Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Apr. 15, 2024 | Jun. 30, 2023 | |
Details | |||
Registrant CIK | 0001404804 | ||
Fiscal Year End | --12-31 | ||
Document Financial Statement Error Correction | false | ||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Securities Act File Number | 000-53955 | ||
Entity Registrant Name | OMNITEK ENGINEERING CORP. | ||
Entity Incorporation, State or Country Code | CA | ||
Entity Tax Identification Number | 33-0984450 | ||
Entity Address, Address Line One | 1345 Specialty Dr. #E | ||
Entity Address, City or Town | Vista | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92081 | ||
City Area Code | 760 | ||
Local Phone Number | 591-0089 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 398,207 | ||
Entity Common Stock, Shares Outstanding | 21,948,091 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Auditor Firm ID | 3223 | ||
Auditor Name | Mercurius & Associates LLP | ||
Auditor Location | New Delhi, India |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash | $ 73,703 | $ 56,379 |
Accounts receivable, net | 12,233 | 10,180 |
Accounts receivable - related parties | 1,304 | 2,252 |
Inventory Net | 370,838 | 543,353 |
Deposits | 24,443 | 7,657 |
Total Current Assets | 482,521 | 619,821 |
PROPERTY & EQUIPMENT, net | 5,667 | 7,412 |
OTHER ASSETS | ||
Operating lease - right-of-use asset | 345,459 | 472,342 |
Long-term deposit | 13,514 | 13,514 |
Total Long-Term Assets | 364,640 | 493,268 |
TOTAL ASSETS | 847,161 | 1,113,089 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 323,236 | 353,591 |
Accrued management compensation | 635,158 | 635,158 |
Accounts payable - related parties | 131,285 | 127,192 |
Notes payable - related parties | 37,940 | 15,000 |
Convertible notes payable - related party | 10,000 | 32,827 |
Customer deposits | 310,025 | 231,418 |
Operating lease liabilities - current | 131,868 | 118,756 |
Total Current Liabilities | 1,579,512 | 1,513,942 |
LONG-TERM LIABILITIES | ||
Loans payable - SBA | 199,000 | 199,000 |
Operating lease liabilities - long-term | 254,339 | 386,207 |
Total Long-term Liabilities | 453,339 | 585,207 |
Total Liabilities | 2,032,851 | 2,099,149 |
STOCKHOLDERS' DEFICIT | ||
Common stock, 125,000,000 shares authorized; no par value; 21,948,091 and 21,948,091 shares, respectively issued and outstanding | 8,607,086 | 8,607,086 |
Additional paid-in capital | 12,067,571 | 12,051,795 |
Accumulated deficit | (21,860,347) | (21,644,941) |
Total Stockholders' Deficit | (1,185,690) | (986,060) |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 847,161 | $ 1,113,089 |
Balance Sheets - Parenthetical
Balance Sheets - Parenthetical - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Balance Sheets | ||
Common Stock, Shares Authorized | 125,000,000 | 125,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Common Stock, Shares, Issued | 21,948,091 | 21,948,091 |
Common Stock, Shares, Outstanding | 21,948,091 | 21,948,091 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Statements of Operations | ||
Revenues | $ 1,055,314 | $ 1,070,787 |
COST OF GOODS SOLD | 644,660 | 649,427 |
GROSS MARGIN | 410,654 | 421,360 |
OPERATING EXPENSES | ||
General and administrative | 537,473 | 526,836 |
Research and development | 67,576 | 66,444 |
Depreciation and amortization | 1,745 | 2,500 |
Total Operating Expenses | 606,794 | 595,780 |
LOSS FROM OPERATIONS | (196,140) | (174,420) |
OTHER INCOME (EXPENSE) | ||
Allowance for obsolete inventory | (84,068) | 0 |
Reversal of allowance for obsolete inventory | 88,945 | 0 |
Interest expense | (23,343) | (21,489) |
Total Other Income (Expense) | (18,466) | (21,489) |
LOSS BEFORE INCOME TAXES | (214,606) | (195,909) |
INCOME TAX EXPENSE | 800 | 800 |
NET LOSS | $ (215,406) | $ (196,709) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.01) | $ (0.01) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC | 21,948,091 | 21,948,091 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED | 21,948,091 | 21,948,091 |
Statements of Stockholders' Def
Statements of Stockholders' Deficit - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 | 21,948,091 | |||
Net income (loss) | $ 0 | $ 0 | $ (196,709) | $ (196,709) |
Shares, Outstanding, Ending Balance at Dec. 31, 2022 | 21,948,091 | |||
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2021 | $ 8,607,086 | 12,033,454 | (21,448,232) | (807,692) |
Options and warrants issued for services | 0 | 18,341 | 0 | 18,341 |
Equity, Attributable to Parent, Ending Balance at Dec. 31, 2022 | 8,607,086 | 12,051,795 | (21,644,941) | (986,060) |
Net income (loss) | $ 0 | 0 | (215,406) | (215,406) |
Shares, Outstanding, Ending Balance at Dec. 31, 2023 | 21,948,091 | |||
Options and warrants issued for services | $ 0 | 15,776 | 0 | 15,776 |
Equity, Attributable to Parent, Ending Balance at Dec. 31, 2023 | $ 8,607,086 | $ 12,067,571 | $ (21,860,347) | $ (1,185,690) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ (215,406) | $ (196,709) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Amortization and depreciation expense | 1,745 | 2,500 |
Options and warrants issued for services | 15,776 | 18,341 |
Write-off of contract asset | 0 | 13,221 |
Amortization of ROU asset | 126,883 | 127,261 |
Inventory reserve | (4,877) | (3,980) |
Changes in operating assets and liabilities | ||
Accounts receivable | (2,053) | (625) |
Operating lease liability | (118,756) | (106,149) |
Accounts receivable-related parties | 948 | (2,252) |
Deposits | (16,786) | (3,427) |
Inventory | 177,392 | 177,671 |
Accounts payable and accrued expenses | (30,355) | (19,304) |
Customer deposits | 78,607 | 60,548 |
Contract liability | 0 | (75,000) |
Accounts payable-related parties | 4,093 | 2,720 |
Accrued management compensation | 0 | 14,423 |
Net Cash Provided by (Used in) Operating Activities | 17,211 | 9,239 |
INVESTING ACTIVITIES | ||
Purchase of fixed assets | 0 | (1,445) |
Net Cash Used in Investing Activities | 0 | (1,445) |
FINANCING ACTIVITIES | ||
Proceeds (payments on) from related party payable | 113 | (11,089) |
Net Cash Provided by (Used in) Financing Activities | 113 | (11,089) |
NET CHANGE IN CASH | 17,324 | (3,295) |
CASH AT BEGINNING OF YEAR | 56,379 | 59,674 |
CASH AT END OF YEAR | 73,703 | 56,379 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||
Interest | 27,537 | 17,713 |
Income taxes | $ 800 | $ 800 |
NOTE 1 - ORGANIZATION AND BUSIN
NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY | NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY Omnitek Engineering, Corp. (“Omnitek” or “the Company”) was incorporated on October 9, 2001 under the laws of the State of California. Omnitek develops and sells proprietary technology to convert diesel engines to an alternative fuel, new gaseous fuel engines, and complementary products. Omnitek products are available for stationary applications and the global transportation markets, which includes light commercial vehicles, minibuses, heavy-duty trucks, municipal buses, as well as rail and marine applications. The technology can be applied for compressed natural gas (“CNG”), liquefied natural gas (“LNG”), renewable natural gas (“Biogas” or “RNG”), or Hydrogen (“H2”), as well as liquid petroleum gas (“Propane” or LPG”). Omnitek began operations on October 10, 2001, and was a spin-off from Nology Engineering, Inc. |
