Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 29, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | Omnitek Engineering Corp. | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,404,804 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 19,981,082 | ||
Entity Public Float | $ 10,210,049 | ||
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 | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | omtk |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash | $ 105,846 | $ 498,782 |
Accounts receivable, net | 30,835 | 56,059 |
Accounts receivable - related parties | 17,257 | 15,092 |
Inventory, net | 2,107,463 | 2,333,781 |
Prepaid expense | 6,050 | 4,200 |
Deposits | 19,745 | 92,779 |
Total Current Assets | 2,287,196 | 3,000,693 |
FIXED ASSETS, net | 59,151 | 88,715 |
OTHER ASSETS | ||
Intellectual property, net | 281 | 1,345 |
Other noncurrent assets | 14,280 | 14,280 |
Total Other Assets | 14,561 | 15,625 |
TOTAL ASSETS | 2,360,908 | 3,105,033 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 145,207 | 84,385 |
Accrued management compensation | 189,163 | 102,096 |
Accounts payable - related parties | 7,591 | 3,600 |
Customer deposits | 230,349 | 345,844 |
Total Current Liabilities | 572,310 | 535,925 |
Total Liabilities | 572,310 | 535,925 |
STOCKHOLDERS' EQUITY | ||
Common stock, 125,000,000 shares authorized; no par value; 19,981,082 and 19,979,582 shares issued and outstanding, respectively | 8,291,411 | 8,289,911 |
Additional paid-in capital | 11,346,599 | 11,121,502 |
Accumulated deficit | (17,849,412) | (16,842,305) |
Total Stockholders' Equity | 1,788,598 | 2,569,108 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,360,908 | $ 3,105,033 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
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 | 19,981,082 | 19,979,582 |
Common Stock, shares outstanding | 19,981,082 | 19,979,582 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement | ||
REVENUES | $ 1,738,632 | $ 1,443,665 |
REVENUES, related parties | 54,924 | 42,153 |
COST OF GOODS SOLD | 1,032,412 | 852,358 |
GROSS MARGIN | 761,144 | 633,460 |
OPERATING EXPENSES | ||
General and administrative | 1,443,951 | 1,870,533 |
Research and development | 295,190 | 600,091 |
Depreciation and amortization | 30,628 | 49,976 |
Total Operating Expenses | 1,769,769 | 2,520,600 |
LOSS FROM OPERATIONS | (1,008,625) | (1,887,140) |
OTHER INCOME (EXPENSE) | ||
Interest income | 24 | 45,467 |
Other income | 4,209 | 13,646 |
Interest expense | (1,915) | |
Total Other Income (Expense) | 2,318 | 59,113 |
LOSS BEFORE INCOME TAXES | (1,006,307) | (1,828,027) |
INCOME TAX EXPENSE | 800 | 800 |
NET LOSS | $ (1,007,107) | $ (1,828,827) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.05) | $ (0.09) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 19,980,971 | 19,816,240 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Stockholders' Equity, beginning of period, Value at Dec. 31, 2013 | $ 8,201,311 | $ 10,785,771 | $ (15,013,478) | $ 3,973,604 |
Stockholders' Equity, beginning of period, Shares at Dec. 31, 2013 | 19,759,582 | |||
Value of options and warrants issued for services | 335,731 | 335,731 | ||
Exercise of warrants and options for cash, Value | $ 88,600 | 88,600 | ||
Exercise of warrants and options for cash, Shares | 220,000 | |||
Net loss for the twelve months ended December 31, 2014 | (1,828,827) | (1,828,827) | ||
Stockholders' Equity, end of period, Value at Dec. 31, 2014 | $ 8,289,911 | 11,121,502 | (16,842,305) | 2,569,108 |
Stockholders' Equity, end of period, Shares at Dec. 31, 2014 | 19,979,582 | |||
Value of options and warrants issued for services | 225,097 | 225,097 | ||
Common stock issued for services, Value | $ 1,500 | 1,500 | ||
Common stock issued for services, Shares | 1,500 | |||
Exercise of warrants and options for cash, Shares | 0 | |||
Net loss for the twelve months ended December 31, 2014 | (1,007,107) | (1,007,107) | ||
Stockholders' Equity, end of period, Value at Dec. 31, 2015 | $ 8,291,411 | $ 11,346,599 | $ (17,849,412) | $ 1,788,598 |
Stockholders' Equity, end of period, Shares at Dec. 31, 2015 | 19,981,082 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
OPERATING ACTIVITIES | ||
Net loss | $ (1,007,107) | $ (1,828,827) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Amortization and depreciation expense | 30,628 | 32,731 |
Amortization of premium on investments | 0 | 17,248 |
Options and warrants granted | 225,097 | 335,731 |
Common stock issued for services | 1,500 | |
Changes in operating assets and liabilities: | ||
Accounts receivable | 25,222 | (17,798) |
Accounts receivable-related parties | (2,165) | 18,277 |
Deposits | 73,036 | (29,806) |
Prepaid Expense | (1,850) | 2,997 |
Inventory | 226,318 | (107,913) |
Accounts payable and accrued expenses | 60,822 | (7,361) |
Customer deposits | (115,495) | 123,772 |
Accounts payable-related parties | 3,991 | 2,125 |
Accrued management compensation | 87,067 | (87,371) |
Net Cash Used in Operating Activities | (392,936) | (1,546,195) |
INVESTING ACTIVITIES | ||
Maturity of short-term investments | 900,000 | |
Purchase of property and equipment | (1,459) | |
Net Cash Provided by Investing Activities | 898,541 | |
FINANCING ACTIVITIES | ||
Exercise of warrants and options for cash | 88,600 | |
Net Cash Provided by Financing Activities | 88,600 | |
