could arise and cause harm to the Company’s business. The Company currently is not a party to any claim or litigation, the outcome of which, if determined adversely to the Company, would individually or in the aggregate be reasonably expected to have a material adverse effect on the Company’s business. |
NOTE 9 _ SUBSEQUENT EVENTS
NOTE 9 – SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
NOTE 9 – SUBSEQUENT EVENTS | NOTE 9 – SUBSEQUENT EVENTS No other material events or transactions have occurred during this subsequent event reporting period that required recognition or disclosure in the financial statements. |
NOTE 1 _ Summary of Significa_2
NOTE 1 – Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization | Organization SecureTech Innovations, Inc. (“ Company SecureTech Piranha SecureTech is an emerging growth company focused on developing and marketing advanced security and safety technologies. SecureTech’s products preserve life, protect property, and prevent crime. Under the Top Kontrol brand, SecureTech currently sells the world’s only anti-theft and anti-carjacking automobile security and safety system. Under its wholly owned Piranha subsidiaries, SecureTech intends to develop and acquire secure green energy data centers, advanced cybersecurity technologies, and blockchain and cryptocurrency systems and platforms for mining, storage, and trading exchanges. |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The unaudited condensed interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“ GAAP The balance sheet as of December 31, 2021, has been derived from audited financial statements. Operating results for the six months ended June 30, 2022, are not necessarily indicative of results that may be expected for the year ending December 31, 2022. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2021, filed with the Company’s Annual Report on Form 10-K with the Securities and Exchange Commission on March 30, 2022. |
Impact of the COVID-19 (Coronavirus) Pandemic | Impact of the COVID-19 (Coronavirus) Pandemic In December 2019, a novel strain of coronavirus, which causes the disease known as COVID-19, was reported to have surfaced in Wuhan, China. Since then, COVID-19 coronavirus has spread globally. In March 2020, the World Health Organization declared the COVID-19 outbreak a pandemic causing the U.S. government to impose travel restrictions between the United States, Europe, and many other countries worldwide, which have subsequently cycled between being lifted, reimposed, and modified on an ongoing basis. As of June 30, 2022, the effects of the COVID-19 situation continue to negatively affect the global economy, significantly disrupt global supply chains, and create major financial and retail marketplace disruptions. Because we began manufacturing and selling Top Kontrol during the fiscal year ended December 31, 2020, we cannot determine, compare, or estimate with any degree of accuracy to what extent the pandemic may be hindering our sales efforts. While we believe this pandemic has had a material impact on our business, particularly relating to sales of Top Kontrol, we do not have enough operating history to accurately evaluate or quantify the extent to which this pandemic may have impacted the following areas of our business: • Raw material and component supply chains • Product sales • Training and educating prospective Top Kontrol Certified Technicians • Marketing and advertising efficiencies Uncertainties regarding the economic impact of COVID-19 are likely to result in sustained market turmoil through the fiscal year ending December 31, 2022, while many businesses continue to operate at diminished capacities and the global supply chain remains fractured. Even though medical experts have a growing consensus that the pandemic is becoming more of an endemic, many market experts still believe businesses will continue to experience adverse effects and supply chain disruptions resulting from the prolonged repercussions of the COVID-19 pandemic into the fiscal year ending December 31, 2023. |
Basis of Presentation | Basis of Presentation US GAAP SEC |
Use of Estimates | Use of Estimates The accompanying financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of financial statements for a period necessarily involves the use of estimates which have been made using careful judgment. Actual results may vary from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents. As of June 30, 2022, the Company had no cash equivalents. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820, “Fair Value Measurements” and ASC 825, Financial Instruments, requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. It establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. It prioritizes the inputs into three levels that may be used to measure fair value: Level Description Level 1 Applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 Applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 Applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. |
Inventory and Cost of Sales | Inventory and Cost of Sales Inventories are stated at the lower of cost or realizable value, using the weighted average cost method. When an impairment indicator suggests that the carrying amounts of inventories might not be recoverable, the Company reviews such carrying amounts and estimates the net realizable value based on the most reliable evidence available at that time. An impairment loss is recorded if the net realizable value is less than the carrying value. Impairment indicators considered for these purposes are, among others, obsolescence, decrease in market prices, damage, and a firm commitment to sell. |
