Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 31, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Omnitek Engineering Corp. | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'true | ' | ' |
Entity Central Index Key | '0001404804 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 19,759,582 | ' |
Entity Public Float | ' | ' | $10,827,768 |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Incorporation, Date of Incorporation | 9-Oct-01 | ' | ' |
Amendment Description | 'Restatement of Previously Issued Consolidated Financial Statements | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS | ' | ' |
Cash | $1,057,836 | $3,192,761 |
Accounts receivable, net | 38,261 | 120,547 |
Accounts receivable - related parties | 33,369 | 26,455 |
Inventory, net | 2,225,868 | 1,133,595 |
Prepaid expense | 21,474 | 7,440 |
Deposits | 62,973 | 331,760 |
Short-term investments, net | 917,248 | ' |
Total Current Assets | 4,357,029 | 4,812,558 |
FIXED ASSETS, net | 118,460 | 14,560 |
OTHER ASSETS | ' | ' |
Long-term investments, net | ' | 1,201,671 |
Intellectual property, net | 2,872 | 5,218 |
Total Other Assets | 2,872 | 1,206,889 |
TOTAL ASSETS | 4,478,361 | 6,034,007 |
CURRENT LIABILITIES | ' | ' |
Accounts payable and accrued expenses | 91,744 | 317,106 |
Accrued management compensation | 189,466 | 264,717 |
Derivative liability | 0 | 4,197,802 |
Accounts payable - related parties | 1,475 | ' |
Customer deposits | 222,072 | 184,109 |
Total Current Liabilities | 504,757 | 4,963,734 |
Total Liabilities | 504,757 | 4,963,734 |
STOCKHOLDERS' EQUITY | ' | ' |
Common stock, 125,000,000 shares authorized no par value 19,759,582 and 19,749,582 shares issued and outstanding, respectively | 8,201,311 | 8,196,061 |
Additional paid-in capital | 10,785,771 | 4,364,204 |
Accumulated deficit | -15,013,478 | -11,489,992 |
Total Stockholders' Equity | 3,973,604 | 1,070,273 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,478,361 | $6,034,007 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position | ' | ' |
Common Stock, par or stated value | $0 | $0 |
Common Stock, shares authorized | 125,000,000 | 125,000,000 |
Common Stock, shares issued | 19,759,582 | 19,749,582 |
Common Stock, shares outstanding | 19,759,582 | 19,749,582 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement | ' | ' |
REVENUES | $1,052,518 | $1,899,740 |
COST OF GOODS SOLD | 703,630 | 971,927 |
GROSS MARGIN | 348,888 | 927,813 |
OPERATING EXPENSES | ' | ' |
General and administrative | 1,711,440 | 2,039,884 |
Bad debt expense | 1,196 | 363 |
Research and development expense | 292,228 | 285,745 |
Depreciation and amortization expense | 22,206 | 6,369 |
Total Operating Expenses | 2,027,070 | 2,332,361 |
LOSS FROM OPERATIONS | -1,678,182 | -1,404,548 |
OTHER INCOME | ' | ' |
Derivative expense | ' | -11,051,108 |
Change in fair value of derivative liability | -1,909,298 | 7,354,708 |
Interest expense | -13 | -490 |
Interest income | 64,807 | 35,948 |
Total Other Income (Expense) | -1,844,504 | -3,660,942 |
LOSS BEFORE INCOME TAXES | -3,522,686 | -5,065,490 |
INCOME TAX EXPENSE | 800 | 800 |
NET LOSS | ($3,523,486) | ($5,066,290) |
BASIC AND DILUTED LOSS PER SHARE | ($0.18) | ($0.27) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,092,975 |
Statements_of_Stockholders_Equ
Statements of Stockholders' Equity (USD $) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Equity Balance, beginning of period, Value at Dec. 31, 2011 | $2,659,299 | $4,213,313 | ($6,423,702) | $448,910 |
Equity Balance, beginning of period, Shares at Dec. 31, 2011 | 17,137,812 | ' | ' | ' |
Common stock issued as collateral for note payable, Shares | 100,000 | ' | ' | ' |
Common stock issued for cash, Value | 5,536,762 | ' | ' | 5,536,762 |
Common stock issued for cash, Shares | 2,611,770 | ' | ' | ' |
Common stock canceled as collateral for note payable, Shares | -100,000 | ' | ' | ' |
Value of options and warrants issued for services | ' | 150,891 | ' | 150,891 |
Exercise of warrants and options for cash, Shares | ' | ' | ' | ' |
Net loss | ' | ' | -5,066,290 | -5,066,290 |
Equity Balance, end of period, Value at Dec. 31, 2012 | 8,196,061 | 4,867,169 | -7,795,155 | 1,070,273 |
Equity Balance, end of period, Shares at Dec. 31, 2012 | 19,749,582 | ' | ' | ' |
Value of options and warrants issued for services | ' | 314,467 | ' | 314,467 |
Exercise of warrants and options for cash, Value | 5,250 | ' | ' | 5,250 |
Exercise of warrants and options for cash, Shares | 10,000 | ' | ' | ' |
Derivative liability | ' | 6,107,100 | ' | 6,107,100 |
Net loss | ' | ' | -3,523,486 | -3,523,486 |
Equity Balance, end of period, Value at Dec. 31, 2013 | $8,201,311 | $10,785,771 | ($15,013,478) | $3,973,604 |
Equity Balance, end of period, Shares at Dec. 31, 2013 | 19,759,582 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
OPERATING ACTIVITIES | ' | ' |
Net loss | ($3,523,486) | ($5,066,290) |
Adjustments to reconcile net loss to net cash used by operating activities: | ' | ' |
Amortization and depreciation expense | 22,206 | 6,369 |
Amortization of premium on investments | 34,424 | 26,552 |
Derivative expense | ' | 11,051,108 |
Change in fair value of derivative liability | 1,909,298 | -7,354,708 |
Allowance for bad debt | ' | 5,000 |
Options and warrants granted | 314,467 | 652,293 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 82,285 | -112,041 |
Accounts receivable-related parties | -6,914 | -9,740 |
Deposits | 268,787 | -289,817 |
Prepaid Expense | -14,034 | -4,928 |
Inventory | -1,092,273 | -113,478 |
Accounts payable and accrued expenses | -225,364 | 259,279 |
Customer deposits | 37,963 | -102,499 |
Accounts payable-related parties | 1,475 | -2,568 |
Accrued management compensation | -75,251 | -86,863 |
Net Cash Used in Operating Activities | -2,266,417 | -1,142,331 |
INVESTING ACTIVITIES | ' | ' |
Purchase of long-term investments | ' | -1,228,223 |
Maturity of long-term investments | 250,000 | ' |
Purchase of property and equipment | -123,758 | -4,643 |
Net Cash Provided by (Used in) Investing Activities | 126,242 | -1,232,866 |
FINANCING ACTIVITIES | ' | ' |
Issuance of common stock for cash | ' | 5,536,762 |
Repayment of note payable | ' | -40,000 |
Exercise of warrants and options for cash | 5,250 | ' |
Proceeds of Note Payable | ' | 40,000 |
Net Cash Provided by Financing Activities | 5,250 | 5,536,762 |
NET INCREASE (DECREASE) IN CASH | -2,134,925 | 3,161,565 |
CASH AT BEGINNING OF YEAR | 3,192,761 | 31,196 |
CASH AT END OF PERIOD | 1,057,836 | 3,192,761 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ' | ' |
CASH PAID FOR: Interest | 13 | 490 |
CASH PAID FOR: Income taxes | $800 | $800 |
Note_1_Organization_and_Busine
Note 1 - Organization and Business Activity | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 1 - Organization and Business Activity | ' |
NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY | |
Omnitek Engineering, Corp. (Omnitek) was incorporated on October 9, 2001 as a California corporation. Omnitek develops and supplies new natural gas engine and advanced engine management systems for gaseous fuels and is the manufacturer of a proprietary technology used to convert old or new diesel engines to operate on natural gas, propane or hydrogen. Omnitek began operations on October 10, 2001, and was a spin-off from Nology Engineering, Inc. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
Note 2 - Significant Accounting Policies | ' | |||
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES | ||||
a. Restatement of Previously Issued Financial Statements | ||||
We are restating herein our previously issued financial statements and the related disclosures for the years ended December 31, 2013 and December 31, 2012 and unaudited interim financial information for each of the quarters ended March 31, 2013, June 30, 2013, September 30, 2013, June 30, 2012 and September 30,2012. | ||||
The restatement is the result of our corrections for the combined effect of financial statement errors attributable to the accounting for derivative functions issued in warrants for services and for cash in the second quarter ended June 30, 2012. During the review of the third quarter of 2014, we discovered that the 2012 issuance of warrants for cash and services contained a derivative function, which affected the financial statements for the periods ending June 30, 2012 through December 31, 2013. | ||||
Comparison of restated financial statements to financial statements as previously reported | ||||
The following tables compare our previously reported Balance Sheet as of December 31, 2013 and 2012, and the previously reported Statements of Operations, Stockholders’ Equity, and Cash Flows for the fiscal years ended December 31, 2013 and December 31, 2012 to the corresponding financial statements for those years as restated. | ||||
OMNITEK ENGINEERING CORP. | ||||
Balance Sheets | ||||
ASSETS | ||||
December 31, | ||||
2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
CURRENT ASSETS | ||||
Cash | $1,057,836 | - | $1,057,836 | |
Accounts receivable, net | 38,261 | - | 38,261 | |
Accounts receivable - related parties | 33,369 | - | 33,369 | |
Inventory | 2,225,868 | - | 2,225,868 | |
Prepaid expense | 21,474 | - | 21,474 | |
Deposits | 62,973 | - | 62,973 | |
Short-term investments, net | 917,248 | - | 917,248 | |
Total Current Assets | 4,357,029 | - | 4,357,029 | |
FIXED ASSETS, net | 118,460 | - | 118,460 | |
OTHER ASSETS | ||||
Long-term investments, net | - | - | - | |
Intellectual property, net | 2,872 | - | 2,872 | |
Total Other Assets | 2,872 | - | 2,872 | |
TOTAL ASSETS | $4,478,361 | - | $4,478,361 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $91,744 | - | $$91,744 | |
Accrued management compensation | 189,466 | - | 189,466 | |
Accounts payable - related parties | 1,475 | - | 1,475 | |
Derivative liability | - | - | - | |
Customer deposits | 222,072 | - | 222,072 | |
Total Current Liabilities | 504,757 | - | 504,757 | |
Total Liabilities | 504,757 | - | 504,757 | |
STOCKHOLDERS' EQUITY | ||||
Common stock, 125,000,000 shares authorized no par value | ||||
19,759,582 shares issued and outstanding, | 8,201,311 | - | 8,201,311 | |
Additional paid-in capital | 5,181,636 | 5,604,135 | 10,785,711 | |
Accumulated deficit | -9,409,343 | -5,604,135 | -15,013,478 | |
Total Stockholders' Equity | 3,973,604 | - | 3,973,604 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,478,361 | - | $4,478,361 | |
OMNITEK ENGINEERING CORP. | ||||
Balance Sheets | ||||
ASSETS | ||||
December 31, | ||||
2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
CURRENT ASSETS | ||||
Cash | $3,192,761 | - | $3,192,761 | |
Accounts receivable, net | 120,547 | - | 120,547 | |
Accounts receivable - related parties | 26,455 | - | 26,455 | |
Inventory | 1,133,595 | - | 1,133,595 | |
Prepaid expense | 7,440 | - | 7,440 | |
Deposits | 331,760 | - | 331,760 | |
Short-term investments, net | - | - | - | |
Total Current Assets | 4,812,558 | - | 4,812,558 | |
FIXED ASSETS, net | 14,560 | - | 14,560 | |
OTHER ASSETS | ||||
Long-term investments, net | 1,201,671 | - | 1,201,671 | |
Intellectual property, net | 5,218 | - | 5,218 | |
Total Other Assets | 1,206,889 | - | 1,206,889 | |
TOTAL ASSETS | $6,034,007 | - | $6,034,007 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $317,106 | - | $317,106 | |
Accrued management compensation | 264,717 | - | 264,717 | |
Accounts payable - related parties | - | - | - | |
Derivative liability | - | 4,197,802 | 4,197,802 | |
Customer deposits | 184,109 | - | 184,109 | |
Total Current Liabilities | 765,932 | 4,197,802 | 4,963,734 | |
Total Liabilities | 765,932 | 4,197,802 | 4,963,734 | |
STOCKHOLDERS' EQUITY | ||||
Common stock, 125,000,000 shares authorized no par value | ||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | |
Additional paid-in capital | 4,867,169 | -502,965 | 4,364,204 | |
Accumulated deficit | -7,795,155 | -3,694,837 | -11,489,992 | |
Total Stockholders' Equity | 5,268,075 | -4,197,802 | 1,070,273 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $6,034,007 | - | $6,034,007 | |
OMNITEK ENGINEERING CORP. | ||||
Statements of Operations | ||||
For the Year Ended December 31, 2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
REVENUES | $1,052,518 | - | $1,052,518 | |
COST OF GOODS SOLD | 703,630 | - | 703,630 | |
GROSS MARGIN | 348,888 | - | 348,888 | |
OPERATING EXPENSES | ||||
General and administrative | 1,711,440 | - | 1,711,440 | |
Bad debt expense | 1,196 | - | 1,196 | |
Research and development expense | 292,228 | - | 292,228 | |
Depreciation and amortization expense | 22,206 | - | 22,206 | |
Total Operating Expenses | 2,027,070 | - | 2,027,070 | |
LOSS FROM OPERATIONS | -1,678,182 | - | -1,678,182 | |
OTHER INCOME (EXPENSE) | ||||
Derivative expense | - | - | - | |
Change in fair value of derivative liability | - | -1,909,298 | -1,909,298 | |
Interest expense | -13 | - | -13 | |
Interest income | 64,807 | - | 64,807 | |
Total Other Income (Expense) | 64,794 | -1,909,298 | -1,844,504 | |
LOSS BEFORE INCOME TAXES | -1,613,388 | -1,909,298 | -3,522,686 | |
INCOME TAX EXPENSE | 800 | - | 800 | |
NET LOSS | ($1,614,188) | ($1,909,298) | ($3,523,486) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.08) | ($0.18) | ||
WEIGHTED AVERAGE NUMBER | ||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,750,787 | ||
OMNITEK ENGINEERING CORP. | ||||
Statements of Operations | ||||
For the Year Ended December 31, 2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
REVENUES | $1,899,740 | - | $1,899,740 | |
COST OF GOODS SOLD | 971,927 | - | 971,927 | |
GROSS MARGIN | 927,813 | - | 927,813 | |
OPERATING EXPENSES | ||||
General and administrative | 2,041,447 | -1,563 | 2,039,884 | |
Bad debt expense | 363 | - | 363 | |
Research and development expense | 285,745 | - | 285,745 | |
Depreciation and amortization expense | 6,369 | - | 6,369 | |
Total Operating Expenses | 2,333,924 | -1,563 | 2,332,361 | |
LOSS FROM OPERATIONS | -1,406,111 | 1,563 | -1,404,548 | |
OTHER INCOME (EXPENSE) | ||||
Derivative expense | - | -11,051,108 | -11,051,108 | |
Change in fair value of derivative liability | - | 7,354,708 | 7,354,708 | |
Interest expense | -490 | - | -490 | |
Interest income | 35,948 | - | 35,948 | |
Total Other Income (Expense) | 35,458 | -3,694,837 | -3,660,942 | |
LOSS BEFORE INCOME TAXES | -1,370,653 | -3,694,837 | -5,066,290 | |
INCOME TAX EXPENSE | 800 | - | 800 | |
NET LOSS | ($1,371,453) | ($3,694,837) | ($5,066,290) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.07) | ($0.27) | ||
WEIGHTED AVERAGE NUMBER | ||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,092,975 | ||
OMNITEK ENGINEERING CORP. | ||||
Statements of Cash Flows | ||||
For the Year Ended December 31, 2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
OPERATING ACTIVITIES | ||||
Net loss | ($1,614,188) | ($1,909,298) | ($3,523,486) | |
Adjustments to reconcile net loss to | ||||
net cash used by operating activities: | ||||
Amortization and depreciation expense | 22,206 | - | 22,206 | |
Amortization of premium on investments | 34,424 | - | 34,424 | |
Derivative expense | - | - | - | |
Change in fair value of derivative liability | - | 1,909,298 | 1,909,298 | |
Allowance for bad debt | - | - | - | |
Options and warrants granted | 314,467 | - | 314,467 | |
Changes in operating assets and liabilities: | - | |||
Accounts receivable | 82,285 | - | 82,285 | |
Accounts receivable–related parties | -6,914 | - | -6,914 | |
Deposits | 268,787 | - | 268,787 | |
Prepaid Expense | -14,034 | - | -14,034 | |
Inventory | -1,092,273 | - | -1,092,273 | |
Accounts payable and accrued expenses | -225,364 | - | -225,364 | |
Customer deposits | 37,963 | - | 37,963 | |
Accounts payable-related parties | 1,475 | - | 1,475 | |
Accrued management compensation | -75,251 | - | -75,251 | |
Net Cash Used in Operating Activities | -2,266,417 | - | -2,266,417 | |
INVESTING ACTIVITIES | ||||
Purchase of long-term investments | - | - | - | |
Maturity of long-term investments | 250,000 | - | 250,000 | |
Purchase of property and equipment | -123,758 | - | -123,758 | |
Net Cash Provided by (Used in) Investing Activities | 126,242 | - | 126,242 | |
FINANCING ACTIVITIES | ||||
Issuance of common stock for cash | - | - | - | |
Issuance of warrants for cash | - | - | - | |
Repayment of note payable | - | - | - | |
Exercise of warrants and options for cash | 5,250 | - | 5,250 | |
Proceeds of Note Payable | - | - | - | |
Net Cash Provided by Financing Activities | 5,250 | - | 5,250 | |
NET INCREASE (DECREASE) IN CASH | -2,134,925 | - | -2,134,925 | |
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | |
CASH AT END OF PERIOD | $1,057,836 | - | $1,057,836 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||||
CASH PAID FOR: | ||||
Interest | $13 | - | $13 | |
Income taxes | $800 | $800 | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Derivative liability | - | $6,107,100 | $6,107,100 | |
OMNITEK ENGINEERING CORP. | ||||
Statements of Cash Flows | ||||
For the Year Ended December 31, 2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
OPERATING ACTIVITIES | ||||
Net loss | ($1,371,453) | ($3,694,837) | ($5,066,290) | |
Adjustments to reconcile net loss to | ||||
net cash used by operating activities: | ||||
Amortization and depreciation expense | 6,369 | - | 6,369 | |
Amortization of premium on investments | 26,552 | - | 26,552 | |
Derivative expense | - | 11,051,108 | 11,051,108 | |
Change in fair value of derivative liability | - | -7,354,708 | -7,354,708 | |
Allowance for bad debt | 5,000 | - | 5,000 | |
Options and warrants granted | 653,856 | -1,563 | 652,293 | |
Changes in operating assets and liabilities: | - | |||
Accounts receivable | -112,041 | - | -112,041 | |
Accounts receivable–related parties | -9,740 | - | -9,740 | |
Deposits | -289,817 | - | -289,817 | |
Prepaid Expense | -4,928 | - | -4,928 | |
Inventory | -113,478 | - | -113,478 | |
Accounts payable and accrued expenses | 259,279 | - | 259,279 | |
Customer deposits | -102,499 | - | -102,499 | |
Accounts payable-related parties | -2,568 | - | -2,568 | |
Accrued management compensation | -86,863 | - | -86,863 | |
Net Cash Used in Operating Activities | -1,142,331 | - | -1,142,331 | |
INVESTING ACTIVITIES | ||||
Purchase of long-term investments | -1,228,223 | - | -1,228,223 | |
Maturity of long-term investments | - | - | - | |
Purchase of property and equipment | -4,643 | - | -4,643 | |
Net Cash Provided by (Used in) Investing Activities | -1,232,866 | - | -1,232,866 | |
FINANCING ACTIVITIES | ||||
Issuance of common stock for cash | 5,536,762 | 5,536,762 | ||
Repayment of note payable | -40,000 | - | -40,000 | |
Exercise of warrants and options for cash | - | - | - | |
Proceeds of Note Payable | 40,000 | - | 40,000 | |
Net Cash Provided by Financing Activities | 5,536,762 | - | 5,536,762 | |
NET INCREASE (DECREASE) IN CASH | 3,161,565 | - | 3,161,565 | |
CASH AT BEGINNING OF YEAR | 31,196 | - | 31,196 | |
CASH AT END OF PERIOD | $3,192,761 | - | $3,192,761 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||||
CASH PAID FOR: | ||||
Interest | $490 | - | $490 | |
Income taxes | $800 | - | $800 | |
b. Accounting Methods | ||||
The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31, year-end. | ||||
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, 2013 and 2012 was $15,000 and $15,000, respectively. | ||||
e. 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 2,087,137 and 2,169,855 stock options and warrants that would have been included in the fully diluted earnings per share as of December 31, 2013 and 2012, respectively. However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti-dilutive. | ||||
f. 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. | ||||
g. Newly Issued 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 financial statements. | ||||
h. 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. | ||||
At the adoption date of November 1, 2007, the Company had no unrecognized tax benefit which would affect the effective tax rate if recognized. 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, 2013, 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 2008. | ||||
i. Estimates | ||||
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. | ||||
j. Fair Value of Financial Instruments | ||||
ASC 820, “Fair Value Measurements and Disclosures” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | ||||
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. | ||||
The Company’s Level 2 financial liabilities consist of the derivative liability of the Company’s warrants issued to investors for cash and to consultants for services. There is no current market for these securities such that the determination of fair value requires significant judgment or estimation. The Company used a multinomial lattice model which incorporates transaction details such as Company stock price, contractual terms, default provisions, maturity, risk free rates, as well as assumptions about future financings, volatility, and holder behavior as of the date of issuance and each balance sheet date. | ||||
k. Advertising | ||||
The Company follows the policy of charging the costs of advertising to expense as incurred. During the year ended December 31, 2013 and 2012, the Company expensed $35,800 and $28,672, respectively. | ||||
l. Revenue Recognition | ||||
The Company recognizes revenue from the sale of new engines for use with compressed natural gas and engine components to convert existing engines to compressed natural gas use. Revenue is recognized upon shipment of the products, and when collection is reasonably assured. | ||||
m. Concentration of Risks | ||||
Customers | ||||
During the year ended December 31, 2013, eight customers accounted for approximately 55% of sales. | ||||
During the year ended December 31, 2012, eight customers accounted for approximately 64% of sales. | ||||
Suppliers | ||||
During the year ended December 31, 2013, four suppliers accounted for 55% of products purchased. | ||||
During the year ended December 31, 2012, four suppliers accounted for 29% of products purchased. | ||||
n. 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 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, 2013. | ||||
o. Research and Development | ||||
The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2013 and 2012, the Company incurred research and development expenses of $292,228 and $285,745, respectively. | ||||
p. Liquidity | ||||
Historically, the Company has incurred net losses and negative cash flows from operations. As of December 31, 2013, the Company had an accumulated deficit of $15,013,478 and total stockholders’ equity of $3,973,604. At December 31, 2013, the Company had current assets of $4,357,029 including cash and cash equivalents of $1,057,836, and current liabilities of $504,757, resulting in working capital of $3,852,272. For 2013, the Company reported a net loss of $3,523,486 and net cash used by operating activities of $2,266,417. Management believes that based on its operating plan, the projected sales for 2014, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. If the Company is unable to obtain profitable operations and positive operating cash flows, it may require additional funding or be forced to scale back its development plans or to significantly reduce or terminate operations. | ||||
q. 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. | ||||
r. Held to Maturity Investments | ||||
During 2012, the Company purchased various corporate bonds. The Company intends to hold the bonds to maturity. Accordingly, the Company has recorded and is amortizing the premium on the bonds over the remaining life. As of December 31, 2013, the Company has amortized $45,299 of the premium leaving an amortized cost basis remaining of $917,248. During the year ended December 31, 2013 and 2012 the Company had correlating amortization expense of $34,424 and $26,552, respectively. |
Note_3_Inventory
Note 3 - Inventory | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 3 - Inventory | ' | ||
NOTE 3 - INVENTORY | |||
Inventory is stated at the lower of cost or market. The Company’s inventory consists of finished goods and raw material and is located in Vista, California at December 31, 2013 and San Marcos, California at December 31, 2012 consisted of the following: | |||
December 31, | December 31, | ||
Location : Vista and San Marcos, CA respectively | 2013 | 2012 | |
Raw materials | $1,191,550 | $806,700 | |
Finished goods | 1,621,201 | 684,273 | |
In transit | 23,269 | 270,151 | |
Allowance for obsolete inventory | -610,152 | -627,529 | |
Total | $2,225,868 | $1,133,595 | |
The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $10,426 and $-0-, for the periods ended December 31, 2013 and December 31, 2012, respectively. |