NET DECREASE IN CASH | (392,936) | (559,054) |
CASH AT BEGINNING OF YEAR | 498,782 | 1,057,836 |
CASH AT END OF PERIOD | 105,846 | 498,782 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||
CASH PAID FOR:Interest | 1,915 | |
CASH PAID FOR:Income taxes | $ 800 | $ 800 |
Note 1- Organization and Busine
Note 1- Organization and Business Activity | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 1- Organization and Business Activity | NOTE 1 ORGANIZATION AND BUSINESS ACTIVITY Omnitek Engineering, Corp. ("Omnitek" or "the Company") was incorporated on October 9, 2001 under the laws of the State of California. Omnitek develops and 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 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Accounting Methods The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31, year-end. b. Ues of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 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, 2015 and 2014 was $15,000 and $15,000, respectively. Additionally, bad debt expense for the years ended December 31, 2015 and 2014 was $13,805 and $6,489, respectively. d. Inventory Inventories at the lower of cost, determined on an average cost basis. Market value for raw materials is based on replacement costs. Inventory costs include material, labor and manufacturing overhead. The Company reviews inventories on hand at least annually and records provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product expiration. e. Held to Maturity Investments During the three months ended June 30, 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. During the year ended December 31, 2014, the Company received proceeds of $900,000 from bonds that matured during the period. During the year ended December 31, 2015 and 2014, the Company had correlating amortization expense of -0- and $17,248, respectively. f. Long-Lived Assets The Company assesses the recoverability of its long-lived assets annually and whenever circumstances would indicate that there may be an impairment. The Company compares the estimated undiscounted future cash flows to 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, 2015. g. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization are calculated on the straight-line method over the shorter of the lease term or the estimated useful lives of the assets ranging from three to five years. h. Intangible Assets We evaluate the recoverability of intangible assets, which consist of patents and trademarks, periodically and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of our intangible assets are subject to amortization. Intangible assets are amortized on a straight-line basis over the following useful lives which range from 2 to 8 years. i. Revenue Recognition The Company recognizes revenue from the sale of new engines for use with compressed natural gas, engine components to convert existing engines to compressed natural gas use and components for the maintenance of natural gas engines. Revenues are recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable and (iv) the ability to collect is reasonably assured. These criteria are generally satisfied at the time of shipment when risk of loss and title passes to the customer. j. Cost of Good Sold The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of goods sold. k. Research and Development The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2015 and 2014, the Company incurred research and development expenses of $295,190 and $600,091, respectively. l. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. During the year ended December 31, 2015 and 2014, the Company expensed $-0- and $28,748, respectively. m. 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, 2015, 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. n. 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 -0- stock options and warrants that would have been included in the fully diluted earnings per share as of December 31, 2015 and 2014, respectively. o. Fair Value Measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. p. 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. q. Concentration of Risks Customers During the year ended December 31, 2015, eight customers accounted for approximately 71% of sales. During the year ended December 31, 2014, eight customers accounted for approximately 56% of sales. Suppliers During the year ended December 31, 2015, five suppliers accounted for 34% of products purchased. During the year ended December 31, 2014, four suppliers accounted for 42% of products purchased. r. Liquidity Historically, the Company has incurred net losses and negative cash flows from operations. As of December 31, 2015, the Company had an accumulated deficit of $17,849,412 and total stockholders' equity of $1,788,598. At December 31, 2015, the Company had current assets of $2,287,196 including cash of $105,846, and current liabilities of $572,310, resulting in working capital of $1,714,886. For 2015, the Company reported a net loss of $1,007,107 and net cash used by operating activities of $392,936. Management believes that based on its operating plan, the projected sales for 2016, 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. s. 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. |
Note 3 - Inventory