NOTE 2 - SUMMARY OF SIGNIFICANT
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Accounting Methods The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31, year-end. b. Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company also regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances, inventory valuation allowances, allowance for doubtful receivables and valuations of equity-based payments. c. Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. d. Accounts Receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. Allowance for doubtful accounts for the years ended December 31, 2023, and 2022, was $0 and $0, respectively. Additionally, bad debt expense for the years ended December 31, 2023, and 2022, was $0 and $0, respectively. e. Inventories Inventories are stated at the lower of cost or market value, cost determined on an average cost basis. Market value for raw materials is based on replacement costs. Inventory costs include material, labor and manufacturing overhead. The Company reviews inventories on hand at least annually and records provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product expiration. f. Long-Lived Assets The Company assesses the recoverability of its long-lived assets annually and whenever circumstances would indicate that there may be an impairment. The Company compares the estimated undiscounted future cash flows to NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) the carrying value of the long-lived assets to determine if an impairment has occurred. In the event that an impairment has occurred, the Company will recognize the impairment immediately. No impairment expense was recognized as of December 31, 2023, or 2022. g. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization are calculated on the straight-line method over the shorter of the lease term or the estimated useful lives of the assets ranging from three- to- five years. h. Revenue Recognition In general, revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. We recognize revenue on various products and services as follows: Products Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Performance Obligations Satisfied Over Time Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the years ended December 31, 2023, and 2022, respectively. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Performance Obligations Satisfied at a Point in Time Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 100% and 100% of revenue for the years ended December 31, 2023, and 2022, respectively. Assurance-type warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant. Disaggregation of Revenue The following table presents Omnitek’s revenues disaggregated by region and product type: December 31, December 31, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 342,146 - 342,146 $ 376,453 - 376,453 International 713,168 713,168 694,334 694,334 $ 1,055,314 1,055,314 $ 1,070,787 1,070,787 Filters 528,917 - 528,917 520,386 - 520,386 Components 526,397 - 526,397 549,581 - 549,581 Engineering Services - - 820 820 $ 1,055,314 1,055,314 $ 1,070,787 1,070,787 i. Cost of Goods Sold The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of goods sold. j. Research and Development The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2023, and 2022, the Company incurred research and development expenses of $67,576 and $66,444, respectively. k. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. During the years ended December 31, 2023, and 2022, the Company expensed $-0- and $-0-, respectively. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) l. Provision for Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of December 31, 2023, the Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2012. m. Basic and Diluted Loss Per Share The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 2,720,556 and 3,207,222 stock options and warrants that would have been included in the fully diluted earnings per share computation as of December 31, 2023 and 2022, respectively. However, in 2023, the common stock equivalents were not included in the loss per share computation because they are anti-dilutive. n. Fair Value Measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. o. Stock-based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) p. Concentration of Risks Customers During the year ended December 31, 2023, eight customers accounted for approximately 91% of sales. During the year ended December 31, 2022, eight customers accounted for approximately 81% of sales. Suppliers During the year ended December 31, 2023, four suppliers accounted for 78% of products purchased. During the year ended December 31, 2022, four suppliers accounted for 82% of products purchased. q. Liquidity and Going Concern Historically, the Company has incurred net losses and positive cash flows from operations. As of December 31, 2023, the Company had an accumulated deficit of $21,860,347 and total stockholders’ deficit of $1,185,690. At December 31, 2023, the Company had current assets of $482,521 including cash of $73,703, and current liabilities of $1,579,512, resulting in negative working capital of $1,096,991. For 2023, the Company reported a net loss of $215,406 and net cash provided by operating activities of $17,211. Management believes that based on its operating plan, the projected sales for 2024, combined with funds available from its working capital, will be sufficient to fund operations for the next twelve months from the date these financial statements were issued. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. Whether, and when, the Company can attain profitability and positive cash flows from operations is uncertain. The Company is also uncertain whether it can raise additional capital. These uncertainties cast substantial doubt upon the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. Our financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities should we be unable to continue as a going concern. r. Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements, and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. |
NOTE 3 - CUSTOMER DEPOSITS
NOTE 3 - CUSTOMER DEPOSITS | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 3 - CUSTOMER DEPOSITS | NOTE 3 – CUSTOMER DEPOSITS The customers deposit account relates to payments received from customers before product has been shipped. When the product is shipped the Company recognizes the associated revenue by reclassifying the customer deposit to the appropriate revenue account. By contrast, the Contract Liabilities account (see Note 4) relates to long-term contracts where revenue is recognized over the term of the contract. For the periods ended December 31, 2023 and December 31, 2022, the balance due under customer deposits was $310,025 and $231,418, respectively. |
NOTE 4 - CONTRACT ASSETS AND LI
NOTE 4 - CONTRACT ASSETS AND LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 4 - CONTRACT ASSETS AND LIABILITIES | NOTE 4 – CONTRACT ASSETS AND LIABILITIES Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) on the balance sheet. For Omnitek’s long-term contracts, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms. As of December 31, 2023, the company had no long-term contract liabilities. |
NOTE 5 - OPERATING LEASES