Note_4_Property_and_Equipment
Note 4 - Property and Equipment | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 4 - Property and Equipment | ' | ||
NOTE 4 - PROPERTY AND EQUIPMENT | |||
Property and equipment at December 2013 and 2012 consisted of the following: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Production equipment | $60,501 | $14,814 | |
Computers/Office equipment | 28,540 | - | |
Tooling equipment | 12,380 | 5,300 | |
Leasehold Improvements | 42,451 | ||
Less: accumulated depreciation | -25,412 | -5,554 | |
Total | $118,460 | $14,560 | |
Depreciation expense for the years ended December 31, 2013 and 2012 was $19,858 and $3,250, respectively. |
Note_5_Intellectual_Property
Note 5 - Intellectual Property | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 5 - Intellectual Property | ' | ||
NOTE 5 - INTELLECTUAL PROPERTY | |||
The Company’s patents and trademarks at December 31, 2013 and 2012 were as follows: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Patents | $42,295 | $42,295 | |
Trademarks | 1,920 | 1,920 | |
Intellectual property and customer list | 474,000 | 474,000 | |
Less: accumulated amortization | -515,343 | -512,997 | |
Total | $2,872 | $5,218 | |
Amortization expense for the years ended December 31, 2013 and 2012 was $2,348 and $3,119, respectively. |
Note_6_Customer_Deposits
Note 6 - Customer Deposits | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 6 - Customer Deposits | ' |
NOTE 6 - CUSTOMER DEPOSITS | |
The Company may require a customer deposit from domestic and international customers. As of December 31, 2013 and 2012 the Company had customer deposits of $222,072 and $184,109, respectively. |
Note_7_Purchase_Commitments
Note 7 - Purchase Commitments | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 7 - Purchase Commitments | ' |
NOTE 7 - PURCHASE COMMITMENTS | |
As of December 31, 2013 and 2012, the Company had outstanding purchase commitments for inventory totaling $91,566 and $787,419, respectively. Of these amounts, the Company had made prepayments of $34,542 as of December 31, 2013 and $331,760 as of December 31, 2012 and had commitments for future cash outlays for inventory totaling $57,024 and $455,659, respectively. |
Note_8_Related_Party_Transacti
Note 8 - Related Party Transactions | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 8 - Related Party Transactions | ' | ||
NOTE 8 - RELATED PARTY TRANSACTIONS | |||
Accounts Receivable – Related Parties | |||
The Company holds a non-controlling interest in various distributors in exchange for use of the Company’s name and logo. As of December 31, 2013, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd., a 20% interest in Omnitek Peru S.A.C., and a 5% interest in Omnitek Stationary, Inc. As of December 31, 2013 and December 31, 2012, the Company was owed $33,369 and $26,455, respectively, by related parties for the purchase of products. | |||
Accrued Management Expenses | |||
During the periods ended December 31, 2013 and December 31, 2012, the Company’s president and vice president were due amounts for services performed for the Company. As of December 31, 2013 and December 31, 2012 the accrued management fees consisted of the following: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Amounts due to the president | $133,397 | $197,398 | |
Amounts due to other officers of the company | 56,069 | 67,319 | |
Total | $189,466 | $264,717 | |
Note_9_Note_Payable
Note 9 - Note Payable | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 9 - Note Payable | ' |
NOTE 9 - NOTE PAYABLE | |
Line of Credit Payable | |
On February 15, 2012 the Company entered into a revolving line of credit agreement with a shareholder for $50,000 for an initial period of 6 months. During the year ended December 31, 2012, the Company borrowed a total of $40,000, and accrued interest expense of $490. As of December 31, 2012 the Company has repaid all of the outstanding debt and now owes $-0- under the revolving line of credit. As stipulated by the note the 100,000 shares of common stock were issued in the Lender’s name. The note was repaid in full during the year ended December 31, 2012 and the shares were cancelled. The Company granted 5,000 stock purchase warrants as consideration for the funding of the revolving line of credit resulting in an expense of $15,428. |
Note_10_Derivative_Liability
Note 10 - Derivative Liability | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
Note 10 - Derivative Liability | ' | ||||
NOTE 10 – DERIVATIVE LIABILITY | |||||
FASB ASC 820 defines fair value, establishes a framework for measuring fair value under U.S. generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value under FASB ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes a fair value hierarchy based on three levels of inputs, with the first two inputs considered observable and the last input considered unobservable, that may be used to measure fair value as follows: | |||||
· | Level one -- Quoted market prices in active markets for identical assets or liabilities; | ||||
· | Level two – Inputs, other than level one inputs, that are either directly or indirectly observable; and | ||||
· | Level three -- Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. | ||||
Determining which category an asset or liability falls within the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter. The Company has one liability measured at fair value on a recurring basis, which consists of a derivative liability on certain warrants (see NOTE 11). As of December 31, 2013 and 2012 this derivative liability had an estimated fair value of $0 and $4,197,802. The Company has no assets that are measured at fair value on a recurring basis. | |||||
The following table presents information about our derivative liability, which was our only financial instrument measured at fair value on a recurring basis using significant inputs other than level one inputs that are either directly or indirectly observable (Level 2) as of December 31, 2013 and 2012: | |||||
Balance at December 31, 2011 | $ | - | |||
New Derivative Liability | 11,552,510 | ||||
Total (gains)losses included in earnings | (7,354,708 | ) | |||
Issuances | - | ||||
Balance at December 31, 2012 | $ | 4,197,802 | |||
New Derivative Liability | - | ||||
Total (gains)losses included in earnings | 1,909,298 | ||||
Closing of liability | (6,107,100 | ) | |||
Balance at December 31, 2013 | $ | - | |||
The fair value of this derivative liability was calculated using the multinomial lattice models that value the derivative liability within the notes based on a probability weighted discounted cash flow model. These models are based on future projections of the various potential outcomes. The features in the notes that were analyzed and incorporated into the model included the conversion feature with the reset provisions; redemption provisions; and the default provisions. Assumptions used to calculate the fair value of the derivative liability were as follows: | |||||
December 31, | |||||
2013 | |||||
Expected term in years | 4.27 -5.00 years | ||||
Risk-free interest rates | 0.62-0.90 | % | |||
Volatility | 260-.281 | % | |||
Dividend yield | 0 | % | |||
December 31, | |||||
2012 | |||||
Expected term in years | 3.27 -4.02 years | ||||
Risk-free interest rates | 0.57-1.04 | % | |||
Volatility | 167-.251 | % | |||
Dividend yield | 0 | % | |||
In addition to the assumptions above, the Company also takes into consideration whether or not the Company would participate in another round of financing and if that financing is registered or not and what that stock price would be for the financing at that time. The Company adjusted the derivative liability for changes in fair value until the derivative function matured on December 31, 2013. |
Note_11_Stockholders_Equity
Note 11 - Stockholders' Equity | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Note 11 - Stockholders' Equity | ' | |||||
NOTE 11 – STOCKHOLDERS’ EQUITY | ||||||
Common Stock | ||||||
On November 20, 2013 the Company issued 10,000 shares of its common stock in consideration of the capital contribution of $5,250 upon the exercise of stock options. | ||||||
On April 9, 2012, the Company closed a private placement (the “Private Placement”) with select accredited investors (the “Investors”) related to the sale and issuance of an aggregate of 2,602,246 shares of common stock (the “Common Stock”) of the Company (the “Shares”) and warrants to purchase an aggregate of 2,602,246 shares of Common Stock (the “Warrants”) which contained a derivative function related to a ratcheting provision for the period of 18 months after the S-1 filing. The aggregate gross proceeds raised by the Company were $5,516,762 million, of which $2,762,675 was allocated to common stock and $2,754,087 was allocated to the warrants. Each Share was be sold to the Investors at $2.12 per Share. The Warrants will expire five (5) years from the date of issue and may be exercised at $3.88 per Share, subject to adjustment in certain circumstances. | ||||||
On February 13, 2012, the Company issued 100,000 shares of its common stock as collateral for cash advances received from a note lender. The note was repaid in full during the year ended December 31, 2012 and the shares were cancelled. | ||||||
On February 2, 2012, the Company issued 9,525 shares of its common stock in consideration of the capital contribution of $20,000. | ||||||
Options and Warrants | ||||||
During the years ended December 31, 2013 and 2012, respectively, the Company granted -0- and 2,725,313 warrants for services and capital contributions, of which 2,720,313 contained a derivative function related to a ratcheting provision for the period of 18 months after the S-1 filing, respectively. During the years ended December 31, 2013 and 2012, respectively, the Company recognized expense of $-0- and $517,550 related to warrants that vested, respectively. | ||||||
During the years ended December 31, 2013 and 2012, the Company granted 175,000 and 540,000 options for services, respectively. During the years ended December31, 2013 and 2012, respectively, the Company recognized expense of $314,467 and $136,306 related to options that vested during the years, respectively, pursuant to ASC Topic 718. The total remaining amount of compensation expense to be recognized in future periods is $646,181. | ||||||
In April 2007, the Company’s shareholders approved its 2006 Long-Term Incentive Plan (“the 2006 Plan”). Under the 2006 plan, the Company may issue up to 10,000,000 shares of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees, consultants, and directors at its discretion. As of December 31, 2013 the Company has a total of 2,610,000 options issued under the 2006 Plan. On August 3, 2011 the Board of Directors adopted the Omnitek Engineering Corp. 2011 Long-term Incentive Plan (the “2011 Plan”), under which 1,000,000 shares of Common Stock were reserved for issuance of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees, consultants, and directors at its discretion. As of December 31, 2013 the Company has a total of 715,000 options issued under the 2011 Plan. | ||||||
A summary of the status of the options and warrants granted at December 31, 2013 and December 31, 2012 and changes during the years then ended is presented below: | ||||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Weighted-Average | Weighted-Average | |||||
Shares | Exercise Price | Shares | Exercise Price | |||
Outstanding at beginning of year | 6,085,313 | $2.29 | 2,820,000 | $0.73 | ||
Granted | 175,000 | 2.42 | 3,265,313 | 3.64 | ||
Exercised | -10,000 | 0.53 | - | - | ||
Expired or cancelled | - | - | - | - | ||
Outstanding at end of year | 6,250,313 | 2.3 | 6,085,313 | 2.29 | ||
Exercisable | 5,803,230 | $2.28 | 5,612,813 | $2.09 | ||
A summary of the status of the options and warrants outstanding at December 31, 2013 is presented below: | ||||||
Weighted-Average Remaining Contractual Life | ||||||
Range of Exercise Prices | Number Outstanding | Number Exercisable | Weighted-Average Exercise Price | |||
$0.01-0.50 | 200,000 | .78 years | 200,000 | $0.38 | ||
$0.51-0.75 | 1,570,000 | .85 years | 1,570,000 | 0.63 | ||
$0.76-1.00 | 1,040,000 | .85 years | 1,040,000 | 0.94 | ||
$1.01-2.00 | 140,000 | 4.52 years | 114,167 | 1.8 | ||
$2.01-3.00 | 580,000 | 5.92 years | 158,750 | 2.53 | ||
$3.01-4.00 | 2,720,313 | 3.27 years | 2,720,313 | 3.88 | ||
$0.01-4.00 | 6,250,313 | 2.45 years | 5,803,230 | $2.28 | ||
Note_12_Income_Taxes
Note 12 - Income Taxes | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 12 - Income Taxes | ' | ||
NOTE 12 – INCOME TAXES | |||
The provision (benefit) for income taxes for the year ended December 31, 2013 and 2012 consists of the following: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Federal | |||
Current | - | - | |
Deferred | - | - | |
State | |||
Current | 800 | 800 | |
Deferred | - | - | |
$800 | $800 | ||
Net deferred tax assets consist of the following components as of December 31, 2013 and 2012: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Deferred tax assets: | |||
Net operating loss carryover | $4,370,287 | $2,900,715 | |
Depreciation | -124,818 | -94,454 | |
Research and development carry forward | 136,465 | 136,465 | |
Related party accruals | 130,538 | 130,538 | |
Inventory reserve | 242,522 | 249,299 | |
Allowance for doubtful accounts | 33,605 | 33,605 | |
Accrued compensation | 17,742 | 47,090 | |
Deferred tax liabilities: | |||
Valuation allowance | -4,806,341 | -3,403,258 | |
Net deferred tax asset | - | - | |
The income tax provision differs from the amount of income tax determined by applying the estimated U.S. federal and state income tax rates of 39% to pretax income from continuing operations for the year ended December 31, 2013 and 2012 due to the following: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Book loss | ($629,553) | ($534,867) | |
Meals and entertainment | 235 | 634 | |
State tax deduction | - | 312 | |
Related party expense | - | -1,002 | |
Stock/Options for services | 122,654 | 255,004 | |
Depreciation | -30,364 | -2,484 | |
Accrued compensation | -29,348 | -33,877 | |
Inventory reserve | -6,777 | - | |
Research and development | - | -2,484 | |
Net operating loss carryover | 573,133 | 318,764 | |
Income Tax Expense | - | - | |
At December 31, 2013, the Company had net operating loss carry forwards of approximately $4,370,287 through 2034. No tax benefit has been reported in the December 31, 2013 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_13_Quarterly_Information_
Note 13 - Quarterly Information (unaudited) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Notes | ' | ||||||
Note 13 - Quarterly Information (unaudited) | ' | ||||||
NOTE 13 - QUARTERLY INFORMATION (UNAUDITED) | |||||||
As described in Note 2 to the Financial Statements, we have restated our historical financial statements for the previously issued years ended December 31, 2013 and December 31, 2012 and c financial statements for each of the quarters ended March 31, 2013, June 30, 2013, September 30, 2013, June 30, 2012 and September 30, 2012 | |||||||
The following tables summarize the significant effects of the adjustments on operating expense, other income (expenses), net loss, total current liabilities, and total stockholders’ for the quarters. | |||||||
Total Current Liabilities | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | 555,603 | 513,430 | 505,794 | 652,031 | 604,776 | ||
Restatement Adjustments: | |||||||
Derivative Liability Adjustment | 6,618,456 | 6,318,428 | 6,823,780 | 8,070,027 | 4,941,548 | ||
As Restated in this Annual Report on Form 10-K | 7,174,059 | 6,831,858 | 7,329,574 | 8,722,058 | 5,546,324 | ||
Total Stockholders' Equity | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | 5,056,005 | 4,709,217 | 4,380,507 | 5,325,082 | 5,291,432 | ||
Restatement Adjustments: | |||||||
Additional Paid in Capital Adjustment | (502,965) | (502,965) | (502,965) | (502,965) | (502,965) | ||
Accumulated Deficit Adjustment | (6,115,491) | (5,815,463) | (6,320,815) | (7,567,062) | (4,438,583) | ||
As Restated in this Annual Report on Form 10-K | (1,562,451) | (1,609,211) | (2,443,273) | (2,744,945) | 349,884 | ||
Total Operating Expenses | |||||||
March 31, | June 30, | September 30, | June 30, | 30-Sep | |||
2013 | 2012 | ||||||
As Previously Reported | 415,934 | 436,425 | 589,752 | 1,248,054 | 443,966 | ||
Restatement Adjustments: | |||||||
General and Administrative Adjustment | - | - | - | (1,563) | (1,563) | ||
As Restated in this Annual Report on Form 10-K | 415,934 | 436,425 | 589,752 | 1,246,491 | 442,403 | ||
Total Other Income (Expense) | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | 21,070 | 13,668 | 21,039 | 1,092 | 21,082 | ||
Restatement Adjustments: | |||||||
Derivative Expense Adjustment | - | - | - | (11,051,108) | - | ||
Change in Fair Value of Derivative Liability Adjustment | (2,420,654) | 300,029 | (505,353) | 3,482,483 | 3,128,480 | ||
As Restated in this Annual Report on Form 10-K | (2,399,584) | 313,697 | (484,314) | (7,567,533) | 3,149,562 | ||
Net Loss | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | (250,420) | (369,393) | (467,895) | (1,015,880) | (142,150) | ||
Restatement Adjustments: | |||||||
Derivative Adjustments | (2,420,654) | 300,029 | (505,353) | (7,567,062) | 3,130,043 | ||
As Restated in this Annual Report on Form 10-K | (2,671,074) | (69,364) | (973,248) | (8,582,942) | 2,987,893 | ||
The following quarterly financial statements reflect the impacts of the restatement adjustments for the quarters ended March 31, 2013, June 30, 2013, September 30, 2013, June 30, 2012, and September 30, 2012. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
March 31, | |||||||
2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $2,561,017 | - | $2,561,017 | ||||
Accounts receivable, net | 48,597 | - | 48,597 | ||||
Accounts receivable - related parties | 4,389 | - | 4,389 | ||||
Inventory | 1,354,846 | - | 1,354,846 | ||||
Prepaid expense | 18,000 | - | 18,000 | ||||
Deposits | 369,133 | - | 369,133 | ||||
Short-term investments, net | 253,615 | - | 253,615 | ||||
Total Current Assets | 4,609,597 | - | 4,609,597 | ||||
FIXED ASSETS, net | 59,610 | - | 59,610 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 937,883 | - | 937,883 | ||||
Intellectual property, net | 4,518 | - | 4,518 | ||||
Total Other Assets | 942,401 | - | 942,401 | ||||
TOTAL ASSETS | $5,611,608 | - | $5,611,608 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $95,494 | - | $95,494 | ||||
Accrued management compensation | 249,947 | - | 249,947 | ||||
Accounts payable - related parties | -2,298 | - | -2,298 | ||||
Derivative liability | - | 6,618,456 | 6,618,456 | ||||
Customer deposits | 212,460 | - | 212,460 | ||||
Total Current Liabilities | 555,603 | 6,618,456 | 7,174,059 | ||||
Total Liabilities | 555,603 | 6,618,456 | 7,174,059 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,759,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,905,519 | -502,965 | 4,402,554 | ||||
Accumulated deficit | -8,045,575 | -6,115,491 | -14,161,066 | ||||
Total Stockholders' Equity | 5,056,005 | -6,618,456 | -1,562,451 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,611,608 | - | $5,611,608 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
June 30, | |||||||
2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $1,998,546 | - | $1,998,546 | ||||
Accounts receivable, net | 27,112 | - | 27,112 | ||||
Accounts receivable - related parties | 21,012 | - | 21,012 | ||||
Inventory | 1,822,603 | - | 1,822,603 | ||||
Prepaid expense | 11,062 | - | 11,062 | ||||
Deposits | 208,445 | - | 208,445 | ||||
Short-term investments, net | 202,207 | - | 202,207 | ||||
Total Current Assets | 4,290,987 | - | 4,290,987 | ||||
FIXED ASSETS, net | 97,396 | - | 97,396 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 830,309 | - | 830,309 | ||||
Intellectual property, net | 3,955 | - | 3,955 | ||||
Total Other Assets | 834,264 | - | 834,264 | ||||
TOTAL ASSETS | $5,222,647 | - | $5,222,647 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $63,066 | - | $63,066 | ||||
Accrued management compensation | 232,716 | - | 232,716 | ||||
Accounts payable - related parties | 3,070 | - | 3,070 | ||||
Derivative liability | - | 6,318,428 | 6,318,428 | ||||
Customer deposits | 214,578 | - | 214,578 | ||||
Total Current Liabilities | 513,430 | 6,318,428 | 6,831,858 | ||||
Total Liabilities | 513,430 | 6,318,428 | 6,831,858 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,7549,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,928,125 | -502,965 | 4,425,160 | ||||
Accumulated deficit | -8,414,969 | -5,815,463 | -14,230,432 | ||||
Total Stockholders' Equity | 4,709,217 | -6,318,428 | -1,609,211 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,222,647 | - | $5,222,647 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
September 30, | |||||||
2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $1,373,841 | - | $1,373,841 | ||||
Accounts receivable, net | 43,180 | - | 43,180 | ||||
Accounts receivable - related parties | 12,594 | - | 12,594 | ||||
Inventory | 2,231,873 | - | 2,231,873 | ||||
Prepaid expense | 22,942 | - | 22,942 | ||||
Deposits | 60,582 | - | 60,582 | ||||
Short-term investments, net | 1,024,130 | - | 1,024,130 | ||||
Total Current Assets | 4,769,142 | - | 4,769,142 | ||||
FIXED ASSETS, net | 113,756 | - | 113,756 | ||||
OTHER ASSETS | |||||||
Intellectual property, net | 3,403 | - | 3,403 | ||||
Total Other Assets | 3,403 | - | 3,403 | ||||
TOTAL ASSETS | $4,886,301 | - | $4,886,301 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $105,070 | - | $105,070 | ||||
Accrued management compensation | 215,447 | - | 215,447 | ||||
Derivative liability | - | 6,823,780 | 6,823,780 | ||||
Customer deposits | 185,277 | - | 185,277 | ||||
Total Current Liabilities | 505,794 | 6,823,780 | 7,329,574 | ||||
Total Liabilities | 505,794 | 6,823,780 | 7,329,574 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 5,067,310 | -502,965 | 4,564,345 | ||||
Accumulated deficit | -8,882,864 | -6,320,815 | -15,203,679 | ||||
Total Stockholders' Equity | 4,380,507 | -6,823,780 | -2,443,273 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,886,301 | - | $4,886,301 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
June 30, | |||||||
2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $3,524,094 | - | $3,524,094 | ||||
Accounts receivable, net | 86,124 | - | 86,124 | ||||
Accounts receivable - related parties | 26,847 | - | 26,847 | ||||
Inventory | 922,677 | - | 922,677 | ||||
Prepaid expense | 837 | - | 837 | ||||
Deposits | 176,001 | - | 176,001 | ||||
Total Current Assets | 4,736,580 | - | 4,736,580 | ||||
FIXED ASSETS, net | 11,777 | - | 11,777 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 1,222,019 | - | 1,222,019 | ||||
Intellectual property, net | 6,737 | - | 6,737 | ||||
Total Other Assets | 1,228,756 | - | 1,228,756 | ||||
TOTAL ASSETS | $5,977,113 | - | $5,977,113 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $65,154 | - | $65,154 | ||||
Accrued management compensation | 292,517 | - | 292,517 | ||||
Accounts payable - related parties | 2,624 | - | 2,624 | ||||
Derivative liability | - | 8,070,027 | 8,070,027 | ||||
Customer deposits | 291,736 | - | 291,736 | ||||
Total Current Liabilities | 652,031 | 8,070,027 | 8,722,058 | ||||
Total Liabilities | 652,031 | 8,070,027 | 8,722,058 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,731,728 | -502,965 | 4,228,763 | ||||
Accumulated deficit | -7,602,707 | -7,567,062 | -15,169,769 | ||||
Total Stockholders' Equity | 5,325,082 | -8,070,027 | -2,744,945 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,977,113 | - | $5,977,113 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
September 30, | |||||||
2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $3,240,057 | - | $3,240,057 | ||||
Accounts receivable, net | 218,065 | - | 218,065 | ||||
Accounts receivable - related parties | 30,876 | - | 30,876 | ||||
Inventory | 912,384 | - | 912,384 | ||||
Prepaid expense | 10,628 | - | 10,628 | ||||
Deposits | 251,036 | - | 251,036 | ||||
Total Current Assets | 4,663,046 | - | 4,663,046 | ||||
FIXED ASSETS, net | 15,338 | - | 15,338 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 1,211,845 | - | 1,211,845 | ||||
Intellectual property, net | 5,979 | - | 5,979 | ||||
Total Other Assets | 1,217,824 | - | 1,217,824 | ||||
TOTAL ASSETS | $5,896,208 | - | $5,896,208 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $70,411 | - | $70,411 | ||||
Accounts payable - related parties | 277,368 | - | 277,368 | ||||
Derivative liability | - | 4,941,548 | 4,941,548 | ||||
Customer deposits | 256,997 | - | 256,997 | ||||