Note 3 - Inventory | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 3 - Inventory | NOTE 3 INVENTORY Inventory is located in Vista, California and at December 31, 2015 and 2014 consisted of the following: December 31, December 31, 2015 2014 Raw materials $1,093,890 $1,122,270 Finished goods 1,263,089 1,403,946 In transit - 46,835 Allowance for obsolete inventory (249,516) (239,270) Total $2,107,463 $2,333,781 The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $26,666 and $15,822, for the periods ended December 31, 2015 and December 31, 2014, respectively. |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 4 - Property and Equipment | NOTE 4 PROPERTY AND EQUIPMENT Property and equipment at December, 2015 and 2014 consisted of the following: December 31, December 31, 2015 2014 Production equipment $61,960 $61,960 Computers/Office equipment 28,540 28,540 Tooling equipment 12,380 12,380 Leasehold Improvements 42,451 42,451 Less: accumulated depreciation (86,180) (56,616) Total $59,151 $88,715 Depreciation expense for the years ended December 31, 2015 and 2014 was $29,564 and $31,204, respectively. |
Note 5 - Intellectual Property
Note 5 - Intellectual Property | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 5 - Intellectual Property | NOTE 5 INTELLECTUAL PROPERTY The Company's patents and trademarks at December 31, 2015 and 2014 were as follows: December 31, December 31, 2015 2014 Patents $42,295 $42,295 Trademarks 1,920 1,920 Intellectual property and customer list 474,000 474,000 Less: accumulated amortization (517,934) (516,870) Total $281 $1,345 Amortization expense for the years ended December 31, 2015 and 2014 was $1,064 and $1,527, respectively. |
Note 6 - Customer Deposits
Note 6 - Customer Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 6 - Customer Deposits | NOTE 6 CUSTOMER DEPOSITS The Company may require a customer deposit from domestic and international customers. Such deposits are recorded in current liabilities until the revenue recognition criteria have been met. As of December 31, 2015 and 2014 the Company had customer deposits of $230,349 and $345,844, respectively. |
Note 7 - Commitments
Note 7 - Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 7 - Commitments | NOTE 7 COMMITMENTS As of December 31, 2015 and 2014, the Company had outstanding purchase commitments for inventory totaling $69,126 and $227,781, respectively. Of these amounts, the Company had made prepayments of $19,745 as of December 31, 2015 and $227,781 as of December 31, 2014 and had commitments for future cash outlays for inventory totaling $49,381 and $111,772, respectively. On January 10, 2013, the Company entered into an operating lease for its facilities in California. Future payment obligations under the terms of the operating lease are as follows: Years Ending December 31 2016 $187,531 2017 192,085 2018 35,000 Total minimum lease payments $414,616 |
Note 8 - Related Party Transact
Note 8 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd. and a 20% interest in Omnitek Peru S.A.C. As of December 31, 2015 and December 31, 2014, the Company was owed $17,257 and $15,092, respectively, by related parties for the purchase of products and services. Accrued Management Expenses During the periods ended December 31, 2015 and December 31, 2014, the Company's president and vice president were due amounts for services performed for the Company. As of December 31, 2015 and December 31, 2014 the accrued management fees consisted of the following: December 31, December 31, 2015 2014 Amounts due to the president $148,719 $78,527 Amounts due to the vice president 40,444 23,569 Total $189,163 $102,095 |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 9 - Stockholders' Equity | NOTE 9 STOCKHOLDERS' EQUITY Common Stock On January 26, 2015 the Company issued 1,500 shares of its common stock in consideration of the Board Meeting fee for the meeting of the Board of Directors held on January 14, 2015. On October, 11 2014 the Company issued 200,000 shares of its common stock in consideration of the capital contribution of $75,000 upon the exercise of warrants. On July 16, 2014 the Company issued 20,000 shares of its common stock in consideration of the capital contribution of $13,600 upon the exercise of stock options. Options and Warrants During the years ended December 31, 2015 and 2014, the Company granted 225,000 and 115,000 options for services, respectively. During the years ended December 31, 2015 and 2014, respectively, the Company recognized expense of $225,097 and $335,731 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 $371,073. 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 and consultants at its discretion. As of December 31, 2014 the remaining 2,590,000 options previously issued under the plan expired. 