NOTE 5 - OPERATING LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 5 - OPERATING LEASES | NOTE 5 – OPERATING LEASE The Company’s lease consists of an operating lease for general office space and warehouse facilities. The Company recognizes rent expense for this lease on a straight-line basis over the lease term. Because the lease does not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease Commencement Date in determining the present value of future lease payments. On June 3, 2021, the Company entered into a lease for the premises located at 1345 Specialty Drive #E, Vista, CA, containing approximately 11,751 square feet of rentable area. The lease commenced on July 1, 2021, and expires on June 30, 2026. The monthly base rent under the lease is $9,988 per month and monthly operating expenses during the term of the lease, subject to adjustment under the lease, is $1,175 per month. On Commencement Date, the Company recognized a ROU asset of $653,701 and a lease liability of $652,350. During the year ended December 31, 2023, cash paid for amounts included in the measurement of operating lease liabilities was $118,756 and the Company recorded operating lease expenses included in operating expenses of $43,298 and cost of sales of $105,864, for a total of $149,162. Supplemental balance sheet information related to leases as of December 31, 2023 was as follows: Operating leases: Operating lease right-of-use-assets 345,459 Operating lease liabilities - current 131,868 Operating lease liabilities – long-term 254,339 Incremental borrowing rate: Operating leases 4.94% As of December 31, 2023, maturities of operating lease liabilities were as follows: Years ending December 31, 2023 - 2024 148,074 2025 176,268 Thereafter 88,134 Total lease payments 412,476 Less: Imputed interest (26,269) Total lease liability 386,207 Less: current lease liability (131,868) Long-term lease liability $ 254,339 |
NOTE 6 - INVENTORIES
NOTE 6 - INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 6 - INVENTORIES | NOTE 6 – INVENTORIES Inventories are located in Vista, California and at December 31, 2023, and 2022, consisted of the following: December 31, December 31, 2023 2022 Raw materials $ 799,642 $ 836,833 Finished goods 494,074 634,275 Total $ 1,293,716 $ 1,471,108 Allowance for obsolete inventory Opening allowance 927,755 931,735 Additional allowance created during the Year 84,068 Earlier year allowance write back (88,945) (3,980) Closing allowance 922,878 927,755 Total $ 370,838 $ 543,353 NOTE 6 – INVENTORIES (continued) The Company has established an allowance for obsolete inventory. The net change in obsolete inventory was a decrease of $4,877 and $3,980, for the years ended December 31, 2023, and December 31, 2022, respectively. |
NOTE 7 - PROPERTY AND EQUIPMENT
NOTE 7 - PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 7 - PROPERTY AND EQUIPMENT | NOTE 7 – PROPERTY AND EQUIPMENT Property and equipment at December, 2023, and 2022, consisted of the following: December 31, December 31, 2023 2022 Production equipment $ 68,456 $ 68,456 Leasehold Improvements 4,689 4,689 Less: accumulated depreciation (67,478) (65,733) Total $ 5,667 $ 7,412 Depreciation expense for the years ended December 31, 2023, and 2022, was $1,745 and $2,500, respectively. |
NOTE 8 - NOTES PAYABLE - RELATE
NOTE 8 - NOTES PAYABLE - RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 8 - NOTES PAYABLE - RELATED PARTIES | NOTE 8 – NOTES PAYABLE – RELATED PARTIES Convertible Notes – Related Parties On June 4, 2021, the Company issued an unsecured convertible promissory note for $30,000 to its CEO. Simple interest at the rate of 8% per annum accrues on the unpaid principal balance of the note. The note calls for monthly installment payments of $1,050 commencing on July 4, 2021. The unpaid principal and accrued interest was due and payable on or before June 4, 2023. On the maturity date, June 4, 2023, the lender elected to transfer the unpaid principal balance of $7,940 to the Working Capital Promissory Note. On June 4, 2021, the Company issued a convertible promissory note for $20,000 to a board member. The note has an annual interest rate of 8% and is unsecured. The principal amount of the note and all accrued interest is due and payable on or before December 4, 2021. On December 14, 2021, the maturity date of convertible promissory note was extended for an additional period of 3 months until March 4, 2022. Subsequently the maturity date was extended for additional periods to June 4, 2022, September 4, 2022, December 4, 2022, June 4, 2023 and December 4, 2023. On December 4, 2023 the Company made a payment of $10,000 reducing the outstanding balance to $10,000 and also extended the note until December 4, 2024. The note has a conversion feature, wherein, at the maturity date, the lender may convert the remaining principal balance and any unpaid accrued interest into shares of the Company’s common stock. The number of shares of common stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the remaining unpaid principal balance and any unpaid accrued interest of this note by (ii) 90% of the average closing price of the common stock of the Company, for the five (5) trading days (between days 15 and 10 days) before the maturity date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 “Derivatives and Hedging.” As the note is not convertible until maturity, no derivative liability was recognized as of December 31, 2023. As of December 31, 2023, and December 31, 2022, Convertible Notes – Related Party consisted of the following: December 31, 2023 December 31, 2022 Convertible Notes payable, related parties $ 10,000 $ 32,827 Less current portion (10,000) (32,827) Total $ - - NOTE 8 – NOTES PAYABLE – RELATED PARTIES (continued) Notes Payable – Related Party On January 19, 2017, the Company issued a promissory note for $15,000 to a related party. The note has an annual interest rate of 5% and is unsecured. The principal amount of the note and all accrued interest is due and payable on or before January 19, 2018. The maturity date of the note was extended annually for additional one-year period, with a current due date of January 19, 2024. On September 15, 2023, the lender elected to transfer the unpaid principal balance of $15,000 to the Working Capital Promissory Note. On March 23, 2023, the Company issued a Working Capital Promissory Note, in favor of its CEO, evidencing the additional loans to the Company by the CEO, with an Initial Principal Balance of $20,000, and to evidence any future additional loans by the CEO to the Company thereafter. Pursuant to the terms of the note, the unpaid principal and accrued simple interest at the rate of 8.0% per annum (“ Applicable Rate Maturity Date As of December 31, 2023, and December 31, 2022 Note Payable – Related Party consisted of the following: December 31, 2023 December 31, 2022 Note payable, related party, current portion $ 37,940 $ 15,000 Total $ 37,940 $ 15,000 |
NOTE 9 - DEBT