Total Current Liabilities | 604,776 | 4,941,548 | 5,546,324 | ||||
Total Liabilities | 604,776 | 4,941,548 | 5,546,324 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,840,228 | -502,965 | 4,337,263 | ||||
Accumulated deficit | -7,744,857 | -4,438,583 | -12,183,440 | ||||
Total Stockholders' Equity | 5,291,432 | -4,941,548 | 349,884 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,896,208 | - | $5,896,208 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended March 31, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
REVENUES | $349,329 | - | $349,329 | ||||
COST OF GOODS SOLD | 204,085 | - | 204,085 | ||||
GROSS MARGIN | 145,244 | - | 145,244 | ||||
OPERATING EXPENSES | |||||||
General and administrative | 352,305 | - | 352,305 | ||||
Research and development expense | 50,359 | - | 50,359 | ||||
Depreciation and amortization expense | 13,270 | - | 13,270 | ||||
Total Operating Expenses | 415,934 | - | 415,934 | ||||
LOSS FROM OPERATIONS | -270,690 | - | -270,690 | ||||
OTHER INCOME (EXPENSE) | |||||||
Change in fair value of derivative liability | - | -2,420,654 | -2,420,654 | ||||
Interest income | 21,070 | - | 21,070 | ||||
Total Other Income (Expense) | 21,070 | -2,420,654 | -2,399,584 | ||||
LOSS BEFORE INCOME TAXES | -249,620 | -2,420,654 | -2,670,274 | ||||
INCOME TAX EXPENSE | 800 | - | 800 | ||||
NET LOSS | ($250,420) | ($2,420,654) | ($2,671,074) | ||||
BASIC AND DILUTED LOSS PER SHARE | ($0.01) | ($0.14) | |||||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | |||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended June 30, 2013 | For the Six Months Ended June 30, 2013 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | $197,210 | - | $197,210 | $546,539 | - | $546,539 | |
COST OF GOODS SOLD | 143,846 | - | 143,846 | 347,932 | - | 347,932 | |
GROSS MARGIN | 53,364 | - | 53,364 | 198,607 | - | 198,607 | |
OPERATING EXPENSES | |||||||
General and administrative | 370,582 | - | 370,582 | 722,874 | - | 722,874 | |
Research and development expense | 51,777 | - | 51,777 | 102,136 | - | 102,136 | |
Depreciation and amortization expense | 14,066 | - | 14,066 | 27,336 | - | 27,336 | |
Total Operating Expenses | 436,425 | - | 436,425 | 852,346 | - | 852,346 | |
LOSS FROM OPERATIONS | -383,061 | - | -383,061 | -653,739 | - | -653,739 | |
OTHER INCOME (EXPENSE) | |||||||
Change in fair value of derivative liability | - | 300,029 | 300,029 | - | -2,120,626 | -2,120,626 | |
Interest expense | - | - | - | -13 | - | -13 | |
Interest income | 13,668 | - | 13,668 | 34,738 | - | 34,738 | |
Total Other Income (Expense) | 13,668 | 300,029 | 313,697 | 34,725 | -2,120,626 | -2,085,901 | |
LOSS BEFORE INCOME TAXES | -369,393 | 300,029 | -69,364 | -619,014 | -2,120,626 | -2,739,640 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | ($369,393) | $300,029 | ($69,364) | ($619,814) | ($2,120,626) | ($2,740,440) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.02) | $0.00 | ($0.03) | ($0.14) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | |||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | $280,921 | - | $280,921 | $827,460 | - | $827,460 | |
COST OF GOODS SOLD | 180,103 | - | 180,103 | 528,035 | - | 528,035 | |
GROSS MARGIN | 100,818 | - | 100,818 | 299,425 | - | 299,425 | |
OPERATING EXPENSES | |||||||
General and administrative | 470,258 | - | 470,258 | 1,193,132 | - | 1,193,132 | |
Research and development expense | 104,991 | - | 104,991 | 207,127 | - | 207,127 | |
Depreciation and amortization expense | 14,503 | - | 14,503 | 41,839 | - | 41,839 | |
Total Operating Expenses | 589,752 | - | 589,752 | 1,442,098 | - | 1,442,098 | |
LOSS FROM OPERATIONS | -488,934 | - | -488,934 | -1,142,673 | - | -1,142,673 | |
OTHER INCOME (EXPENSE) | |||||||
Change in fair value of derivative liability | - | -505,353 | -505,353 | - | -2,625,978 | -2,625,978 | |
Interest expense | - | - | - | -13 | - | -13 | |
Interest income | 21,039 | - | 21,039 | 55,777 | - | 55,777 | |
Total Other Income (Expense) | 21,039 | -505,353 | -484,314 | 55,764 | -2,625,978 | -2,570,214 | |
LOSS BEFORE INCOME TAXES | -467,895 | -505,353 | -973,248 | -1,086,909 | -2,625,978 | -3,712,887 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | ($467,895) | ($505,353) | ($973,248) | ($1,087,709) | ($2,625,978) | ($3,713,687) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.02) | ($0.05) | ($0.06) | ($0.19) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | |||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended June 30, 2012 | For the Six Months Ended June 30, 2012 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | 380,531 | - | 380,531 | 686,900 | - | $686,900 | |
COST OF GOODS SOLD | 149,449 | - | 149,449 | 350,061 | - | 350,061 | |
GROSS MARGIN | 231,082 | - | 231,082 | 336,839 | - | 336,839 | |
OPERATING EXPENSES | |||||||
General and administrative | 1,198,267 | -1,563 | 1,196,704 | 1,435,590 | -1,563 | 1,434,027 | |
Research and development expense | 48,254 | - | 48,254 | 77,148 | - | 77,148 | |
Depreciation and amortization expense | 1,533 | - | 1,533 | 2,990 | - | 2,990 | |
Total Operating Expenses | 1,248,054 | -1,563 | 1,246,491 | 1,515,728 | -1,563 | 1,514,165 | |
LOSS FROM OPERATIONS | -1,016,972 | 1,563 | -1,015,409 | -1,178,889 | 1,563 | -1,177,326 | |
OTHER INCOME (EXPENSE) | |||||||
Derivative expense | - | -11,051,108 | -11,051,108 | - | -11,051,108 | -11,051,108 | |
Change in fair value of derivative liability | - | 3,482,483 | 3,482,483 | - | 3,482,482 | 3,482,482 | |
Interest expense | -82 | - | -82 | -490 | - | -490 | |
Interest income | 1,174 | - | 1,174 | 1,174 | - | 1,174 | |
Total Other Income (Expense) | 1,092 | -7,568,625 | -7,567,533 | 684 | -7,568,626 | -7,567,942 | |
LOSS BEFORE INCOME TAXES | -1,015,880 | -7,567,062 | -8,582,942 | -1,178,205 | -7,567,063 | -8,745,268 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | -1,015,880 | -7,567,062 | -8,582,942 | -1,179,005 | -7,567,063 | ($8,746,068) | |
BASIC AND DILUTED LOSS PER SHARE | -0.05 | -0.44 | -0.06 | ($0.47) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,661,571 | 19,661,571 | 18,429,153 | 18,429,153 | |||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended September 30, 2012 | For the Nine Months Ended September 30, 2012 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | $562,367 | - | $562,367 | $1,249,267 | - | $1,249,267 | |
COST OF GOODS SOLD | 281,633 | - | 281,633 | 631,694 | - | 631,694 | |
GROSS MARGIN | 280,734 | - | 280,734 | 617,573 | - | 617,573 | |
OPERATING EXPENSES | |||||||
General and administrative | 353,438 | -1,563 | 351,875 | 1,789,028 | -1,563 | 1,787,465 | |
Research and development expense | 88,922 | - | 88,922 | 166,070 | - | 166,070 | |
Depreciation and amortization expense | 1,606 | - | 1,606 | 4,596 | - | 4,596 | |
Total Operating Expenses | 443,966 | -1,563 | 442,403 | 1,959,694 | -1,563 | 1,958,131 | |
LOSS FROM OPERATIONS | -163,232 | 1,563 | -161,669 | -1,342,121 | 1,563 | -1,340,558 | |
OTHER INCOME (EXPENSE) | |||||||
Derivative expense | - | - | - | - | -11,051,108 | -11,051,108 | |
Change in fair value of derivative liability | - | 3,128,480 | 3,128,480 | - | 6,610,962 | 6,610,962 | |
Interest expense | - | - | - | -490 | - | -490 | |
Interest income | 21,082 | - | 21,082 | 22,256 | - | 22,256 | |
Total Other Income (Expense) | 21,082 | 3,128,480 | 3,149,562 | 21,766 | -4,440,146 | -4,418,380 | |
LOSS BEFORE INCOME TAXES | -142,150 | 3,130,043 | 2,987,893 | -1,320,355 | -4,438,583 | -5,758,938 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | ($142,150) | 3,130,043 | 2,987,893 | ($1,321,155) | ($4,438,583) | ($5,759,738) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.01) | $0.15 | ($0.07) | ($0.31) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 18,872,509 | 18,872,509 | |||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Three Months Ended March 31, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($250,420) | ($2,420,654) | ($2,671,074) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 3,095 | - | 3,095 | ||||
Amortization of premium on investments | 10,173 | - | 10,173 | ||||
Change in fair value of derivative liability | - | 2,420,654 | 2,420,654 | ||||
Options and warrants granted | 38,350 | - | 38,350 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 71,950 | - | 71,950 | ||||
Accounts receivable–related parties | 22,066 | - | 22,066 | ||||
Deposits | -37,373 | - | -37,373 | ||||
Prepaid Expense | -10,560 | - | -10,560 | ||||
Inventory | -221,251 | - | -221,251 | ||||
Accounts payable and accrued expenses | -221,612 | - | -221,612 | ||||
Customer deposits | 28,351 | - | 28,351 | ||||
Accounts payable-related parties | -2,298 | - | -2,298 | ||||
Accrued management compensation | -14,770 | - | -14,770 | ||||
Net Cash Used in Operating Activities | -584,299 | - | -584,299 | ||||
INVESTING ACTIVITIES | |||||||
Purchase of property and equipment | -47,445 | - | -47,445 | ||||
Net Cash Provided by (Used in) Investing Activities | -47,445 | - | -47,445 | ||||
FINANCING ACTIVITIES | |||||||
- | - | - | |||||
Net Cash Provided by Financing Activities | - | - | - | ||||
NET INCREASE (DECREASE) IN CASH | -631,744 | - | -631,744 | ||||
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | ||||
CASH AT END OF PERIOD | $2,561,017 | - | $2,561,017 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Six Months Ended June 30, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($619,814) | ($2,120,626) | ($2,740,440) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 8,180 | - | 8,180 | ||||
Amortization of premium on investments | 19,155 | - | 19,155 | ||||
Change in fair value of derivative liability | - | 2,120,626 | 2,120,626 | ||||
Options and warrants granted | 60,956 | - | 60,956 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 93,435 | - | 93,435 | ||||
Accounts receivable–related parties | 5,443 | - | 5,443 | ||||
Deposits | 123,315 | - | 123,315 | ||||
Prepaid Expense | -3,622 | - | -3,622 | ||||
Inventory | -689,008 | - | -689,008 | ||||
Accounts payable and accrued expenses | -254,040 | - | -254,040 | ||||
Customer deposits | 30,469 | - | 30,469 | ||||
Accounts payable-related parties | 3,070 | - | 3,070 | ||||
Accrued management compensation | -32,001 | - | -32,001 | ||||
Net Cash Used in Operating Activities | -1,254,462 | - | -1,254,462 | ||||
INVESTING ACTIVITIES | |||||||
Maturity of long-term investments | 150,000 | - | 150,000 | ||||
Purchase of property and equipment | -89,753 | - | -89,753 | ||||
Net Cash Provided by (Used in) Investing Activities | 60,247 | - | 60,247 | ||||
FINANCING ACTIVITIES | |||||||
- | - | - | |||||
Net Cash Provided by Financing Activities | - | - | - | ||||
NET INCREASE (DECREASE) IN CASH | -1,194,215 | - | -1,194,215 | ||||
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | ||||
CASH AT END OF PERIOD | $1,998,546 | - | $1,998,546 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | - | - | - | ||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Nine Months Ended September 30, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($1,087,709) | ($2,625,978) | ($3,713,687) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 14,296 | - | 14,296 | ||||
Amortization of premium on investments | 27,541 | - | 27,541 | ||||
Change in fair value of derivative liability | - | 2,625,978 | 2,625,978 | ||||
Options and warrants granted | 200,141 | - | 200,141 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 77,367 | - | 77,367 | ||||
Accounts receivable–related parties | 16,069 | - | 16,069 | ||||
Deposits | 271,178 | - | 271,178 | ||||
Prepaid Expense | -15,502 | - | -15,502 | ||||
Inventory | -1,098,278 | - | -1,098,278 | ||||
Accounts payable and accrued expenses | -212,036 | - | -212,036 | ||||
Customer deposits | 1,168 | - | 1,168 | ||||
Accounts payable-related parties | -2,208 | - | -2,208 | ||||
Accrued management compensation | -49,270 | - | -49,270 | ||||
Net Cash Used in Operating Activities | -1,857,243 | - | -1,857,243 | ||||
INVESTING ACTIVITIES | |||||||
Maturity of long-term investments | 150,000 | - | 150,000 | ||||
Purchase of property and equipment | -111,677 | - | -111,677 | ||||
Net Cash Provided by (Used in) Investing Activities | 38,323 | - | 38,323 | ||||
FINANCING ACTIVITIES | |||||||
- | - | - | |||||
Net Cash Provided by Financing Activities | - | - | - | ||||
NET INCREASE (DECREASE) IN CASH | -1,818,920 | - | -1,818,920 | ||||
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | ||||
CASH AT END OF PERIOD | $1,373,841 | - | $1,373,841 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | - | - | - | ||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Six Months Ended June 30, 2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($1,179,005) | ($7,567,063) | ($8,746,068) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 2,991 | - | 2,991 | ||||
Amortization of premium on investments | 6,204 | - | 6,204 | ||||
Derivative expense | - | 11,051,108 | 11,051,108 | ||||
Change in fair value of derivative liability | - | -3,482,482 | -3,482,482 | ||||
Options and warrants granted | 518,415 | -1,563 | 516,852 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | -72,618 | - | -72,618 | ||||
Accounts receivable–related parties | -10,132 | - | -10,132 | ||||
Deposits | -134,058 | - | -134,058 | ||||
Prepaid Expense | 1,675 | - | 1,675 | ||||
Inventory | 97,440 | - | 97,440 | ||||
Accounts payable and accrued expenses | 7,326 | - | 7,326 | ||||
Customer deposits | 5,128 | - | 5,128 | ||||
Accounts payable-related parties | 56 | - | 56 | ||||
Accrued management compensation | -59,063 | - | -59,063 | ||||
Net Cash Used in Operating Activities | -815,641 | - | -815,641 | ||||
INVESTING ACTIVITIES | |||||||
Purchase of long-term investments | -1,228,223 | - | -1,228,223 | ||||
Net Cash Provided by (Used in) Investing Activities | -1,228,223 | - | -1,228,223 | ||||
FINANCING ACTIVITIES | |||||||
Issuance of common stock for cash | 5,536,762 | - | 5,536,762 | ||||
Repayment of note payable | -40,000 | - | (40,000 | ||||
Proceeds of Note Payable | 40,000 | - | 40,000 | ||||
Net Cash Provided by Financing Activities | 5,536,762 | - | 5,536,762 | ||||
NET INCREASE (DECREASE) IN CASH | 3,492,898 | - | 3,492,898 | ||||
CASH AT BEGINNING OF YEAR | 31,196 | - | 31,196 | ||||
CASH AT END OF PERIOD | $3,524,094 | - | $3,524,094 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | $408 | - | $408 | ||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Nine Months Ended September 30, 2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($1,321,155) | ($4,438,583) | ($5,759,738) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 4,596 | - | 4,596 | ||||
Amortization of premium on investments | 16,378 | - | 16,378 | ||||
Derivative expense | - | 11,051,108 | 11,051,108 | ||||
Change in fair value of derivative liability | - | -6,610,962 | -6,610,962 | ||||
Options and warrants granted | 626,915 | (1,5630 | 625,352 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | -204,559 | - | -204,559 | ||||
Accounts receivable–related parties | (14,161 | - | -14,161 | ||||
Deposits | -209,093 | - | -209,093 | ||||
Prepaid Expense | -8,116 | - | -8,116 | ||||
Inventory | 107,733 | - | 107,733 | ||||
Accounts payable and accrued expenses | 12,583 | - | 12,583 | ||||
Customer deposits | -29,611 | - | -29,611 | ||||
Accounts payable-related parties | -2,543 | - | -2,543 | ||||
Accrued management compensation | -74,237 | - | -74,237 | ||||
Net Cash Used in Operating Activities | -1,095,270 | - | -1,095,270 | ||||
INVESTING ACTIVITIES | |||||||
Purchase of long-term investments | -1,228,223 | - | -1,228,223 | ||||
Purchase of property and equipment | -4,408 | - | -4,408 | ||||
Net Cash Provided by (Used in) Investing Activities | -1,232,631 | - | -1,232,631 | ||||
FINANCING ACTIVITIES | |||||||
Issuance of common stock for cash | 5,536,762 | - | 5,536,762 | ||||
Repayment of note payable | -40,000 | - | -40,000 | ||||
Proceeds of Note Payable | 40,000 | - | 40,000 | ||||
Net Cash Provided by Financing Activities | 5,536,762 | - | 5,536,762 | ||||
NET INCREASE (DECREASE) IN CASH | 3,208,861 | - | 3,208,861 | ||||
CASH AT BEGINNING OF YEAR | 31,196 | - | 31,196 | ||||
CASH AT END OF PERIOD | $3,240,057 | - | $3,240,057 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | $490 | - | $490 | ||||
Income taxes | $800 | - | $800 | ||||
Note_14_Subsequent_Events
Note 14 - Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 14 - Subsequent Events | ' |
NOTE 14 - SUBSEQUENT EVENTS | |
In accordance with ASC 855-10, Company management reviewed all material events through the date of this report. There are no material subsequent events to report. |
Note_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Policies | ' | |||
A. Restatement of Previously Issued Financial Statements | ' | |||
a. Restatement of Previously Issued Financial Statements | ||||
We are restating herein our previously issued financial statements and the related disclosures for the years ended December 31, 2013 and December 31, 2012 and unaudited interim financial information for each of the quarters ended March 31, 2013, June 30, 2013, September 30, 2013, June 30, 2012 and September 30,2012. | ||||
The restatement is the result of our corrections for the combined effect of financial statement errors attributable to the accounting for derivative functions issued in warrants for services and for cash in the second quarter ended June 30, 2012. During the review of the third quarter of 2014, we discovered that the 2012 issuance of warrants for cash and services contained a derivative function, which affected the financial statements for the periods ending June 30, 2012 through December 31, 2013. | ||||
Comparison of restated financial statements to financial statements as previously reported | ||||
The following tables compare our previously reported Balance Sheet as of December 31, 2013 and 2012, and the previously reported Statements of Operations, Stockholders’ Equity, and Cash Flows for the fiscal years ended December 31, 2013 and December 31, 2012 to the corresponding financial statements for those years as restated. | ||||
OMNITEK ENGINEERING CORP. | ||||
Balance Sheets | ||||
ASSETS | ||||
December 31, | ||||
2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
CURRENT ASSETS | ||||
Cash | $1,057,836 | - | $1,057,836 | |
Accounts receivable, net | 38,261 | - | 38,261 | |
Accounts receivable - related parties | 33,369 | - | 33,369 | |
Inventory | 2,225,868 | - | 2,225,868 | |
Prepaid expense | 21,474 | - | 21,474 | |
Deposits | 62,973 | - | 62,973 | |
Short-term investments, net | 917,248 | - | 917,248 | |
Total Current Assets | 4,357,029 | - | 4,357,029 | |
FIXED ASSETS, net | 118,460 | - | 118,460 | |
OTHER ASSETS | ||||
Long-term investments, net | - | - | - | |
Intellectual property, net | 2,872 | - | 2,872 | |
Total Other Assets | 2,872 | - | 2,872 | |
TOTAL ASSETS | $4,478,361 | - | $4,478,361 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $91,744 | - | $$91,744 | |
Accrued management compensation | 189,466 | - | 189,466 | |
Accounts payable - related parties | 1,475 | - | 1,475 | |
Derivative liability | - | - | - | |
Customer deposits | 222,072 | - | 222,072 | |
Total Current Liabilities | 504,757 | - | 504,757 | |
Total Liabilities | 504,757 | - | 504,757 | |
STOCKHOLDERS' EQUITY | ||||
Common stock, 125,000,000 shares authorized no par value | ||||
19,759,582 shares issued and outstanding, | 8,201,311 | - | 8,201,311 | |
Additional paid-in capital | 5,181,636 | 5,604,135 | 10,785,711 | |
Accumulated deficit | -9,409,343 | -5,604,135 | -15,013,478 | |
Total Stockholders' Equity | 3,973,604 | - | 3,973,604 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,478,361 | - | $4,478,361 | |
OMNITEK ENGINEERING CORP. | ||||
Balance Sheets | ||||
ASSETS | ||||
December 31, | ||||
2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
CURRENT ASSETS | ||||
Cash | $3,192,761 | - | $3,192,761 | |
Accounts receivable, net | 120,547 | - | 120,547 | |
Accounts receivable - related parties | 26,455 | - | 26,455 | |
Inventory | 1,133,595 | - | 1,133,595 | |
Prepaid expense | 7,440 | - | 7,440 | |
Deposits | 331,760 | - | 331,760 | |
Short-term investments, net | - | - | - | |
Total Current Assets | 4,812,558 | - | 4,812,558 | |
FIXED ASSETS, net | 14,560 | - | 14,560 | |
OTHER ASSETS | ||||
Long-term investments, net | 1,201,671 | - | 1,201,671 | |
Intellectual property, net | 5,218 | - | 5,218 | |
Total Other Assets | 1,206,889 | - | 1,206,889 | |
TOTAL ASSETS | $6,034,007 | - | $6,034,007 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $317,106 | - | $317,106 | |
Accrued management compensation | 264,717 | - | 264,717 | |
Accounts payable - related parties | - | - | - | |
Derivative liability | - | 4,197,802 | 4,197,802 | |
Customer deposits | 184,109 | - | 184,109 | |
Total Current Liabilities | 765,932 | 4,197,802 | 4,963,734 | |
Total Liabilities | 765,932 | 4,197,802 | 4,963,734 | |
STOCKHOLDERS' EQUITY | ||||
Common stock, 125,000,000 shares authorized no par value | ||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | |
Additional paid-in capital | 4,867,169 | -502,965 | 4,364,204 | |
Accumulated deficit | -7,795,155 | -3,694,837 | -11,489,992 | |
Total Stockholders' Equity | 5,268,075 | -4,197,802 | 1,070,273 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $6,034,007 | - | $6,034,007 | |
OMNITEK ENGINEERING CORP. | ||||
Statements of Operations | ||||
For the Year Ended December 31, 2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
REVENUES | $1,052,518 | - | $1,052,518 | |
COST OF GOODS SOLD | 703,630 | - | 703,630 | |
GROSS MARGIN | 348,888 | - | 348,888 | |
OPERATING EXPENSES | ||||
General and administrative | 1,711,440 | - | 1,711,440 | |
Bad debt expense | 1,196 | - | 1,196 | |
Research and development expense | 292,228 | - | 292,228 | |
Depreciation and amortization expense | 22,206 | - | 22,206 | |
Total Operating Expenses | 2,027,070 | - | 2,027,070 | |
LOSS FROM OPERATIONS | -1,678,182 | - | -1,678,182 | |
OTHER INCOME (EXPENSE) | ||||
Derivative expense | - | - | - | |
Change in fair value of derivative liability | - | -1,909,298 | -1,909,298 | |
Interest expense | -13 | - | -13 | |
Interest income | 64,807 | - | 64,807 | |
Total Other Income (Expense) | 64,794 | -1,909,298 | -1,844,504 | |
LOSS BEFORE INCOME TAXES | -1,613,388 | -1,909,298 | -3,522,686 | |
INCOME TAX EXPENSE | 800 | - | 800 | |
NET LOSS | ($1,614,188) | ($1,909,298) | ($3,523,486) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.08) | ($0.18) | ||
WEIGHTED AVERAGE NUMBER | ||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,750,787 | ||
OMNITEK ENGINEERING CORP. | ||||
Statements of Operations | ||||
For the Year Ended December 31, 2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
REVENUES | $1,899,740 | - | $1,899,740 | |
COST OF GOODS SOLD | 971,927 | - | 971,927 | |
GROSS MARGIN | 927,813 | - | 927,813 | |
OPERATING EXPENSES | ||||
General and administrative | 2,041,447 | -1,563 | 2,039,884 | |
Bad debt expense | 363 | - | 363 | |
Research and development expense | 285,745 | - | 285,745 | |
Depreciation and amortization expense | 6,369 | - | 6,369 | |
Total Operating Expenses | 2,333,924 | -1,563 | 2,332,361 | |
LOSS FROM OPERATIONS | -1,406,111 | 1,563 | -1,404,548 | |
OTHER INCOME (EXPENSE) | ||||
Derivative expense | - | -11,051,108 | -11,051,108 | |
Change in fair value of derivative liability | - | 7,354,708 | 7,354,708 | |
Interest expense | -490 | - | -490 | |
Interest income | 35,948 | - | 35,948 | |
Total Other Income (Expense) | 35,458 | -3,694,837 | -3,660,942 | |
LOSS BEFORE INCOME TAXES | -1,370,653 | -3,694,837 | -5,066,290 | |
INCOME TAX EXPENSE | 800 | - | 800 | |
NET LOSS | ($1,371,453) | ($3,694,837) | ($5,066,290) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.07) | ($0.27) | ||
WEIGHTED AVERAGE NUMBER | ||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,092,975 | ||
OMNITEK ENGINEERING CORP. | ||||
Statements of Cash Flows | ||||
For the Year Ended December 31, 2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
OPERATING ACTIVITIES | ||||
Net loss | ($1,614,188) | ($1,909,298) | ($3,523,486) | |
Adjustments to reconcile net loss to | ||||
net cash used by operating activities: | ||||
Amortization and depreciation expense | 22,206 | - | 22,206 | |
Amortization of premium on investments | 34,424 | - | 34,424 | |
Derivative expense | - | - | - | |
Change in fair value of derivative liability | - | 1,909,298 | 1,909,298 | |
Allowance for bad debt | - | - | - | |
Options and warrants granted | 314,467 | - | 314,467 | |
Changes in operating assets and liabilities: | - | |||
Accounts receivable | 82,285 | - | 82,285 | |
Accounts receivable–related parties | -6,914 | - | -6,914 | |
Deposits | 268,787 | - | 268,787 | |