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 Company's Common Stock were reserved for issuance of both Incentive Stock Options to employees only and and Non-Qualified Stock Options to employees and consultants at its discretion. As of December 31, 2015 the Company has a total of 915,000 options issued under the plan. On September 11, 2015 the Board of Directos adopted the Omnitek Engineering Corp. 2015 Long Term Incentive Plan (the "2015 Plan"), under which 2,500,000 shares of the Company's Common Stock were reserved for issuance of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion. As of December 31, 2015 the Company has a total of 100,000 options issued under the plan. During the twelve months ended December 31, 2015 and 2014 the Company issued -0- and -0- warrants, respectively. The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. When determining expected volatility, the Company considers the historical performance of the Company's stock, as well as implied volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, based on the options' expected term. The expected term of the options is based on the Company's evaluation of option holders' exercise patterns and represents the period of time that options are expected to remain unexercised. The Company uses historical data to estimate the timing and amount of forfeitures. In applying the Black-Scholes options pricing model to the option and warrant grants, the fair value of our share-based awards granted were estimated using the following assumptions: risk-free rate 1.89 percent; expected life seven years; expected dividend yield 0.00; expected volatility 75.60 percent. A summary of the status of the options and warrants granted at December 31, 2015 and December 31, 2014 and changes during the years then ended is presented below: December 31, December 31, 2015 2014 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 3,515,313 $3.56 6,250,313 $2.30 Granted 225,000 .85 115,000 1.95 Exercised - - (220,000) .40 Expired or cancelled - - (2,630,000) .77 Outstanding at end of year 3,740,313 3.38 3,515,313 3.56 Exercisable 3,414,063 $3.52 3,199,896 $3.67 A summary of the status of the options and warrants outstanding at December 31, 2015 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-0.99 175,000 6.74 years 79,167 $0.85 $1.01-2.00 215,000 3.39 years 180,000 1.42 $2.01-3.00 625,000 4.15 years 429,583 2.53 $3.01-4.00 2,725,313 0.52 years 2,725,313 3.88 $1.01-4.00 3,740,313 2.31 years 3,414,063 $3.51 A summary of the status of the options and warrants outstanding at December 31, 2014 is presented below: Range of Exercise Prices Number Outstanding Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $1.01-2.00 165,000 3.76 years 145,000 $3.62 $2.01-3.00 630,000 4.89 years 334,583 4.76 $3.01-4.00 2,720,313 2.27 years 2,720,313 2.27 $1.01-4.00 3,515,313 2.81 years 3,199,896 $2.59 |
Note 10 - Income Taxes
Note 10 - Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 10 - Income Taxes | NOTE 10 INCOME TAXES The provision (benefit) for income taxes for the year ended December 31, 2015 and 2014 consists of the following: December 31, December 31, 2015 2014 Federal Current $- $- Deferred - - State Current 800 800 Deferred - - $800 $800 Net deferred tax assets consist of the following components as of December 31, 2015 and 2014: December 31, December 31, 2015 2014 Deferred tax assets: Net operating loss carryover $5,805,378 $5,348,732 Depreciation (117,272) (105,327) Research and development carry forward 136,465 136,465 Related party accruals 130,538 130,538 Inventory reserve 240,067 244,063 Allowance for doubtful accounts 33,605 33,605 Accrued compensation 85,913 51,957 Deferred rent (6,128) - Deferred tax liabilities: Valuation allowance $(6,308,566) (5,840,033) 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, 2015 and 2014 due to the following: December 31, December 31, 2015 2014 Book loss $(392,774) $(713,243) Meals and entertainment 299 240 State tax deduction - 312 Deferred rent 6,128 - Stock/Options for services 88,273 130,935 Depreciation 11,945 19,491 Accrued compensation (33,956) 34,215 Inventory reserve 3,996 1,541 Valuation allowance 786,445 1,033,692 Net operating loss carryover (469,556) (506,383) Income Tax Expense $800 $800 At December 31, 2015, the Company had net operating loss carry forwards of approximately $5,805,378 through 2034. No tax benefit has been reported in the December 31, 2015 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 11 - Subsequent Events
Note 11 - Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 11 - Subsequent Events | NOTE 11 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 - Summary of Significa18
Note 2 - Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Policies | |
A. Accounting Methods | a. Accounting Methods The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31, year-end. |
B. Ues of Estimates in Preparing Financial Statements | b. Ues of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
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, 2015 and 2014 was $15,000 and $15,000, respectively. Additionally, bad debt expense for the years ended December 31, 2015 and 2014 was $13,805 and $6,489, respectively. |
D. Inventory | d. Inventory Inventories at the lower of cost, determined on an average cost basis. Market value for raw materials is based on replacement costs. Inventory costs include material, labor and manufacturing overhead. The Company reviews inventories on hand at least annually and records provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product expiration. |
E. Held To Maturity Investments | e. Held to Maturity Investments During the three months ended June 30, 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. During the year ended December 31, 2014, the Company received proceeds of $900,000 from bonds that matured during the period. During the year ended December 31, 2015 and 2014, the Company had correlating amortization expense of -0- and $17,248, respectively. |
