March 30, 2020

Dear Fellow SecureTech Stockholder:

Following our recent announcements last week about receiving Top Kontrol® FCC Certification and subsequently initiating commercial production, I would like to bring you up to speed on all of SecureTech’s other achievements and plans for the remainder of this fiscal year.

FCC Regulatory Certification

It took nearly nine-months of working with our compliance agent, Oznium, and SGS Laboratories to receive FCC Certification for Top Kontrol®.  Initially, we had anticipated this process would only take up two to three months, but government bureaucracy and red tape forced it to take much longer.

While this certification process was underway, we could not begin commercial production of Top Kontrol® for fear that we could have needed to make changes to the circuitry to comply with applicable government regulations.  That delay is now over and we have initiated commercial production of Top Kontrol®.

Impact of COVID-19 on Sales of Top Kontrol®

Presently we have only seen minor disruptions to our supply chains for the components we need to manufacture Top Kontrol®.  While we cannot predict if we will encounter more challenging complications in our supply chains stemming from this viral pandemic, we are staying vigilant and in constant communications with our suppliers to ensure smooth delivery of the various parts and components required to make Top Kontrol®.

We anticipate generating the first retail sales of Top Kontrol® in May.  We plan to orchestrate a strategic product rollout, first starting with local and regional businesses in the St. Paul/Minneapolis region and then progressively add new territories as new distributors and installers come on board.

As we rollout Top Kontrol® this year, you will start seeing some of our early marketing efforts show up online, particularly in the realm of social media pages tied in with SecureTech and our investor relations efforts.  You will also be seeing a new exclusive Top Kontrol® product website launched soon that is currently under development.

It is also worthy to note that we have had some early-stage discussions with potential distributors in non-US countries.  Should these discussions bear fruit, they would most likely involve exclusive territories coupled with substantial initial purchase orders and long-term purchase commitments.

At this time, we cannot predict how much of an impact COVID-19 will have on our sales efforts at this time, if any.  I can assure you that we are going to do everything within our control to manufacture, distribute, and sell Top Kontrol® as initially planned.  If businesses that would potentially sell or install Top Kontrol® are mandated to close or reduce their operating hours, it could possibly stall, or at least slow, our early sales efforts.  I promise to keep our stockholders informed as we all go through this launch process.

Las Vegas SEMA Show – November 3 – 6, 2020

On December 9, 2019, we announced that SecureTech became a member of the Specialty Equipment Market Association, better known throughout the industry as SEMA.  In that announcement, we also disclosed our plans to attend the 2020 SEMA Show in Las Vegas.

Towards accomplishing this goal and preparing Top Kontrol® to be showcased during this event, we have submitted our application, deposit, and other required paperwork to secure a prime booth location during this year’s event.  More information about our booth location should be available later in May or June once SEMA has completed floor-planning the event.

The Las Vegas SEMA Show will be an incredible opportunity for us to introduce Top Kontrol® to essential worldwide buyers and distributors as well as potentially receive significant media exposure for our new and revolutionary product.

New Product Development

While we’ve been working on obtaining regulatory approval for Top Kontrol®, we have been actively developing SecureTech’s next product.  We are keeping specific details under wraps as a commercial trade secret until we are ready to apply and secure patent protection.  However, I will say it is an aftermarket automotive product that delivers on our corporate mission of saving lives.  When available for purchase next year, we will offer it as either a stand-alone product or in premium package bundled with Top Kontrol®.

In addition to this secondary product under development, our team is exploring various other ideas for new products that could protect property and save lives.  SecureTech will continue to expand its research and development efforts as it grows and moves into the future.

Plans for Secondary Office and Warehouse Facility in Miami for International Exports

There are two elements to our future long-term plans that we are planning on addressing later this year.  First, we are going to need sufficient warehouse space near a major international port to facilitate container-sized exports.  Next, we are considering establishing our own manufacturing facilities to significantly improve our gross profit margins compared to our current use of third-party contract manufacturers.

To accomplish these goals, we are looking at possibly opening an office and warehouse facility in Miami, Florida, later this year or in early 2021.  The reasons we are considering this area include:

  • We currently source our product packaging material in Miami.  By co-locating in the same general area it will virtually eliminate all shipping costs associated with our product packaging components and enhance our overall profit margins;
  • Miami has one of the busiest shipping ports in the US, which could significantly reduce our future outbound freight and shipping expenses, particularly those relating to international exports;
  • We can readily secure sufficient square footage in this area at affordable long-term rates, which would allow us to accommodate our warehousing needs while allowing us to construct and operate our very own product manufacturing line; and
  • Florida is a tax-free state with a business-friendly regulatory environment.

Listing on the OTCQB Stock Exchange

In late 2018 we started the process of obtaining a listing on the OTCQB Stock Exchange.  We prepared a lot of the paperwork requested by our potential sponsoring market maker, Glendale Securities, Inc.  However, after a lengthy review, they determined it was best to hold off with our application until Top Kontrol® was ready for market and we began generating actual product sales.

I believe that SecureTech has now achieved enough major milestones that Glendale may be open to moving forward with our going public application, also referred to as Form 15c2-11.  The sponsoring market maker would submit this form to the Financial Industry Regulatory Authority, Inc. (FINRA).

SecureTech knows how important achieving this long-term goal is for the company and its shareholders.  While we cannot make any promises at this time, I can assure everyone that our management team will make every effort to complete the going public process during this fiscal year successfully.

Series B Private Placement Offering

Between now and the time we are ready to submit our Form 15c2-11 to go public, SecureTech is conducting its second securities offering to the general public.  We are calling this offering our Series B Private Placement Offering, which is open to both new and earlier investors.

Unlike our initial offering of securities, this is a Unit offering.  SecureTech is offering up to 5,000,000 Units priced at $0.15 per Unit.  Each Unit contains one share of Common Stock and four Purchase Warrants.  More specifically, each Unit includes the following securities:

I know many readers may be confused by the warrant components of the Units.  Let me try to simplify it by saying each Warrant allows the investor to purchase common stock at the Exercise Price, regardless of the future stock price.  For example, if the common stock were trading at $0.75 a share, the investor would still be allowed to “exercise” their cheapest $0.20 Warrant and purchase one additional share of common stock for just $0.20 before the Expiration Date.  The same is also true for all of the other warrants included in this offering.

We will use the proceeds from this offering to:

  • Increase production rates of Top Kontrol® to more quickly achieve economies of scale;
  • Expand our marketing and sales team;
  • Complete research and development of our next consumer product; and
  • Open our secondary office and warehouse facility previously discussed.

In closing, I would like to remind you that, if you have not done so already, please visit SecureTech’s corporate website at www.securetechinnovations.com and sign up for our press release e-mail list.  Our stockholder e-mail list is the simplest and most convenient way to stay current on new SecureTech developments as they occur.

I look forward to making this SecureTech’s best year yet!

Very truly yours,

Kao Lee
President and Chief Executive Officer

* * *

Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties.  There can be no assurance that such forward-looking statements will prove to be accurate.  Actual results and future events could differ materially from those anticipated in such statements.  These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice.  SecureTech Innovations, Inc. (“SecureTech”) assumes no obligation to update forward-looking statements should circumstances or management’s estimates or opinions change, other than as required pursuant to applicable securities laws.  For a description of additional risks and uncertainties, please refer to SecureTech’s filings with the Securities and Exchange Commission, including “Risk Factors” in its Annual Report filed on Form 10-K.

Investor Relations
651.317.8990
ir@securetechinnovations.com

Attachments

SecureTech-Open-Letter-to-Stockholders-3-30-20.pdf