Net Loss per Share Calculation | Net Loss per Share Calculation Basic net loss per common share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per shares is calculated similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. SecureTech excludes all potentially dilutive securities from its diluted net loss per share computation since their effect would be anti-dilutive because SecureTech recorded a loss for the six months ended June 30, 2022. |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted ASC 606 — Revenue from Contracts with Customers. The Company’s primary source of revenue is from the sale of our Top Kontrol product. We began selling Top Kontrol in late April 2020. Top Kontrol requires installation by a Certified Top Kontrol Technician. To become a Certified Top Kontrol Technician, an automotive technician must complete a one-day hands-on course hosted by the Company. Failure to have Top Kontrol installed by a Certified Top Kontrol Technician voids the product’s limited liability warranty. Because of this professional installation requirement, the Company sells its products to and through Authorized Dealers and Certified Top Kontrol Technicians. In the instances where the Company sells directly to the end-user, product installation must be performed by authorized Company personnel. Revenue is recognized when performance obligations under the terms of a contract with our customers are satisfied. Revenue is recorded net of marketing allowances, volume discounts, and other forms of variable consideration. Generally, this occurs with the transfer of control of our product to the customer and payment has been received. The Company presently does not offer terms or credit to any of its customers. Revenue Recognition; ASC 606 Five-Step Model Under ASC 606, the Company recognizes revenue from the sale of service contracts by applying the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to each performance obligation in the contract; and (5) recognize revenue when each performance obligation is satisfied. Revenue Recognition; General Right of Return Customers are allowed to return goods that are defective (warranty returns). In some instances, customers may be allowed to return a limited number of units for periodic stock adjustment returns. Such stock adjustment returns would be limited to no more than 5% of their total units sold. As is standard in the industry, we only will accept returns from active customers. If a customer discontinues conducting business with us, we have no further obligation to accept additional product returns from that customer. |
Income Taxes | Income Taxes The Company accounts for income taxes pursuant to FASB ASC 740, Income Taxes. Under FASB ASC 740-10-25, deferred tax assets and liabilities are determined based on temporary differences between the bases of certain assets and liabilities for income tax and financial reporting purposes. The deferred tax assets and liabilities are classified according to the financial statement classification of the assets and liabilities generating the differences. The Company maintains a valuation allowance with respect to deferred tax assets. The Company establishes a valuation allowance based upon the potential likelihood of realizing the deferred tax asset and taking into consideration the Company’s financial position and results of operations for the current period. Future realization of the deferred tax benefit depends on the existence of sufficient taxable income within the carryforward period under the Federal tax laws. Changes in circumstances, such as the Company generating taxable income, could cause a change in judgment about its ability to realize the related deferred tax asset. Any change in the valuation allowance will be included in income in the year of the change in estimate. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the following majority-owned subsidiaries as of June 30, 2022: Subsidiary Percentage Owned Piranha Blockchain, Inc. 100.0% Piranha Blockchain, Ltd. 100.0% |
Fiscal Year | Fiscal Year The Company elected December 31st for its fiscal year-end. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
NOTE 3 _ INVENTORIES (Tables)
NOTE 3 – INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | June 30, 2022 December 31, 2021 Inventories: Raw materials and work-in-progress $ 1,754 $ 1,955 Finished goods 33,329 38,020 Gross inventories 35,083 39,975 Inventory valuation reserves — — Inventories, net $ 35,083 $ 39,975 |
NOTE 5 _ WARRANTS (Tables)
NOTE 5 – WARRANTS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Note 5 Warrants | |
Warrants Activity | Warrant Activity Warrants Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Warrants Weighted-Average Exercise Prices Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding on January 1, 2022 1,317,900 $ 0.40 0.3 $ 1,124,465 Issued — $ — — $ — Exercised — $ — — $ — Expired (878,600 ) $ 0.35 — $ 1,230,040 Outstanding on June 30, 2022 439,300 1.16 4.6 549,125 |
NOTE 6 _ STOCK OPTIONS (Tables)
NOTE 6 – STOCK OPTIONS (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Note 6 Stock Options | |
