Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 27, 2021 | |
Document And Entity Information | ||
Entity Registrant Name | SecureTech Innovations, Inc. | |
Entity Central Index Key | 0001703157 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q1 | |
Is Entity a Shell Company? | false | |
Is Entity's Reporting Status Current? | Yes | |
Entity Interactive Data Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 170,587,300 | |
Document Fiscal Year Focus | 2021 | |
Entity Transition Period | false | |
Entity Emerging Growth Company | true | |
Entity Small Business | true |
Balance Sheets
Balance Sheets - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and equivalents | $ 82,584 | $ 89,804 |
Inventories | 46,021 | 48,993 |
Total current assets | 128,605 | 138,797 |
Total assets: | 128,605 | 138,797 |
Current liabilities: | ||
Accounts Payable | 1,219 | 1,335 |
Sales tax payable | 816 | 1,495 |
Total current liabilities | 2,035 | 2,830 |
Total liabilities | 2,035 | 2,830 |
Stockholders' equity (deficit): | ||
Preferred stock, $0.001 par value, 50,000,000 shares authorized | ||
Common stock, $0.001 par value, 500,000,000 shares authorized; 170,442,300 and 170,442,300 shares issued and outstanding, respectively | 170,442 | 170,442 |
Additional paid-in capital | 312,543 | 312,543 |
Accumulated deficit | (356,415) | (347,018) |
Total stockholders' equity (deficit) | 126,570 | 135,967 |
Total liabilities and stockholders' equity (deficit) | $ 128,605 | $ 138,797 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | ||
Preferred stock,outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 170,442,300 | 170,442,300 |
Common stock,outstanding | 170,442,300 | 170,442,300 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues: | ||
Sales | $ 11,050 | |
Cost of goods sold | 2,972 | |
Gross profit | 8,078 | |
Expenses: | ||
General and administrative | 17,475 | 19,113 |
Total operating expenses | 17,475 | 19,113 |
(Loss) from operations | (9,397) | (19,113) |
Other income (expense): | ||
Provision for income taxes | ||
Net (loss) | $ (9,397) | $ (19,113) |
Loss per share, basic and diluted | $ 0 | $ 0 |
Weighted average number of common shares outstanding, basic and diluted | 170,442,300 | 170,003,000 |
Shareholders Equity
Shareholders Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2019 | 170,003,000 | |||
Beginning Balance, Amount at Dec. 31, 2019 | $ 170,003 | $ 247,088 | $ (282,577) | $ 134,514 |
Issuance of common shares for cash, Shares | 439,300 | |||
Issuance of common shares for cash | $ 439 | 65,455 | 65,894 | |
Net loss | (64,441) | (64,441) | ||
Ending Balance, Shares at Dec. 31, 2020 | 170,442,300 | |||
Ending Balance, Amount at Dec. 31, 2020 | $ 170,442 | 312,543 | (347,018) | 135,967 |
Net loss | (9,397) | (9,397) | ||
Ending Balance, Shares at Mar. 31, 2021 | 170,442,300 | |||
Ending Balance, Amount at Mar. 31, 2021 | $ 170,442 | $ 312,543 | $ (356,415) | $ 126,570 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net (loss) | $ (9,397) | $ (19,113) |
Adjustments to reconcile net (loss) to net cash used in operating activities: Changes in operating assets and liabilities: | ||
Decrease (Increase) in inventories | 2,972 | (120) |
(Increase) in deposits | (6,906) | |
Increase (decrease) in accounts payable | (116) | |
Increase (decrease) in sales tax payable | (679) | |
Net cash used in operating activities | (7,220) | (26,139) |
Cash flows from financing activities: | ||
Net increase (decrease) in cash | (7,220) | (26,139) |
Cash- beginning of period | 89,804 | 133,069 |
Cash- end of period | $ 82,584 | $ 106,930 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – Summary of Significant Accounting Policies Organization SecureTech Innovations, Inc. (“ Company SecureTech SecureTech is an emerging growth company focused on developing and marketing personal and automobile security and safety devices and technologies. Through a licensed patent, SecureTech has created its initial product, Top Kontrol. Top Kontrol is unlike any other product on the market – it prioritizes the driver and passengers' safety. Not only does Top Kontrol protect your vehicle from unattended theft like other car alarms, but it is the only anti-theft and personal safety device able to thwart an active carjacking attempt without any action by the driver. Through its advanced design and use of a licensed patent, Top Kontrol can tell the difference between an authorized driver and an unauthorized thief or carjacker using strategically placed sensors in the automobile and a unique FOB device hidden on the authorized driver’s person. Regardless of whether someone tries to steal your vehicle while it is innocently idling unattended in the parking lot or take it by force at gunpoint, Top Kontrol will only allow the unauthorized driver to drive for 15-20 seconds before automatically turning the engine off and preventing any attempt to restart the engine. This prevents the thief from stealing your car and/or allows the driver sufficient time to run to safety after being threatened at gunpoint. SecureTech is not aware of any other product on the market that solves the carjacking problem in the manner of Top Kontrol. Because Top Kontrol is wired into the automobile’s ignition and lighting systems, it must be installed and serviced by a Top Kontrol Certified Technician. 