Prepaid Expense | -14,034 | - | -14,034 | |
Inventory | -1,092,273 | - | -1,092,273 | |
Accounts payable and accrued expenses | -225,364 | - | -225,364 | |
Customer deposits | 37,963 | - | 37,963 | |
Accounts payable-related parties | 1,475 | - | 1,475 | |
Accrued management compensation | -75,251 | - | -75,251 | |
Net Cash Used in Operating Activities | -2,266,417 | - | -2,266,417 | |
INVESTING ACTIVITIES | ||||
Purchase of long-term investments | - | - | - | |
Maturity of long-term investments | 250,000 | - | 250,000 | |
Purchase of property and equipment | -123,758 | - | -123,758 | |
Net Cash Provided by (Used in) Investing Activities | 126,242 | - | 126,242 | |
FINANCING ACTIVITIES | ||||
Issuance of common stock for cash | - | - | - | |
Issuance of warrants for cash | - | - | - | |
Repayment of note payable | - | - | - | |
Exercise of warrants and options for cash | 5,250 | - | 5,250 | |
Proceeds of Note Payable | - | - | - | |
Net Cash Provided by Financing Activities | 5,250 | - | 5,250 | |
NET INCREASE (DECREASE) IN CASH | -2,134,925 | - | -2,134,925 | |
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | |
CASH AT END OF PERIOD | $1,057,836 | - | $1,057,836 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||||
CASH PAID FOR: | ||||
Interest | $13 | - | $13 | |
Income taxes | $800 | $800 | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Derivative liability | - | $6,107,100 | $6,107,100 | |
OMNITEK ENGINEERING CORP. | ||||
Statements of Cash Flows | ||||
For the Year Ended December 31, 2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
OPERATING ACTIVITIES | ||||
Net loss | ($1,371,453) | ($3,694,837) | ($5,066,290) | |
Adjustments to reconcile net loss to | ||||
net cash used by operating activities: | ||||
Amortization and depreciation expense | 6,369 | - | 6,369 | |
Amortization of premium on investments | 26,552 | - | 26,552 | |
Derivative expense | - | 11,051,108 | 11,051,108 | |
Change in fair value of derivative liability | - | -7,354,708 | -7,354,708 | |
Allowance for bad debt | 5,000 | - | 5,000 | |
Options and warrants granted | 653,856 | -1,563 | 652,293 | |
Changes in operating assets and liabilities: | - | |||
Accounts receivable | -112,041 | - | -112,041 | |
Accounts receivable–related parties | -9,740 | - | -9,740 | |
Deposits | -289,817 | - | -289,817 | |
Prepaid Expense | -4,928 | - | -4,928 | |
Inventory | -113,478 | - | -113,478 | |
Accounts payable and accrued expenses | 259,279 | - | 259,279 | |
Customer deposits | -102,499 | - | -102,499 | |
Accounts payable-related parties | -2,568 | - | -2,568 | |
Accrued management compensation | -86,863 | - | -86,863 | |
Net Cash Used in Operating Activities | -1,142,331 | - | -1,142,331 | |
INVESTING ACTIVITIES | ||||
Purchase of long-term investments | -1,228,223 | - | -1,228,223 | |
Maturity of long-term investments | - | - | - | |
Purchase of property and equipment | -4,643 | - | -4,643 | |
Net Cash Provided by (Used in) Investing Activities | -1,232,866 | - | -1,232,866 | |
FINANCING ACTIVITIES | ||||
Issuance of common stock for cash | 5,536,762 | 5,536,762 | ||
Repayment of note payable | -40,000 | - | -40,000 | |
Exercise of warrants and options for cash | - | - | - | |
Proceeds of Note Payable | 40,000 | - | 40,000 | |
Net Cash Provided by Financing Activities | 5,536,762 | - | 5,536,762 | |
NET INCREASE (DECREASE) IN CASH | 3,161,565 | - | 3,161,565 | |
CASH AT BEGINNING OF YEAR | 31,196 | - | 31,196 | |
CASH AT END OF PERIOD | $3,192,761 | - | $3,192,761 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||||
CASH PAID FOR: | ||||
Interest | $490 | - | $490 | |
Income taxes | $800 | - | $800 | |
B. Accounting Methods | ' | |||
b. Accounting Methods | ||||
The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31, year-end. | ||||
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. | ||||
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, 2013 and 2012 was $15,000 and $15,000, respectively. | ||||
E. Basic and Diluted Loss Per Share | ' | |||
e. 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 2,087,137 and 2,169,855 stock options and warrants that would have been included in the fully diluted earnings per share as of December 31, 2013 and 2012, respectively. However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti-dilutive. | ||||
F. Property and Equipment | ' | |||
f. 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. | ||||
G. Newly Issued Accounting Pronouncements | ' | |||
g. Newly Issued 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 financial statements. | ||||
H. Provision For Income Taxes | ' | |||
h. 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. | ||||
At the adoption date of November 1, 2007, the Company had no unrecognized tax benefit which would affect the effective tax rate if recognized. 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, 2013, 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 2008. | ||||
I. Estimates | ' | |||
i. Estimates | ||||
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. | ||||
J. Fair Value of Financial Instruments | ' | |||
j. Fair Value of Financial Instruments | ||||
ASC 820, “Fair Value Measurements and Disclosures” requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | ||||
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. | ||||
The Company’s Level 2 financial liabilities consist of the derivative liability of the Company’s warrants issued to investors for cash and to consultants for services. There is no current market for these securities such that the determination of fair value requires significant judgment or estimation. The Company used a multinomial lattice model which incorporates transaction details such as Company stock price, contractual terms, default provisions, maturity, risk free rates, as well as assumptions about future financings, volatility, and holder behavior as of the date of issuance and each balance sheet date. | ||||
K. Advertising | ' | |||
k. Advertising | ||||
The Company follows the policy of charging the costs of advertising to expense as incurred. During the year ended December 31, 2013 and 2012, the Company expensed $35,800 and $28,672, respectively. | ||||
L. Revenue Recognition | ' | |||
l. Revenue Recognition | ||||
The Company recognizes revenue from the sale of new engines for use with compressed natural gas and engine components to convert existing engines to compressed natural gas use. Revenue is recognized upon shipment of the products, and when collection is reasonably assured. | ||||
M. Concentration of Risks | ' | |||
m. Concentration of Risks | ||||
Customers | ||||
During the year ended December 31, 2013, eight customers accounted for approximately 55% of sales. | ||||
During the year ended December 31, 2012, eight customers accounted for approximately 64% of sales. | ||||
Suppliers | ||||
During the year ended December 31, 2013, four suppliers accounted for 55% of products purchased. | ||||
During the year ended December 31, 2012, four suppliers accounted for 29% of products purchased. | ||||
N. Long - Lived Assets | ' | |||
n. 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 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, 2013. | ||||
O. Research and Development | ' | |||
o. Research and Development | ||||
The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2013 and 2012, the Company incurred research and development expenses of $292,228 and $285,745, respectively. | ||||
P. Liquidity | ' | |||
p. Liquidity | ||||
Historically, the Company has incurred net losses and negative cash flows from operations. As of December 31, 2013, the Company had an accumulated deficit of $15,013,478 and total stockholders’ equity of $3,973,604. At December 31, 2013, the Company had current assets of $4,357,029 including cash and cash equivalents of $1,057,836, and current liabilities of $504,757, resulting in working capital of $3,852,272. For 2013, the Company reported a net loss of $3,523,486 and net cash used by operating activities of $2,266,417. Management believes that based on its operating plan, the projected sales for 2014, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. If the Company is unable to obtain profitable operations and positive operating cash flows, it may require additional funding or be forced to scale back its development plans or to significantly reduce or terminate operations. | ||||
Q. Stock- Based Compensation | ' | |||
q. 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. | ||||
R. Held To Maturity Investments | ' | |||
r. Held to Maturity Investments | ||||
During 2012, the Company purchased various corporate bonds. The Company intends to hold the bonds to maturity. Accordingly, the Company has recorded and is amortizing the premium on the bonds over the remaining life. As of December 31, 2013, the Company has amortized $45,299 of the premium leaving an amortized cost basis remaining of $917,248. During the year ended December 31, 2013 and 2012 the Company had correlating amortization expense of $34,424 and $26,552, respectively. |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Prior Period Adjustments to Balance Sheets, Statement of Operations, and Cash Flow Statement | ' | |||
OMNITEK ENGINEERING CORP. | ||||
Balance Sheets | ||||
ASSETS | ||||
December 31, | ||||
2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
CURRENT ASSETS | ||||
Cash | $1,057,836 | - | $1,057,836 | |
Accounts receivable, net | 38,261 | - | 38,261 | |
Accounts receivable - related parties | 33,369 | - | 33,369 | |
Inventory | 2,225,868 | - | 2,225,868 | |
Prepaid expense | 21,474 | - | 21,474 | |
Deposits | 62,973 | - | 62,973 | |
Short-term investments, net | 917,248 | - | 917,248 | |
Total Current Assets | 4,357,029 | - | 4,357,029 | |
FIXED ASSETS, net | 118,460 | - | 118,460 | |
OTHER ASSETS | ||||
Long-term investments, net | - | - | - | |
Intellectual property, net | 2,872 | - | 2,872 | |
Total Other Assets | 2,872 | - | 2,872 | |
TOTAL ASSETS | $4,478,361 | - | $4,478,361 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $91,744 | - | $$91,744 | |
Accrued management compensation | 189,466 | - | 189,466 | |
Accounts payable - related parties | 1,475 | - | 1,475 | |
Derivative liability | - | - | - | |
Customer deposits | 222,072 | - | 222,072 | |
Total Current Liabilities | 504,757 | - | 504,757 | |
Total Liabilities | 504,757 | - | 504,757 | |
STOCKHOLDERS' EQUITY | ||||
Common stock, 125,000,000 shares authorized no par value | ||||
19,759,582 shares issued and outstanding, | 8,201,311 | - | 8,201,311 | |
Additional paid-in capital | 5,181,636 | 5,604,135 | 10,785,711 | |
Accumulated deficit | -9,409,343 | -5,604,135 | -15,013,478 | |
Total Stockholders' Equity | 3,973,604 | - | 3,973,604 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,478,361 | - | $4,478,361 | |
OMNITEK ENGINEERING CORP. | ||||
Balance Sheets | ||||
ASSETS | ||||
December 31, | ||||
2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
CURRENT ASSETS | ||||
Cash | $3,192,761 | - | $3,192,761 | |
Accounts receivable, net | 120,547 | - | 120,547 | |
Accounts receivable - related parties | 26,455 | - | 26,455 | |
Inventory | 1,133,595 | - | 1,133,595 | |
Prepaid expense | 7,440 | - | 7,440 | |
Deposits | 331,760 | - | 331,760 | |
Short-term investments, net | - | - | - | |
Total Current Assets | 4,812,558 | - | 4,812,558 | |
FIXED ASSETS, net | 14,560 | - | 14,560 | |
OTHER ASSETS | ||||
Long-term investments, net | 1,201,671 | - | 1,201,671 | |
Intellectual property, net | 5,218 | - | 5,218 | |
Total Other Assets | 1,206,889 | - | 1,206,889 | |
TOTAL ASSETS | $6,034,007 | - | $6,034,007 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable and accrued expenses | $317,106 | - | $317,106 | |
Accrued management compensation | 264,717 | - | 264,717 | |
Accounts payable - related parties | - | - | - | |
Derivative liability | - | 4,197,802 | 4,197,802 | |
Customer deposits | 184,109 | - | 184,109 | |
Total Current Liabilities | 765,932 | 4,197,802 | 4,963,734 | |
Total Liabilities | 765,932 | 4,197,802 | 4,963,734 | |
STOCKHOLDERS' EQUITY | ||||
Common stock, 125,000,000 shares authorized no par value | ||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | |
Additional paid-in capital | 4,867,169 | -502,965 | 4,364,204 | |
Accumulated deficit | -7,795,155 | -3,694,837 | -11,489,992 | |
Total Stockholders' Equity | 5,268,075 | -4,197,802 | 1,070,273 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $6,034,007 | - | $6,034,007 | |
OMNITEK ENGINEERING CORP. | ||||
Statements of Operations | ||||
For the Year Ended December 31, 2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
REVENUES | $1,052,518 | - | $1,052,518 | |
COST OF GOODS SOLD | 703,630 | - | 703,630 | |
GROSS MARGIN | 348,888 | - | 348,888 | |
OPERATING EXPENSES | ||||
General and administrative | 1,711,440 | - | 1,711,440 | |
Bad debt expense | 1,196 | - | 1,196 | |
Research and development expense | 292,228 | - | 292,228 | |
Depreciation and amortization expense | 22,206 | - | 22,206 | |
Total Operating Expenses | 2,027,070 | - | 2,027,070 | |
LOSS FROM OPERATIONS | -1,678,182 | - | -1,678,182 | |
OTHER INCOME (EXPENSE) | ||||
Derivative expense | - | - | - | |
Change in fair value of derivative liability | - | -1,909,298 | -1,909,298 | |
Interest expense | -13 | - | -13 | |
Interest income | 64,807 | - | 64,807 | |
Total Other Income (Expense) | 64,794 | -1,909,298 | -1,844,504 | |
LOSS BEFORE INCOME TAXES | -1,613,388 | -1,909,298 | -3,522,686 | |
INCOME TAX EXPENSE | 800 | - | 800 | |
NET LOSS | ($1,614,188) | ($1,909,298) | ($3,523,486) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.08) | ($0.18) | ||
WEIGHTED AVERAGE NUMBER | ||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,750,787 | ||
OMNITEK ENGINEERING CORP. | ||||
Statements of Operations | ||||
For the Year Ended December 31, 2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
REVENUES | $1,899,740 | - | $1,899,740 | |
COST OF GOODS SOLD | 971,927 | - | 971,927 | |
GROSS MARGIN | 927,813 | - | 927,813 | |
OPERATING EXPENSES | ||||
General and administrative | 2,041,447 | -1,563 | 2,039,884 | |
Bad debt expense | 363 | - | 363 | |
Research and development expense | 285,745 | - | 285,745 | |
Depreciation and amortization expense | 6,369 | - | 6,369 | |
Total Operating Expenses | 2,333,924 | -1,563 | 2,332,361 | |
LOSS FROM OPERATIONS | -1,406,111 | 1,563 | -1,404,548 | |
OTHER INCOME (EXPENSE) | ||||
Derivative expense | - | -11,051,108 | -11,051,108 | |
Change in fair value of derivative liability | - | 7,354,708 | 7,354,708 | |
Interest expense | -490 | - | -490 | |
Interest income | 35,948 | - | 35,948 | |
Total Other Income (Expense) | 35,458 | -3,694,837 | -3,660,942 | |
LOSS BEFORE INCOME TAXES | -1,370,653 | -3,694,837 | -5,066,290 | |
INCOME TAX EXPENSE | 800 | - | 800 | |
NET LOSS | ($1,371,453) | ($3,694,837) | ($5,066,290) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.07) | ($0.27) | ||
WEIGHTED AVERAGE NUMBER | ||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,092,975 | ||
OMNITEK ENGINEERING CORP. | ||||
Statements of Cash Flows | ||||
For the Year Ended December 31, 2013 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
OPERATING ACTIVITIES | ||||
Net loss | ($1,614,188) | ($1,909,298) | ($3,523,486) | |
Adjustments to reconcile net loss to | ||||
net cash used by operating activities: | ||||
Amortization and depreciation expense | 22,206 | - | 22,206 | |
Amortization of premium on investments | 34,424 | - | 34,424 | |
Derivative expense | - | - | - | |
Change in fair value of derivative liability | - | 1,909,298 | 1,909,298 | |
Allowance for bad debt | - | - | - | |
Options and warrants granted | 314,467 | - | 314,467 | |
Changes in operating assets and liabilities: | - | |||
Accounts receivable | 82,285 | - | 82,285 | |
Accounts receivable–related parties | -6,914 | - | -6,914 | |
Deposits | 268,787 | - | 268,787 | |
Prepaid Expense | -14,034 | - | -14,034 | |
Inventory | -1,092,273 | - | -1,092,273 | |
Accounts payable and accrued expenses | -225,364 | - | -225,364 | |
Customer deposits | 37,963 | - | 37,963 | |
Accounts payable-related parties | 1,475 | - | 1,475 | |
Accrued management compensation | -75,251 | - | -75,251 | |
Net Cash Used in Operating Activities | -2,266,417 | - | -2,266,417 | |
INVESTING ACTIVITIES | ||||
Purchase of long-term investments | - | - | - | |
Maturity of long-term investments | 250,000 | - | 250,000 | |
Purchase of property and equipment | -123,758 | - | -123,758 | |
Net Cash Provided by (Used in) Investing Activities | 126,242 | - | 126,242 | |
FINANCING ACTIVITIES | ||||
Issuance of common stock for cash | - | - | - | |
Issuance of warrants for cash | - | - | - | |
Repayment of note payable | - | - | - | |
Exercise of warrants and options for cash | 5,250 | - | 5,250 | |
Proceeds of Note Payable | - | - | - | |
Net Cash Provided by Financing Activities | 5,250 | - | 5,250 | |
NET INCREASE (DECREASE) IN CASH | -2,134,925 | - | -2,134,925 | |
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | |
CASH AT END OF PERIOD | $1,057,836 | - | $1,057,836 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||||
CASH PAID FOR: | ||||
Interest | $13 | - | $13 | |
Income taxes | $800 | $800 | ||
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||
Derivative liability | - | $6,107,100 | $6,107,100 | |
OMNITEK ENGINEERING CORP. | ||||
Statements of Cash Flows | ||||
For the Year Ended December 31, 2012 | ||||
Restatement | ||||
As Previously Reported | Adjustments | As Restated | ||
OPERATING ACTIVITIES | ||||
Net loss | ($1,371,453) | ($3,694,837) | ($5,066,290) | |
Adjustments to reconcile net loss to | ||||
net cash used by operating activities: | ||||
Amortization and depreciation expense | 6,369 | - | 6,369 | |
Amortization of premium on investments | 26,552 | - | 26,552 | |
Derivative expense | - | 11,051,108 | 11,051,108 | |
Change in fair value of derivative liability | - | -7,354,708 | -7,354,708 | |
Allowance for bad debt | 5,000 | - | 5,000 | |
Options and warrants granted | 653,856 | -1,563 | 652,293 | |
Changes in operating assets and liabilities: | - | |||
Accounts receivable | -112,041 | - | -112,041 | |
Accounts receivable–related parties | -9,740 | - | -9,740 | |
Deposits | -289,817 | - | -289,817 | |
Prepaid Expense | -4,928 | - | -4,928 | |
Inventory | -113,478 | - | -113,478 | |
Accounts payable and accrued expenses | 259,279 | - | 259,279 | |
Customer deposits | -102,499 | - | -102,499 | |
Accounts payable-related parties | -2,568 | - | -2,568 | |
Accrued management compensation | -86,863 | - | -86,863 | |
Net Cash Used in Operating Activities | -1,142,331 | - | -1,142,331 | |
INVESTING ACTIVITIES | ||||
Purchase of long-term investments | -1,228,223 | - | -1,228,223 | |
Maturity of long-term investments | - | - | - | |
Purchase of property and equipment | -4,643 | - | -4,643 | |
Net Cash Provided by (Used in) Investing Activities | -1,232,866 | - | -1,232,866 | |
FINANCING ACTIVITIES | ||||
Issuance of common stock for cash | 5,536,762 | 5,536,762 | ||
Repayment of note payable | -40,000 | - | -40,000 | |
Exercise of warrants and options for cash | - | - | - | |
Proceeds of Note Payable | 40,000 | - | 40,000 | |
Net Cash Provided by Financing Activities | 5,536,762 | - | 5,536,762 | |
NET INCREASE (DECREASE) IN CASH | 3,161,565 | - | 3,161,565 | |
CASH AT BEGINNING OF YEAR | 31,196 | - | 31,196 | |
CASH AT END OF PERIOD | $3,192,761 | - | $3,192,761 | |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||||
CASH PAID FOR: | ||||
Interest | $490 | - | $490 | |
Income taxes | $800 | - | $800 | |
Note_3_Inventory_Tables
Note 3 - Inventory (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Inventory, Current | ' | ||
December 31, | December 31, | ||
Location : Vista and San Marcos, CA respectively | 2013 | 2012 | |
Raw materials | $1,191,550 | $806,700 | |
Finished goods | 1,621,201 | 684,273 | |
In transit | 23,269 | 270,151 | |
Allowance for obsolete inventory | -610,152 | -627,529 | |
Total | $2,225,868 | $1,133,595 |
Note_4_Property_and_Equipment_
Note 4 - Property and Equipment (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Property, Plant and Equipment | ' | ||
December 31, | December 31, | ||
2013 | 2012 | ||
Production equipment | $60,501 | $14,814 | |
Computers/Office equipment | 28,540 | - | |
Tooling equipment | 12,380 | 5,300 | |
Leasehold Improvements | 42,451 | ||
Less: accumulated depreciation | -25,412 | -5,554 | |
Total | $118,460 | $14,560 |
Note_5_Intellectual_Property_T
Note 5 - Intellectual Property (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of the Company's patents and trademarks | ' | ||
December 31, | December 31, | ||
2013 | 2012 | ||
Patents | $42,295 | $42,295 | |
Trademarks | 1,920 | 1,920 | |
Intellectual property and customer list | 474,000 | 474,000 | |
Less: accumulated amortization | -515,343 | -512,997 | |
Total | $2,872 | $5,218 |
Note_8_Related_Party_Transacti1
Note 8 - Related Party Transactions (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Accrued Management Fees | ' | ||
December 31, | December 31, | ||
2013 | 2012 | ||
Amounts due to the president | $133,397 | $197,398 | |
Amounts due to other officers of the company | 56,069 | 67,319 | |
Total | $189,466 | $264,717 |
Note_10_Derivative_Liability_T
Note 10 - Derivative Liability (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Fair Value, Derivative Liability, Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ||||
Balance at December 31, 2011 | $ | - | |||
New Derivative Liability | 11,552,510 | ||||
Total (gains)losses included in earnings | (7,354,708 | ) | |||
Issuances | - | ||||
Balance at December 31, 2012 | $ | 4,197,802 | |||
New Derivative Liability | - | ||||
Total (gains)losses included in earnings | 1,909,298 | ||||
Closing of liability | (6,107,100 | ) | |||
Balance at December 31, 2013 | $ | - | |||
Fair Value Inputs, Derivative Liability | ' | ||||
December 31, | |||||
2013 | |||||
Expected term in years | 4.27 -5.00 years | ||||
Risk-free interest rates | 0.62-0.90 | % | |||
Volatility | 260-.281 | % | |||
Dividend yield | 0 | % | |||
December 31, | |||||
2012 | |||||
Expected term in years | 3.27 -4.02 years | ||||
Risk-free interest rates | 0.57-1.04 | % | |||
Volatility | 167-.251 | % | |||
Dividend yield | 0 | % | |||
Note_11_Stockholders_Equity_Ta
Note 11 - Stockholders' Equity (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Stock Options and Warrants, Activity | ' | |||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Weighted-Average | Weighted-Average | |||||
Shares | Exercise Price | Shares | Exercise Price | |||
Outstanding at beginning of year | 6,085,313 | $2.29 | 2,820,000 | $0.73 | ||
Granted | 175,000 | 2.42 | 3,265,313 | 3.64 | ||
Exercised | -10,000 | 0.53 | - | - | ||
Expired or cancelled | - | - | - | - | ||
Outstanding at end of year | 6,250,313 | 2.3 | 6,085,313 | 2.29 | ||
Exercisable | 5,803,230 | $2.28 | 5,612,813 | $2.09 | ||
Schedule of Options and Warrants Outstanding, by Exercise Price Range | ' | |||||
Weighted-Average Remaining Contractual Life | ||||||
Range of Exercise Prices | Number Outstanding | Number Exercisable | Weighted-Average Exercise Price | |||
$0.01-0.50 | 200,000 | .78 years | 200,000 | $0.38 | ||
$0.51-0.75 | 1,570,000 | .85 years | 1,570,000 | 0.63 | ||
$0.76-1.00 | 1,040,000 | .85 years | 1,040,000 | 0.94 | ||
$1.01-2.00 | 140,000 | 4.52 years | 114,167 | 1.8 | ||
$2.01-3.00 | 580,000 | 5.92 years | 158,750 | 2.53 | ||
$3.01-4.00 | 2,720,313 | 3.27 years | 2,720,313 | 3.88 | ||
$0.01-4.00 | 6,250,313 | 2.45 years | 5,803,230 | $2.28 |
Note_12_Income_Taxes_Tables
Note 12 - Income Taxes (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Provision (Benefit) for Income Taxes | ' | ||
The provision (benefit) for income taxes for the year ended December 31, 2013 and 2012 consists of the following: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Federal | |||
Current | - | - | |
Deferred | - | - | |
State | |||
Current | 800 | 800 | |
Deferred | - | - | |
$800 | $800 | ||
Schedule of Net Deferred Tax Assets and Components | ' | ||
Net deferred tax assets consist of the following components as of December 31, 2013 and 2012: | |||
December 31, | December 31, | ||
2013 | 2012 | ||
Deferred tax assets: | |||
Net operating loss carryover | $4,370,287 | $2,900,715 | |
Depreciation | -124,818 | -94,454 | |
Research and development carry forward | 136,465 | 136,465 | |
Related party accruals | 130,538 | 130,538 | |
Inventory reserve | 242,522 | 249,299 | |
Allowance for doubtful accounts | 33,605 | 33,605 | |
Accrued compensation | 17,742 | 47,090 | |
Deferred tax liabilities: | |||
Valuation allowance | -4,806,341 | -3,403,258 | |
Net deferred tax asset | - | - | |
