SecureTech Innovations Reports Q2 2026 Financial Results

Company Posts Second Quarter Results with $2.8 Million in Revenue, Gross Profit of $888 Thousand, and a 32% Gross Margin

ROSEVILLE, MN, Aug. 20, 2026 (GLOBE NEWSWIRE) -- SecureTech Innovations, Inc. (OTCQB: SCTH), a diversified technology holding company advancing artificial intelligence initiatives, industrial 3D printing and manufacturing technologies, and blockchain-based digital infrastructure and assets, announces its unaudited financial results for the three and six months ended June 30, 2026 (Q2 2026). SecureTech’s Quarterly Report on Form 10-Q for the period was filed with the Securities and Exchange Commission on August 19, 2026. This press release should be read together with, and is qualified in its entirety by reference to, that Form 10-Q, including the financial statements and notes, and Management’s Discussion and Analysis.

Consolidated revenue for Q2 2026 was $2,772,981, the highest second-quarter revenue in the Company’s history, compared to $-0- in Q2 2025 and $2,079,735 in Q1 2026. The prior-year period recorded no consolidated revenue because the AI UltraProd acquisition closed on June 23, 2025, near the end of that quarter; accordingly, a year-over-year percentage change is not presented. All Q2 2026 revenue is attributable to AI UltraProd. For the six months ended June 30, 2026, consolidated revenue was $4,852,716.

Q2 2026 Financial Highlights (All Amounts in USD, Unaudited):

• Q2 Revenue: $2,772,981, comprised of $1,443,939 in product sales and $1,329,042 in service revenue, both 100% attributable to AI UltraProd — a 33.3% increase over Q1 2026 revenue of $2,079,735.
•  Q2 Gross Profit: $887,754, a gross margin of 32.0%, compared to gross profit of $185,326 and a gross margin of 8.9% in Q1 2026.
• First-Half Revenue: $4,852,716 for the six months ended June 30, 2026, with gross profit of $1,073,080 and a gross margin of 22.1%.
• Total Assets: $20,910,360 as of June 30, 2026, compared to $19,190,202 at December 31, 2025. Cash and cash equivalents were $311,711, compared to $233,825.
• Share Reduction Program: Weighted average shares outstanding were 17,091,843, a 78.1% reduction from 78,073,914 in Q2 2025.

Q2 2026 RESULTS OF OPERATIONS

Financial Metric		Q2 2026				Q2 2025				6M 2026				6M 2025
Total Revenue		$	2,772,981			$	—			$	4,852,716			$	—
Sales of goods		$	1,443,939			$	—			$	3,403,191			$	—
Service revenue		$	1,329,042			$	—			$	1,449,525			$	—
Cost of Revenue		($	1,885,227	)		$	—			($	3,779,636	)		$	—
Gross Profit		$	887,754			$	—			$	1,073,080			$	—
Gross Margin			32.0	%			N/A				22.1	%			N/A
Total Operating Expenses		($	1,211,630	)		($	89,003	)		($	1,722,811	)		($	179,938	)
Loss from Operations		($	323,876	)		($	89,003	)		($	649,731	)		($	179,938	)
Other Expense, Net		($	702,431	)		($	4,884	)		($	791,845	)		($	8,314	)
(Provision) Benefit for Income Taxes		($	13,647	)		$	—			$	110			$	—
Net Loss		($	1,039,954	)		($	93,887	)		($	1,441,466	)		($	188,252	)
Net Loss Attributable to SCTH Shareholders		($	1,042,248	)		($	93,887	)		($	1,431,385	)		($	188,252	)
Loss Per Share (Basic & Diluted)		($	0.06	)		($	0.00	)		($	0.08	)		($	0.00	)
Weighted Average Shares Outstanding			17,091,843				78,073,914				17,637,604				46,000,410

All figures unaudited. Prepared in accordance with U.S. GAAP.

SELECTED BALANCE SHEET DATA

Balance Sheet Metric		June 30, 2026				December 31, 2025
Cash and Cash Equivalents		$	311,711			$	233,825
Total Current Assets		$	9,458,668			$	7,520,769
Total Assets		$	20,910,360			$	19,190,202
Total Current Liabilities		$	8,625,056			$	6,372,234
Total Liabilities		$	9,352,841			$	7,115,144
Redeemable Non-Controlling Interest (Mezzanine)		$	783,324			$	738,303
Total Stockholders’ Equity (SCTH)		$	9,876,396			$	10,602,113
Total Equity (incl. Non-Controlling Interests)		$	10,774,195			$	11,336,755

Balance sheet data as of June 30, 2026 (unaudited) and December 31, 2025 (audited). Amounts as of December 31, 2025 reflect the restatement described in Amendment No. 1 to the Company’s Annual Report on Form 10-K, filed with the SEC on August 5, 2026, and therefore differ from certain amounts previously reported, including in the Company’s earnings release for the first quarter of 2026.

Discussion of Key Highlights for Q2 2026

Service revenue represented approximately 48% of total revenue in Q2 2026, compared to approximately 6% in Q1 2026. That change in revenue mix was the principal driver of the increase in gross margin from 8.9% in Q1 2026 to 32.0% in Q2 2026. AI UltraProd’s business is project-based, and its revenue mix and gross margin have varied, and are expected to continue to vary, from period to period. The gross margin for any single quarter should not be viewed as indicative of results for any future period.

Total operating expenses were $1,211,630 for Q2 2026, comprised of general and administrative expenses of $607,523, selling and marketing expenses of $471,514, and research and development expenses of $132,593. Loss from operations was $323,876 for Q2 2026, compared to $325,855 for Q1 2026 and $89,003 for Q2 2025.