F. Long-lived Assets | f. Long-Lived Assets The Company assesses the recoverability of its long-lived assets annually and whenever circumstances would indicate that there may be an impairment. The Company compares the estimated undiscounted future cash flows to 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, 2015. |
G. Property and Equipment | g. Property and Equipment Property and equipment are recorded at cost. Depreciation and amortization are calculated on the straight-line method over the shorter of the lease term or the estimated useful lives of the assets ranging from three to five years. |
H. Intangible Assets | h. Intangible Assets We evaluate the recoverability of intangible assets, which consist of patents and trademarks, periodically and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. All of our intangible assets are subject to amortization. Intangible assets are amortized on a straight-line basis over the following useful lives which range from 2 to 8 years. |
I. Revenue Recognition | i. Revenue Recognition The Company recognizes revenue from the sale of new engines for use with compressed natural gas, engine components to convert existing engines to compressed natural gas use and components for the maintenance of natural gas engines. Revenues are recognized when all of the following have occurred: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price is fixed or determinable and (iv) the ability to collect is reasonably assured. These criteria are generally satisfied at the time of shipment when risk of loss and title passes to the customer. |
J. Cost of Good Sold | j. Cost of Good Sold The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of goods sold. |
K. Research and Development | k. Research and Development The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2015 and 2014, the Company incurred research and development expenses of $295,190 and $600,091, respectively. |
L. Advertising | l. Advertising The Company follows the policy of charging the costs of advertising to expense as incurred. During the year ended December 31, 2015 and 2014, the Company expensed $-0- and $28,748, respectively. |
M. Provision For Income Taxes | m. 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, 2015, 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. |
N. Basic and Diluted Loss Per Share | n. 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 -0- stock options and warrants that would have been included in the fully diluted earnings per share as of December 31, 2015 and 2014, respectively. |
O. Fair Value Measurements | o. Fair Value Measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1 Quoted prices in active markets for identical assets or liabilities; Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. |
P. Stock- Based Compensation | p. 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. |
Q. Concentration of Risks | q. Concentration of Risks Customers During the year ended December 31, 2015, eight customers accounted for approximately 71% of sales. During the year ended December 31, 2014, eight customers accounted for approximately 56% of sales. Suppliers During the year ended December 31, 2015, five suppliers accounted for 34% of products purchased. During the year ended December 31, 2014, four suppliers accounted for 42% of products purchased. |
R. Liquidity | r. Liquidity Historically, the Company has incurred net losses and negative cash flows from operations. As of December 31, 2015, the Company had an accumulated deficit of $17,849,412 and total stockholders' equity of $1,788,598. At December 31, 2015, the Company had current assets of $2,287,196 including cash of $105,846, and current liabilities of $572,310, resulting in working capital of $1,714,886. For 2015, the Company reported a net loss of $1,007,107 and net cash used by operating activities of $392,936. Management believes that based on its operating plan, the projected sales for 2016, 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. s. 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. |
Note 3 - Inventory_ Schedule of
Note 3 - Inventory: Schedule of Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Inventory | Inventory is located in Vista, California and at December 31, 2015 and 2014 consisted of the following: December 31, December 31, 2015 2014 Raw materials $1,093,890 $1,122,270 Finished goods 1,263,089 1,403,946 In transit - 46,835 Allowance for obsolete inventory (249,516) (239,270) Total $2,107,463 $2,333,781 |
Note 4 - Property and Equipme20
Note 4 - Property and Equipment: Schedule of Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Property and Equipment | Property and equipment at December, 2015 and 2014 consisted of the following: December 31, December 31, 2015 2014 Production equipment $61,960 $61,960 Computers/Office equipment 28,540 28,540 Tooling equipment 12,380 12,380 Leasehold Improvements 42,451 42,451 Less: accumulated depreciation (86,180) (56,616) Total $59,151 $88,715 |
Note 5 - Intellectual Property_
Note 5 - Intellectual Property: Schedule of Intellectual Property (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Intellectual Property | The Company's patents and trademarks at December 31, 2015 and 2014 were as follows: December 31, December 31, 2015 2014 Patents $42,295 $42,295 Trademarks 1,920 1,920 Intellectual property and customer list 474,000 474,000 Less: accumulated amortization (517,934) (516,870) Total $281 $1,345 |