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, 2020 has been derived from audited financial statements. Operating results for the three months ended March 31, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, 2021. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2020 filed with the Company’s Annual Report on Form 10-K with the Securities and Exchange Commission on March 18, 2021. 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 and the U.S. government-imposed travel restrictions on travel between the United States, Europe, and many other countries worldwide. The COVID-19 pandemic has significantly negatively affected the global economy, significantly disrupted global supply chains, and created a significant disruption of the financial and retail markets, including a substantial disruption and dampening in consumer demand for the automotive industry, including specialty equipment manufacturers such as ourselves. 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, and continues to have, a material impact on our business growth and launching Top Kontrol, we do not have enough operating history to accurately evaluate or quantify the extent 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 In addition to the preceding, we believe that sales continue to be negatively impacted by the ongoing COVID-19 pandemic. We have encountered numerous delays in establishing a group training and certification program necessary to educate and authorize automobile technicians to safely and professionally install and repair our Top Kontrol product. It is simply not safe for groups of people to gather within the confines of small interior areas, which are typical of most automobile repair bays where we would typically perform this type of hands-on training. Having a limited number of Top Kontrol Certified Technicians available to install Top Kontrol is significantly restricting the number of customer installations being performed, which is subsequently influencing retail customers to delay purchases until they can have it readily installed in their vehicle. However, because we did not commence marketing and selling Top Kontrol before this pandemic, we have no historical perspective to quantify or speculate on the extent COVID-19 is having on our sales and overall financial condition. Uncertainties regarding the economic impact of COVID-19 are likely to result in sustained market turmoil while businesses remain shuttered (or operating at diminished capacity). Many prospective customers remain home under government “lockdown” mandates, guidelines, and a general fear of leaving the safety of their homes, which may also negatively impact our business, financial condition, and cash flows for an unknown length of time. Uncertainties regarding the economic impact of COVID-19 are likely to result in sustained market turmoil while businesses remain shuttered (or operating at diminished capacity). Many prospective customers remain home under government “lockdown” mandates, guidelines, and a general fear of leaving the safety of their homes, which may also negatively impact our business, financial condition, and cash flows for an unknown length of time. Basis of Presentation The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“ 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. The worldwide spread of COVID-19 has resulted in a global slowdown of economic activity, which is likely to decrease demand for a broad variety of goods and services while also disrupting supply chains, sales channels, marketing activities, and general business operations for an unknown period of time until the disease is contained at local, regional, and worldwide levels. At this point, the extent to which COVID-19 may impact our financial condition or results of operations is uncertain. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, judgments, or adjust the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and is recognized in the financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to our financial statements. 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 March 31, 2021, 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 computed 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 three months ended March 31, 2021. 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. with the transfer of control of our product to the customer and payment has been received. The Company 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 ceases doing 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. 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 a have a material impact on the Company’s financial position, results of operations or cash flows. |
Going Concern
