SecureTech Innovations dismisses auditor, says prior financials can't be relied on

What happened

SecureTech Innovations, Inc., a Roseville, Minnesota-based company that makes motor vehicle parts and accessories, said on August 5, 2026 that its board of directors dismissed Gary Cheng CPA Limited (GCCPA) as its independent auditor, effective July 31, 2026.

The company also said its previously issued financial statements for the fiscal year ended December 31, 2025, and for the interim periods ended June 30, 2025, September 30, 2025, and March 31, 2026, should no longer be relied upon and will need to be restated.

SecureTech said it has engaged Marcum Asia CPAs LLP as its new independent registered public accounting firm for the 2026 fiscal year and interim periods.

Why the financials are being restated

According to the filing, management identified two accounting classification errors that affect the previously issued financial statements.

First, the company said its historical presentation of a redeemable non-controlling interest in its subsidiary Zhejiang Jizhu Technology Co., Ltd., a China-based company, was misclassified in permanent equity and should be reclassified to mezzanine (temporary) equity, with corresponding accretion adjustments.

Second, certain accounts receivable that were presented as current assets should be reclassified as non-current assets.

The company said it will file amendments to its annual and quarterly reports to restate these financials once the necessary work is completed.

Auditor transition details

SecureTech said its board dismissed GCCPA on July 31, 2026, and that there were no disagreements between the company and GCCPA on accounting principles or practices, financial statement disclosure, or auditing scope.

However, the filing notes that GCCPA's audit report for the 2025 fiscal year included an explanatory paragraph expressing substantial doubt about the company's ability to continue as a going concern, due to recurring net losses and an accumulated deficit.

The company has re-engaged GCCPA under a separate limited-scope engagement to re-audit the restated 2025 financial statements and to complete interim reviews for the affected quarterly periods.

SecureTech said neither it nor anyone on its behalf consulted Marcum Asia before its engagement regarding accounting principles or audit opinions.

Governance context

SecureTech disclosed that it does not have an audit committee, and its board consists of two members, both of whom are executive officers.

The company had previously reported material weaknesses in internal control over financial reporting, including a lack of independent board oversight and no audit committee.

It says it has nominated three independent directors, all CPAs, and expects that once they are seated, it will establish an independent audit committee and remediate those weaknesses.

What this means

This filing is an 8-K, a current report that public companies must file with the SEC within four business days of significant events. Items 4.01 and 4.02 require companies to disclose changes in their independent accountant and when they conclude that previously issued financial statements can no longer be relied upon.

A 'non-reliance' notice tells investors that the company believes its earlier financial reports contain errors, which often leads to a restatement. Here, the errors are classification matters: how a redeemable non-controlling interest is presented on the balance sheet, and whether accounts receivable should be classified as current or non-current.

A 'redeemable non-controlling interest' arises when a company owns less than 100% of a subsidiary and the other owner has a right to require the company to buy out its stake. Accounting rules require such interests to be shown outside of permanent equity, in a 'mezzanine' section, because they may have to be settled in cash or shares.

An 'accretion adjustment' increases the carrying value of that redeemable interest over time to its redemption amount, reflecting the cost of the potential buyout.

The switch from GCCPA to Marcum Asia is a routine audit transition, but the restatement and non-reliance notice are significant because they signal that prior financial reports may have misstated the company's financial position.

The company says it expects to file amended annual and quarterly reports to correct these issues, but it does not say when those filings will be completed.