NOTE 9 - DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 9 - DEBT | NOTE 9 – DEBT Loans payable – SBA Economic Injury Disaster Loan On April 21, 2020, the Company obtained a loan (the “SBA EIDL Loan”) under the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) adminitstered by the U.S. Small Business Administration. The Company received total proceeds of $199,000 from the loan. The SBA EIDL Loan is evidenced by a Loan Authorization and Agreement, a Secured Promissory Note (the “Note” and Security Agreement. Interest on the unpaid principal balance of the Note shall accrue at the rate of three and 75/100 percent (3.75%) per annum. Pursuant to the terms of the Note, commencing May 21, 2022 (i.e., twenty-four (30) months from the Note date), the Company shall make principal and interest payments in the amount of $970 every month, with any unpaid principal and accrued interest due and payable on April 21, 2050. As of December 31, 2023, accrued interest was $12,020. Current monthly payments are applied to the accrued interest. The obligations under the Loan Authorization and Agreement, and the Note shall be secured pursuant to the Security Agreement and a first position lien and security interest in the Collateral (as defined in the Security Agreement). The collateral in which the security interest is granted includes all tangible and intangible personal property, including, but not limited to: (a) inventory, and (b) equipment. As of December 31, 2023, and December 31, 2022, Debt consisted of the following: December 31, December 31, 2023 2022 Loan payable – SBA EIDL $ 199,000 $ 199,000 Less current portion - - Total $ 199,000 $ 199,000 As of December 31, 2023 accrued interest was $12,020. |
NOTE 10 - COMMITMENTS AND CONTI
NOTE 10 - COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 10 - COMMITMENTS AND CONTINGENCIES | NOTE 10 – COMMITMENTS As of December 31, 2023, and 2022, the Company had outstanding purchase commitments for inventory totaling $195,606 and $188,946, respectively. Of these amounts, the Company had prepayments of $23,113 as of December 31, 2023, and $7,657 as of December 31, 2022, and had commitments for future cash outlays for inventory totaling $172,493 and $181,289, respectively. |
NOTE 11 - RELATED PARTY TRANSAC
NOTE 11 - RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 11 - RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS Accounts Payable – Related Parties The Company regularly incurs expenses that are paid to related parties and purchases goods and services from related parties. As of December 31, 2023, the Company owed two board members for such services $129,950 and a board member’s company for such goods in the amounts of $1,335. Accounts Receivable – Related Parties As of December 31, 2023, and December 31, 2022, the Company was owed $1,304 and $2,252, respectively, by an entity controlled by the Company’s CEO for the purchase of products and services. Accrued Management Expenses During the periods ended December 31, 2023, and December 31, 2022, the Company’s president was due amounts for services performed for the Company. As of December 31, 2023, and December 31, 2022 the accrued management fees consisted of the following: December 31, 2023 December 31, 2022 Amounts due to the president $ 635,158 $ 635,158 Total $ 635,158 $ 635,158 |
NOTE 12 - STOCKHOLDERS' EQUITY
NOTE 12 - STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 12 - STOCKHOLDERS' EQUITY | NOTE 12 – STOCKHOLDERS’ EQUITY Options and Warrants The Company has no warrants outstanding. On April 14, 2023, options to purchase 570,000 shares of common Stock at an exercise price of $0.286 per share, and options to purchase 150,000 shares of common Stock at an exercise price of $0.26 per share, expired. During the years ended December 31, 2023, and 2022, the Company granted 150,000 and 150,000 options for services, respectively. During the years ended December 31, 2023, and 2022, respectively, the Company recognized expenses of $15,776 and $18,341 related to options that vested during the years, pursuant to ASC Topic 718. The total remaining amount of compensation expense to be recognized in future periods is $1,963. On September 11, 2015, the Board of Directors adopted the Omnitek Engineering Corp. 2015, Long Term Incentive Plan (the “2015 Plan”), under which 2,500,000 shares of the Company’s Common Stock were reserved for issuance of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants NOTE 12 – STOCKHOLDERS’ EQUITY (continued) at its discretion. As of December 31, 2023, the Company had a total of 1,145,556 options issued under the plan. In October 2017, the Company’s shareholders approved its 2017 Long-Term Incentive Plan (the “2017 Plan”). Under the 2017 plan, the Company may issue up to 5,000,000 shares of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion. As of December 31, 2023, the Company had a total of 1,600,000 options issued under the plan. During the year ended December 31, 2023, and 2022, the Company issued -0- and -0- warrants, respectively. The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. When determining expected volatility, the Company considers the historical performance of the Company’s stock, as well as implied volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, based on the options’ expected term. The expected term of the options is based on the Company’s evaluation of option holders’ exercise patterns and represents the period of time that options are expected to remain unexercised. The Company uses historical data to estimate the timing and amount of forfeitures. The following table presents the assumptions used to estimate the fair values of the stock options granted: December 31, 2023 December 31, 2022 Expected volatility 206% 207% Expected dividends 0% 0% Expected term 7 Years 7 Years Risk-free interest rate 3.63% 2.95% A summary of the status of the options granted at December 31, 2023 and December 31, 2022 and changes during the years then ended is presented below: December 31, 2023 December 31, 2022 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 3,265,556 $ 0.15 3,290,556 $ 0.19 Granted 150,000 0.04 150,000 0.05 Exercised - - - - Expired or cancelled (670,000) 0.28 (175,000) 0.77 Outstanding at end of year 2,745,556 0.11 3,265,556 0.15 Exercisable 2,720,556 $ 0.11 3,140,556 $ 0.15 NOTE 12 – STOCKHOLDERS’ EQUITY (continued) A summary of the status of the options outstanding at December 31, 2023 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-1.00 2,745,556 2.04 years 2,720,556 $0.11 A summary of the status of the options outstanding at December 31, 2022 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01 - 1.00 3,265,556 2.28 years 3,140,556 $0.15 |
NOTE 13 - INCOME TAXES