Going Concern | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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 normal course of business. As shown in the accompanying financial statements during the fiscal period ended March 31, 2021, the Company has not established a source of revenues sufficient to cover its operating costs, and as such, has incurred an operating loss since its inception. Further, as of March 31, 2021, the Company had an accumulated deficit of ($356,415). These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s existence is dependent upon management’s ability to develop profitable operations and to obtain additional sources of financing. There can be no assurance that the Company’s financing efforts will result in profitable operations or the resolution of 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. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
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 March 31, 2021 and December 31, 2020: March 31, 2021 December 31, 2020 Inventories: Raw materials and work-in-progress $ 1,971 $ 1,971 Finished goods 44,050 47,022 Gross inventories 46,021 48,993 Inventory valuation reserves - - Inventories, net $ 46,021 $ 48,993 |
Stockholders Equity
Stockholders Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders Equity | NOTE 4 – STOCKHOLDERS’ EQUITY Preferred stock The Company has authorized 50,000,000 shares of preferred stock, $0.001 par value. The Company’s Board of Directors is authorized, without further action by the shareholders, to issue shares of preferred stock and to fix the designations, number, rights, preferences, privileges and restrictions thereof, including dividend rights, conversion rights, voting rights, terms of redemption, liquidation preferences and sinking fund terms. As of March 31, 2021, the Company had no classes and -0- shares of preferred stock issued and outstanding. Common stock The Company has authorized 500,000,000 shares of common stock, with a par value of $0.001 per share. As of March 31, 2021, the Company had 170,442,300 shares of common stock issued and outstanding. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
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 March 31, 2021. Exercise Price Number Outstanding Expiration Date $ 0.20 439,300 June 30, 2021 $ 0.30 439,300 December 31, 2021 $ 0.40 439,300 June 30, 2022 $ 0.50 439,300 December 31, 2022 1,757,200 A summary of the warrant activity for the fiscal period ended March 31, 2021 is as follows: Warrants Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2021 1,757,200 $ 0.35 1.0 $ - Issued - $ - - $ - Exercised - $ - - $ - Expired - $ - - $ - Outstanding at March 31, 2021 1,757,200 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 $0.15 (based on the most recent cash sale price) as of March 31, 2021, which would have been received by the warrant holders had those warrant holders exercised their options as of that date. |
Related Parties Founder's Share
Related Parties Founder's Share Issuances | 3 Months Ended |
Mar. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Parties Founder's Share Issuances | NOTE 6 – RELATED PARTY FOUNDER’S SHARE ISSUANCES On March 2, 2017, the Company issued an aggregate of 175,000,000 shares of its common stock, $0.001 par value, as Founder’s Shares with $-0- value. Of these original Founder’s Shares 80,000,000 were issued to the Company’s officers, 75,000,000 to an entity controlled by one of the Company’s directors, and 20,000,000 to outside consultants who assisted with the Company’s formation and early organization. |
Contigency_Legal
Contigency/Legal | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contigency/Legal | NOTE 7 – CONTINGENCY/LEGAL As of March 31, 2021, 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 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 – SUBSEQUENT EVENTS Series C Private Placement and Issuance of Common Stock Subsequent to the fiscal period ended March 31, 2021, the Company filed a Form D with the SEC on April 14, 2021 to undertake a private placement offering of up to 1,000,000 shares of its common stock, $0.001 par value, at a purchase price of $0.25 per Share (“ Series C Private Placement Offering As of April 27, 2021, the Company had 170,587,300 shares of its common stock issued and outstanding, inclusive of all shares sold to date pursuant to this Series C Private Placement Offering. The Company continues to offer shares of its common stock to investors through the Series C Private Placement Offering. No other material events or transactions have occurred during this subsequent event reporting period which required recognition or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Organization | Organization SecureTech Innovations, Inc. (“ Company SecureTech SecureTech is an emerging growth company focused on developing and marketing personal and automobile security and safety devices and technologies. Through a licensed patent, SecureTech has created its initial product, Top Kontrol. Top Kontrol is unlike any other product on the market – it prioritizes the driver and passengers' safety. Not only does Top Kontrol protect your vehicle from unattended theft like other car alarms, but it is the only anti-theft and personal safety device able to thwart an active carjacking attempt without any action by the driver. Through its advanced design and use of a licensed patent, Top Kontrol can tell the difference between an authorized driver and an