Other expense, net was $702,431 for Q2 2026, compared to $4,884 for Q2 2025. The amount consisted of a $263,467 change in the fair value of notes payable, a $250,997 loss on issuance of notes payable, a $138,364 loss on extinguishment of notes payable, and $87,621 of interest expense, offset by $21,912 of government grants, $63 of interest income, and $16,043 of other income, net. The first three items, totaling $652,828, are non-cash charges arising from the accounting treatment of short-term financing used to fund working capital; they did not reduce cash or affect loss from operations. The year-over-year and sequential increases in net loss were attributable principally to other expense, net, and to higher operating expenses.

Total liabilities were $9,352,841 as of June 30, 2026, compared to $7,115,144 at December 31, 2025, reflecting increased short-term bank borrowings, notes payable, and contract liabilities incurred to fund working capital. Total stockholders’ equity attributable to SecureTech shareholders was $9,876,396, compared to $10,602,113, with the decrease attributable principally to the net loss for the period. Working capital as of June 30, 2026 was $833,612. As disclosed in the Form 10-Q, the Company does not expect that its existing cash, cash flow from operations, and access to short-term bank financing will, by themselves, be sufficient to fund its operations and growth strategy for the next twelve months, and these and other conditions raise substantial doubt about the Company’s ability to continue as a going concern.

As announced on August 17, 2026, SecureTech has elected to retain AI UltraProd as a permanent, wholly owned subsidiary rather than pursue a previously contemplated spin-off of that business as a separate, independently listed public company. SecureTech holds full voting and management control of AI UltraProd and its operating subsidiaries. The Company’s application to list its common stock on the Nasdaq Capital Market remains under review. There can be no assurance that the Company’s Nasdaq listing application will be approved or that a listing will be obtained.

J. Scott Sitra, SecureTech’s President and Chief Executive Officer, commented: “Q2 2026 was a quarter of real operational progress. We generated $2.77 million in revenue —and a 33% increase over the first quarter — and, just as importantly, we converted more of that revenue into gross profit. Our gross margin improved from 8.9% in the first quarter to 32.0% in the second, driven principally by a larger share of higher-margin service work. Last quarter I said we believed margins would improve as the business scaled. This quarter, they did.”

"I also want to be direct about the loss," added Mr. Sitra. "Our net loss widened to approximately $1 million, but nearly all of that increase came from non-cash accounting charges tied to the short-term financing we used to fund working capital — not from our operations. Our operating loss was essentially unchanged from the first quarter even as revenue grew by a third. With AI UltraProd now a permanent, wholly owned part of SecureTech and our Nasdaq application under review, our focus is on strengthening our balance sheet and building the operating discipline this company will need for its next phase."

This press release is not an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About SecureTech Innovations

SecureTech Innovations, Inc. (OTCQB: SCTH) is a diversified technology holding company whose subsidiaries operate across artificial intelligence-driven manufacturing, blockchain-based digital infrastructure and cybersecurity, and patented vehicle security systems. Its portfolio companies include AI UltraProd, which develops AI-powered industrial 3D manufacturing solutions; Piranha Blockchain, which focuses on Web3 security architecture, digital asset infrastructure, and cybersecurity systems; and Top Kontrol, which holds patented vehicle anti-theft and anti-carjacking technology. SecureTech’s mission is to deliver practical, transformative technologies that improve safety, automation, and digital resilience across multiple industries.

For further information, visit our websites:
securetechinnovations.com | aiultraprod.com | piranhablockchain.com | topkontrol.com

Disclaimer & Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and may include, but are not limited to, statements regarding the Company’s expectations as to revenue, gross profit, and gross margin; the anticipated variability of AI UltraProd’s project-based revenue mix and gross margin from period to period; the Company’s liquidity, capital resources, and ability to obtain additional financing; the Company’s plans to seek listing on the Nasdaq Capital Market; the anticipated benefits of retaining AI UltraProd as a permanent, wholly owned subsidiary; AI UltraProd’s planned expansion of operations in the United States and other markets; the Company’s plans to remediate the material weaknesses in its internal control over financial reporting; and the Company’s business, growth, and strategic outlook. These statements are often identified by words such as “believes,” “estimates,” “anticipates,” “expects,” “plans,” “projects,” “intends,” “potential,” “may,” “could,” “might,” “will,” “should,” “approximately,” and similar expressions.

Forward-looking statements involve known and unknown risks and uncertainties that could cause actual results, events, or circumstances to differ materially from those expressed or implied, including: the substantial doubt about the Company’s ability to continue as a going concern described in the Form 10-Q; the risk that the Company will require additional capital and that such capital may not be available on acceptable terms, or at all; the risk that the Company’s gross margin in any future period will be lower than the gross margin achieved in Q2 2026; the Company’s dependence on AI UltraProd for all of its current revenue; the Company’s ability to sustain revenue growth; the risk that the Company’s Nasdaq listing application may not be approved; the risk that the material weaknesses in the Company’s internal control over financial reporting are not remediated on the anticipated timeline or at all, and that additional material weaknesses or restatements may occur; the dilutive effect of the Company’s outstanding convertible notes, which may convert at a discount to the market price of the Company’s common stock; the risk that the Company’s planned U.S. and international expansion may be delayed or may not materialize as expected; and other risks described in the Company’s filings with the Securities and Exchange Commission (“SEC”), including the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K, as amended, and its Quarterly Reports on Form 10-Q, as amended. The financial information in this press release is unaudited and is qualified in its entirety by reference to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2026. The Company’s SEC filings are available at www.sec.gov. SecureTech undertakes no obligation to update any forward-looking statement to reflect new information, future events, or otherwise, except as required by applicable law.

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Media Contact

SecureTech Innovations, Inc.
Email: [email protected]
Phone: (651) 317-8990
Website: www.securetechinnovations.com

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