Stock Options | Outstanding Stock Options Exercise Price Number Outstanding Vesting Date Remaining Life in Years $ 1.35 50,000 December 31, 2022 10.5 $ 1.35 75,000 December 31, 2023 10.5 $ 1.35 100,000 December 31, 2024 10.5 $ 1.35 125,000 December 31, 2025 10.5 $ 1.35 150,000 December 31, 2026 10.5 $ 1.35 200,000 December 31, 2027 10.5 $ 1.35 200,000 December 31, 2028 10.5 $ 1.35 200,000 December 31, 2029 10.5 $ 1.35 200,000 December 31, 2030 10.5 $ 1.35 200,000 December 31, 2031 10.5 Total 1,500,000 |
NOTE 2 _ GOING CONCERN (Details
NOTE 2 – GOING CONCERN (Details Narrative) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Retained Earnings (Accumulated Deficit) | $ (617,243) | $ (455,731) |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-progress | $ 1,754 | $ 1,955 |
Finished goods | 33,329 | 38,020 |
Gross inventories | 35,083 | 39,975 |
Inventory valuation reserves | ||
Inventories, net | $ 35,083 | $ 39,975 |
NOTE 4 _ STOCKHOLDERS_ EQUITY (
NOTE 4 – STOCKHOLDERS’ EQUITY (Details Narrative) - $ / shares | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Preferred Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Issued | 0 | |
Common Stock, Shares Authorized | 500,000,000 | 500,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Stock Issued During Period, Shares, New Issues | 113,500 | |
Sale of Stock, Price Per Share | $ 1 | |
Weighted Average Number of Shares, Common Stock Subject to Repurchase or Cancellation | 1,700,000 | |
Common Stock, Shares, Outstanding | 111,749,800 | 113,336,300 |
Warrants Activity (Details)
Warrants Activity (Details) - Warrant [Member] | 6 Months Ended |
Jun. 30, 2022 USD ($) $ / shares shares | |
Warrants | |
Class of Warrant or Right, Outstanding | shares | 1,317,900 |
Issued | shares | 0 |
Exercised | shares | |
Expired | shares | (878,600) |
Class of Warrant or Right, Outstanding | shares | 439,300 |
Weighted-Average Exercise Prices | |
Temporary Equity, Redemption Price Per Share | $ 0.40 |
Issued | |
Exercised | |
Expired | 0.35 |
Temporary Equity, Redemption Price Per Share | $ 1.16 |
Weighted-Average Remaining Contractual Term (Years) | |
Weighted-Average Remaining Contractual Term, beginning | 3 months 18 days |
Weighted-Average Remaining Contractual Term, ending | 4 years 7 months 6 days |
Aggregate Intrinsic Value | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 1,124,465 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | |
Expired | $ 1,230,040 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 549,125 |
NOTE 5 _ WARRANTS (Details Narr
NOTE 5 – WARRANTS (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Note 5 Warrants | ||
Class of Warrant or Right, Outstanding | 1,757,200 | |
Available-for-Sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Other, Fair Value Volatility, Rate | 53% | |
[custom:DiscountRateMinimum] | 0.16% | |
[custom:DiscountRateMaximum] | 0.21% | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 19,257 |
Stock Options (Details)
Stock Options (Details) | 6 Months Ended |
Jun. 30, 2022 shares | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 1,500,000 |
Remaing Life in years | 10 years 6 months |
50,000 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 50,000 |
Vesting Date | Dec. 31, 2022 |
75,000 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 75,000 |
Vesting Date | Dec. 31, 2023 |
100,000 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 100,000 |
Vesting Date | Dec. 31, 2024 |
125,000 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 125,000 |
Vesting Date | Dec. 31, 2025 |
150,000 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 150,000 |
Vesting Date | Dec. 31, 2026 |
200,000 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 200,000 |
Vesting Date | Dec. 31, 2027 |
200,000 Additional 1 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 200,000 |
Vesting Date | Dec. 31, 2028 |
200,000 Additional 2 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 200,000 |
Vesting Date | Dec. 31, 2029 |
200,000 Additional 3 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 200,000 |
Vesting Date | Dec. 31, 2030 |
200,000 Additional 4 | |
Option Indexed to Issuer's Equity [Line Items] | |
Number Outstanding | 200,000 |
Vesting Date | Dec. 31, 2031 |
NOTE 6 _ STOCK OPTIONS (Details
NOTE 6 – STOCK OPTIONS (Details Narrative) - USD ($) | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Note 6 Stock Options | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercisable, Number | 1,500,000 | |
Exercise Price | $ 1.35 | |
Volatility Rate | 316% | |
Discount Rate | 2.80% | |
Stock or Unit Option Plan Expense | $ 18,488 |
NOTE 7 _ RELATED PARTY FOUNDE_2
NOTE 7 – RELATED PARTY FOUNDER’S SHARE ISSUANCES (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Jun. 30, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |
Founders [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of Founders shares, Shares | 175,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | ||
Issuance of Founders shares, amount | $ 0 | ||
Officer [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of Founders shares, Shares | 80,000,000 | ||
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of Founders shares, Shares | 75,000,000 | ||
Outside Consultant [Member] | |||
Related Party Transaction [Line Items] | |||
Issuance of Founders shares, Shares | 20,000,000 |