Note 7 - Commitments_ Schedule
Note 7 - Commitments: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future payment obligations under the terms of the operating lease are as follows: Years Ending December 31 2016 $187,531 2017 192,085 2018 35,000 Total minimum lease payments $414,616 |
Note 8 - Related Party Transa23
Note 8 - Related Party Transactions: Schedule of Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Related Party Transactions | As of December 31, 2015 and December 31, 2014 the accrued management fees consisted of the following: December 31, December 31, 2015 2014 Amounts due to the president $148,719 $78,527 Amounts due to the vice president 40,444 23,569 Total $189,163 $102,095 |
Note 9 - Stockholders' Equity_
Note 9 - Stockholders' Equity: Schedule of Stock Options and Warrants, Activity (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Stock Options and Warrants, Activity | A summary of the status of the options and warrants granted at December 31, 2015 and December 31, 2014 and changes during the years then ended is presented below: December 31, December 31, 2015 2014 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 3,515,313 $3.56 6,250,313 $2.30 Granted 225,000 .85 115,000 1.95 Exercised - - (220,000) .40 Expired or cancelled - - (2,630,000) .77 Outstanding at end of year 3,740,313 3.38 3,515,313 3.56 Exercisable 3,414,063 $3.52 3,199,896 $3.67 |
Note 9 - Stockholders' Equity25
Note 9 - Stockholders' Equity: Summary of the Status of the Options and Warrants Outstanding (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Summary of the Status of the Options and Warrants Outstanding | A summary of the status of the options and warrants outstanding at December 31, 2015 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-0.99 175,000 6.74 years 79,167 $0.85 $1.01-2.00 215,000 3.39 years 180,000 1.42 $2.01-3.00 625,000 4.15 years 429,583 2.53 $3.01-4.00 2,725,313 0.52 years 2,725,313 3.88 $1.01-4.00 3,740,313 2.31 years 3,414,063 $3.51 A summary of the status of the options and warrants outstanding at December 31, 2014 is presented below: Range of Exercise Prices Number Outstanding Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $1.01-2.00 165,000 3.76 years 145,000 $3.62 $2.01-3.00 630,000 4.89 years 334,583 4.76 $3.01-4.00 2,720,313 2.27 years 2,720,313 2.27 $1.01-4.00 3,515,313 2.81 years 3,199,896 $2.59 |
Note 10 - Income Taxes_ Schedul
Note 10 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the year ended December 31, 2015 and 2014 consists of the following: December 31, December 31, 2015 2014 Federal Current $- $- Deferred - - State Current 800 800 Deferred - - $800 $800 |
Note 10 - Income Taxes_ Sched27
Note 10 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets consist of the following components as of December 31, 2015 and 2014: December 31, December 31, 2015 2014 Deferred tax assets: Net operating loss carryover $5,805,378 $5,348,732 Depreciation (117,272) (105,327) Research and development carry forward 136,465 136,465 Related party accruals 130,538 130,538 Inventory reserve 240,067 244,063 Allowance for doubtful accounts 33,605 33,605 Accrued compensation 85,913 51,957 Deferred rent (6,128) - Deferred tax liabilities: Valuation allowance $(6,308,566) (5,840,033) Net deferred tax asset $- %- |
Note 10 - Income Taxes_ Sched28
Note 10 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | December 31, December 31, 2015 2014 Book loss $(392,774) $(713,243) Meals and entertainment 299 240 State tax deduction - 312 Deferred rent 6,128 - Stock/Options for services 88,273 130,935 Depreciation 11,945 19,491 Accrued compensation (33,956) 34,215 Inventory reserve 3,996 1,541 Valuation allowance 786,445 1,033,692 Net operating loss carryover (469,556) (506,383) Income Tax Expense $800 $800 |
Note 1- Organization and Busi29
Note 1- Organization and Business Activity (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Details | |
Trading Symbol | omtk |
Note 2 - Summary of Significa30
Note 2 - Summary of Significant Accounting Policies: D. Accounts Receivable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Allowance For Doubtful Accounts | $ 15,000 | $ 15,000 |
Provision for Doubtful Accounts | $ 13,805 | $ 6,489 |
Note 2 - Summary of Significa31
Note 2 - Summary of Significant Accounting Policies: E. Held To Maturity Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Proceeds from Maturity of Held-to-Maturity Securities | $ 900,000 | |
Amortization of premium on investments | $ 0 | $ 17,248 |
Note 2 - Summary of Significa32
Note 2 - Summary of Significant Accounting Policies: F. Long-lived Assets (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Details | |
Asset Impairment Charges | $ 0 |
Note 2 - Summary of Significa33
Note 2 - Summary of Significant Accounting Policies: G. Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum | |
Property, Plant and Equipment, Useful Life | 5 years |
Note 2 - Summary of Significa34
Note 2 - Summary of Significant Accounting Policies: H. Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Finite-Lived Intangible Asset, Useful Life | 2 years |
Maximum | |
Finite-Lived Intangible Asset, Useful Life | 8 years |