NOTE 13 - INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 13 - INCOME TAXES | NOTE 13 – INCOME TAXES The provision for income taxes for the year ended December 31, 2023 and 2022 consists of the following: December 31, December 31, 2023 2022 Federal Current $ - $ - Deferred - - State Current $ 800 $ 800 Deferred - - Income tax expense $ 800 $ 800 Net deferred tax assets consist of the following components as of December 31, 2023, and 2022: December 31, December 31, 2023 2022 Deferred tax assets: Net operating loss carryover $ 8,035,407 $ 7,839,147 Research and development carry forward 131,088 131,088 Inventory reserve 221,491 222,661 Allowance for doubtful accounts 3,600 3,600 Warranty allowance 3,068 3,068 Accrued compensation 152,438 152,438 Deferred tax liabilities: Depreciation (34,482) (34,066) Valuation allowance (8,512,610) (8,317,935) Net deferred tax asset $ - $ - NOTE 13 – INCOME TAXES (continued) The income tax provision differs from the amount of income tax determined by applying the estimated U.S. federal and state income tax rate of 24% as of December 31, 2023 and December 31, 2022 to pretax income from continuing operations for the year ended December 31, 2023 and 2022 due to the following: December 31, December 31, 2023 2022 Book income (loss) $ (51,697) $ (47,210) Meals and entertainment - - State tax deduction - - Deferred rent - - Stock/Options for services 3,786 4,402 Officer’s life ins premium 260 797 Depreciation 416 590 Accrued compensation - 3,462 Inventory reserve (1,170) (955) Valuation allowance 97,611 78,629 Net operating of carryover (48,406) (38,915) Income Tax Expense $ 800 $ 800 On December 21, 2017, the TCJA was enacted. Among other things, the TCJA reduces the U.S. federal corporate tax rate from 35 percent to 21 percent beginning January 1, 2018, requires companies to pay a one-time transition tax on certain previously unremitted earnings on non-U.S. subsidiaries, creates new taxes on certain foreign sourced earnings and imposes additional limitations on certain deductions, including interest expense and net operating losses arising after 2017. The Company has assessed the impact of the TCJA and is not subject to the one-time transition tax. The Company remeasured certain deferred tax assets and liabilities based on the rates that they are expected to reverse in the future, which is generally 21 percent under TCJA. The decrease in the Company’s net deferred tax assets was offset by a corresponding decrease in its valuation allowance. At December 31, 2023, the Company had net operating loss carry forwards of approximately $8,035,407 through 2034. No tax benefit has been reported in the December 31, 2023, financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years. |
NOTE 14 - CONTINGENT LIABILITY
NOTE 14 - CONTINGENT LIABILITY | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 14 - CONTINGENT LIABILITY | NOTE 14 – CONTINGENT LIABILITY On September 16, 2022 the Company received a Summons and was named as a cross-defendant in the matter of Olson-Ecologic Engine Testing Laboratories, LLC -v- Michael Naylor, Omnitek Engineering Corp., and Moto Concerto, Inc. |
NOTE 15 - SUBSEQUENT EVENT
NOTE 15 - SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2023 | |
Notes | |
NOTE 15 - SUBSEQUENT EVENT | NOTE 15 – SUBSEQUENT EVENTS The Company reports no subsequent events through the date these financial statements were issued. None |
NOTE 2 - SUMMARY OF SIGNIFICA_2
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Accounting Methods (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
a. Accounting Methods | a. Accounting Methods The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31, year-end. |
NOTE 2 - SUMMARY OF SIGNIFICA_3
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: b. Use of Estimates in Preparing Financial Statements (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
b. Use of Estimates in Preparing Financial Statements | b. Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The Company also regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances, inventory valuation allowances, allowance for doubtful receivables and valuations of equity-based payments. |
NOTE 2 - SUMMARY OF SIGNIFICA_4
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: c. Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
c. Cash and Cash Equivalents | c. Cash and Cash Equivalents For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. |
NOTE 2 - SUMMARY OF SIGNIFICA_5
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
d. Accounts Receivable | d. Accounts Receivable Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts. Trade receivables are written off when deemed uncollectible. Recoveries of trade receivables previously written off are recorded when received. Allowance for doubtful accounts for the years ended December 31, 2023, and 2022, was $0 and $0, respectively. Additionally, bad debt expense for the years ended December 31, 2023, and 2022, was $0 and $0, respectively. |
NOTE 2 - SUMMARY OF SIGNIFICA_6
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: e. Inventories (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
e. Inventories | e. Inventories Inventories are stated at the lower of cost or market value, cost determined on an average cost basis. Market value for raw materials is based on replacement costs. Inventory costs include material, labor and manufacturing overhead. The Company reviews inventories on hand at least annually and records provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product expiration. |
NOTE 2 - SUMMARY OF SIGNIFICA_7
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: f. Long-Lived Assets (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
f. Long-Lived Assets | f. Long-Lived Assets The Company assesses the recoverability of its long-lived assets annually and whenever circumstances would indicate that there may be an impairment. The Company compares the estimated undiscounted future cash flows to NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) the carrying value of the long-lived assets to determine if an impairment has occurred. In the event that an impairment has occurred, the Company will recognize the impairment immediately. No impairment expense was recognized as of December 31, 2023, or 2022. |
NOTE 2 - SUMMARY OF SIGNIFICA_8
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: g. Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
g. Property and Equipment | g. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization are calculated on the straight-line method over the shorter of the lease term or the estimated useful lives of the assets ranging from three- to- five years. |
NOTE 2 - SUMMARY OF SIGNIFICA_9
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
h. Revenue Recognition | h. Revenue Recognition In general, revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. We recognize revenue on various products and services as follows: Products Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Performance Obligations Satisfied Over Time Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the years ended December 31, 2023, and 2022, respectively. NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Performance Obligations Satisfied at a Point in Time Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 100% and 100% of revenue for the years ended December 31, 2023, and 2022, respectively. Assurance-type warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant. Disaggregation of Revenue The following table presents Omnitek’s revenues disaggregated by region and product type: December 31, December 31, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 342,146 - 342,146 $ 376,453 - 376,453 International 713,168 713,168 694,334 694,334 $ 1,055,314 1,055,314 $ 1,070,787 1,070,787 Filters 528,917 - 528,917 520,386 - 520,386 Components 526,397 - 526,397 549,581 - 549,581 Engineering Services - - 820 820 $ 1,055,314 1,055,314 $ 1,070,787 1,070,787 |
NOTE 2 - SUMMARY OF SIGNIFIC_10
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: i. Cost of Goods Sold (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
i. Cost of Goods Sold | i. Cost of Goods Sold The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of goods sold. |