Schedule of Effective Income Tax Rate Reconciliation | ' | ||
December 31, | December 31, | ||
2013 | 2012 | ||
Book loss | ($629,553) | ($534,867) | |
Meals and entertainment | 235 | 634 | |
State tax deduction | - | 312 | |
Related party expense | - | -1,002 | |
Stock/Options for services | 122,654 | 255,004 | |
Depreciation | -30,364 | -2,484 | |
Accrued compensation | -29,348 | -33,877 | |
Inventory reserve | -6,777 | - | |
Research and development | - | -2,484 | |
Net operating loss carryover | 573,133 | 318,764 | |
Income Tax Expense | - | - |
Note_13_Quarterly_Information_1
Note 13 - Quarterly Information (unaudited) (Tables) | 12 Months Ended | ||||||
Dec. 31, 2013 | |||||||
Tables/Schedules | ' | ||||||
Significant Effects of the Adjustments for the Quarters Ended Table Text Block | ' | ||||||
Total Current Liabilities | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | 555,603 | 513,430 | 505,794 | 652,031 | 604,776 | ||
Restatement Adjustments: | |||||||
Derivative Liability Adjustment | 6,618,456 | 6,318,428 | 6,823,780 | 8,070,027 | 4,941,548 | ||
As Restated in this Annual Report on Form 10-K | 7,174,059 | 6,831,858 | 7,329,574 | 8,722,058 | 5,546,324 | ||
Total Stockholders' Equity | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | 5,056,005 | 4,709,217 | 4,380,507 | 5,325,082 | 5,291,432 | ||
Restatement Adjustments: | |||||||
Additional Paid in Capital Adjustment | (502,965) | (502,965) | (502,965) | (502,965) | (502,965) | ||
Accumulated Deficit Adjustment | (6,115,491) | (5,815,463) | (6,320,815) | (7,567,062) | (4,438,583) | ||
As Restated in this Annual Report on Form 10-K | (1,562,451) | (1,609,211) | (2,443,273) | (2,744,945) | 349,884 | ||
Total Operating Expenses | |||||||
March 31, | June 30, | September 30, | June 30, | 30-Sep | |||
2013 | 2012 | ||||||
As Previously Reported | 415,934 | 436,425 | 589,752 | 1,248,054 | 443,966 | ||
Restatement Adjustments: | |||||||
General and Administrative Adjustment | - | - | - | (1,563) | (1,563) | ||
As Restated in this Annual Report on Form 10-K | 415,934 | 436,425 | 589,752 | 1,246,491 | 442,403 | ||
Total Other Income (Expense) | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | 21,070 | 13,668 | 21,039 | 1,092 | 21,082 | ||
Restatement Adjustments: | |||||||
Derivative Expense Adjustment | - | - | - | (11,051,108) | - | ||
Change in Fair Value of Derivative Liability Adjustment | (2,420,654) | 300,029 | (505,353) | 3,482,483 | 3,128,480 | ||
As Restated in this Annual Report on Form 10-K | (2,399,584) | 313,697 | (484,314) | (7,567,533) | 3,149,562 | ||
Net Loss | |||||||
March 31, | June 30, | September 30, | June 30, | September 30, | |||
2013 | 2012 | ||||||
As Previously Reported | (250,420) | (369,393) | (467,895) | (1,015,880) | (142,150) | ||
Restatement Adjustments: | |||||||
Derivative Adjustments | (2,420,654) | 300,029 | (505,353) | (7,567,062) | 3,130,043 | ||
As Restated in this Annual Report on Form 10-K | (2,671,074) | (69,364) | (973,248) | (8,582,942) | 2,987,893 | ||
Quarterly Balance Sheets, Impacts of The Restatement Adjustments | ' | ||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
March 31, | |||||||
2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $2,561,017 | - | $2,561,017 | ||||
Accounts receivable, net | 48,597 | - | 48,597 | ||||
Accounts receivable - related parties | 4,389 | - | 4,389 | ||||
Inventory | 1,354,846 | - | 1,354,846 | ||||
Prepaid expense | 18,000 | - | 18,000 | ||||
Deposits | 369,133 | - | 369,133 | ||||
Short-term investments, net | 253,615 | - | 253,615 | ||||
Total Current Assets | 4,609,597 | - | 4,609,597 | ||||
FIXED ASSETS, net | 59,610 | - | 59,610 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 937,883 | - | 937,883 | ||||
Intellectual property, net | 4,518 | - | 4,518 | ||||
Total Other Assets | 942,401 | - | 942,401 | ||||
TOTAL ASSETS | $5,611,608 | - | $5,611,608 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $95,494 | - | $95,494 | ||||
Accrued management compensation | 249,947 | - | 249,947 | ||||
Accounts payable - related parties | -2,298 | - | -2,298 | ||||
Derivative liability | - | 6,618,456 | 6,618,456 | ||||
Customer deposits | 212,460 | - | 212,460 | ||||
Total Current Liabilities | 555,603 | 6,618,456 | 7,174,059 | ||||
Total Liabilities | 555,603 | 6,618,456 | 7,174,059 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,759,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,905,519 | -502,965 | 4,402,554 | ||||
Accumulated deficit | -8,045,575 | -6,115,491 | -14,161,066 | ||||
Total Stockholders' Equity | 5,056,005 | -6,618,456 | -1,562,451 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,611,608 | - | $5,611,608 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
June 30, | |||||||
2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $1,998,546 | - | $1,998,546 | ||||
Accounts receivable, net | 27,112 | - | 27,112 | ||||
Accounts receivable - related parties | 21,012 | - | 21,012 | ||||
Inventory | 1,822,603 | - | 1,822,603 | ||||
Prepaid expense | 11,062 | - | 11,062 | ||||
Deposits | 208,445 | - | 208,445 | ||||
Short-term investments, net | 202,207 | - | 202,207 | ||||
Total Current Assets | 4,290,987 | - | 4,290,987 | ||||
FIXED ASSETS, net | 97,396 | - | 97,396 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 830,309 | - | 830,309 | ||||
Intellectual property, net | 3,955 | - | 3,955 | ||||
Total Other Assets | 834,264 | - | 834,264 | ||||
TOTAL ASSETS | $5,222,647 | - | $5,222,647 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $63,066 | - | $63,066 | ||||
Accrued management compensation | 232,716 | - | 232,716 | ||||
Accounts payable - related parties | 3,070 | - | 3,070 | ||||
Derivative liability | - | 6,318,428 | 6,318,428 | ||||
Customer deposits | 214,578 | - | 214,578 | ||||
Total Current Liabilities | 513,430 | 6,318,428 | 6,831,858 | ||||
Total Liabilities | 513,430 | 6,318,428 | 6,831,858 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,7549,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,928,125 | -502,965 | 4,425,160 | ||||
Accumulated deficit | -8,414,969 | -5,815,463 | -14,230,432 | ||||
Total Stockholders' Equity | 4,709,217 | -6,318,428 | -1,609,211 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,222,647 | - | $5,222,647 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
September 30, | |||||||
2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $1,373,841 | - | $1,373,841 | ||||
Accounts receivable, net | 43,180 | - | 43,180 | ||||
Accounts receivable - related parties | 12,594 | - | 12,594 | ||||
Inventory | 2,231,873 | - | 2,231,873 | ||||
Prepaid expense | 22,942 | - | 22,942 | ||||
Deposits | 60,582 | - | 60,582 | ||||
Short-term investments, net | 1,024,130 | - | 1,024,130 | ||||
Total Current Assets | 4,769,142 | - | 4,769,142 | ||||
FIXED ASSETS, net | 113,756 | - | 113,756 | ||||
OTHER ASSETS | |||||||
Intellectual property, net | 3,403 | - | 3,403 | ||||
Total Other Assets | 3,403 | - | 3,403 | ||||
TOTAL ASSETS | $4,886,301 | - | $4,886,301 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $105,070 | - | $105,070 | ||||
Accrued management compensation | 215,447 | - | 215,447 | ||||
Derivative liability | - | 6,823,780 | 6,823,780 | ||||
Customer deposits | 185,277 | - | 185,277 | ||||
Total Current Liabilities | 505,794 | 6,823,780 | 7,329,574 | ||||
Total Liabilities | 505,794 | 6,823,780 | 7,329,574 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 5,067,310 | -502,965 | 4,564,345 | ||||
Accumulated deficit | -8,882,864 | -6,320,815 | -15,203,679 | ||||
Total Stockholders' Equity | 4,380,507 | -6,823,780 | -2,443,273 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,886,301 | - | $4,886,301 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
June 30, | |||||||
2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $3,524,094 | - | $3,524,094 | ||||
Accounts receivable, net | 86,124 | - | 86,124 | ||||
Accounts receivable - related parties | 26,847 | - | 26,847 | ||||
Inventory | 922,677 | - | 922,677 | ||||
Prepaid expense | 837 | - | 837 | ||||
Deposits | 176,001 | - | 176,001 | ||||
Total Current Assets | 4,736,580 | - | 4,736,580 | ||||
FIXED ASSETS, net | 11,777 | - | 11,777 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 1,222,019 | - | 1,222,019 | ||||
Intellectual property, net | 6,737 | - | 6,737 | ||||
Total Other Assets | 1,228,756 | - | 1,228,756 | ||||
TOTAL ASSETS | $5,977,113 | - | $5,977,113 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $65,154 | - | $65,154 | ||||
Accrued management compensation | 292,517 | - | 292,517 | ||||
Accounts payable - related parties | 2,624 | - | 2,624 | ||||
Derivative liability | - | 8,070,027 | 8,070,027 | ||||
Customer deposits | 291,736 | - | 291,736 | ||||
Total Current Liabilities | 652,031 | 8,070,027 | 8,722,058 | ||||
Total Liabilities | 652,031 | 8,070,027 | 8,722,058 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,731,728 | -502,965 | 4,228,763 | ||||
Accumulated deficit | -7,602,707 | -7,567,062 | -15,169,769 | ||||
Total Stockholders' Equity | 5,325,082 | -8,070,027 | -2,744,945 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,977,113 | - | $5,977,113 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Balance Sheets | |||||||
(Unaudited) | |||||||
ASSETS | |||||||
September 30, | |||||||
2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
CURRENT ASSETS | |||||||
Cash | $3,240,057 | - | $3,240,057 | ||||
Accounts receivable, net | 218,065 | - | 218,065 | ||||
Accounts receivable - related parties | 30,876 | - | 30,876 | ||||
Inventory | 912,384 | - | 912,384 | ||||
Prepaid expense | 10,628 | - | 10,628 | ||||
Deposits | 251,036 | - | 251,036 | ||||
Total Current Assets | 4,663,046 | - | 4,663,046 | ||||
FIXED ASSETS, net | 15,338 | - | 15,338 | ||||
OTHER ASSETS | |||||||
Long-term investments, net | 1,211,845 | - | 1,211,845 | ||||
Intellectual property, net | 5,979 | - | 5,979 | ||||
Total Other Assets | 1,217,824 | - | 1,217,824 | ||||
TOTAL ASSETS | $5,896,208 | - | $5,896,208 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable and accrued expenses | $70,411 | - | $70,411 | ||||
Accounts payable - related parties | 277,368 | - | 277,368 | ||||
Derivative liability | - | 4,941,548 | 4,941,548 | ||||
Customer deposits | 256,997 | - | 256,997 | ||||
Total Current Liabilities | 604,776 | 4,941,548 | 5,546,324 | ||||
Total Liabilities | 604,776 | 4,941,548 | 5,546,324 | ||||
STOCKHOLDERS' EQUITY | |||||||
Common stock, 125,000,000 shares authorized no par value | |||||||
19,749,582 shares issued and outstanding, | 8,196,061 | - | 8,196,061 | ||||
Additional paid-in capital | 4,840,228 | -502,965 | 4,337,263 | ||||
Accumulated deficit | -7,744,857 | -4,438,583 | -12,183,440 | ||||
Total Stockholders' Equity | 5,291,432 | -4,941,548 | 349,884 | ||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $5,896,208 | - | $5,896,208 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
Quarterly Statement of Operations, Impacts of The Restatement Adjustments | ' | ||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended March 31, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
REVENUES | $349,329 | - | $349,329 | ||||
COST OF GOODS SOLD | 204,085 | - | 204,085 | ||||
GROSS MARGIN | 145,244 | - | 145,244 | ||||
OPERATING EXPENSES | |||||||
General and administrative | 352,305 | - | 352,305 | ||||
Research and development expense | 50,359 | - | 50,359 | ||||
Depreciation and amortization expense | 13,270 | - | 13,270 | ||||
Total Operating Expenses | 415,934 | - | 415,934 | ||||
LOSS FROM OPERATIONS | -270,690 | - | -270,690 | ||||
OTHER INCOME (EXPENSE) | |||||||
Change in fair value of derivative liability | - | -2,420,654 | -2,420,654 | ||||
Interest income | 21,070 | - | 21,070 | ||||
Total Other Income (Expense) | 21,070 | -2,420,654 | -2,399,584 | ||||
LOSS BEFORE INCOME TAXES | -249,620 | -2,420,654 | -2,670,274 | ||||
INCOME TAX EXPENSE | 800 | - | 800 | ||||
NET LOSS | ($250,420) | ($2,420,654) | ($2,671,074) | ||||
BASIC AND DILUTED LOSS PER SHARE | ($0.01) | ($0.14) | |||||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | |||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended June 30, 2013 | For the Six Months Ended June 30, 2013 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | $197,210 | - | $197,210 | $546,539 | - | $546,539 | |
COST OF GOODS SOLD | 143,846 | - | 143,846 | 347,932 | - | 347,932 | |
GROSS MARGIN | 53,364 | - | 53,364 | 198,607 | - | 198,607 | |
OPERATING EXPENSES | |||||||
General and administrative | 370,582 | - | 370,582 | 722,874 | - | 722,874 | |
Research and development expense | 51,777 | - | 51,777 | 102,136 | - | 102,136 | |
Depreciation and amortization expense | 14,066 | - | 14,066 | 27,336 | - | 27,336 | |
Total Operating Expenses | 436,425 | - | 436,425 | 852,346 | - | 852,346 | |
LOSS FROM OPERATIONS | -383,061 | - | -383,061 | -653,739 | - | -653,739 | |
OTHER INCOME (EXPENSE) | |||||||
Change in fair value of derivative liability | - | 300,029 | 300,029 | - | -2,120,626 | -2,120,626 | |
Interest expense | - | - | - | -13 | - | -13 | |
Interest income | 13,668 | - | 13,668 | 34,738 | - | 34,738 | |
Total Other Income (Expense) | 13,668 | 300,029 | 313,697 | 34,725 | -2,120,626 | -2,085,901 | |
LOSS BEFORE INCOME TAXES | -369,393 | 300,029 | -69,364 | -619,014 | -2,120,626 | -2,739,640 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | ($369,393) | $300,029 | ($69,364) | ($619,814) | ($2,120,626) | ($2,740,440) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.02) | $0.00 | ($0.03) | ($0.14) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | |||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended September 30, 2013 | For the Nine Months Ended September 30, 2013 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | $280,921 | - | $280,921 | $827,460 | - | $827,460 | |
COST OF GOODS SOLD | 180,103 | - | 180,103 | 528,035 | - | 528,035 | |
GROSS MARGIN | 100,818 | - | 100,818 | 299,425 | - | 299,425 | |
OPERATING EXPENSES | |||||||
General and administrative | 470,258 | - | 470,258 | 1,193,132 | - | 1,193,132 | |
Research and development expense | 104,991 | - | 104,991 | 207,127 | - | 207,127 | |
Depreciation and amortization expense | 14,503 | - | 14,503 | 41,839 | - | 41,839 | |
Total Operating Expenses | 589,752 | - | 589,752 | 1,442,098 | - | 1,442,098 | |
LOSS FROM OPERATIONS | -488,934 | - | -488,934 | -1,142,673 | - | -1,142,673 | |
OTHER INCOME (EXPENSE) | |||||||
Change in fair value of derivative liability | - | -505,353 | -505,353 | - | -2,625,978 | -2,625,978 | |
Interest expense | - | - | - | -13 | - | -13 | |
Interest income | 21,039 | - | 21,039 | 55,777 | - | 55,777 | |
Total Other Income (Expense) | 21,039 | -505,353 | -484,314 | 55,764 | -2,625,978 | -2,570,214 | |
LOSS BEFORE INCOME TAXES | -467,895 | -505,353 | -973,248 | -1,086,909 | -2,625,978 | -3,712,887 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | ($467,895) | ($505,353) | ($973,248) | ($1,087,709) | ($2,625,978) | ($3,713,687) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.02) | ($0.05) | ($0.06) | ($0.19) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | |||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended June 30, 2012 | For the Six Months Ended June 30, 2012 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | 380,531 | - | 380,531 | 686,900 | - | $686,900 | |
COST OF GOODS SOLD | 149,449 | - | 149,449 | 350,061 | - | 350,061 | |
GROSS MARGIN | 231,082 | - | 231,082 | 336,839 | - | 336,839 | |
OPERATING EXPENSES | |||||||
General and administrative | 1,198,267 | -1,563 | 1,196,704 | 1,435,590 | -1,563 | 1,434,027 | |
Research and development expense | 48,254 | - | 48,254 | 77,148 | - | 77,148 | |
Depreciation and amortization expense | 1,533 | - | 1,533 | 2,990 | - | 2,990 | |
Total Operating Expenses | 1,248,054 | -1,563 | 1,246,491 | 1,515,728 | -1,563 | 1,514,165 | |
LOSS FROM OPERATIONS | -1,016,972 | 1,563 | -1,015,409 | -1,178,889 | 1,563 | -1,177,326 | |
OTHER INCOME (EXPENSE) | |||||||
Derivative expense | - | -11,051,108 | -11,051,108 | - | -11,051,108 | -11,051,108 | |
Change in fair value of derivative liability | - | 3,482,483 | 3,482,483 | - | 3,482,482 | 3,482,482 | |
Interest expense | -82 | - | -82 | -490 | - | -490 | |
Interest income | 1,174 | - | 1,174 | 1,174 | - | 1,174 | |
Total Other Income (Expense) | 1,092 | -7,568,625 | -7,567,533 | 684 | -7,568,626 | -7,567,942 | |
LOSS BEFORE INCOME TAXES | -1,015,880 | -7,567,062 | -8,582,942 | -1,178,205 | -7,567,063 | -8,745,268 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | -1,015,880 | -7,567,062 | -8,582,942 | -1,179,005 | -7,567,063 | ($8,746,068) | |
BASIC AND DILUTED LOSS PER SHARE | -0.05 | -0.44 | -0.06 | ($0.47) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,661,571 | 19,661,571 | 18,429,153 | 18,429,153 | |||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Operations | |||||||
(Unaudited) | |||||||
For the Three Months Ended September 30, 2012 | For the Nine Months Ended September 30, 2012 | ||||||
Restatement | Restatement | ||||||
As Previously Reported | Adjustments | As Restated | As Previously Reported | Adjustments | As Restated | ||
REVENUES | $562,367 | - | $562,367 | $1,249,267 | - | $1,249,267 | |
COST OF GOODS SOLD | 281,633 | - | 281,633 | 631,694 | - | 631,694 | |
GROSS MARGIN | 280,734 | - | 280,734 | 617,573 | - | 617,573 | |
OPERATING EXPENSES | |||||||
General and administrative | 353,438 | -1,563 | 351,875 | 1,789,028 | -1,563 | 1,787,465 | |
Research and development expense | 88,922 | - | 88,922 | 166,070 | - | 166,070 | |
Depreciation and amortization expense | 1,606 | - | 1,606 | 4,596 | - | 4,596 | |
Total Operating Expenses | 443,966 | -1,563 | 442,403 | 1,959,694 | -1,563 | 1,958,131 | |
LOSS FROM OPERATIONS | -163,232 | 1,563 | -161,669 | -1,342,121 | 1,563 | -1,340,558 | |
OTHER INCOME (EXPENSE) | |||||||
Derivative expense | - | - | - | - | -11,051,108 | -11,051,108 | |
Change in fair value of derivative liability | - | 3,128,480 | 3,128,480 | - | 6,610,962 | 6,610,962 | |
Interest expense | - | - | - | -490 | - | -490 | |
Interest income | 21,082 | - | 21,082 | 22,256 | - | 22,256 | |
Total Other Income (Expense) | 21,082 | 3,128,480 | 3,149,562 | 21,766 | -4,440,146 | -4,418,380 | |
LOSS BEFORE INCOME TAXES | -142,150 | 3,130,043 | 2,987,893 | -1,320,355 | -4,438,583 | -5,758,938 | |
INCOME TAX EXPENSE | - | - | - | 800 | - | 800 | |
NET LOSS | ($142,150) | 3,130,043 | 2,987,893 | ($1,321,155) | ($4,438,583) | ($5,759,738) | |
BASIC AND DILUTED LOSS PER SHARE | ($0.01) | $0.15 | ($0.07) | ($0.31) | |||
WEIGHTED AVERAGE NUMBER | |||||||
OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 18,872,509 | 18,872,509 | |||
Quarterly Statement of Cash Flows, Impacts of The Restatement Adjustments | ' | ||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Three Months Ended March 31, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($250,420) | ($2,420,654) | ($2,671,074) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 3,095 | - | 3,095 | ||||
Amortization of premium on investments | 10,173 | - | 10,173 | ||||
Change in fair value of derivative liability | - | 2,420,654 | 2,420,654 | ||||
Options and warrants granted | 38,350 | - | 38,350 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 71,950 | - | 71,950 | ||||
Accounts receivable–related parties | 22,066 | - | 22,066 | ||||
Deposits | -37,373 | - | -37,373 | ||||
Prepaid Expense | -10,560 | - | -10,560 | ||||
Inventory | -221,251 | - | -221,251 | ||||
Accounts payable and accrued expenses | -221,612 | - | -221,612 | ||||
Customer deposits | 28,351 | - | 28,351 | ||||
Accounts payable-related parties | -2,298 | - | -2,298 | ||||
Accrued management compensation | -14,770 | - | -14,770 | ||||
Net Cash Used in Operating Activities | -584,299 | - | -584,299 | ||||
INVESTING ACTIVITIES | |||||||
Purchase of property and equipment | -47,445 | - | -47,445 | ||||
Net Cash Provided by (Used in) Investing Activities | -47,445 | - | -47,445 | ||||
FINANCING ACTIVITIES | |||||||
- | - | - | |||||
Net Cash Provided by Financing Activities | - | - | - | ||||
NET INCREASE (DECREASE) IN CASH | -631,744 | - | -631,744 | ||||
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | ||||
CASH AT END OF PERIOD | $2,561,017 | - | $2,561,017 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Six Months Ended June 30, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($619,814) | ($2,120,626) | ($2,740,440) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 8,180 | - | 8,180 | ||||
Amortization of premium on investments | 19,155 | - | 19,155 | ||||
Change in fair value of derivative liability | - | 2,120,626 | 2,120,626 | ||||
Options and warrants granted | 60,956 | - | 60,956 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 93,435 | - | 93,435 | ||||
Accounts receivable–related parties | 5,443 | - | 5,443 | ||||
Deposits | 123,315 | - | 123,315 | ||||
Prepaid Expense | -3,622 | - | -3,622 | ||||
Inventory | -689,008 | - | -689,008 | ||||
Accounts payable and accrued expenses | -254,040 | - | -254,040 | ||||
Customer deposits | 30,469 | - | 30,469 | ||||
Accounts payable-related parties | 3,070 | - | 3,070 | ||||
Accrued management compensation | -32,001 | - | -32,001 | ||||
Net Cash Used in Operating Activities | -1,254,462 | - | -1,254,462 | ||||
INVESTING ACTIVITIES | |||||||
Maturity of long-term investments | 150,000 | - | 150,000 | ||||
Purchase of property and equipment | -89,753 | - | -89,753 | ||||
Net Cash Provided by (Used in) Investing Activities | 60,247 | - | 60,247 | ||||
FINANCING ACTIVITIES | |||||||
- | - | - | |||||
Net Cash Provided by Financing Activities | - | - | - | ||||
NET INCREASE (DECREASE) IN CASH | -1,194,215 | - | -1,194,215 | ||||
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | ||||
CASH AT END OF PERIOD | $1,998,546 | - | $1,998,546 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | - | - | - | ||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Nine Months Ended September 30, 2013 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($1,087,709) | ($2,625,978) | ($3,713,687) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 14,296 | - | 14,296 | ||||
Amortization of premium on investments | 27,541 | - | 27,541 | ||||
Change in fair value of derivative liability | - | 2,625,978 | 2,625,978 | ||||
Options and warrants granted | 200,141 | - | 200,141 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 77,367 | - | 77,367 | ||||
Accounts receivable–related parties | 16,069 | - | 16,069 | ||||
Deposits | 271,178 | - | 271,178 | ||||
Prepaid Expense | -15,502 | - | -15,502 | ||||
Inventory | -1,098,278 | - | -1,098,278 | ||||
Accounts payable and accrued expenses | -212,036 | - | -212,036 | ||||
Customer deposits | 1,168 | - | 1,168 | ||||
Accounts payable-related parties | -2,208 | - | -2,208 | ||||
Accrued management compensation | -49,270 | - | -49,270 | ||||
Net Cash Used in Operating Activities | -1,857,243 | - | -1,857,243 | ||||
INVESTING ACTIVITIES | |||||||
Maturity of long-term investments | 150,000 | - | 150,000 | ||||
Purchase of property and equipment | -111,677 | - | -111,677 | ||||
Net Cash Provided by (Used in) Investing Activities | 38,323 | - | 38,323 | ||||
FINANCING ACTIVITIES | |||||||
- | - | - | |||||
Net Cash Provided by Financing Activities | - | - | - | ||||
NET INCREASE (DECREASE) IN CASH | -1,818,920 | - | -1,818,920 | ||||
CASH AT BEGINNING OF YEAR | 3,192,761 | - | 3,192,761 | ||||
CASH AT END OF PERIOD | $1,373,841 | - | $1,373,841 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | - | - | - | ||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Six Months Ended June 30, 2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($1,179,005) | ($7,567,063) | ($8,746,068) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 2,991 | - | 2,991 | ||||
Amortization of premium on investments | 6,204 | - | 6,204 | ||||
Derivative expense | - | 11,051,108 | 11,051,108 | ||||
Change in fair value of derivative liability | - | -3,482,482 | -3,482,482 | ||||
Options and warrants granted | 518,415 | -1,563 | 516,852 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | -72,618 | - | -72,618 | ||||
Accounts receivable–related parties | -10,132 | - | -10,132 | ||||
Deposits | -134,058 | - | -134,058 | ||||
Prepaid Expense | 1,675 | - | 1,675 | ||||
Inventory | 97,440 | - | 97,440 | ||||
Accounts payable and accrued expenses | 7,326 | - | 7,326 | ||||
Customer deposits | 5,128 | - | 5,128 | ||||
Accounts payable-related parties | 56 | - | 56 | ||||
Accrued management compensation | -59,063 | - | -59,063 | ||||
Net Cash Used in Operating Activities | -815,641 | - | -815,641 | ||||
INVESTING ACTIVITIES | |||||||
Purchase of long-term investments | -1,228,223 | - | -1,228,223 | ||||
Net Cash Provided by (Used in) Investing Activities | -1,228,223 | - | -1,228,223 | ||||
