Roseville, Minnesota – July 9, 2020 – SecureTech Innovations, Inc., an emerging growth company focused on developing and marketing personal and automobile security and safety devices and technologies, issues this general update to keep its shareholders as up-to-date as possible on current corporate achievements.
Q2 2020 Sales and Manufacturing Improvements
SecureTech began the Top Kontrol® manufacturing process during Q1 2020 and started selling the product in Q2 2020, marking a tremendous achievement for the company and its shareholders.
The first Top Kontrol® sale occurred on April 25, 2020. Specific revenue figures for Q2 2020 will be released once SecureTech’s accountants and auditors complete their work and file the Quarterly Report on Form-10 with the SEC in the coming weeks.
Management is also excited to report that it is starting to realize improved economies of scale with manufacturing Top Kontrol®. Beginning in the latter part of Q1 2020, SecureTech procured sufficient components to produce an initial inventory of 100 Top Kontrol units. Because of various factors, including shutdowns in some supply lines due to the ongoing COVID-19 pandemic, it took nearly 14 weeks to manufacture this initial inventory.
Presently SecureTech is working on its second production run of 500 Top Kontrol® units. Management estimates that this current production run will take approximately ten weeks to complete. By increasing the second production run from 100 units to 500 units, SecureTech was able to reduce component costs by about 30%. Management expects to see further improvements in component costs with future, larger production runs.
Results of the Series B Private Placement Offering
SecureTech formerly closed its ongoing Series B Private Placement Offering on June 30, 2020. Management would like to report that it sold 439,300 Units in this offering for $0.15 per Unit. SecureTech raised a total of $65,895 from this Series B Offering, which is already helping SecureTech start to achieve better Top Kontrol® manufacturing economies of scale.
As of July 9, 2020, SecureTech had 170,442,300 shares of its common stock issued and outstanding.
Development of Top Kontrol® Certified Technician Program
One of SecureTech’s goals for Q3 2020 is to expand and streamline how SecureTech educates and certifies businesses and individuals to become Top Kontrol® Certified Technicians. Management has been very hands-on during the early product rollout. This method is an inefficient use of Management’s valuable time, but is a necessary growing pain for bringing Top Kontrol® to market. However, a more conventional and scheduled classroom system is currently in development. Later this fiscal quarter, when SecureTech is ready to start hosting classes to certify technicians on how to install Top Kontrol® in the various types of vehicles, it will make a formal announcement and publish the schedule on its website and social media platforms.
Listing on the OTCQB Stock Exchange
During Q2 2020, SecureTech’s Management held recent discussions with a potential “going public” sponsoring market maker, Glendale Securities, Inc. These talks were positive. SecureTech is preparing the necessary paperwork to submit to Glendale for their review and potential sponsorship of SecureTech on the OTCQB Stock Exchange.
SecureTech anticipates having this initial disclosure statement, more commonly referred to as a Form 15c2-11, shortly after SecureTech files its Q2 2020 Form 10-Q with the SEC in a few weeks. The Form 15c2-11 is a very substantial disclosure statement comprising thousands of pages of documentation. Naturally, this is a very time-consuming process, but Management is making significant progress towards having this ready for submission during the current fiscal quarter.
Impact of the COVID-19 (Coronavirus) Pandemic
The SEC has recently published extensively about the need for enhanced COVID-19 disclosures. In compliance with these expanded disclosure requirements, Management would like to issue the following statement:
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 period ended June 30, 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 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:
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 local “lockdown” mandates and 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.
Kao Lee, SecureTech’s President and CEO, stated, “I know that the entire world is trying to adjust to the ‘new normal.’ I am here to say that our focus at SecureTech has never been sharper and desire to forge ahead has never been stronger.”
“In the previous fiscal quarter, we had a short sales cycle because we did not commence sales until late April. This fiscal quarter will be a full sales cycle, and we look forward to making the most of it while continuing to make necessary adjustments along the way to achieve even more success for our shareholders, regardless of the challenge, including COVID-19,” added Mr. Lee.
About SecureTech Innovations
SecureTech is an emerging growth company focused on developing and marketing personal and automobile security and safety devices and technologies – our products preserve life, protect property, and prevent crime. SecureTech is the maker of Top Kontrol®, the only anti-theft and anti-carjacking system known that can safely stop a carjacking without any action by the driver. For more information, visit www.securetechinnovations.com and www.topkontrol.com.
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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.