NOTE 2 - SUMMARY OF SIGNIFIC_11
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
j. Research and Development | j. Research and Development The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2023, and 2022, the Company incurred research and development expenses of $67,576 and $66,444, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_12
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
k. Advertising | k. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. During the years ended December 31, 2023, and 2022, the Company expensed $-0- and $-0-, respectively. |
NOTE 2 - SUMMARY OF SIGNIFIC_13
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: l. Provision for Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
l. Provision for Income Taxes | l. Provision for Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of December 31, 2023, the Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2012. |
NOTE 2 - SUMMARY OF SIGNIFIC_14
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
m. Basic and Diluted Loss Per Share | m. Basic and Diluted Loss Per Share The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 2,720,556 and 3,207,222 stock options and warrants that would have been included in the fully diluted earnings per share computation as of December 31, 2023 and 2022, respectively. However, in 2023, the common stock equivalents were not included in the loss per share computation because they are anti-dilutive. |
NOTE 2 - SUMMARY OF SIGNIFIC_15
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: n. Fair Value Measurements (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
n. Fair Value Measurements | n. Fair Value Measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. |
NOTE 2 - SUMMARY OF SIGNIFIC_16
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: o. Stock-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
o. Stock-based Compensation | o. Stock-based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. |
NOTE 2 - SUMMARY OF SIGNIFIC_17
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
p. Concentration of Risks | p. Concentration of Risks Customers During the year ended December 31, 2023, eight customers accounted for approximately 91% of sales. During the year ended December 31, 2022, eight customers accounted for approximately 81% of sales. Suppliers During the year ended December 31, 2023, four suppliers accounted for 78% of products purchased. During the year ended December 31, 2022, four suppliers accounted for 82% of products purchased. |
NOTE 2 - SUMMARY OF SIGNIFIC_18
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
q. Liquidity and Going Concern | q. Liquidity and Going Concern Historically, the Company has incurred net losses and positive cash flows from operations. As of December 31, 2023, the Company had an accumulated deficit of $21,860,347 and total stockholders’ deficit of $1,185,690. At December 31, 2023, the Company had current assets of $482,521 including cash of $73,703, and current liabilities of $1,579,512, resulting in negative working capital of $1,096,991. For 2023, the Company reported a net loss of $215,406 and net cash provided by operating activities of $17,211. Management believes that based on its operating plan, the projected sales for 2024, combined with funds available from its working capital, will be sufficient to fund operations for the next twelve months from the date these financial statements were issued. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. Whether, and when, the Company can attain profitability and positive cash flows from operations is uncertain. The Company is also uncertain whether it can raise additional capital. These uncertainties cast substantial doubt upon the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. Our financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities should we be unable to continue as a going concern. |
NOTE 2 - SUMMARY OF SIGNIFIC_19
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: r. Recent Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Policies | |
r. Recent Accounting Pronouncements | r. Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements, and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. |
NOTE 2 - SUMMARY OF SIGNIFIC_20
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Disaggregation of Revenue | December 31, December 31, 2023 2022 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 342,146 - 342,146 $ 376,453 - 376,453 International 713,168 713,168 694,334 694,334 $ 1,055,314 1,055,314 $ 1,070,787 1,070,787 Filters 528,917 - 528,917 520,386 - 520,386 Components 526,397 - 526,397 549,581 - 549,581 Engineering Services - - 820 820 $ 1,055,314 1,055,314 $ 1,070,787 1,070,787 |
NOTE 5 - OPERATING LEASES_ Sche
NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Supplemental Balance Sheet Information Related to Leases | Operating leases: Operating lease right-of-use-assets 345,459 Operating lease liabilities - current 131,868 Operating lease liabilities – long-term 254,339 Incremental borrowing rate: Operating leases 4.94% |
NOTE 5 - OPERATING LEASES_ Sc_2
NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2023, maturities of operating lease liabilities were as follows: Years ending December 31, 2023 - 2024 148,074 2025 176,268 Thereafter 88,134 Total lease payments 412,476 Less: Imputed interest (26,269) Total lease liability 386,207 Less: current lease liability (131,868) Long-term lease liability $ 254,339 |
NOTE 6 - INVENTORIES_ Schedule
NOTE 6 - INVENTORIES: Schedule of Inventories (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Inventories | Inventories are located in Vista, California and at December 31, 2023, and 2022, consisted of the following: December 31, December 31, 2023 2022 Raw materials $ 799,642 $ 836,833 Finished goods 494,074 634,275 Total $ 1,293,716 $ 1,471,108 Allowance for obsolete inventory Opening allowance 927,755 931,735 Additional allowance created during the Year 84,068 Earlier year allowance write back (88,945) (3,980) Closing allowance 922,878 927,755 Total $ 370,838 $ 543,353 |
NOTE 7 - PROPERTY AND EQUIPME_2
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Property and Equipment | Property and equipment at December, 2023, and 2022, consisted of the following: December 31, December 31, 2023 2022 Production equipment $ 68,456 $ 68,456 Leasehold Improvements 4,689 4,689 Less: accumulated depreciation (67,478) (65,733) Total $ 5,667 $ 7,412 |
NOTE 8 - NOTES PAYABLE - RELA_2
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule of Convertible Notes - Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Convertible Notes - Related Parties | December 31, 2023 December 31, 2022 Convertible Notes payable, related parties $ 10,000 $ 32,827 Less current portion (10,000) (32,827) Total $ - - |
NOTE 8 - NOTES PAYABLE - RELA_3
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule Of Notes Payable Related Party table (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule Of Notes Payable Related Party table | December 31, 2023 December 31, 2022 Note payable, related party, current portion $ 37,940 $ 15,000 Total $ 37,940 $ 15,000 |
NOTE 9 - DEBT_ Schedule of Debt
