SecureTech Dismisses Auditor, Flags Non-Reliance on Prior Financials, and Engages Marcum Asia
SCTH filed a Legal and Risk Events on light trading volume (0.3× avg).
Summary
SecureTech dismissed its auditor, disclosed that prior financial statements should not be relied upon, and engaged Marcum Asia as its new auditor. The restatement corrects balance-sheet classifications but does not change revenue or cash. The filing adds to existing concerns about internal controls and financial reporting quality.
Key Events · Legal and Risk Events · SCTH
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Auditor Dismissed
Effective July 31, 2026, the board dismissed Gary Cheng CPA Limited as its independent auditor. While no disagreements on accounting matters were reported, the decision was made against a backdrop of cited material weaknesses in internal controls.
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Non-Reliance on Prior Financials
Investors should no longer rely on the financial statements for fiscal 2025 and the interim periods through Q1 2026. The issue stems from misclassifying a redeemable non-controlling interest — shifting it from permanent to mezzanine equity — and certain accounts receivable, which were moved from current to non-current.
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New Material Weakness Identified
Management has flagged a new material weakness in internal control over financial reporting, specifically tied to the accounting for complex equity instruments and the classification of balance sheet assets.
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New Auditor Engaged
Marcum Asia CPAs LLP has been brought on to review the Q2 and Q3 2026 financials and to audit fiscal 2026. Meanwhile, the former auditor GCCPA has been re-engaged under a limited scope to re-audit the restated 2025 financials.
Analysis · SCTH · Manufacturing
SecureTech dismissed its auditor Gary Cheng CPA Limited and disclosed that its financial statements for fiscal 2025 and several interim periods can no longer be relied upon due to misclassifications of a redeemable non-controlling interest and accounts receivable. The company also identified a new material weakness in internal controls over complex equity instruments and balance sheet classifications. While the restatement does not affect revenue or cash, the auditor change and non-reliance disclosure come against a backdrop of existing going-concern warnings, dilutive convertible note financing, and material weaknesses in board oversight — raising serious concerns about financial reporting reliability as the company pursues a Nasdaq uplisting.
How filings like this one have moved
In the 30 days to Oct 18, 2026, 43.7% of the 286 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.43%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, SCTH was trading at $21.54 on OTC in the Manufacturing sector, with a market capitalization of approximately $358.9M. The 52-week trading range was $0.02 to $23.48. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.