Note 2 - Summary of Significa35
Note 2 - Summary of Significant Accounting Policies: K. Research and Development (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Research and development | $ 295,190 | $ 600,091 |
Note 2 - Summary of Significa36
Note 2 - Summary of Significant Accounting Policies: L. Advertising (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Advertising Expense | $ 0 | $ 28,748 |
Note 2 - Summary of Significa37
Note 2 - Summary of Significant Accounting Policies: N. Basic and Diluted Loss Per Share (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note 2 - Summary of Significa38
Note 2 - Summary of Significant Accounting Policies: Q. Concentration of Risks (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Customer Concentration Risk | ||
Concentration Risk, Customer | eight customers | eight customers |
Concentration Risk, Percentage | 71.00% | 56.00% |
Supplier Concentration Risk | ||
Concentration Risk, Percentage | 34.00% | 42.00% |
Concentration Risk, Supplier | five suppliers | four suppliers |
Note 2 - Summary of Significa39
Note 2 - Summary of Significant Accounting Policies: R. Liquidity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | |||
Accumulated deficit | $ (17,849,412) | $ (16,842,305) | |
Total Stockholders' Equity | 1,788,598 | 2,569,108 | $ 3,973,604 |
Total Current Assets | 2,287,196 | 3,000,693 | |
Cash | 105,846 | 498,782 | $ 1,057,836 |
Total Current Liabilities | 572,310 | 535,925 | |
Working Capital | 1,714,886 | ||
Net loss for the twelve months ended December 31, 2014 | (1,007,107) | (1,828,827) | |
Net Cash Used in Operating Activities | $ (392,936) | $ (1,546,195) |
Note 3 - Inventory_ Schedule 40
Note 3 - Inventory: Schedule of Inventory (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Raw materials | $ 1,093,890 | $ 1,122,270 |
Finished goods | 1,263,089 | 1,403,946 |
In transit | 0 | 46,835 |
Allowance for obsolete inventory | (249,516) | (239,270) |
Total | $ 2,107,463 | $ 2,333,781 |
Note 3 - Inventory (Details)
Note 3 - Inventory (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Expense for Obsolete Inventory | $ 26,666 | $ 15,822 |
Note 4 - Property and Equipme42
Note 4 - Property and Equipment: Schedule of Property and Equipment (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Less: accumulated depreciation | $ (86,180) | $ (56,616) |
Total | 59,151 | 88,715 |
Production Equipment | ||
Property, Plant and Equipment, Gross | 61,960 | 61,960 |
Computer Equipment | ||
Property, Plant and Equipment, Gross | 28,540 | 28,540 |
Tools, Dies and Molds | ||
Property, Plant and Equipment, Gross | 12,380 | 12,380 |
Leasehold Improvements | ||
Property, Plant and Equipment, Gross | $ 42,451 | $ 42,451 |
Note 4 - Property and Equipme43
Note 4 - Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Depreciation expense | $ 29,564 | $ 31,204 |
Note 5 - Intellectual Propert44
Note 5 - Intellectual Property: Schedule of Intellectual Property (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Patents | $ 42,295 | $ 42,295 |
Trademarks | 1,920 | 1,920 |
Intellectual property and customer list | 474,000 | 474,000 |
Less: accumulated amortization | (517,934) | (516,870) |
Total | $ 281 | $ 1,345 |
Note 5 - Intellectual Property
Note 5 - Intellectual Property (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Amortization expense | $ 1,064 | $ 1,527 |
Note 6 - Customer Deposits (Det
Note 6 - Customer Deposits (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Customer deposits | $ 230,349 | $ 345,844 |
Note 7 - Commitments (Details)
Note 7 - Commitments (Details) - Inventories - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Long-term Purchase Commitment, Amount | $ 69,126 | $ 227,781 |
Prepayments | ||
Long-term Purchase Commitment, Amount | 19,745 | 227,781 |
FutureCashOutlays | ||
Long-term Purchase Commitment, Amount | $ 49,381 | $ 111,772 |
Note 7 - Commitments_ Schedul48
Note 7 - Commitments: Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Dec. 31, 2015USD ($) |
Details | |
2,016 | $ 187,531 |
2,017 | 192,085 |
2,018 | 35,000 |
Total | $ 414,616 |
Note 8 - Related Party Transa49
Note 8 - Related Party Transactions (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts receivable - related parties | $ 17,257 | $ 15,092 |
Omnitek Engineering Thailand Co. Ltd. | ||
Noncontrolling Interest, Ownership Percentage by Parent | 15.00% | |
Omnitek Peru S.A.C. | ||
Noncontrolling Interest, Ownership Percentage by Parent | 20.00% |
Note 8 - Related Party Transa50
Note 8 - Related Party Transactions: Schedule of Related Party Transactions (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued management compensation | $ 189,163 | $ 102,096 |
President | ||
Accrued management compensation | 148,719 | 78,527 |
Vice President | ||
Accrued management compensation | $ 40,444 | $ 23,569 |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2015 | Dec. 31, 2014 | Sep. 11, 2015 | Dec. 31, 2013 | Aug. 03, 2011 | Apr. 30, 2007 | |
Exercise of warrants and options for cash, Value | $ 88,600 | |||||
Granted | 225,000 | 115,000 | ||||
Outstanding | 3,740,313 | 3,515,313 | 6,250,313 | |||
Employee Stock Option | ||||||
Granted | 225,000 | 115,000 | ||||
Allocated Share-based Compensation Expense | $ 225,097 | $ 335,731 | ||||
Fair Value, Option, Methodology and Assumptions | Black-Scholes option pricing model | |||||