unauthorized thief or carjacker using strategically placed sensors in the automobile and a unique FOB device hidden on the authorized driver’s person. Regardless of whether someone tries to steal your vehicle while it is innocently idling unattended in the parking lot or take it by force at gunpoint, Top Kontrol will only allow the unauthorized driver to drive for 15-20 seconds before automatically turning the engine off and preventing any attempt to restart the engine. This prevents the thief from stealing your car and/or allows the driver sufficient time to run to safety after being threatened at gunpoint. SecureTech is not aware of any other product on the market that solves the carjacking problem in the manner of Top Kontrol. Because Top Kontrol is wired into the automobile’s ignition and lighting systems, it must be installed and serviced by a Top Kontrol Certified Technician. |
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, 2020 has been derived from audited financial statements. Operating results for the three months ended March 31, 2021 are not necessarily indicative of results that may be expected for the year ending December 31, 2021. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2020 filed with the Company’s Annual Report on Form 10-K with the Securities and Exchange Commission on March 18, 2021. |
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 and the U.S. government-imposed travel restrictions on travel between the United States, Europe, and many other countries worldwide. The COVID-19 pandemic has significantly negatively affected the global economy, significantly disrupted global supply chains, and created a significant disruption of the financial and retail markets, including a substantial disruption and dampening in consumer demand for the automotive industry, including specialty equipment manufacturers such as ourselves. 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, and continues to have, a material impact on our business growth and launching Top Kontrol, we do not have enough operating history to accurately evaluate or quantify the extent 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 In addition to the preceding, we believe that sales continue to be negatively impacted by the ongoing COVID-19 pandemic. We have encountered numerous delays in establishing a group training and certification program necessary to educate and authorize automobile technicians to safely and professionally install and repair our Top Kontrol product. It is simply not safe for groups of people to gather within the confines of small interior areas, which are typical of most automobile repair bays where we would typically perform this type of hands-on training. Having a limited number of Top Kontrol Certified Technicians available to install Top Kontrol is significantly restricting the number of customer installations being performed, which is subsequently influencing retail customers to delay purchases until they can have it readily installed in their vehicle. However, because we did not commence marketing and selling Top Kontrol before this pandemic, we have no historical perspective to quantify or speculate on the extent COVID-19 is having on our sales and overall financial condition. Uncertainties regarding the economic impact of COVID-19 are likely to result in sustained market turmoil while businesses remain shuttered (or operating at diminished capacity). Many prospective customers remain home under government “lockdown” mandates, guidelines, and a general fear of leaving the safety of their homes, which may also negatively impact our business, financial condition, and cash flows for an unknown length of time. Uncertainties regarding the economic impact of COVID-19 are likely to result in sustained market turmoil while businesses remain shuttered (or operating at diminished capacity). Many prospective customers remain home under government “lockdown” mandates, guidelines, and a general fear of leaving the safety of their homes, which may also negatively impact our business, financial condition, and cash flows for an unknown length of time. |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“ 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. The worldwide spread of COVID-19 has resulted in a global slowdown of economic activity, which is likely to decrease demand for a broad variety of goods and services while also disrupting supply chains, sales channels, marketing activities, and general business operations for an unknown period of time until the disease is contained at local, regional, and worldwide levels. At this point, the extent to which COVID-19 may impact our financial condition or results of operations is uncertain. As of the date of issuance of these financial statements, we are not aware of any specific event or circumstance that would require us to update our estimates, judgments, or adjust the carrying value of our assets or liabilities. These estimates may change as new events occur and additional information is obtained and is recognized in the financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to our financial statements |
