Securetech Innovations (SCTH) Q2 2026 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2026, was $4.85 million, driven entirely by the AI UltraProd acquisition, with no comparable revenue in the prior year period.

• Achieved record Q2 2026 revenue of $2.77 million, up 33% sequentially from Q1 2026, all from AI UltraProd.

• Net loss attributable to shareholders was $1.43 million for the six months, with Q2 net loss widening to $1.04 million, mainly due to non-cash charges from short-term financing.

• The company completed a major acquisition (AI UltraProd), reduced outstanding common shares by 78%, and is preparing for a NASDAQ uplisting, with the application under review.

• AI UltraProd retained as a permanent, wholly owned subsidiary; spin-off plans were abandoned.

Financial highlights

• First-half 2026 revenue: $4,852,716; Q2 revenue: $2,772,981 (product sales $1,443,939; service revenue $1,329,042).

• Gross profit for the six months was $1.07 million, with a gross margin of 22.1%; Q2 gross profit was $887,754 with a 32% margin.

• Operating expenses rose to $1.72 million, up 857% year-over-year, reflecting increased activity post-acquisition.

• Cash and equivalents at June 30, 2026, were $311,711; working capital was $833,612.

• Weighted average shares outstanding reduced by 78% year-over-year to 17.1 million.

Outlook and guidance

• Management does not expect existing cash and cash flow to be sufficient for the next twelve months and plans to seek additional capital through debt and equity.

• Gross margin expected to remain variable due to project-based revenue mix at AI UltraProd.

• Strategic objectives include NASDAQ uplisting and expansion of AI UltraProd into new markets.

• There is substantial doubt about the company's ability to continue as a going concern without new financing.