FINANCING ACTIVITIES | |||||||
Issuance of common stock for cash | 5,536,762 | - | 5,536,762 | ||||
Repayment of note payable | -40,000 | - | (40,000 | ||||
Proceeds of Note Payable | 40,000 | - | 40,000 | ||||
Net Cash Provided by Financing Activities | 5,536,762 | - | 5,536,762 | ||||
NET INCREASE (DECREASE) IN CASH | 3,492,898 | - | 3,492,898 | ||||
CASH AT BEGINNING OF YEAR | 31,196 | - | 31,196 | ||||
CASH AT END OF PERIOD | $3,524,094 | - | $3,524,094 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | $408 | - | $408 | ||||
Income taxes | $800 | - | $800 | ||||
The accompanying notes are an integral part of these condensed financial statements. | |||||||
OMNITEK ENGINEERING CORP. | |||||||
Statements of Cash Flows | |||||||
For the Nine Months Ended September 30, 2012 | |||||||
Restatement | |||||||
As Previously Reported | Adjustments | As Restated | |||||
OPERATING ACTIVITIES | |||||||
Net loss | ($1,321,155) | ($4,438,583) | ($5,759,738) | ||||
Adjustments to reconcile net loss to | |||||||
net cash used by operating activities: | |||||||
Amortization and depreciation expense | 4,596 | - | 4,596 | ||||
Amortization of premium on investments | 16,378 | - | 16,378 | ||||
Derivative expense | - | 11,051,108 | 11,051,108 | ||||
Change in fair value of derivative liability | - | -6,610,962 | -6,610,962 | ||||
Options and warrants granted | 626,915 | (1,5630 | 625,352 | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | -204,559 | - | -204,559 | ||||
Accounts receivable–related parties | (14,161 | - | -14,161 | ||||
Deposits | -209,093 | - | -209,093 | ||||
Prepaid Expense | -8,116 | - | -8,116 | ||||
Inventory | 107,733 | - | 107,733 | ||||
Accounts payable and accrued expenses | 12,583 | - | 12,583 | ||||
Customer deposits | -29,611 | - | -29,611 | ||||
Accounts payable-related parties | -2,543 | - | -2,543 | ||||
Accrued management compensation | -74,237 | - | -74,237 | ||||
Net Cash Used in Operating Activities | -1,095,270 | - | -1,095,270 | ||||
INVESTING ACTIVITIES | |||||||
Purchase of long-term investments | -1,228,223 | - | -1,228,223 | ||||
Purchase of property and equipment | -4,408 | - | -4,408 | ||||
Net Cash Provided by (Used in) Investing Activities | -1,232,631 | - | -1,232,631 | ||||
FINANCING ACTIVITIES | |||||||
Issuance of common stock for cash | 5,536,762 | - | 5,536,762 | ||||
Repayment of note payable | -40,000 | - | -40,000 | ||||
Proceeds of Note Payable | 40,000 | - | 40,000 | ||||
Net Cash Provided by Financing Activities | 5,536,762 | - | 5,536,762 | ||||
NET INCREASE (DECREASE) IN CASH | 3,208,861 | - | 3,208,861 | ||||
CASH AT BEGINNING OF YEAR | 31,196 | - | 31,196 | ||||
CASH AT END OF PERIOD | $3,240,057 | - | $3,240,057 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | |||||||
CASH PAID FOR: | |||||||
Interest | $490 | - | $490 | ||||
Income taxes | $800 | - | $800 | ||||
Note_1_Organization_and_Busine1
Note 1 - Organization and Business Activity (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Entity Incorporation, Date of Incorporation | 9-Oct-01 |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies: A. Restatement of Previously Issued Financial Statements: Schedule of Prior Period Adjustments to Balance Sheets, Statement of Operations, and Cash Flow Statement (Details) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | |||
Cash | $1,057,836 | $3,192,761 | $1,373,841 | $1,998,546 | $2,561,017 | $3,240,057 | $3,524,094 | $1,998,546 | $3,524,094 | $1,373,841 | $3,240,057 | $1,057,836 | $3,192,761 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | $1,373,841 | $1,998,546 | $2,561,017 | $3,240,057 | $3,524,094 | $1,998,546 | $3,524,094 | $1,373,841 | $3,240,057 | $1,057,836 | $3,192,761 |
Accounts receivable, net | ' | ' | 43,180 | 27,112 | 48,597 | 218,065 | 86,124 | 27,112 | 86,124 | 43,180 | 218,065 | 38,261 | 120,547 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 43,180 | 27,112 | 48,597 | 218,065 | 86,124 | 27,112 | 86,124 | 43,180 | 218,065 | 38,261 | 120,547 |
Accounts receivable - related parties | 33,369 | 26,455 | 12,594 | 21,012 | 4,389 | 30,876 | 26,847 | 21,012 | 26,847 | 12,594 | 30,876 | 33,369 | 26,455 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12,594 | 21,012 | 4,389 | 30,876 | 26,847 | 21,012 | 26,847 | 12,594 | 30,876 | 33,369 | 26,455 |
Inventory, net | 2,225,868 | 1,133,595 | 2,231,873 | 1,822,603 | 1,354,846 | 912,384 | 922,677 | 1,822,603 | 922,677 | 2,231,873 | 912,384 | 2,225,868 | 1,133,595 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 2,231,873 | 1,822,603 | 1,354,846 | 912,384 | 922,677 | 1,822,603 | 922,677 | 2,231,873 | 912,384 | 2,225,868 | 1,133,595 |
Prepaid expense | 21,474 | 7,440 | 22,942 | 11,062 | 18,000 | 10,628 | 837 | 11,062 | 837 | 22,942 | 10,628 | 21,474 | 7,440 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 22,942 | 11,062 | 18,000 | 10,628 | 837 | 11,062 | 837 | 22,942 | 10,628 | 21,474 | 7,440 |
Deposits | 62,973 | 331,760 | 60,582 | 208,445 | 369,133 | 251,036 | 176,001 | 208,445 | 176,001 | 60,582 | 251,036 | 62,973 | 331,760 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 60,582 | 208,445 | 369,133 | 251,036 | 176,001 | 208,445 | 176,001 | 60,582 | 251,036 | 62,973 | 331,760 |
Short-term investments, net | 917,248 | ' | 1,024,130 | 202,207 | 253,615 | ' | ' | 202,207 | ' | 1,024,130 | ' | 917,248 | 0 | 0 | 0 | 0 | ' | ' | 0 | ' | 0 | ' | 0 | 0 | 1,024,130 | 202,207 | 253,615 | ' | ' | 202,207 | ' | 1,024,130 | ' | 917,248 | 0 |
Total Current Assets | 4,357,029 | 4,812,558 | 4,769,142 | 4,290,987 | 4,609,597 | 4,663,046 | 4,736,580 | 4,290,987 | 4,736,580 | 4,769,142 | 4,663,046 | 4,357,029 | 4,812,558 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,769,142 | 4,290,987 | 4,609,597 | 4,663,046 | 4,736,580 | 4,290,987 | 4,736,580 | 4,769,142 | 4,663,046 | 4,357,029 | 4,812,558 |
FIXED ASSETS, net | 118,460 | 14,560 | 113,756 | 97,396 | 59,610 | 15,338 | 11,777 | 97,396 | 11,777 | 113,756 | 15,338 | 118,460 | 14,560 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 113,756 | 97,396 | 59,610 | 15,338 | 11,777 | 97,396 | 11,777 | 113,756 | 15,338 | 118,460 | 14,560 |
Long-term investments, net | ' | 1,201,671 | ' | 830,309 | 937,883 | 1,211,845 | 1,222,019 | 830,309 | 1,222,019 | ' | 1,211,845 | 0 | 1,201,671 | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | 830,309 | 937,883 | 1,211,845 | 1,222,019 | 830,309 | 1,222,019 | ' | 1,211,845 | 0 | 1,201,671 |
Intellectual property, net | 2,872 | 5,218 | 3,403 | 3,955 | 4,518 | 5,979 | 6,737 | 3,955 | 6,737 | 3,403 | 5,979 | 2,872 | 5,218 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,403 | 3,955 | 4,518 | 5,979 | 6,737 | 3,955 | 6,737 | 3,403 | 5,979 | 2,872 | 5,218 |
Total Other Assets | 2,872 | 1,206,889 | 3,403 | 834,264 | 942,401 | 1,217,824 | 1,228,756 | 834,264 | 1,228,756 | 3,403 | 1,217,824 | 2,872 | 1,206,889 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3,403 | 834,264 | 942,401 | 1,217,824 | 1,228,756 | 834,264 | 1,228,756 | 3,403 | 1,217,824 | 2,872 | 1,206,889 |
TOTAL ASSETS | 4,478,361 | 6,034,007 | 4,886,301 | 5,222,647 | 5,611,608 | 5,896,208 | 5,977,113 | 5,222,647 | 5,977,113 | 4,886,301 | 5,896,208 | 4,478,361 | 6,034,007 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,886,301 | 5,222,647 | 5,611,608 | 5,896,208 | 5,977,113 | 5,222,647 | 5,977,113 | 4,886,301 | 5,896,208 | 4,478,361 | 6,034,007 |
Accounts payable and accrued expenses | 91,744 | 317,106 | 105,070 | 63,066 | 95,494 | 70,411 | 65,154 | 63,066 | 65,154 | 105,070 | 70,411 | 91,744 | 317,106 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 105,070 | 63,066 | 95,494 | 70,411 | 65,154 | 63,066 | 65,154 | 105,070 | 70,411 | 91,744 | 317,106 |
Accrued management compensation | 189,466 | 264,717 | 215,447 | 232,716 | 249,947 | ' | 292,517 | 232,716 | 292,517 | 215,447 | ' | 189,466 | 264,717 | 0 | 0 | 0 | ' | 0 | 0 | 0 | 0 | ' | 0 | 0 | 215,447 | 232,716 | 249,947 | ' | 292,517 | 232,716 | 292,517 | 215,447 | ' | 189,466 | 264,717 |
Accounts payable - related parties | 1,475 | ' | ' | 3,070 | -2,298 | 277,368 | 2,624 | 3,070 | 2,624 | ' | 277,368 | 1,475 | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | ' | 3,070 | -2,298 | 277,368 | 2,624 | 3,070 | 2,624 | ' | 277,368 | 1,475 | 0 |
Derivative liability | 0 | 4,197,802 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,823,780 | 6,318,428 | 6,618,456 | 4,941,548 | 8,070,027 | 6,318,428 | 8,070,027 | 6,823,780 | 4,941,548 | 0 | 4,197,802 | 6,823,780 | 6,318,428 | 6,618,456 | 4,941,548 | 8,070,027 | 6,318,428 | 8,070,027 | 6,823,780 | 4,941,548 | 0 | 4,197,802 |
Customer deposits | 222,072 | 184,109 | 185,277 | 214,578 | 212,460 | 256,997 | 291,736 | 214,578 | 291,736 | 185,277 | 256,997 | 222,072 | 184,109 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 185,277 | 214,578 | 212,460 | 256,997 | 291,736 | 214,578 | 291,736 | 185,277 | 256,997 | 222,072 | 184,109 |
Total Current Liabilities | 504,757 | 4,963,734 | 505,794 | 513,430 | 555,603 | 604,776 | 652,031 | 513,430 | 652,031 | 505,794 | 604,776 | 504,757 | 765,932 | 6,823,780 | 6,318,428 | 6,618,456 | 4,941,548 | 8,070,027 | 6,318,428 | 8,070,027 | 6,823,780 | 4,941,548 | 0 | 4,197,802 | 7,329,574 | 6,831,858 | 7,174,059 | 5,546,324 | 8,722,058 | 6,831,858 | 8,722,058 | 7,329,574 | 5,546,324 | 504,757 | 4,963,734 |
Total Liabilities | 504,757 | 4,963,734 | 505,794 | 513,430 | 555,603 | 604,776 | 652,031 | 513,430 | 652,031 | 505,794 | 604,776 | 504,757 | 765,932 | 6,823,780 | 6,318,428 | 6,618,456 | 4,941,548 | 8,070,027 | 6,318,428 | 8,070,027 | 6,823,780 | 4,941,548 | 0 | 4,197,802 | 7,329,574 | 6,831,858 | 7,174,059 | 5,546,324 | 8,722,058 | 6,831,858 | 8,722,058 | 7,329,574 | 5,546,324 | 504,757 | 4,963,734 |
Common stock, 125,000,000 shares authorized no par value 19,759,582 and 19,749,582 shares issued and outstanding, respectively | 8,201,311 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,201,311 | 8,196,061 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,201,311 | 8,196,061 |
Additional paid-in capital | 10,785,771 | 4,364,204 | 5,067,310 | 4,928,125 | 4,905,519 | 4,840,228 | 4,731,728 | 4,928,125 | 4,731,728 | 5,067,310 | 4,840,228 | 5,181,636 | 4,867,169 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | 5,604,135 | -502,965 | 4,564,345 | 4,425,160 | 4,402,554 | 4,337,263 | 4,228,763 | 4,425,160 | 4,228,763 | 4,564,345 | 4,337,263 | 10,785,711 | 4,364,204 |
Accumulated deficit | -15,013,478 | -11,489,992 | -8,882,864 | -8,414,969 | -8,045,575 | -7,744,857 | -7,602,707 | -8,414,969 | -7,602,707 | -8,882,864 | -7,744,857 | -9,409,343 | -7,795,155 | -6,320,815 | -5,815,463 | -6,115,491 | -4,438,583 | -7,567,062 | -5,815,463 | -7,567,062 | -6,320,815 | -4,438,583 | -5,604,135 | -3,694,837 | -15,203,679 | -14,230,432 | -14,161,066 | -12,183,440 | -15,169,769 | -14,230,432 | -15,169,769 | -15,203,679 | -12,183,440 | -15,013,478 | -11,489,992 |
Total Stockholders' Equity | 3,973,604 | 1,070,273 | 4,380,507 | 4,709,217 | 5,056,005 | 5,291,432 | 5,325,082 | 4,709,217 | 5,325,082 | 4,380,507 | 5,291,432 | 3,973,604 | 5,268,075 | -6,823,780 | -6,318,428 | -6,618,456 | -4,941,548 | -8,070,027 | -6,318,428 | -8,070,027 | -6,823,780 | -4,941,548 | 0 | -4,197,802 | -2,443,273 | -1,609,211 | -1,562,451 | 349,884 | -2,744,945 | -1,609,211 | -2,744,945 | -2,443,273 | 349,884 | 3,973,604 | 1,070,273 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,478,361 | 6,034,007 | 4,886,301 | 5,222,647 | 5,611,608 | 5,896,208 | 5,977,113 | 5,222,647 | 5,977,113 | 4,886,301 | 5,896,208 | 4,478,361 | 6,034,007 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4,886,301 | 5,222,647 | 5,611,608 | 5,896,208 | 5,977,113 | 5,222,647 | 5,977,113 | 4,886,301 | 5,896,208 | 4,478,361 | 6,034,007 |
REVENUES | 1,052,518 | 1,899,740 | 280,921 | 197,210 | 349,329 | 562,367 | 380,531 | 546,539 | 686,900 | 827,460 | 1,249,267 | 1,052,518 | 1,899,740 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 280,921 | 197,210 | 349,329 | 562,367 | 380,531 | 546,539 | 686,900 | 827,460 | 1,249,267 | 1,052,518 | 1,899,740 |
COST OF GOODS SOLD | 703,630 | 971,927 | 180,103 | 143,846 | 204,085 | 281,633 | 149,449 | 347,932 | 350,061 | 528,035 | 631,694 | 703,630 | 971,927 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 180,103 | 143,846 | 204,085 | 281,633 | 149,449 | 347,932 | 350,061 | 528,035 | 631,694 | 703,630 | 971,927 |
GROSS MARGIN | 348,888 | 927,813 | 100,818 | 53,364 | 145,244 | 280,734 | 231,082 | 198,607 | 336,839 | 299,425 | 617,573 | 348,888 | 927,813 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 100,818 | 53,364 | 145,244 | 280,734 | 231,082 | 198,607 | 336,839 | 299,425 | 617,573 | 348,888 | 927,813 |
Total Operating Expenses | 2,027,070 | 2,332,361 | 589,752 | 436,425 | 415,934 | 443,966 | 1,248,054 | 852,346 | 1,515,728 | 1,442,098 | 1,959,694 | 2,027,070 | 2,333,924 | 0 | 0 | 0 | -1,563 | -1,563 | 0 | -1,563 | 0 | -1,563 | 0 | -1,563 | 589,752 | 436,425 | 415,934 | 442,403 | 1,246,491 | 852,346 | 1,514,165 | 1,442,098 | 1,958,131 | 2,027,070 | 2,332,361 |
General and administrative | 1,711,440 | 2,039,884 | 470,258 | 370,582 | 352,305 | 353,438 | 1,198,267 | 722,874 | 1,435,590 | 1,193,132 | 1,789,028 | 1,711,440 | 2,041,447 | 0 | 0 | 0 | -1,563 | -1,563 | 0 | -1,563 | 0 | -1,563 | 0 | -1,563 | 470,258 | 370,582 | 352,305 | 351,875 | 1,196,704 | 722,874 | 1,434,027 | 1,193,132 | 1,787,465 | 1,711,440 | 2,039,884 |
Bad debt expense | 1,196 | 363 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,196 | 363 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,196 | 363 |
Research and development expense | 292,228 | 285,745 | 104,991 | 51,777 | 50,359 | 88,922 | 48,254 | 102,136 | 77,148 | 207,127 | 166,070 | 292,228 | 285,745 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 104,991 | 51,777 | 50,359 | 88,922 | 48,254 | 102,136 | 77,148 | 207,127 | 166,070 | 292,228 | 285,745 |
Depreciation and amortization expense | 22,206 | 6,369 | 14,503 | 14,066 | 13,270 | 1,606 | 1,533 | 27,336 | 2,990 | 41,839 | 4,596 | 22,206 | 6,369 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 14,503 | 14,066 | 13,270 | 1,606 | 1,533 | 27,336 | 2,990 | 41,839 | 4,596 | 22,206 | 6,369 |
LOSS FROM OPERATIONS | -1,678,182 | -1,404,548 | -488,934 | -383,061 | -270,690 | -163,232 | -1,016,972 | -653,739 | -1,178,889 | -1,142,673 | -1,342,121 | -1,678,182 | -1,406,111 | 0 | 0 | 0 | 1,563 | 1,563 | 0 | 1,563 | 0 | 1,563 | 0 | 1,563 | -488,934 | -383,061 | -270,690 | -161,669 | -1,015,409 | -653,739 | -1,177,326 | -1,142,673 | -1,340,558 | -1,678,182 | -1,404,548 |
Derivative expense | ' | -11,051,108 | ' | ' | ' | 0 | 0 | ' | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11,051,108 | ' | -11,051,108 | ' | -11,051,108 | 0 | -11,051,108 | ' | ' | ' | 0 | -11,051,108 | ' | -11,051,108 | ' | -11,051,108 | 0 | -11,051,108 |
Change in fair value of derivative liability | -1,909,298 | 7,354,708 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -505,353 | 300,029 | -2,420,654 | 3,128,480 | 3,482,483 | -2,120,626 | 3,482,482 | -2,625,978 | 6,610,962 | -1,909,298 | 7,354,708 | -505,353 | 300,029 | -2,420,654 | 3,128,480 | 3,482,483 | -2,120,626 | 3,482,482 | -2,625,978 | 6,610,962 | -1,909,298 | 7,354,708 |
Interest expense | -13 | -490 | 0 | 0 | ' | 0 | -82 | -13 | -490 | -13 | -490 | -13 | -490 | 0 | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' | 0 | -82 | -13 | -490 | -13 | -490 | -13 | -490 |
Interest income | 64,807 | 35,948 | 21,039 | 13,668 | 21,070 | 21,082 | 1,174 | 34,738 | 1,174 | 55,777 | 22,256 | 64,807 | 35,948 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 21,039 | 13,668 | 21,070 | 21,082 | 1,174 | 34,738 | 1,174 | 55,777 | 22,256 | 64,807 | 35,948 |
Total Other Income (Expense) | -1,844,504 | -3,660,942 | 21,039 | 13,668 | 21,070 | 21,082 | 1,092 | 34,725 | 684 | 55,764 | 21,766 | 64,794 | 35,458 | -505,353 | 300,029 | -2,420,654 | 3,128,480 | -7,568,625 | -2,120,626 | -7,568,626 | -2,625,978 | -4,440,146 | -1,909,298 | -3,694,837 | -484,314 | 313,697 | -2,399,584 | 3,149,562 | -7,567,533 | -2,085,901 | -7,567,942 | -2,570,214 | -4,418,380 | -1,844,504 | -3,660,942 |
LOSS BEFORE INCOME TAXES | -3,522,686 | -5,065,490 | -467,895 | -369,393 | -249,620 | -142,150 | -1,015,880 | -619,014 | -1,178,205 | -1,086,909 | -1,320,355 | -1,613,388 | -1,370,653 | -505,353 | 300,029 | -2,420,654 | 3,130,043 | -7,567,062 | -2,120,626 | -7,567,063 | -2,625,978 | -4,438,583 | -1,909,298 | -3,694,837 | -973,248 | -69,364 | -2,670,274 | 2,987,893 | -8,582,942 | -2,739,640 | -8,745,268 | -3,712,887 | -5,758,938 | -3,522,686 | -5,066,290 |
INCOME TAX EXPENSE | 800 | 800 | 0 | 0 | 800 | 0 | 0 | 800 | 800 | 800 | 800 | 800 | 800 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 800 | 0 | 0 | 800 | 800 | 800 | 800 | 800 | 800 |
Net loss | -3,523,486 | -5,066,290 | -467,895 | -369,393 | -250,420 | -142,150 | -1,015,880 | -619,814 | -1,179,005 | -1,087,709 | -1,321,155 | -1,614,188 | -1,371,453 | -505,353 | 300,029 | -2,420,654 | 3,130,043 | -7,567,062 | -2,120,626 | -7,567,063 | -2,625,978 | -4,438,583 | -1,909,298 | -3,694,837 | -973,248 | -69,364 | -2,671,074 | 2,987,893 | -8,582,942 | -2,740,440 | -8,746,068 | -3,713,687 | -5,759,738 | -3,523,486 | -5,066,290 |
BASIC AND DILUTED LOSS PER SHARE | ($0.18) | ($0.27) | ($0.02) | ($0.02) | ($0.01) | ($0.01) | ($0.05) | ($0.03) | ($0.06) | ($0.06) | ($0.07) | ($0.08) | ($0.07) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.05) | $0 | ($0.14) | $0.15 | ($0.44) | ($0.14) | ($0.47) | ($0.19) | ($0.31) | ($0.18) | ($0.27) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,750,787 | 19,092,975 | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | 19,661,571 | 19,749,582 | 18,429,153 | 19,749,582 | 18,872,509 | 19,750,787 | 19,750,787 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | 19,661,571 | 19,749,582 | 18,429,153 | 19,749,582 | 18,872,509 | 19,750,787 | 19,092,975 |
Amortization and depreciation expense | 22,206 | 6,369 | ' | ' | 3,095 | ' | ' | 8,180 | 2,991 | 14,296 | 4,596 | 22,206 | 6,369 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | 3,095 | ' | ' | 8,180 | 2,991 | 14,296 | 4,596 | 22,206 | 6,369 |
Amortization of premium on investments | 34,424 | 26,552 | ' | ' | 10,173 | ' | ' | 19,155 | 6,204 | 27,541 | 16,378 | 34,424 | 26,552 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | 10,173 | ' | ' | 19,155 | 6,204 | 27,541 | 16,378 | 34,424 | 26,552 |
Derivative expense | ' | 11,051,108 | ' | ' | ' | 0 | 0 | ' | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 11,051,108 | ' | 11,051,108 | ' | 11,051,108 | 0 | 11,051,108 | ' | ' | ' | 0 | 11,051,108 | ' | 11,051,108 | ' | 11,051,108 | 0 | 11,051,108 |
Change in fair value of derivative liability | 1,909,298 | -7,354,708 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 505,353 | -300,029 | 2,420,654 | -3,128,480 | -3,482,483 | 2,120,626 | -3,482,482 | 2,625,978 | -6,610,962 | 1,909,298 | -7,354,708 | 505,353 | -300,029 | 2,420,654 | -3,128,480 | -3,482,483 | 2,120,626 | -3,482,482 | 2,625,978 | -6,610,962 | 1,909,298 | -7,354,708 |
Allowance for bad debt | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5,000 |
Options and warrants granted | 314,467 | 652,293 | ' | ' | 38,350 | ' | ' | 60,956 | 518,415 | 200,141 | 626,915 | 314,467 | 653,856 | ' | ' | 0 | ' | ' | 0 | -1,563 | 0 | -15,630 | 0 | -1,563 | ' | ' | 38,350 | ' | ' | 60,956 | 516,852 | 200,141 | 625,352 | 0 | 0 |
Accounts receivable | 82,285 | -112,041 | ' | ' | 71,950 | ' | ' | 93,435 | -72,618 | 77,367 | -204,559 | 82,285 | -112,041 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | 71,950 | ' | ' | 93,435 | -72,618 | 77,367 | -204,559 | 82,285 | -112,041 |
Accounts receivable-related parties | -6,914 | -9,740 | ' | ' | 22,066 | ' | ' | 5,443 | -10,132 | 16,069 | -14,161 | -6,914 | -9,740 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | 22,066 | ' | ' | 5,443 | -10,132 | 16,069 | -14,161 | -6,914 | -9,740 |
Deposits | 268,787 | -289,817 | ' | ' | -37,373 | ' | ' | 123,315 | -134,058 | 271,178 | -209,093 | 268,787 | -289,817 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -37,373 | ' | ' | 123,315 | -134,058 | 271,178 | -209,093 | 268,787 | -289,817 |
Prepaid Expense | -14,034 | -4,928 | ' | ' | -10,560 | ' | ' | -3,622 | 1,675 | -15,502 | -8,116 | -14,034 | -4,928 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -10,560 | ' | ' | -3,622 | 1,675 | -15,502 | -8,116 | -14,034 | -4,928 |
Inventory | -1,092,273 | -113,478 | ' | ' | -221,251 | ' | ' | -689,008 | 97,440 | -1,098,278 | 107,733 | -1,092,273 | -113,478 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -221,251 | ' | ' | -689,008 | 97,440 | -1,098,278 | 107,733 | -1,092,273 | -113,478 |
Accounts payable and accrued expenses | -225,364 | 259,279 | ' | ' | -221,612 | ' | ' | -254,040 | 7,326 | -212,036 | 12,583 | -225,364 | 259,279 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -221,612 | ' | ' | -254,040 | 7,326 | -212,036 | 12,583 | -225,364 | 259,279 |
Customer deposits | 37,963 | -102,499 | ' | ' | 28,351 | ' | ' | 30,469 | 5,128 | 1,168 | -29,611 | 37,963 | -102,499 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | 28,351 | ' | ' | 30,469 | 5,128 | 1,168 | -29,611 | 37,963 | -102,499 |
Accounts payable-related parties | 1,475 | -2,568 | ' | ' | -2,298 | ' | ' | 3,070 | 56 | -2,208 | -2,543 | 1,475 | -2,568 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -2,298 | ' | ' | 3,070 | 56 | -2,208 | -2,543 | 1,475 | -2,568 |
Accrued management compensation | -75,251 | -86,863 | ' | ' | -14,770 | ' | ' | -32,001 | -59,063 | -49,270 | -74,237 | -75,251 | -86,863 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -14,770 | ' | ' | -32,001 | -59,063 | -49,270 | -74,237 | -75,251 | -86,863 |
Net Cash Used in Operating Activities | -2,266,417 | -1,142,331 | ' | ' | -584,299 | ' | ' | -1,254,462 | -815,641 | -1,857,243 | -1,095,270 | -2,266,417 | -1,142,331 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -584,299 | ' | ' | -1,254,462 | -815,641 | -1,857,243 | -1,095,270 | -2,266,417 | -1,142,331 |
Purchase of long-term investments | ' | 1,228,223 | ' | ' | ' | ' | ' | ' | -1,228,223 | ' | -1,228,223 | 0 | -1,228,223 | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | -1,228,223 | ' | -1,228,223 | 0 | -1,228,223 |
Maturity of long-term investments | 250,000 | ' | ' | ' | ' | ' | ' | 150,000 | ' | 150,000 | ' | 250,000 | 0 | ' | ' | ' | ' | ' | 0 | ' | 0 | ' | 0 | 0 | ' | ' | ' | ' | ' | 150,000 | ' | 150,000 | ' | 250,000 | 0 |
Purchase of property and equipment | -123,758 | -4,643 | ' | ' | -47,445 | ' | ' | -89,753 | ' | -111,677 | -4,408 | -123,758 | -4,643 | ' | ' | 0 | ' | ' | 0 | ' | 0 | 0 | 0 | 0 | ' | ' | -47,445 | ' | ' | -89,753 | ' | -111,677 | -4,408 | -123,758 | -4,643 |
Net Cash Provided by (Used in) Investing Activities | 126,242 | -1,232,866 | ' | ' | -47,445 | ' | ' | 60,247 | -1,228,223 | 38,323 | -1,232,631 | 126,242 | -1,232,866 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -47,445 | ' | ' | 60,247 | -1,228,223 | 38,323 | -1,232,631 | 126,242 | -1,232,866 |
Issuance of common stock for cash | ' | 5,536,762 | ' | ' | ' | ' | ' | ' | 5,536,762 | ' | 5,536,762 | 0 | 5,536,762 | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | 5,536,762 | ' | 5,536,762 | 0 | 5,536,762 |
Proceeds from Issuance of Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' |
Repayment of note payable | ' | -40,000 | ' | ' | ' | ' | ' | ' | -40,000 | ' | -40,000 | 0 | -40,000 | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | -40,000 | ' | -40,000 | 0 | -40,000 |
Exercise of warrants and options for cash | 5,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,250 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,250 | 0 |
Proceeds of Note Payable | ' | 40,000 | ' | ' | ' | ' | ' | ' | 40,000 | ' | 40,000 | 0 | 40,000 | ' | ' | ' | ' | ' | ' | 0 | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | 40,000 | ' | 40,000 | 0 | 40,000 |
Net Cash Provided by Financing Activities | 5,250 | 5,536,762 | ' | ' | 0 | ' | ' | 0 | 5,536,762 | 0 | 5,536,762 | 5,250 | 5,536,762 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | 0 | ' | ' | 0 | 5,536,762 | 0 | 5,536,762 | 5,250 | 5,536,762 |
NET INCREASE (DECREASE) IN CASH | -2,134,925 | 3,161,565 | ' | ' | -631,744 | ' | ' | -1,194,215 | 3,492,898 | -1,818,920 | 3,208,861 | -2,134,925 | 3,161,565 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | -631,744 | ' | ' | -1,194,215 | 3,492,898 | -1,818,920 | 3,208,861 | -2,134,925 | 3,161,565 |
Cash, Beginning Balance | 3,192,761 | ' | 1,998,546 | 2,561,017 | 3,192,761 | 3,524,094 | ' | 3,192,761 | 31,196 | 3,192,761 | 31,196 | 3,192,761 | 31,196 | 0 | 0 | 0 | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 1,998,546 | 2,561,017 | 3,192,761 | 3,524,094 | ' | 3,192,761 | 31,196 | 3,192,761 | 31,196 | 3,192,761 | 31,196 |