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 March 31, 2021, 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 computed 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 three months ended March 31, 2021. |
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. with the transfer of control of our product to the customer and payment has been received. The Company 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 ceases doing 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. |
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 a have a material impact on the Company’s financial position, results of operations or cash flows. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | March 31, 2021 December 31, 2020 Inventories: Raw materials and work-in-progress $ 1,971 $ 1,971 Finished goods 44,050 47,022 Gross inventories 46,021 48,993 Inventory valuation reserves - - Inventories, net $ 46,021 $ 48,993 |
Warrants (Tables)
Warrants (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Warrants and Rights Note Disclosure [Abstract] | |
Outstanding warrants to purchase shares | Exercise Price Number Outstanding Expiration Date $ 0.20 439,300 June 30, 2021 $ 0.30 439,300 December 31, 2021 $ 0.40 439,300 June 30, 2022 $ 0.50 439,300 December 31, 2022 1,757,200 A summary of the warrant activity for the fiscal period ended March 31, 2021 is as follows: Warrants Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2021 1,757,200 $ 0.35 1.0 $ - Issued - $ - - $ - Exercised - $ - - $ - Expired - $ - - $ - Outstanding at March 31, 2021 1,757,200 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (356,415) | $ (347,018) |
Inventories - Inventories (Deta
Inventories - Inventories (Details) - USD ($) | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and work-in-progress | $ 1,971 | $ 1,971 |
Finished goods | 44,050 | 47,022 |
Gross inventories | 46,021 | 48,993 |
Inventory valuation reserves | ||
Inventories | $ 46,021 | $ 48,993 |
Stockholders Equity (Details Na
Stockholders Equity (Details Narrative) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, authorized | 50,000,000 | 50,000,000 |
Preferred stock, issued | ||
Preferred stock,outstanding | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized | 500,000,000 | 500,000,000 |
Common stock, issued | 170,442,300 | 170,442,300 |
Common stock,outstanding | 170,442,300 | 170,442,300 |
Warrants - Outstanding warrants
Warrants - Outstanding warrants (Details) | 3 Months Ended |
Mar. 31, 2021USD ($)$ / shares | |
Class of Warrant or Right [Line Items] | |
Warrants excercise price | $ / shares | $ 0.15 |
Warrants, oustanding | $ | $ 1,757,200 |
Exercise Price $0.20 [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants excercise price | $ / shares | $ 0.20 |
Warrants, oustanding | $ | $ 439,300 |
Expiration Date | Jun. 30, 2021 |
Exercise Price $0.30 [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants excercise price | $ / shares | $ 0.30 |
Warrants, oustanding | $ | $ 439,300 |
Expiration Date | Dec. 31, 2021 |
Exercise Price $0.40 [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants excercise price | $ / shares | $ 0.40 |
Warrants, oustanding | $ | $ 439,300 |
Expiration Date | Jun. 30, 2022 |
Exercise Price $0.50 [Member] | |
Class of Warrant or Right [Line Items] | |
Warrants excercise price | $ / shares | $ 0.50 |
Warrants, oustanding | $ | $ 439,300 |
Expiration Date | Dec. 31, 2022 |
Warrants - Warrants Activity (D
Warrants - Warrants Activity (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Warrants | ||
Issued | 1,757,200 | |
Exercised | ||
Expired | ||
Outstanding at June 30, 2020 | 1,757,200 | |
Weighted-Average Exercise Price | ||
Weighted-Average Exercise Price, beginning | ||
Issued | 0.35 | |
Exercised | ||
Expired | ||
Weighted-Average Exercise Price ending | ||
Weighted-Average Remaining Contractual Term (Years) | ||
Issued | 1 year | |
Aggregate Intrinsic Value |
Warrants (Details Narrative)
Warrants (Details Narrative) | Mar. 31, 2021$ / shares |
Warrants and Rights Note Disclosure [Abstract] | |
Stock price | $ 0.15 |
Related Parties Founder's Sha_2
Related Parties Founder's Share Issuances (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 31, 2021 | Dec. 31, 2020 | |
Common stock, par value | $ 0.001 | $ 0.001 | |
Founders [Member] | |||
Date | March 2, 2017 | ||
Issuance of Founders shares, Shares | 175,000,000 | ||
Common stock, par value | $ 0.001 | ||
Issuance of Founders shares, amount | $ 0 | ||
Officers [Member] | |||
Issuance of Founders shares, Shares | 80,000,000 | ||
Directors Company [Member] | |||
Issuance of Founders shares, Shares | 75,000,000 | ||
Outside Consultant [Member] | |||
Issuance of Founders shares, Shares | 20,000,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 2 Months Ended | |
Apr. 27, 2021 | Apr. 14, 2021 | |
Entity Common Stock, Shares Outstanding | 170,587,300 | |
Subsequent Event [Member] | ||
Private placement offering | 1,000,000 | |
Private placement offering, par value | $ 0.001 | |
Private placement offering, share price | $ 0.25 | |
Issuance of Series C Private Placement Offering for cash, Shares | 145,000 | |
Issuance of Series C Private Placement Offering for cash | $ 36,250 |