Employee Stock Option | 2006 Long-Term Incentive Plan | ||||||
Number of Shares Authorized | 10,000,000 | |||||
Outstanding | 2,590,000 | |||||
Employee Stock Option | 2011 Long-Term Incentive Plan | ||||||
Number of Shares Authorized | 1,000,000 | |||||
Outstanding | 915,000 | |||||
Employee Stock Option | 2015 Long-Term Incentive Plan | ||||||
Number of Shares Authorized | 2,500,000 | |||||
Outstanding | 100,000 | |||||
Common Stock | ||||||
Common stock issued for services, Shares | 1,500 | |||||
Exercise of warrants and options for cash, Shares | 0 | 220,000 | ||||
Exercise of warrants and options for cash, Value | $ 88,600 | |||||
Common Stock | Warrant | ||||||
Exercise of warrants and options for cash, Shares | 200,000 | |||||
Exercise of warrants and options for cash, Value | $ 75,000 | |||||
Common Stock | Equity Option | ||||||
Exercise of warrants and options for cash, Shares | 20,000 | |||||
Exercise of warrants and options for cash, Value | $ 13,600 | |||||
Board of Directors Chairman | Common Stock | ||||||
Common stock issued for services, Shares | 1,500 |
Note 9 - Stockholders' Equity52
Note 9 - Stockholders' Equity: Schedule of Stock Options and Warrants, Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Outstanding at beginning of year | 3,515,313 | 6,250,313 |
Options, Outstanding, Weighted Average Exercise Price at beginning of year | $ 3.56 | $ 2.30 |
Granted | 225,000 | 115,000 |
Granted, Weighted Average Exercise Price | $ 0.85 | $ 1.95 |
Exercised, Weighted Average Exercise | $ 0 | 0.40 |
Expired or cancelled | 0 | |
Expired or cancelled, Weighted Average Exercise Price | $ 0 | $ 0.77 |
Outstanding at end of year | 3,740,313 | 3,515,313 |
Options, Outstanding, Weighted Average Exercise Price at end of year | $ 3.38 | $ 3.56 |
Exercisable | 3,414,063 | 3,199,896 |
Exercisable, Weighted Average Exercise Price | $ 3.52 | $ 3.67 |
Common Stock | ||
Exercise of warrants and options for cash, Shares | 0 | 220,000 |
Note 9 - Stockholders' Equity53
Note 9 - Stockholders' Equity: Summary of the Status of the Options and Warrants Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
$0.01 - 0.99 | ||
Number Outstanding | 175,000 | |
Weighted-Average Remaining Contractual Life | 6 years 8 months 26 days | |
Number Exercisable | 79,167 | |
Weighted-Average Exercise Price | $ 0.85 | |
Exercise Price Range, Lower Range Limit | 0.01 | |
Exercise Price Range, Upper Range Limit | $ 0.99 | |
$1.01 - 2.00 | ||
Number Outstanding | 215,000 | 165,000 |
Weighted-Average Remaining Contractual Life | 3 years 4 months 20 days | 3 years 9 months 4 days |
Number Exercisable | 180,000 | 145,000 |
Weighted-Average Exercise Price | $ 1.42 | $ 3.62 |
Exercise Price Range, Lower Range Limit | 1.01 | |
Exercise Price Range, Upper Range Limit | $ 2 | |
$2.01 - 3.00 | ||
Number Outstanding | 625,000 | 630,000 |
Weighted-Average Remaining Contractual Life | 4 years 1 month 24 days | 4 years 10 months 20 days |
Number Exercisable | 429,583 | 334,583 |
Weighted-Average Exercise Price | $ 2.53 | $ 4.76 |
Exercise Price Range, Lower Range Limit | 2.01 | |
Exercise Price Range, Upper Range Limit | $ 3 | |
$3.01 - 4.00 | ||
Number Outstanding | 2,725,313 | 2,720,313 |
Weighted-Average Remaining Contractual Life | 6 months 7 days | 2 years 3 months 7 days |
Number Exercisable | 2,725,313 | 2,720,313 |
Weighted-Average Exercise Price | $ 3.88 | $ 2.27 |
Exercise Price Range, Lower Range Limit | 3.01 | |
Exercise Price Range, Upper Range Limit | $ 4 | |
$1.01 - 4.00 | ||
Number Outstanding | 3,740,313 | 3,515,313 |
Weighted-Average Remaining Contractual Life | 2 years 3 months 22 days | 2 years 9 months 22 days |
Number Exercisable | 3,414,063 | 3,199,896 |
Weighted-Average Exercise Price | $ 3.51 | $ 2.59 |
Exercise Price Range, Lower Range Limit | 1.01 | |
Exercise Price Range, Upper Range Limit | $ 4 |
Note 10 - Income Taxes_ Sched54
Note 10 - Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal | ||
Current | ||
Deferred | ||
State | ||
Current | $ 800 | $ 800 |
Deferred | ||
Income Tax Expense (Benefit), Total | $ 800 | $ 800 |
Note 10 - Income Taxes_ Sched55
Note 10 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryover | $ 5,805,378 | $ 5,348,732 |
Depreciation | (117,272) | (105,327) |
Deferred Tax Assets, Tax Credit Carryforwards, Research | 136,465 | 136,465 |
Related party accruals | 130,538 | 130,538 |
Inventory reserve | 240,067 | 244,063 |
Allowance for doubtful accounts | 33,605 | 33,605 |
Accrued compensation | 85,913 | 51,957 |
Deferred rent | (6,128) | 0 |
Deferred tax liabilities: | ||
Valuation allowance | (6,308,566) | (5,840,033) |
Net deferred tax asset | $ 0 | $ 0 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Details | |
Estimated US federal and state income tax rates | 39.00% |
Net Operating Loss Carryforwards | $ 5,805,378 |
Note 10 - Income Taxes_ Sched57
Note 10 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Book loss | $ (392,774) | $ (713,243) |
Meals and entertainment | 299 | 240 |
State tax deduction | 0 | 312 |
Deferred rent | 6,128 | 0 |
Stock/Options for services | 88,273 | 130,935 |
Depreciation | 11,945 | 19,491 |
Accrued compensation | (33,956) | 34,215 |
Inventory reserve | 3,996 | 1,541 |
Valuation allowance | 786,445 | 1,033,692 |
Net operating loss carryover | (469,556) | (506,383) |
Income Tax Expense | $ 800 | $ 800 |