Cash, Ending Balance | 1,057,836 | 3,192,761 | 1,373,841 | 1,998,546 | 2,561,017 | 3,240,057 | 3,524,094 | 1,998,546 | 3,524,094 | 1,373,841 | 3,240,057 | 1,057,836 | 3,192,761 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1,373,841 | 1,998,546 | 2,561,017 | 3,240,057 | 3,524,094 | 1,998,546 | 3,524,094 | 1,373,841 | 3,240,057 | 1,057,836 | 3,192,761 |
CASH PAID FOR: Interest | 13 | 490 | ' | ' | ' | ' | ' | 0 | 408 | 0 | 490 | 13 | 490 | ' | ' | ' | ' | ' | 0 | 0 | 0 | 0 | 0 | 0 | ' | ' | ' | ' | ' | 0 | 408 | 0 | 490 | 13 | 490 |
CASH PAID FOR: Income taxes | 800 | 800 | ' | ' | 800 | ' | ' | 800 | 800 | 800 | 800 | 800 | 800 | ' | ' | 0 | ' | ' | 0 | 0 | 0 | 0 | ' | 0 | ' | ' | 800 | ' | ' | 800 | 800 | 800 | 800 | 800 | 800 |
Derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,107,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6,107,100 | ' |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies: D. Accounts Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Allowance for Doubtful Accounts Receivable, Current | $15,000 | $15,000 |
Note_2_Significant_Accounting_5
Note 2 - Significant Accounting Policies: E. Basic and Diluted Loss Per Share (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,087,137 | 2,169,855 |
Note_2_Significant_Accounting_6
Note 2 - Significant Accounting Policies: F. Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum | ' |
Property, Plant and Equipment, Useful Life | '3 years |
Maximum | ' |
Property, Plant and Equipment, Useful Life | '5 years |
Note_2_Significant_Accounting_7
Note 2 - Significant Accounting Policies: K. Advertising (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Advertising Expense | $35,800 | $28,672 |
Note_2_Significant_Accounting_8
Note 2 - Significant Accounting Policies: M. Concentration of Risks (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Customer Concentration Risk | ' | ' |
Concentration Risk, Customer | 'eight customers | 'eight customers |
Concentration Risk, Percentage | 55.00% | 64.00% |
Supplier Concentration Risk | ' | ' |
Concentration Risk, Percentage | 55.00% | 29.00% |
Concentration Risk, Supplier | 'four suppliers | 'four suppliers |
Note_2_Significant_Accounting_9
Note 2 - Significant Accounting Policies: N. Long - Lived Assets (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Asset Impairment Charges | $0 |
Recovered_Sheet1
Note 2 - Significant Accounting Policies: O. Research and Development (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Research and development expense | $292,228 | $285,745 |
Recovered_Sheet2
Note 2 - Significant Accounting Policies: P. Liquidity (Details) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | ||||
Accumulated deficit | ($15,013,478) | ($11,489,992) | ' | ($15,203,679) | ($14,230,432) | ($14,161,066) | ($12,183,440) | ($15,169,769) | ($14,230,432) | ($15,169,769) | ($15,203,679) | ($12,183,440) | ($15,013,478) | ($11,489,992) |
Total Stockholders' Equity | 3,973,604 | 1,070,273 | 448,910 | -2,443,273 | -1,609,211 | -1,562,451 | 349,884 | -2,744,945 | -1,609,211 | -2,744,945 | -2,443,273 | 349,884 | 3,973,604 | 1,070,273 |
Total Current Assets | 4,357,029 | 4,812,558 | ' | 4,769,142 | 4,290,987 | 4,609,597 | 4,663,046 | 4,736,580 | 4,290,987 | 4,736,580 | 4,769,142 | 4,663,046 | 4,357,029 | 4,812,558 |
CASH AT BEGINNING OF YEAR | 1,057,836 | 3,192,761 | 31,196 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Current Liabilities | 504,757 | 4,963,734 | ' | 7,329,574 | 6,831,858 | 7,174,059 | 5,546,324 | 8,722,058 | 6,831,858 | 8,722,058 | 7,329,574 | 5,546,324 | 504,757 | 4,963,734 |
Working Capital | 3,852,272 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net loss | -3,523,486 | -5,066,290 | ' | -973,248 | -69,364 | -2,671,074 | 2,987,893 | -8,582,942 | -2,740,440 | -8,746,068 | -3,713,687 | -5,759,738 | -3,523,486 | -5,066,290 |
Net Cash Used in Operating Activities | ($2,266,417) | ($1,142,331) | ' | ' | ' | ($584,299) | ' | ' | ($1,254,462) | ($815,641) | ($1,857,243) | ($1,095,270) | ($2,266,417) | ($1,142,331) |
Recovered_Sheet3
Note 2 - Significant Accounting Policies: R. Held To Maturity Investments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Amortization of premium on investments | $34,424 | $26,552 |
Corporate Debt Securities | ' | ' |
Accumulated amortized premium | 45,299 | ' |
Debt Instrument, Unamortized Premium | $917,248 | ' |
Note_3_Inventory_Schedule_of_I
Note 3 - Inventory: Schedule of Inventory, Current (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Raw materials | $1,191,550 | $806,700 |
Finished goods | 1,621,201 | 684,273 |
In transit | 23,269 | 270,151 |
Allowance for obsolete inventory | -610,152 | -627,529 |
Total | $2,225,868 | $1,133,595 |
Note_3_Inventory_Details
Note 3 - Inventory (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Inventory Write-down | $10,426 | $0 |
Note_4_Property_and_Equipment_1
Note 4 - Property and Equipment: Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Less: accumulated depreciation | ($25,412) | ($5,554) |
Total | 118,460 | 14,560 |
Production Equipment | ' | ' |
Property, Plant and Equipment, Gross | 60,501 | 14,814 |
Computer Equipment | ' | ' |
Property, Plant and Equipment, Gross | 28,540 | 0 |
Tools, Dies and Molds | ' | ' |
Property, Plant and Equipment, Gross | 12,380 | 5,300 |
Leasehold Improvements | ' | ' |
Property, Plant and Equipment, Gross | $42,451 | ' |
Note_4_Property_and_Equipment_2
Note 4 - Property and Equipment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Depreciation | $19,858 | $3,250 |
Note_5_Intellectual_Property_S
Note 5 - Intellectual Property: Schedule of the Company's patents and trademarks (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Patents | $42,295 | $42,295 |
Trademarks | 1,920 | 1,920 |
Intellectual property and customer list | 474,000 | 474,000 |
Less: accumulated amortization | -515,343 | -512,997 |
Total | $2,872 | $5,218 |
Note_5_Intellectual_Property_D
Note 5 - Intellectual Property (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Amortization of Intangible Assets | $2,348 | $3,119 |
Note_6_Customer_Deposits_Detai
Note 6 - Customer Deposits (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Customer deposits | $222,072 | $184,109 |
Note_7_Purchase_Commitments_De
Note 7 - Purchase Commitments (Details) (Inventories, USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Long-term Purchase Commitment, Amount | $91,566 | $787,419 |
Prepayments | ' | ' |
Long-term Purchase Commitment, Amount | 34,542 | 331,760 |
Future Cash Outlays | ' | ' |
Long-term Purchase Commitment, Amount | $57,024 | $455,659 |
Note_8_Related_Party_Transacti2
Note 8 - Related Party Transactions (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts receivable - related parties | $33,369 | $26,455 |
Omnitek Engineering Thailand Co Ltd | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 15.00% | ' |
Omnitek Peru SAC | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 20.00% | ' |
Omnitek Stationary, Inc. | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 5.00% | ' |
Note_8_Related_Party_Transacti3
Note 8 - Related Party Transactions: Schedule of Accrued Management Fees (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued management compensation | $189,466 | $264,717 |
President | ' | ' |
Accrued management compensation | 133,397 | 197,398 |
Officer | ' | ' |
Accrued management compensation | $56,069 | $67,319 |
Note_9_Note_Payable_Details
Note 9 - Note Payable (Details) (USD $) | Dec. 31, 2012 | Feb. 15, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Common Stock | Warrant | Warrant | Line of Credit | Line of Credit | |||
Warrant | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | ' | $50,000 | ' | ' | ' | ' | ' |
Proceeds from Lines of Credit | ' | ' | ' | ' | ' | 40,000 | ' |
Interest Expense, Debt | ' | ' | ' | ' | ' | 490 | ' |
Long-term Line of Credit | 0 | ' | ' | ' | ' | ' | ' |
Common stock issued as collateral for note payable, Shares | ' | ' | 100,000 | ' | ' | ' | ' |
Common stock canceled as collateral for note payable, Shares | ' | ' | -100,000 | ' | ' | ' | ' |
Granted | ' | ' | ' | 0 | 2,725,313 | ' | 5,000 |
Allocated Share-based Compensation Expense | ' | ' | ' | $0 | $517,550 | ' | $15,428 |
Note_10_Derivative_Liability_F
Note 10 - Derivative Liability: Fair Value, Derivative Liability, Measured on Recurring Basis, Unobservable Input Reconciliation (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Details | ' | ' | ' |
Derivative liability | $0 | $4,197,802 | $0 |
New Derivative Liability | 0 | 11,552,510 | ' |
Total (gains)losses included in earnings | 1,909,298 | -7,354,708 | ' |
Issuances | ' | 0 | ' |
Closing of liability | ($6,107,100) | ' | ' |
Note_10_Derivative_Liability_F1
Note 10 - Derivative Liability: Fair Value Inputs, Derivative Liability (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Dividend yield | 0.00% | 0.00% |
Minimum | ' | ' |
Expected term in years | '4 years 3 months 7 days | '3 years 3 months 7 days |
Risk-free interest rates | 0.62% | 0.57% |
Volatility | 260.00% | 167.00% |
Maximum | ' | ' |
Expected term in years | '5 years | '4 years 7 days |
Risk-free interest rates | 0.90% | 1.04% |
Volatility | 0.28% | 0.25% |
Note_11_Stockholders_Equity_De
Note 11 - Stockholders' Equity (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||
Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Apr. 30, 2007 | Dec. 31, 2013 | Aug. 03, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 09, 2012 | |
Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Employee Stock Option | Private Placement | Common Stock | Common Stock | Common Stock | Common Stock | Warrant | Warrant | Warrant | Warrant | Warrant | Warrant | |||||
2006 Long-Term Incentive Plan | 2006 Long-Term Incentive Plan | 2011 Long-Term Incentive Plan | 2011 Long-Term Incentive Plan | Private Placement | Private Placement | Derivative Function | Private Placement | Private Placement | Private Placement | ||||||||||||
Exercise of warrants and options for cash, Value | ' | $5,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,250 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued for cash, Shares | 9,525 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,611,770 | 2,602,246 | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 2,725,313 | 2,720,313 | ' | 2,602,246 | ' |
Proceeds from Issuance of Private Placement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,516,762 | ' | ' | ' | 2,762,675 | ' | ' | ' | ' | 2,754,087 | ' |
Development Stage Entities, Equity Issuance, Per Share Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant Expiration Term (Yrs) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' |
Warrant, Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3.88 |
Common stock issued as collateral for note payable, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock canceled as collateral for note payable, Shares | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -100,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Contributed Capital | 20,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | ' | ' | ' | 314,467 | 136,306 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 517,550 | ' | ' | ' | ' |
Granted | ' | 175,000 | 3,265,313 | ' | 175,000 | 540,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Remaining amount of compensation expense to be recognized in future periods | ' | $646,181 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding | ' | 6,250,313 | 6,085,313 | 2,820,000 | ' | ' | 2,610,000 | ' | 715,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_11_Stockholders_Equity_Sc
Note 11 - Stockholders' Equity: Schedule of Stock Options and Warrants, Activity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Outstanding at beginning of year | 6,085,313 | 2,820,000 |
Options, Outstanding, Weighted Average Exercise Price at beginning of year | $2.29 | $0.73 |
Granted | 175,000 | 3,265,313 |
Granted, Weighted Average Exercise Price | $2.42 | $3.64 |
Exercised, Weighted Average Exercise | $0.53 | ' |
Expired or cancelled | ' | ' |
Expired or cancelled, Weighted Average Exercise Price | ' | ' |
Outstanding at end of year | 6,250,313 | 6,085,313 |
Options, Outstanding, Weighted Average Exercise Price at end of year | $2.30 | $2.29 |
Exercisable | 5,803,230 | 5,612,813 |
Exercisable, Weighted Average Exercise Price | $2.28 | $2.09 |
Common Stock | ' | ' |
Exercised | 10,000 | ' |
Note_11_Stockholders_Equity_Sc1
Note 11 - Stockholders' Equity: Schedule of Options and Warrants Outstanding, by Exercise Price Range (Details) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
$0.01 - 0.50 | ' |
Number Outstanding | 200,000 |
Weighted-Average Remaining Contractual Life | '9 months 11 days |
Number Exercisable | 200,000 |
Weighted-Average Exercise Price | $0.38 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $0.01 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $0.50 |
$0.51 - 0.75 | ' |
Number Outstanding | 1,570,000 |
Weighted-Average Remaining Contractual Life | '10 months 6 days |
Number Exercisable | 1,570,000 |
Weighted-Average Exercise Price | $0.63 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $0.51 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $0.75 |
$0.76 - 1.00 | ' |
Number Outstanding | 1,040,000 |
Weighted-Average Remaining Contractual Life | '10 months 6 days |
Number Exercisable | 1,040,000 |
Weighted-Average Exercise Price | $0.94 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $0.76 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $1 |
$1.01 - 2.00 | ' |
Number Outstanding | 140,000 |
Weighted-Average Remaining Contractual Life | '4 years 6 months 7 days |
Number Exercisable | 114,167 |
Weighted-Average Exercise Price | $1.80 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $1.01 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $2 |
$2.01 - 3.00 | ' |
Number Outstanding | 580,000 |
Weighted-Average Remaining Contractual Life | '5 years 11 months 1 day |
Number Exercisable | 158,750 |
Weighted-Average Exercise Price | $2.53 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $2.01 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $3 |
$3.01 - 4.00 | ' |
Number Outstanding | 2,720,313 |
Weighted-Average Remaining Contractual Life | '3 years 3 months 7 days |
Number Exercisable | 2,720,313 |
Weighted-Average Exercise Price | $3.88 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $3.01 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $4 |
$0.01 - 4.00 | ' |
Number Outstanding | 6,250,313 |
Weighted-Average Remaining Contractual Life | '2 years 5 months 12 days |
Number Exercisable | 5,803,230 |
Weighted-Average Exercise Price | $2.28 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $0.01 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $4 |
Note_12_Income_Taxes_Schedule_
Note 12 - Income Taxes: Schedule of Provision (Benefit) for Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Federal | ' | ' |
Current | ' | ' |
Deferred | ' | ' |
State | ' | ' |
Current | 800 | 800 |
Deferred | ' | ' |
Income Tax Expense (Benefit), Total | $800 | $800 |
Note_12_Income_Taxes_Schedule_1
Note 12 - Income Taxes: Schedule of Net Deferred Tax Assets and Components (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryover | $4,370,287 | $2,900,715 |
Depreciation | -124,818 | -94,454 |
Research and development carry forward | 136,465 | 136,465 |
Related party accruals | 130,538 | 130,538 |
Inventory reserve | 242,522 | 249,299 |
Allowance for doubtful accounts | 33,605 | 33,605 |
Accrued compensation | 17,742 | 47,090 |
Deferred tax liabilities: | ' | ' |
Valuation allowance | -4,806,341 | -3,403,258 |
Net deferred tax asset | ' | ' |
Note_12_Income_Taxes_Details
Note 12 - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Estimated US federal and state income tax rates | 39.00% |
Note_12_Income_Taxes_Schedule_2
Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Book loss | ($629,553) | ($534,867) |
Meals and entertainment | 235 | 634 |
State tax deduction | 0 | 312 |
Related party expense | 0 | -1,002 |
Stock/Options for services | 122,654 | 255,004 |
Depreciation | -30,364 | -2,484 |
Accrued compensation | -29,348 | -33,877 |
Inventory reserve | -6,777 | 0 |
Research and development | 0 | -2,484 |
Net operating loss carryover | 573,133 | 318,764 |
Income Tax Expense | ' | ' |
Note_13_Quarterly_Information_2
Note 13 - Quarterly Information (unaudited): Significant Effects of the Adjustments for the Quarters Ended Table Text Block (Details) (USD $) | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Scenario, Previously Reported | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | Restatement Adjustment | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | AsRestatedMember | ||||
Total Current Liabilities | $504,757 | $4,963,734 | ' | $505,794 | $513,430 | $555,603 | $604,776 | $652,031 | $513,430 | $652,031 | $505,794 | $604,776 | $504,757 | $765,932 | $6,823,780 | $6,318,428 | $6,618,456 | $4,941,548 | $8,070,027 | $6,318,428 | $8,070,027 | $6,823,780 | $4,941,548 | $0 | $4,197,802 | $7,329,574 | $6,831,858 | $7,174,059 | $5,546,324 | $8,722,058 | $6,831,858 | $8,722,058 | $7,329,574 | $5,546,324 | $504,757 | $4,963,734 |
Derivative liability | 0 | 4,197,802 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,823,780 | 6,318,428 | 6,618,456 | 4,941,548 | 8,070,027 | 6,318,428 | 8,070,027 | 6,823,780 | 4,941,548 | 0 | 4,197,802 | 6,823,780 | 6,318,428 | 6,618,456 | 4,941,548 | 8,070,027 | 6,318,428 | 8,070,027 | 6,823,780 | 4,941,548 | 0 | 4,197,802 |
Total Stockholders' Equity | 3,973,604 | 1,070,273 | 448,910 | 4,380,507 | 4,709,217 | 5,056,005 | 5,291,432 | 5,325,082 | 4,709,217 | 5,325,082 | 4,380,507 | 5,291,432 | 3,973,604 | 5,268,075 | -6,823,780 | -6,318,428 | -6,618,456 | -4,941,548 | -8,070,027 | -6,318,428 | -8,070,027 | -6,823,780 | -4,941,548 | 0 | -4,197,802 | -2,443,273 | -1,609,211 | -1,562,451 | 349,884 | -2,744,945 | -1,609,211 | -2,744,945 | -2,443,273 | 349,884 | 3,973,604 | 1,070,273 |
Additional paid-in capital | 10,785,771 | 4,364,204 | ' | 5,067,310 | 4,928,125 | 4,905,519 | 4,840,228 | 4,731,728 | 4,928,125 | 4,731,728 | 5,067,310 | 4,840,228 | 5,181,636 | 4,867,169 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | 5,604,135 | -502,965 | 4,564,345 | 4,425,160 | 4,402,554 | 4,337,263 | 4,228,763 | 4,425,160 | 4,228,763 | 4,564,345 | 4,337,263 | 10,785,711 | 4,364,204 |
Accumulated deficit | -15,013,478 | -11,489,992 | ' | -8,882,864 | -8,414,969 | -8,045,575 | -7,744,857 | -7,602,707 | -8,414,969 | -7,602,707 | -8,882,864 | -7,744,857 | -9,409,343 | -7,795,155 | -6,320,815 | -5,815,463 | -6,115,491 | -4,438,583 | -7,567,062 | -5,815,463 | -7,567,062 | -6,320,815 | -4,438,583 | -5,604,135 | -3,694,837 | -15,203,679 | -14,230,432 | -14,161,066 | -12,183,440 | -15,169,769 | -14,230,432 | -15,169,769 | -15,203,679 | -12,183,440 | -15,013,478 | -11,489,992 |
Total Operating Expenses | 2,027,070 | 2,332,361 | ' | 589,752 | 436,425 | 415,934 | 443,966 | 1,248,054 | 852,346 | 1,515,728 | 1,442,098 | 1,959,694 | 2,027,070 | 2,333,924 | 0 | 0 | 0 | -1,563 | -1,563 | 0 | -1,563 | 0 | -1,563 | 0 | -1,563 | 589,752 | 436,425 | 415,934 | 442,403 | 1,246,491 | 852,346 | 1,514,165 | 1,442,098 | 1,958,131 | 2,027,070 | 2,332,361 |
General and administrative | 1,711,440 | 2,039,884 | ' | 470,258 | 370,582 | 352,305 | 353,438 | 1,198,267 | 722,874 | 1,435,590 | 1,193,132 | 1,789,028 | 1,711,440 | 2,041,447 | 0 | 0 | 0 | -1,563 | -1,563 | 0 | -1,563 | 0 | -1,563 | 0 | -1,563 | 470,258 | 370,582 | 352,305 | 351,875 | 1,196,704 | 722,874 | 1,434,027 | 1,193,132 | 1,787,465 | 1,711,440 | 2,039,884 |
Total Other Income (Expense) | -1,844,504 | -3,660,942 | ' | 21,039 | 13,668 | 21,070 | 21,082 | 1,092 | 34,725 | 684 | 55,764 | 21,766 | 64,794 | 35,458 | -505,353 | 300,029 | -2,420,654 | 3,128,480 | -7,568,625 | -2,120,626 | -7,568,626 | -2,625,978 | -4,440,146 | -1,909,298 | -3,694,837 | -484,314 | 313,697 | -2,399,584 | 3,149,562 | -7,567,533 | -2,085,901 | -7,567,942 | -2,570,214 | -4,418,380 | -1,844,504 | -3,660,942 |
Derivative expense | ' | -11,051,108 | ' | ' | ' | ' | 0 | 0 | ' | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11,051,108 | ' | -11,051,108 | ' | -11,051,108 | 0 | -11,051,108 | ' | ' | ' | 0 | -11,051,108 | ' | -11,051,108 | ' | -11,051,108 | 0 | -11,051,108 |
Change in fair value of derivative liability | -1,909,298 | 7,354,708 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -505,353 | 300,029 | -2,420,654 | 3,128,480 | 3,482,483 | -2,120,626 | 3,482,482 | -2,625,978 | 6,610,962 | -1,909,298 | 7,354,708 | -505,353 | 300,029 | -2,420,654 | 3,128,480 | 3,482,483 | -2,120,626 | 3,482,482 | -2,625,978 | 6,610,962 | -1,909,298 | 7,354,708 |
Net loss | -3,523,486 | -5,066,290 | ' | -467,895 | -369,393 | -250,420 | -142,150 | -1,015,880 | -619,814 | -1,179,005 | -1,087,709 | -1,321,155 | -1,614,188 | -1,371,453 | -505,353 | 300,029 | -2,420,654 | 3,130,043 | -7,567,062 | -2,120,626 | -7,567,063 | -2,625,978 | -4,438,583 | -1,909,298 | -3,694,837 | -973,248 | -69,364 | -2,671,074 | 2,987,893 | -8,582,942 | -2,740,440 | -8,746,068 | -3,713,687 | -5,759,738 | -3,523,486 | -5,066,290 |
LOSS BEFORE INCOME TAXES | ($3,522,686) | ($5,065,490) | ' | ($467,895) | ($369,393) | ($249,620) | ($142,150) | ($1,015,880) | ($619,014) | ($1,178,205) | ($1,086,909) | ($1,320,355) | ($1,613,388) | ($1,370,653) | ($505,353) | $300,029 | ($2,420,654) | $3,130,043 | ($7,567,062) | ($2,120,626) | ($7,567,063) | ($2,625,978) | ($4,438,583) | ($1,909,298) | ($3,694,837) | ($973,248) | ($69,364) | ($2,670,274) | $2,987,893 | ($8,582,942) | ($2,739,640) | ($8,745,268) | ($3,712,887) | ($5,758,938) | ($3,522,686) | ($5,066,290) |
Note_13_Quarterly_Information_3
Note 13 - Quarterly Information (unaudited): Quarterly Balance Sheets, Impacts of The Restatement Adjustments (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 |
Cash | $1,057,836 | ' | ' | ' | $3,192,761 | ' | ' | ' |
Accounts receivable - related parties | 33,369 | ' | ' | ' | 26,455 | ' | ' | ' |
Inventory, net | 2,225,868 | ' | ' | ' | 1,133,595 | ' | ' | ' |
Prepaid expense | 21,474 | ' | ' | ' | 7,440 | ' | ' | ' |
Deposits | 62,973 | ' | ' | ' | 331,760 | ' | ' | ' |
Short-term investments, net | 917,248 | ' | ' | ' | ' | ' | ' | ' |
Total Current Assets | 4,357,029 | ' | ' | ' | 4,812,558 | ' | ' | ' |
FIXED ASSETS, net | 118,460 | ' | ' | ' | 14,560 | ' | ' | ' |
Long-term investments, net | ' | ' | ' | ' | 1,201,671 | ' | ' | ' |
Intellectual property, net | 2,872 | ' | ' | ' | 5,218 | ' | ' | ' |
Total Other Assets | 2,872 | ' | ' | ' | 1,206,889 | ' | ' | ' |
TOTAL ASSETS | 4,478,361 | ' | ' | ' | 6,034,007 | ' | ' | ' |
Accounts payable and accrued expenses | 91,744 | ' | ' | ' | 317,106 | ' | ' | ' |
Accrued management compensation | 189,466 | ' | ' | ' | 264,717 | ' | ' | ' |
Accounts payable - related parties | 1,475 | ' | ' | ' | ' | ' | ' | ' |
Derivative liability | 0 | ' | ' | ' | 4,197,802 | ' | ' | 0 |
Customer deposits | 222,072 | ' | ' | ' | 184,109 | ' | ' | ' |
Total Current Liabilities | 504,757 | ' | ' | ' | 4,963,734 | ' | ' | ' |
Total Liabilities | 504,757 | ' | ' | ' | 4,963,734 | ' | ' | ' |
Common stock, 125,000,000 shares authorized no par value 19,759,582 and 19,749,582 shares issued and outstanding, respectively | 8,201,311 | ' | ' | ' | 8,196,061 | ' | ' | ' |
Additional paid-in capital | 10,785,771 | ' | ' | ' | 4,364,204 | ' | ' | ' |
Accumulated deficit | -15,013,478 | ' | ' | ' | -11,489,992 | ' | ' | ' |
Total Stockholders' Equity | 3,973,604 | ' | ' | ' | 1,070,273 | ' | ' | 448,910 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,478,361 | ' | ' | ' | 6,034,007 | ' | ' | ' |
Scenario, Previously Reported | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | 1,057,836 | 1,373,841 | 1,998,546 | 2,561,017 | 3,192,761 | 3,240,057 | 3,524,094 | 31,196 |
Accounts receivable, net | 38,261 | 43,180 | 27,112 | 48,597 | 120,547 | 218,065 | 86,124 | ' |
Accounts receivable - related parties | 33,369 | 12,594 | 21,012 | 4,389 | 26,455 | 30,876 | 26,847 | ' |
Inventory, net | 2,225,868 | 2,231,873 | 1,822,603 | 1,354,846 | 1,133,595 | 912,384 | 922,677 | ' |
Prepaid expense | 21,474 | 22,942 | 11,062 | 18,000 | 7,440 | 10,628 | 837 | ' |
Deposits | 62,973 | 60,582 | 208,445 | 369,133 | 331,760 | 251,036 | 176,001 | ' |
Short-term investments, net | 917,248 | 1,024,130 | 202,207 | 253,615 | 0 | ' | ' | ' |
Total Current Assets | 4,357,029 | 4,769,142 | 4,290,987 | 4,609,597 | 4,812,558 | 4,663,046 | 4,736,580 | ' |
FIXED ASSETS, net | 118,460 | 113,756 | 97,396 | 59,610 | 14,560 | 15,338 | 11,777 | ' |
Long-term investments, net | 0 | ' | 830,309 | 937,883 | 1,201,671 | 1,211,845 | 1,222,019 | ' |