NOTE 9 - DEBT: Schedule of Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Debt | As of December 31, 2023, and December 31, 2022, Debt consisted of the following: December 31, December 31, 2023 2022 Loan payable – SBA EIDL $ 199,000 $ 199,000 Less current portion - - Total $ 199,000 $ 199,000 |
NOTE 11 - RELATED PARTY TRANS_2
NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule Of Related Party Transactions Table | December 31, 2023 December 31, 2022 Amounts due to the president $ 635,158 $ 635,158 Total $ 635,158 $ 635,158 |
NOTE 12 - STOCKHOLDERS' EQUITY_
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | December 31, 2023 December 31, 2022 Expected volatility 206% 207% Expected dividends 0% 0% Expected term 7 Years 7 Years Risk-free interest rate 3.63% 2.95% |
NOTE 12 - STOCKHOLDERS' EQUIT_2
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Share-Based Payment Arrangement, Option, Activity | December 31, 2023 December 31, 2022 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 3,265,556 $ 0.15 3,290,556 $ 0.19 Granted 150,000 0.04 150,000 0.05 Exercised - - - - Expired or cancelled (670,000) 0.28 (175,000) 0.77 Outstanding at end of year 2,745,556 0.11 3,265,556 0.15 Exercisable 2,720,556 $ 0.11 3,140,556 $ 0.15 |
NOTE 12 - STOCKHOLDERS' EQUIT_3
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | A summary of the status of the options outstanding at December 31, 2023 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-1.00 2,745,556 2.04 years 2,720,556 $0.11 A summary of the status of the options outstanding at December 31, 2022 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01 - 1.00 3,265,556 2.28 years 3,140,556 $0.15 |
NOTE 13 - INCOME TAXES_ Schedul
NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | December 31, December 31, 2023 2022 Federal Current $ - $ - Deferred - - State Current $ 800 $ 800 Deferred - - Income tax expense $ 800 $ 800 |
NOTE 13 - INCOME TAXES_ Sched_2
NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets consist of the following components as of December 31, 2023, and 2022: December 31, December 31, 2023 2022 Deferred tax assets: Net operating loss carryover $ 8,035,407 $ 7,839,147 Research and development carry forward 131,088 131,088 Inventory reserve 221,491 222,661 Allowance for doubtful accounts 3,600 3,600 Warranty allowance 3,068 3,068 Accrued compensation 152,438 152,438 Deferred tax liabilities: Depreciation (34,482) (34,066) Valuation allowance (8,512,610) (8,317,935) Net deferred tax asset $ - $ - |
NOTE 13 - INCOME TAXES_ Sched_3
NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | December 31, December 31, 2023 2022 Book income (loss) $ (51,697) $ (47,210) Meals and entertainment - - State tax deduction - - Deferred rent - - Stock/Options for services 3,786 4,402 Officer’s life ins premium 260 797 Depreciation 416 590 Accrued compensation - 3,462 Inventory reserve (1,170) (955) Valuation allowance 97,611 78,629 Net operating of carryover (48,406) (38,915) Income Tax Expense $ 800 $ 800 |
NOTE 2 - SUMMARY OF SIGNIFIC_21
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Accounts Receivable, Allowance for Credit Loss | $ 0 | $ 0 |
Bad Debt Expense | $ 0 | $ 0 |
NOTE 2 - SUMMARY OF SIGNIFIC_22
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Geographic Distribution, Domestic | ||
Products | $ 342,146 | $ 376,453 |
Contract | 0 | 0 |
Revenues | 342,146 | 376,453 |
Geographic Distribution, Foreign | ||
Products | 713,168 | 694,334 |
Revenues | 713,168 | 694,334 |
Filters | ||
Products | 528,917 | 520,386 |
Contract | 0 | 0 |
Revenues | 528,917 | 520,386 |
Components | ||
Products | 526,397 | 549,581 |
Contract | 0 | 0 |
Revenues | 526,397 | 549,581 |
Engineering Services | ||
Products | 0 | 820 |
Revenues | 0 | 820 |
Products | 1,055,314 | 1,070,787 |
Revenues | $ 1,055,314 | $ 1,070,787 |
NOTE 2 - SUMMARY OF SIGNIFIC_23
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Research and development | $ 67,576 | $ 66,444 |
NOTE 2 - SUMMARY OF SIGNIFIC_24
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Advertising Expense | $ 0 | $ 0 |
NOTE 2 - SUMMARY OF SIGNIFIC_25
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,720,556 | 3,207,222 |
NOTE 2 - SUMMARY OF SIGNIFIC_26
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Concentration Risk, Customer | eight customers accounted for approximately 91% of sales | eight customers accounted for approximately 81% of sales |
Concentration Risk, Supplier | four suppliers accounted for 78% of products purchased | four suppliers accounted for 82% of products purchased |
NOTE 2 - SUMMARY OF SIGNIFIC_27
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Details | |||
Accumulated deficit | $ 21,860,347 | $ 21,644,941 | |
Total Stockholders' Deficit | 1,185,690 | 986,060 | $ 807,692 |
Total Current Assets | 482,521 | 619,821 | |
Cash | 73,703 | 56,379 | |
Total Current Liabilities | 1,579,512 | 1,513,942 | |
Working Capital | 1,096,991 | ||
Net income (loss) | 215,406 | 196,709 | |
Net Cash Provided by (Used in) Operating Activities | $ 17,211 | $ 9,239 |
NOTE 3 - CUSTOMER DEPOSITS (Det
NOTE 3 - CUSTOMER DEPOSITS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Customer deposits | $ 310,025 | $ 231,418 |
NOTE 5 - OPERATING LEASES (Deta
NOTE 5 - OPERATING LEASES (Details) | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Details | |
Monthly base rent | $ 9,988 |
Monthly Operating Lease Expense | 1,175 |
Adoption of ASC 842 - ROU Asset | 653,701 |
Adoption of ASC 842 - ROU Liability | 652,350 |
Cash Paid for Operating Lease Liabilities | 118,756 |
Operating Lease, Expense | 43,298 |
Cost of Sales | $ 105,864 |
NOTE 5 - OPERATING LEASES_ Sc_3
NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Details) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) |
Details | ||
Operating lease - right-of-use asset | $ 345,459 | $ 472,342 |
Operating lease liabilities - current | 131,868 | 118,756 |
Operating lease liabilities - long-term | $ 254,339 | $ 386,207 |
Operating leases Incremental Borrowing Rate | 0.0494 |
NOTE 5 - OPERATING LEASES_ Sc_4
NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 0 | |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 148,074 | |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 176,268 | |
Lessee, Operating Lease, Liability, to be Paid, Thereafter | 88,134 | |
Lessee, Operating Lease, Liability, to be Paid | 412,476 | |
Operating Lease, Imputed interest | (26,269) | |
Operating Lease, Liability | 386,207 | |
Operating lease liabilities - current | (131,868) | $ (118,756) |
Operating lease liabilities - long-term | $ 254,339 | $ 386,207 |
NOTE 6 - INVENTORIES_ Schedul_2
NOTE 6 - INVENTORIES: Schedule of Inventories (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Raw materials | $ 799,642 | |
Finished goods | 494,074 | |
Inventory, Gross | 1,293,716 | |
Opening Allowance | 927,755 | |
Additional allowance created during the Year | 84,068 | |
Earlier year allowance write back | (88,945) | |
Closing Allowance | 922,878 | |
Inventory Net | $ 370,838 | $ 543,353 |
NOTE 6 - INVENTORIES (Details)
NOTE 6 - INVENTORIES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Inventory Write-down | $ 4,877 | $ 3,980 |
NOTE 7 - PROPERTY AND EQUIPME_3
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
PROPERTY & EQUIPMENT, net | $ 5,667 | $ 7,412 |
Less: accumulated depreciation | (67,478) | (65,733) |
Production Equipment | ||
PROPERTY & EQUIPMENT, net | 68,456 | 68,456 |