Intellectual property, net | 2,872 | 3,403 | 3,955 | 4,518 | 5,218 | 5,979 | 6,737 | ' |
Total Other Assets | 2,872 | 3,403 | 834,264 | 942,401 | 1,206,889 | 1,217,824 | 1,228,756 | ' |
TOTAL ASSETS | 4,478,361 | 4,886,301 | 5,222,647 | 5,611,608 | 6,034,007 | 5,896,208 | 5,977,113 | ' |
Accounts payable and accrued expenses | 91,744 | 105,070 | 63,066 | 95,494 | 317,106 | 70,411 | 65,154 | ' |
Accrued management compensation | 189,466 | 215,447 | 232,716 | 249,947 | 264,717 | ' | 292,517 | ' |
Accounts payable - related parties | 1,475 | ' | 3,070 | -2,298 | 0 | 277,368 | 2,624 | ' |
Derivative liability | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Customer deposits | 222,072 | 185,277 | 214,578 | 212,460 | 184,109 | 256,997 | 291,736 | ' |
Total Current Liabilities | 504,757 | 505,794 | 513,430 | 555,603 | 765,932 | 604,776 | 652,031 | ' |
Total Liabilities | 504,757 | 505,794 | 513,430 | 555,603 | 765,932 | 604,776 | 652,031 | ' |
Common stock, 125,000,000 shares authorized no par value 19,759,582 and 19,749,582 shares issued and outstanding, respectively | 8,201,311 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | ' |
Additional paid-in capital | 5,181,636 | 5,067,310 | 4,928,125 | 4,905,519 | 4,867,169 | 4,840,228 | 4,731,728 | ' |
Accumulated deficit | -9,409,343 | -8,882,864 | -8,414,969 | -8,045,575 | -7,795,155 | -7,744,857 | -7,602,707 | ' |
Total Stockholders' Equity | 3,973,604 | 4,380,507 | 4,709,217 | 5,056,005 | 5,268,075 | 5,291,432 | 5,325,082 | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 4,478,361 | 4,886,301 | 5,222,647 | 5,611,608 | 6,034,007 | 5,896,208 | 5,977,113 | ' |
Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Accounts receivable - related parties | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Inventory, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Prepaid expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Deposits | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Short-term investments, net | 0 | 0 | 0 | 0 | 0 | ' | ' | ' |
Total Current Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
FIXED ASSETS, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Long-term investments, net | 0 | ' | 0 | 0 | 0 | 0 | 0 | ' |
Intellectual property, net | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Total Other Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
TOTAL ASSETS | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Accounts payable and accrued expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Accrued management compensation | 0 | 0 | 0 | 0 | 0 | ' | 0 | ' |
Accounts payable - related parties | 0 | ' | 0 | 0 | 0 | 0 | 0 | ' |
Derivative liability | 0 | 6,823,780 | 6,318,428 | 6,618,456 | 4,197,802 | 4,941,548 | 8,070,027 | ' |
Customer deposits | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Total Current Liabilities | 0 | 6,823,780 | 6,318,428 | 6,618,456 | 4,197,802 | 4,941,548 | 8,070,027 | ' |
Total Liabilities | 0 | 6,823,780 | 6,318,428 | 6,618,456 | 4,197,802 | 4,941,548 | 8,070,027 | ' |
Common stock, 125,000,000 shares authorized no par value 19,759,582 and 19,749,582 shares issued and outstanding, respectively | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Additional paid-in capital | 5,604,135 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | -502,965 | ' |
Accumulated deficit | -5,604,135 | -6,320,815 | -5,815,463 | -6,115,491 | -3,694,837 | -4,438,583 | -7,567,062 | ' |
Total Stockholders' Equity | 0 | -6,823,780 | -6,318,428 | -6,618,456 | -4,197,802 | -4,941,548 | -8,070,027 | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
AsRestatedMember | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | 1,057,836 | 1,373,841 | 1,998,546 | 2,561,017 | 3,192,761 | 3,240,057 | 3,524,094 | 31,196 |
Accounts receivable, net | 38,261 | 43,180 | 27,112 | 48,597 | 120,547 | 218,065 | 86,124 | ' |
Accounts receivable - related parties | 33,369 | 12,594 | 21,012 | 4,389 | 26,455 | 30,876 | 26,847 | ' |
Inventory, net | 2,225,868 | 2,231,873 | 1,822,603 | 1,354,846 | 1,133,595 | 912,384 | 922,677 | ' |
Prepaid expense | 21,474 | 22,942 | 11,062 | 18,000 | 7,440 | 10,628 | 837 | ' |
Deposits | 62,973 | 60,582 | 208,445 | 369,133 | 331,760 | 251,036 | 176,001 | ' |
Short-term investments, net | 917,248 | 1,024,130 | 202,207 | 253,615 | 0 | ' | ' | ' |
Total Current Assets | 4,357,029 | 4,769,142 | 4,290,987 | 4,609,597 | 4,812,558 | 4,663,046 | 4,736,580 | ' |
FIXED ASSETS, net | 118,460 | 113,756 | 97,396 | 59,610 | 14,560 | 15,338 | 11,777 | ' |
Long-term investments, net | 0 | ' | 830,309 | 937,883 | 1,201,671 | 1,211,845 | 1,222,019 | ' |
Intellectual property, net | 2,872 | 3,403 | 3,955 | 4,518 | 5,218 | 5,979 | 6,737 | ' |
Total Other Assets | 2,872 | 3,403 | 834,264 | 942,401 | 1,206,889 | 1,217,824 | 1,228,756 | ' |
TOTAL ASSETS | 4,478,361 | 4,886,301 | 5,222,647 | 5,611,608 | 6,034,007 | 5,896,208 | 5,977,113 | ' |
Accounts payable and accrued expenses | 91,744 | 105,070 | 63,066 | 95,494 | 317,106 | 70,411 | 65,154 | ' |
Accrued management compensation | 189,466 | 215,447 | 232,716 | 249,947 | 264,717 | ' | 292,517 | ' |
Accounts payable - related parties | 1,475 | ' | 3,070 | -2,298 | 0 | 277,368 | 2,624 | ' |
Derivative liability | 0 | 6,823,780 | 6,318,428 | 6,618,456 | 4,197,802 | 4,941,548 | 8,070,027 | ' |
Customer deposits | 222,072 | 185,277 | 214,578 | 212,460 | 184,109 | 256,997 | 291,736 | ' |
Total Current Liabilities | 504,757 | 7,329,574 | 6,831,858 | 7,174,059 | 4,963,734 | 5,546,324 | 8,722,058 | ' |
Total Liabilities | 504,757 | 7,329,574 | 6,831,858 | 7,174,059 | 4,963,734 | 5,546,324 | 8,722,058 | ' |
Common stock, 125,000,000 shares authorized no par value 19,759,582 and 19,749,582 shares issued and outstanding, respectively | 8,201,311 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | 8,196,061 | ' |
Additional paid-in capital | 10,785,711 | 4,564,345 | 4,425,160 | 4,402,554 | 4,364,204 | 4,337,263 | 4,228,763 | ' |
Accumulated deficit | -15,013,478 | -15,203,679 | -14,230,432 | -14,161,066 | -11,489,992 | -12,183,440 | -15,169,769 | ' |
Total Stockholders' Equity | 3,973,604 | -2,443,273 | -1,609,211 | -1,562,451 | 1,070,273 | 349,884 | -2,744,945 | ' |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $4,478,361 | $4,886,301 | $5,222,647 | $5,611,608 | $6,034,007 | $5,896,208 | $5,977,113 | ' |
Note_13_Quarterly_Information_4
Note 13 - Quarterly Information (unaudited): Quarterly Statement of Operations, Impacts of The Restatement Adjustments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUES | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,052,518 | $1,899,740 |
COST OF GOODS SOLD | ' | ' | ' | ' | ' | ' | ' | ' | ' | 703,630 | 971,927 |
GROSS MARGIN | ' | ' | ' | ' | ' | ' | ' | ' | ' | 348,888 | 927,813 |
Total Operating Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,027,070 | 2,332,361 |
General and administrative | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,711,440 | 2,039,884 |
Research and development expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 292,228 | 285,745 |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,206 | 6,369 |
LOSS FROM OPERATIONS | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,678,182 | -1,404,548 |
Change in fair value of derivative liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,909,298 | 7,354,708 |
Interest income | ' | ' | ' | ' | ' | ' | ' | ' | ' | 64,807 | 35,948 |
Total Other Income (Expense) | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,844,504 | -3,660,942 |
LOSS BEFORE INCOME TAXES | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,522,686 | -5,065,490 |
INCOME TAX EXPENSE | ' | ' | ' | ' | ' | ' | ' | ' | ' | 800 | 800 |
Net loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | -3,523,486 | -5,066,290 |
BASIC AND DILUTED LOSS PER SHARE | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($0.18) | ($0.27) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19,750,787 | 19,092,975 |
Interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | -13 | -490 |
Derivative expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,051,108 |
Scenario, Previously Reported | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REVENUES | 280,921 | 197,210 | 349,329 | 562,367 | 380,531 | 546,539 | 686,900 | 827,460 | 1,249,267 | 1,052,518 | 1,899,740 |
COST OF GOODS SOLD | 180,103 | 143,846 | 204,085 | 281,633 | 149,449 | 347,932 | 350,061 | 528,035 | 631,694 | 703,630 | 971,927 |
GROSS MARGIN | 100,818 | 53,364 | 145,244 | 280,734 | 231,082 | 198,607 | 336,839 | 299,425 | 617,573 | 348,888 | 927,813 |
Total Operating Expenses | 589,752 | 436,425 | 415,934 | 443,966 | 1,248,054 | 852,346 | 1,515,728 | 1,442,098 | 1,959,694 | 2,027,070 | 2,333,924 |
General and administrative | 470,258 | 370,582 | 352,305 | 353,438 | 1,198,267 | 722,874 | 1,435,590 | 1,193,132 | 1,789,028 | 1,711,440 | 2,041,447 |
Research and development expense | 104,991 | 51,777 | 50,359 | 88,922 | 48,254 | 102,136 | 77,148 | 207,127 | 166,070 | 292,228 | 285,745 |
Depreciation and amortization expense | 14,503 | 14,066 | 13,270 | 1,606 | 1,533 | 27,336 | 2,990 | 41,839 | 4,596 | 22,206 | 6,369 |
LOSS FROM OPERATIONS | -488,934 | -383,061 | -270,690 | -163,232 | -1,016,972 | -653,739 | -1,178,889 | -1,142,673 | -1,342,121 | -1,678,182 | -1,406,111 |
Change in fair value of derivative liability | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Interest income | 21,039 | 13,668 | 21,070 | 21,082 | 1,174 | 34,738 | 1,174 | 55,777 | 22,256 | 64,807 | 35,948 |
Total Other Income (Expense) | 21,039 | 13,668 | 21,070 | 21,082 | 1,092 | 34,725 | 684 | 55,764 | 21,766 | 64,794 | 35,458 |
LOSS BEFORE INCOME TAXES | -467,895 | -369,393 | -249,620 | -142,150 | -1,015,880 | -619,014 | -1,178,205 | -1,086,909 | -1,320,355 | -1,613,388 | -1,370,653 |
INCOME TAX EXPENSE | 0 | 0 | 800 | 0 | 0 | 800 | 800 | 800 | 800 | 800 | 800 |
Net loss | -467,895 | -369,393 | -250,420 | -142,150 | -1,015,880 | -619,814 | -1,179,005 | -1,087,709 | -1,321,155 | -1,614,188 | -1,371,453 |
BASIC AND DILUTED LOSS PER SHARE | ($0.02) | ($0.02) | ($0.01) | ($0.01) | ($0.05) | ($0.03) | ($0.06) | ($0.06) | ($0.07) | ($0.08) | ($0.07) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | 19,661,571 | 19,749,582 | 18,429,153 | 19,749,582 | 18,872,509 | 19,750,787 | 19,750,787 |
Interest expense | 0 | 0 | ' | 0 | -82 | -13 | -490 | -13 | -490 | -13 | -490 |
Derivative expense | ' | ' | ' | 0 | 0 | ' | 0 | ' | 0 | 0 | 0 |
Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REVENUES | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
COST OF GOODS SOLD | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
GROSS MARGIN | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Operating Expenses | 0 | 0 | 0 | -1,563 | -1,563 | 0 | -1,563 | 0 | -1,563 | 0 | -1,563 |
General and administrative | 0 | 0 | 0 | -1,563 | -1,563 | 0 | -1,563 | 0 | -1,563 | 0 | -1,563 |
Research and development expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Depreciation and amortization expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
LOSS FROM OPERATIONS | 0 | 0 | 0 | 1,563 | 1,563 | 0 | 1,563 | 0 | 1,563 | 0 | 1,563 |
Change in fair value of derivative liability | -505,353 | 300,029 | -2,420,654 | 3,128,480 | 3,482,483 | -2,120,626 | 3,482,482 | -2,625,978 | 6,610,962 | -1,909,298 | 7,354,708 |
Interest income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Total Other Income (Expense) | -505,353 | 300,029 | -2,420,654 | 3,128,480 | -7,568,625 | -2,120,626 | -7,568,626 | -2,625,978 | -4,440,146 | -1,909,298 | -3,694,837 |
LOSS BEFORE INCOME TAXES | -505,353 | 300,029 | -2,420,654 | 3,130,043 | -7,567,062 | -2,120,626 | -7,567,063 | -2,625,978 | -4,438,583 | -1,909,298 | -3,694,837 |
INCOME TAX EXPENSE | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net loss | -505,353 | 300,029 | -2,420,654 | 3,130,043 | -7,567,062 | -2,120,626 | -7,567,063 | -2,625,978 | -4,438,583 | -1,909,298 | -3,694,837 |
Interest expense | 0 | 0 | ' | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Derivative expense | 0 | 0 | 0 | 0 | -11,051,108 | ' | -11,051,108 | ' | -11,051,108 | 0 | -11,051,108 |
AsRestatedMember | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
REVENUES | 280,921 | 197,210 | 349,329 | 562,367 | 380,531 | 546,539 | 686,900 | 827,460 | 1,249,267 | 1,052,518 | 1,899,740 |
COST OF GOODS SOLD | 180,103 | 143,846 | 204,085 | 281,633 | 149,449 | 347,932 | 350,061 | 528,035 | 631,694 | 703,630 | 971,927 |
GROSS MARGIN | 100,818 | 53,364 | 145,244 | 280,734 | 231,082 | 198,607 | 336,839 | 299,425 | 617,573 | 348,888 | 927,813 |
Total Operating Expenses | 589,752 | 436,425 | 415,934 | 442,403 | 1,246,491 | 852,346 | 1,514,165 | 1,442,098 | 1,958,131 | 2,027,070 | 2,332,361 |
General and administrative | 470,258 | 370,582 | 352,305 | 351,875 | 1,196,704 | 722,874 | 1,434,027 | 1,193,132 | 1,787,465 | 1,711,440 | 2,039,884 |
Research and development expense | 104,991 | 51,777 | 50,359 | 88,922 | 48,254 | 102,136 | 77,148 | 207,127 | 166,070 | 292,228 | 285,745 |
Depreciation and amortization expense | 14,503 | 14,066 | 13,270 | 1,606 | 1,533 | 27,336 | 2,990 | 41,839 | 4,596 | 22,206 | 6,369 |
LOSS FROM OPERATIONS | -488,934 | -383,061 | -270,690 | -161,669 | -1,015,409 | -653,739 | -1,177,326 | -1,142,673 | -1,340,558 | -1,678,182 | -1,404,548 |
Change in fair value of derivative liability | -505,353 | 300,029 | -2,420,654 | 3,128,480 | 3,482,483 | -2,120,626 | 3,482,482 | -2,625,978 | 6,610,962 | -1,909,298 | 7,354,708 |
Interest income | 21,039 | 13,668 | 21,070 | 21,082 | 1,174 | 34,738 | 1,174 | 55,777 | 22,256 | 64,807 | 35,948 |
Total Other Income (Expense) | -484,314 | 313,697 | -2,399,584 | 3,149,562 | -7,567,533 | -2,085,901 | -7,567,942 | -2,570,214 | -4,418,380 | -1,844,504 | -3,660,942 |
LOSS BEFORE INCOME TAXES | -973,248 | -69,364 | -2,670,274 | 2,987,893 | -8,582,942 | -2,739,640 | -8,745,268 | -3,712,887 | -5,758,938 | -3,522,686 | -5,066,290 |
INCOME TAX EXPENSE | 0 | 0 | 800 | 0 | 0 | 800 | 800 | 800 | 800 | 800 | 800 |
Net loss | -973,248 | -69,364 | -2,671,074 | 2,987,893 | -8,582,942 | -2,740,440 | -8,746,068 | -3,713,687 | -5,759,738 | -3,523,486 | -5,066,290 |
BASIC AND DILUTED LOSS PER SHARE | ($0.05) | $0 | ($0.14) | $0.15 | ($0.44) | ($0.14) | ($0.47) | ($0.19) | ($0.31) | ($0.18) | ($0.27) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 19,749,582 | 19,749,582 | 19,749,582 | 19,749,582 | 19,661,571 | 19,749,582 | 18,429,153 | 19,749,582 | 18,872,509 | 19,750,787 | 19,092,975 |
Interest expense | 0 | 0 | ' | 0 | -82 | -13 | -490 | -13 | -490 | -13 | -490 |
Derivative expense | ' | ' | ' | $0 | ($11,051,108) | ' | ($11,051,108) | ' | ($11,051,108) | $0 | ($11,051,108) |
Note_13_Quarterly_Information_5
Note 13 - Quarterly Information (unaudited): Quarterly Statement of Cash Flows, Impacts of The Restatement Adjustments (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 31, 2013 | Jun. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net loss | ' | ' | ' | ' | ' | ($3,523,486) | ($5,066,290) |
Amortization and depreciation expense | ' | ' | ' | ' | ' | 22,206 | 6,369 |
Amortization of premium on investments | ' | ' | ' | ' | ' | 34,424 | 26,552 |
Change in fair value of derivative liability | ' | ' | ' | ' | ' | 1,909,298 | -7,354,708 |
Options and warrants granted | ' | ' | ' | ' | ' | 314,467 | 652,293 |
Accounts receivable | ' | ' | ' | ' | ' | 82,285 | -112,041 |
Accounts receivable-related parties | ' | ' | ' | ' | ' | -6,914 | -9,740 |
Deposits | ' | ' | ' | ' | ' | 268,787 | -289,817 |
Prepaid Expense | ' | ' | ' | ' | ' | -14,034 | -4,928 |
Inventory | ' | ' | ' | ' | ' | -1,092,273 | -113,478 |
Accounts payable and accrued expenses | ' | ' | ' | ' | ' | -225,364 | 259,279 |
Customer deposits | ' | ' | ' | ' | ' | 37,963 | -102,499 |
Accounts payable-related parties | ' | ' | ' | ' | ' | 1,475 | -2,568 |
Accrued management compensation | ' | ' | ' | ' | ' | -75,251 | -86,863 |
Net Cash Used in Operating Activities | ' | ' | ' | ' | ' | -2,266,417 | -1,142,331 |
Purchase of property and equipment | ' | ' | ' | ' | ' | -123,758 | -4,643 |
Net Cash Provided by (Used in) Investing Activities | ' | ' | ' | ' | ' | 126,242 | -1,232,866 |
Net Cash Provided by Financing Activities | ' | ' | ' | ' | ' | 5,250 | 5,536,762 |
NET INCREASE (DECREASE) IN CASH | ' | ' | ' | ' | ' | -2,134,925 | 3,161,565 |
Cash, Beginning Balance | 3,192,761 | 3,192,761 | ' | 3,192,761 | ' | 3,192,761 | ' |
Cash, Ending Balance | ' | ' | ' | ' | ' | 1,057,836 | 3,192,761 |
CASH PAID FOR: Income taxes | ' | ' | ' | ' | ' | 800 | 800 |
Maturity of long-term investments | ' | ' | ' | ' | ' | 250,000 | ' |
CASH PAID FOR: Interest | ' | ' | ' | ' | ' | 13 | 490 |
Derivative expense | ' | ' | ' | ' | ' | ' | 11,051,108 |
Purchase of long-term investments | ' | ' | ' | ' | ' | ' | 1,228,223 |
Issuance of common stock for cash | ' | ' | ' | ' | ' | ' | 5,536,762 |
Repayment of note payable | ' | ' | ' | ' | ' | ' | -40,000 |
Proceeds of Note Payable | ' | ' | ' | ' | ' | ' | 40,000 |
Scenario, Previously Reported | ' | ' | ' | ' | ' | ' | ' |
Net loss | -250,420 | -619,814 | -1,179,005 | -1,087,709 | -1,321,155 | -1,614,188 | -1,371,453 |
Amortization and depreciation expense | 3,095 | 8,180 | 2,991 | 14,296 | 4,596 | 22,206 | 6,369 |
Amortization of premium on investments | 10,173 | 19,155 | 6,204 | 27,541 | 16,378 | 34,424 | 26,552 |
Change in fair value of derivative liability | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Options and warrants granted | 38,350 | 60,956 | 518,415 | 200,141 | 626,915 | 314,467 | 653,856 |
Accounts receivable | 71,950 | 93,435 | -72,618 | 77,367 | -204,559 | 82,285 | -112,041 |
Accounts receivable-related parties | 22,066 | 5,443 | -10,132 | 16,069 | -14,161 | -6,914 | -9,740 |
Deposits | -37,373 | 123,315 | -134,058 | 271,178 | -209,093 | 268,787 | -289,817 |
Prepaid Expense | -10,560 | -3,622 | 1,675 | -15,502 | -8,116 | -14,034 | -4,928 |
Inventory | -221,251 | -689,008 | 97,440 | -1,098,278 | 107,733 | -1,092,273 | -113,478 |
Accounts payable and accrued expenses | -221,612 | -254,040 | 7,326 | -212,036 | 12,583 | -225,364 | 259,279 |
Customer deposits | 28,351 | 30,469 | 5,128 | 1,168 | -29,611 | 37,963 | -102,499 |
Accounts payable-related parties | -2,298 | 3,070 | 56 | -2,208 | -2,543 | 1,475 | -2,568 |
Accrued management compensation | -14,770 | -32,001 | -59,063 | -49,270 | -74,237 | -75,251 | -86,863 |
Net Cash Used in Operating Activities | -584,299 | -1,254,462 | -815,641 | -1,857,243 | -1,095,270 | -2,266,417 | -1,142,331 |
Purchase of property and equipment | -47,445 | -89,753 | ' | -111,677 | -4,408 | -123,758 | -4,643 |
Net Cash Provided by (Used in) Investing Activities | -47,445 | 60,247 | -1,228,223 | 38,323 | -1,232,631 | 126,242 | -1,232,866 |
Net Cash Provided by Financing Activities | 0 | 0 | 5,536,762 | 0 | 5,536,762 | 5,250 | 5,536,762 |
NET INCREASE (DECREASE) IN CASH | -631,744 | -1,194,215 | 3,492,898 | -1,818,920 | 3,208,861 | -2,134,925 | 3,161,565 |
Cash, Beginning Balance | 3,192,761 | 3,192,761 | 31,196 | 3,192,761 | 31,196 | 3,192,761 | 31,196 |
Cash, Ending Balance | 2,561,017 | 1,998,546 | 3,524,094 | 1,373,841 | 3,240,057 | 1,057,836 | 3,192,761 |
CASH PAID FOR: Income taxes | 800 | 800 | 800 | 800 | 800 | 800 | 800 |
Maturity of long-term investments | ' | 150,000 | ' | 150,000 | ' | 250,000 | 0 |
CASH PAID FOR: Interest | ' | 0 | 408 | 0 | 490 | 13 | 490 |
Derivative expense | ' | ' | 0 | ' | 0 | 0 | 0 |
Purchase of long-term investments | ' | ' | -1,228,223 | ' | -1,228,223 | 0 | -1,228,223 |
Issuance of common stock for cash | ' | ' | 5,536,762 | ' | 5,536,762 | 0 | 5,536,762 |
Repayment of note payable | ' | ' | -40,000 | ' | -40,000 | 0 | -40,000 |
Proceeds of Note Payable | ' | ' | 40,000 | ' | 40,000 | 0 | 40,000 |
Restatement Adjustment | ' | ' | ' | ' | ' | ' | ' |
Net loss | -2,420,654 | -2,120,626 | -7,567,063 | -2,625,978 | -4,438,583 | -1,909,298 | -3,694,837 |
Amortization and depreciation expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Amortization of premium on investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Change in fair value of derivative liability | 2,420,654 | 2,120,626 | -3,482,482 | 2,625,978 | -6,610,962 | 1,909,298 | -7,354,708 |
Options and warrants granted | 0 | 0 | -1,563 | 0 | -15,630 | 0 | -1,563 |
Accounts receivable | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts receivable-related parties | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Deposits | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Prepaid Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts payable and accrued expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Customer deposits | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Accounts payable-related parties | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Accrued management compensation | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net Cash Used in Operating Activities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Purchase of property and equipment | 0 | 0 | ' | 0 | 0 | 0 | 0 |
Net Cash Provided by (Used in) Investing Activities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Net Cash Provided by Financing Activities | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
NET INCREASE (DECREASE) IN CASH | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash, Beginning Balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Cash, Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
CASH PAID FOR: Income taxes | 0 | 0 | 0 | 0 | 0 | ' | 0 |
Maturity of long-term investments | ' | 0 | ' | 0 | ' | 0 | 0 |
CASH PAID FOR: Interest | ' | 0 | 0 | 0 | 0 | 0 | 0 |
Derivative expense | 0 | ' | 11,051,108 | ' | 11,051,108 | 0 | 11,051,108 |
Purchase of long-term investments | ' | ' | 0 | ' | 0 | 0 | 0 |
Issuance of common stock for cash | ' | ' | 0 | ' | 0 | 0 | ' |
Repayment of note payable | ' | ' | 0 | ' | 0 | 0 | 0 |
Proceeds of Note Payable | ' | ' | 0 | ' | 0 | 0 | 0 |
AsRestatedMember | ' | ' | ' | ' | ' | ' | ' |
Net loss | -2,671,074 | -2,740,440 | -8,746,068 | -3,713,687 | -5,759,738 | -3,523,486 | -5,066,290 |
Amortization and depreciation expense | 3,095 | 8,180 | 2,991 | 14,296 | 4,596 | 22,206 | 6,369 |
Amortization of premium on investments | 10,173 | 19,155 | 6,204 | 27,541 | 16,378 | 34,424 | 26,552 |
Change in fair value of derivative liability | 2,420,654 | 2,120,626 | -3,482,482 | 2,625,978 | -6,610,962 | 1,909,298 | -7,354,708 |
Options and warrants granted | 38,350 | 60,956 | 516,852 | 200,141 | 625,352 | 0 | 0 |
Accounts receivable | 71,950 | 93,435 | -72,618 | 77,367 | -204,559 | 82,285 | -112,041 |
Accounts receivable-related parties | 22,066 | 5,443 | -10,132 | 16,069 | -14,161 | -6,914 | -9,740 |
Deposits | -37,373 | 123,315 | -134,058 | 271,178 | -209,093 | 268,787 | -289,817 |
Prepaid Expense | -10,560 | -3,622 | 1,675 | -15,502 | -8,116 | -14,034 | -4,928 |
Inventory | -221,251 | -689,008 | 97,440 | -1,098,278 | 107,733 | -1,092,273 | -113,478 |
Accounts payable and accrued expenses | -221,612 | -254,040 | 7,326 | -212,036 | 12,583 | -225,364 | 259,279 |
Customer deposits | 28,351 | 30,469 | 5,128 | 1,168 | -29,611 | 37,963 | -102,499 |
Accounts payable-related parties | -2,298 | 3,070 | 56 | -2,208 | -2,543 | 1,475 | -2,568 |
Accrued management compensation | -14,770 | -32,001 | -59,063 | -49,270 | -74,237 | -75,251 | -86,863 |
Net Cash Used in Operating Activities | -584,299 | -1,254,462 | -815,641 | -1,857,243 | -1,095,270 | -2,266,417 | -1,142,331 |
Purchase of property and equipment | -47,445 | -89,753 | ' | -111,677 | -4,408 | -123,758 | -4,643 |
Net Cash Provided by (Used in) Investing Activities | -47,445 | 60,247 | -1,228,223 | 38,323 | -1,232,631 | 126,242 | -1,232,866 |
Net Cash Provided by Financing Activities | 0 | 0 | 5,536,762 | 0 | 5,536,762 | 5,250 | 5,536,762 |
NET INCREASE (DECREASE) IN CASH | -631,744 | -1,194,215 | 3,492,898 | -1,818,920 | 3,208,861 | -2,134,925 | 3,161,565 |
Cash, Beginning Balance | 3,192,761 | 3,192,761 | 31,196 | 3,192,761 | 31,196 | 3,192,761 | 31,196 |
Cash, Ending Balance | 2,561,017 | 1,998,546 | 3,524,094 | 1,373,841 | 3,240,057 | 1,057,836 | 3,192,761 |
CASH PAID FOR: Income taxes | 800 | 800 | 800 | 800 | 800 | 800 | 800 |
Maturity of long-term investments | ' | 150,000 | ' | 150,000 | ' | 250,000 | 0 |
CASH PAID FOR: Interest | ' | 0 | 408 | 0 | 490 | 13 | 490 |
Derivative expense | ' | ' | 11,051,108 | ' | 11,051,108 | 0 | 11,051,108 |
Purchase of long-term investments | ' | ' | -1,228,223 | ' | -1,228,223 | 0 | -1,228,223 |
Issuance of common stock for cash | ' | ' | 5,536,762 | ' | 5,536,762 | 0 | 5,536,762 |
Repayment of note payable | ' | ' | -40,000 | ' | -40,000 | 0 | -40,000 |
Proceeds of Note Payable | ' | ' | $40,000 | ' | $40,000 | $0 | $40,000 |