Leasehold Improvements | ||
PROPERTY & EQUIPMENT, net | $ 4,689 | $ 4,689 |
NOTE 7 - PROPERTY AND EQUIPME_4
NOTE 7 - PROPERTY AND EQUIPMENT (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Depreciation and amortization | $ 1,745 | $ 2,500 |
NOTE 8 - NOTES PAYABLE - RELA_4
NOTE 8 - NOTES PAYABLE - RELATED PARTIES (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Convertible Notes payable, related parties | $ 10,000 | $ 10,000 | $ 32,827 |
Debt Instrument, Interest Rate During Period | 5% | ||
Debt Conversion, Original Debt, Amount | $ 15,000 | ||
Chief Executive Officer | |||
Convertible Notes payable, related parties | $ 30,000 | 30,000 | |
Debt Instrument, Interest Rate During Period | 8% | ||
Board Member | |||
Convertible Notes payable, related parties | $ 20,000 | $ 20,000 | |
Debt Instrument, Interest Rate During Period | 8% |
NOTE 8 - NOTES PAYABLE - RELA_5
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule of Convertible Notes - Related Parties (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Convertible Notes payable, related parties | $ 10,000 | $ 32,827 |
Convertible notes payable - related party | (10,000) | (32,827) |
Convertible Notes Payable, Noncurrent | $ 0 | $ 0 |
NOTE 8 - NOTES PAYABLE - RELA_6
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule Of Notes Payable Related Party table (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Notes payable - related parties | $ 37,940 | $ 15,000 |
Notes Payable, Related Parties | $ 37,940 | $ 15,000 |
NOTE 9 - DEBT (Details)
NOTE 9 - DEBT (Details) - SBA EIDL Loan | 44 Months Ended |
Dec. 31, 2023 USD ($) | |
Proceeds from Loans | $ 199,000 |
Debt Instrument, Interest Rate, Effective Percentage | 3.75% |
Interest Expense, Debt | $ 970 |
Debt Instrument, Maturity Date | Apr. 21, 2050 |
NOTE 9 - DEBT_ Schedule of De_2
NOTE 9 - DEBT: Schedule of Debt (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
SBA EIDL Loan | ||
Loans Payable | $ 199,000 | $ 199,000 |
Loans Payable, Current | 0 | 0 |
Loans Payable, Noncurrent | $ 199,000 | $ 199,000 |
NOTE 10 - COMMITMENTS AND CON_2
NOTE 10 - COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Details | ||
Purchase Commitment, Remaining Minimum Amount Committed | $ 195,606 | $ 188,946 |
Prepayment of Purchase Commitments for Inventory | 23,113 | 7,657 |
Commitments for Future Cash Outlays for Inventory | $ 172,493 | $ 181,289 |
NOTE 11 - RELATED PARTY TRANS_3
NOTE 11 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Accounts payable - related parties | $ 131,285 | $ 127,192 |
Accounts receivable - related parties | 1,304 | $ 2,252 |
Two Board Members for Services | ||
Accounts payable - related parties | 129,950 | |
Board Member's Company | ||
Accounts payable - related parties | $ 1,335 |
NOTE 11 - RELATED PARTY TRANS_4
NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
President | ||
Accrued management compensation | $ 635,158 | $ 635,158 |
Accrued management compensation | $ 635,158 | $ 635,158 |
NOTE 12 - STOCKHOLDERS' EQUITY
NOTE 12 - STOCKHOLDERS' EQUITY (Details) - USD ($) | 12 Months Ended | |||||
Apr. 14, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | Oct. 01, 2017 | Aug. 03, 2011 | |
Options to purchase Common Stock at an exercise price of $0.286 per share expired | 570,000 | |||||
Options to purchase Common Stock at an exercise price of $0.26 per share expired | 150,000 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures | 150,000 | 150,000 | ||||
Stock or Unit Option Plan Expense | $ 15,776 | $ 18,341 | ||||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 1,963 | |||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 2,745,556 | 3,265,556 | 3,290,556 | |||
Common Stock, Shares, Issued | 21,948,091 | 21,948,091 | ||||
2017 Long Term Incentive Plan | ||||||
Common Stock, Shares, Issued | 1,600,000 | |||||
Employee Stock Option | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures | 150,000 | 150,000 | ||||
Employee Stock Option | 2011 Long Term Incentive Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 2,500,000 | |||||
Employee Stock Option | 2015 Long Term Incentive Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 1,145,556 | |||||
Employee Stock Option | 2017 Long Term Incentive Plan | ||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized | 5,000,000 |
NOTE 12 - STOCKHOLDERS' EQUIT_4
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Expected volatility | 206% | 207% |
Expected dividends | 0% | 0% |
Expected term | 7 years | 7 years |
Risk-free interest rate | 3.63% | 2.95% |
NOTE 12 - STOCKHOLDERS' EQUIT_5
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 | |
Details | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number | 2,745,556 | 3,265,556 | 3,290,556 |
Outstanding, Weighted Average Exercise Price | $ 0.11 | $ 0.15 | $ 0.19 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures | 150,000 | 150,000 | |
Granted, Weighted Average Exercise Price | $ 0.04 | $ 0.05 | |
Exercised | 0 | 0 | |
Exercised, Weighted Average Exercise Price | $ 0 | $ 0 | |
Expired or cancelled | (670,000) | (175,000) | |
Expired or cancelled, Weighted Average Exercise Price | $ 0.28 | $ 0.77 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance | 2,745,556 | 3,265,556 | |
Exercisable | 2,720,556 | 3,140,556 | |
Exercisable, Weighted Average Exercise Price | $ 0.11 | $ 0.15 |
NOTE 12 - STOCKHOLDERS' EQUIT_6
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 2,745,556 | 3,265,556 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 14 days | 2 years 3 months 10 days |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 2,720,556 | 3,140,556 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 0.11 | $ 0.15 |
Minimum | ||
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | 0.01 | 0.01 |
Maximum | ||
Share-Based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | $ 1 | $ 1 |
NOTE 13 - INCOME TAXES_ Sched_4
NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Federal | ||
Current | $ 0 | $ 0 |
Deferred | 0 | 0 |
State | ||
Current | 800 | 800 |
Deferred | 0 | 0 |
INCOME TAX EXPENSE | $ 800 | $ 800 |
NOTE 13 - INCOME TAXES_ Sched_5
NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets | ||
Net operating loss carryover | $ 8,035,407 | $ 7,839,147 |
Research and development carry forward | 131,088 | 131,088 |
Inventory reserve | 221,491 | 222,661 |
Allowance for doubtful accounts | 3,600 | 3,600 |
Warranty allowance | 3,068 | 3,068 |
Accrued compensation | 152,438 | 152,438 |
Deferred tax liabilities | ||
Depreciation | (34,482) | (34,066) |
Valuation allowance | (8,512,610) | (8,317,935) |
Net deferred tax asset | $ 0 | $ 0 |
NOTE 13 - INCOME TAXES (Details
NOTE 13 - INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24% | 24% |
Operating Loss Carryforwards | $ 8,035,407 |
NOTE 13 - INCOME TAXES_ Sched_6
NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Details | ||
Book income (loss) | $ (51,697) | $ (47,210) |
Meals and entertainment | 0 | 0 |
State tax deduction | 0 | 0 |
Deferred rent | 0 | 0 |
Stock/Options for services | 3,786 | 4,402 |
Officer's life ins premium | 260 | 797 |
Depreciation | 416 | 590 |
Accrued compensation | 0 | 3,462 |
Inventory reserve | (1,170) | (955) |
Valuation allowance | 97,611 | 78,629 |
Net operating of carryover | (48,406) | (38,915) |
Income Tax Expense | $ 800 | $ 800 |