Document and Entity Information
Document and Entity Information - shares | 15 Months Ended | |
Jun. 30, 2017 | Aug. 11, 2017 | |
Details | ||
Registrant Name | OMNITEK ENGINEERING CORP. | |
Registrant CIK | 1,404,804 | |
SEC Form | 10-Q | |
Period End date | Jun. 30, 2017 | |
Fiscal Year End | --12-31 | |
Trading Symbol | omtk | |
Tax Identification Number (TIN) | 330,984,450 | |
Number of common stock shares outstanding | 20,281,082 | |
Filer Category | Smaller Reporting Company | |
Current with reporting | Yes | |
Voluntary filer | No | |
Well-known Seasoned Issuer | No | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Contained File Information, File Number | 000-53955 | |
Entity Incorporation, State Country Name | California | |
Entity Address, Address Line One | 1333 Keystone Way, #101 | |
Entity Address, City or Town | Vista | |
Entity Address, State or Province | California | |
Entity Address, Postal Zip Code | 92,081 | |
City Area Code | 760 | |
Local Phone Number | 591-0089 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash | $ 96,973 | $ 17,782 |
Accounts receivable, net | 76,227 | 28,159 |
Accounts receivable - related parties | 7,513 | 7,005 |
Inventory, net | 1,876,470 | 1,869,900 |
Prepaid expense | 0 | 5,324 |
Costs and estimated earnings in excess of billings | 0 | 30,973 |
Deposits | 35,744 | 21,716 |
Total Current Assets | 2,092,927 | 1,980,859 |
FIXED ASSETS, net | 19,391 | 31,839 |
OTHER ASSETS | ||
Other noncurrent assets | 14,280 | 14,280 |
Total Other Assets | 14,280 | 14,280 |
TOTAL ASSETS | 2,126,598 | 2,026,978 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 345,697 | 325,255 |
Accrued management compensation | 399,154 | 314,788 |
Accounts payable - related parties | 56,702 | 18,373 |
Billings in excess of costs and estimated earnings | 5,998 | 0 |
Customer deposits | 243,496 | 87,114 |
Total Current Liabilities | 1,051,047 | 745,530 |
Total Liabilities | 1,051,047 | 745,530 |
STOCKHOLDERS' EQUITY | ||
Common stock, 125,000,000 shares authorized no par value 20,281,082 shares issued and outstanding, respectively | 8,411,411 | 8,411,411 |
Additional paid-in capital | 11,815,574 | 11,620,841 |
Accumulated deficit | (19,151,434) | (18,750,804) |
Total Stockholders' Equity | 1,075,551 | 1,281,448 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 2,126,598 | $ 2,026,978 |
Condensed Balance Sheets - Pare
Condensed Balance Sheets - Parenthetical - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Details | ||
Common Stock, Shares Authorized | 125,000,000 | 125,000,000 |
Common Stock, No Par Value | $ 0 | $ 0 |
Common Stock, Shares, Issued | 20,281,082 | 20,281,082 |
Common Stock, Shares, Outstanding | 20,281,082 | 20,281,082 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Details | ||||
REVENUES | $ 242,021 | $ 247,177 | $ 531,445 | $ 576,223 |
REVENUES, related parties | 4,293 | 5,139 | 6,523 | 15,676 |
Total revenues | 246,314 | 252,316 | 537,968 | 591,899 |
COST OF GOODS SOLD | 145,794 | 148,316 | 298,407 | 320,493 |
GROSS MARGIN | 100,520 | 104,000 | 239,561 | 271,406 |
OPERATING EXPENSES | ||||
General and administrative | 249,017 | 341,461 | 549,139 | 654,257 |
Research and development | 33,805 | 46,897 | 73,689 | 94,303 |
Depreciation and amortization | 6,224 | 6,976 | 12,448 | 14,463 |
Total Operating Expenses | 289,046 | 395,334 | 635,276 | 763,023 |
LOSS FROM OPERATIONS | (188,526) | (291,334) | (395,715) | (491,617) |
OTHER INCOME (EXPENSE) | ||||
Other income | 0 | 1,144 | 0 | 5,374 |
Interest expense | (2,263) | (1,949) | (4,115) | (2,640) |
Total Other Income (Expense) | (2,263) | (805) | (4,115) | 2,734 |
LOSS BEFORE INCOME TAXES | (190,789) | (292,139) | (399,830) | (488,883) |
INCOME TAX EXPENSE | 800 | 800 | 800 | 800 |
NET LOSS | $ (191,589) | $ (292,939) | $ (400,630) | $ (489,683) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 20,281,082 | 20,030,533 | 20,281,082 | 20,005,807 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES | ||
Net loss | $ (400,630) | $ (489,683) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization and depreciation expense | 12,448 | 14,463 |
Options and warrants | 94,733 | 118,068 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (48,068) | (9,130) |
Accounts receivable-related parties | (508) | 4,200 |
Costs and estimated earnings in excess of billings | 371 | 0 |
Deposits | (14,028) | 600 |
Prepaid expense | 5,324 | 726 |
Inventory | (6,570) | 37,356 |
Accounts payable and accrued expenses | 20,442 | 81,032 |
Customer deposits | 156,382 | (3,164) |
Accounts payable-related parties | 38,329 | 561 |
Billings in excess of costs and estimated earnings | 36,600 | 0 |
Accrued management compensation | 184,366 | 66,250 |
Net Cash Provided by (Used in) Operating Activities | 79,191 | (178,721) |
INVESTING ACTIVITIES | ||
Net Cash Provided by Investing Activities | 0 | 0 |
FINANCING ACTIVITIES | ||
Proceeds from stock sale | 0 | 100,000 |
Net Cash Provided by Financing Activities | 0 | 100,000 |
NET INCREASE (DECREASE) IN CASH | 79,191 | (78,721) |
CASH AT BEGINNING OF YEAR | 17,782 | 105,846 |
CASH AT END OF PERIOD | 96,973 | 27,125 |
CASH PAID FOR: | ||
Interest | 3,780 | 2,640 |
Income taxes | 800 | 800 |
NON CASH INVESTING AND FINANCING ACTIVITIES | ||
Options issued for accrued salary | $ 100,000 | $ 0 |
Note 1 - Condensed Financial St
Note 1 - Condensed Financial Statements | 15 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 1 - Condensed Financial Statements | NOTE 1 - CONDENSED FINANCIAL STATEMENTS The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2017 and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2016 audited financial statements. The results of operations for the periods ended June 30, 2017 and 2016 are not necessarily indicative of the operating results for the full years. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 15 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 2 - Significant Accounting Policies | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES Use of 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. Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. 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, consisting of the following: June 30, December 31, Location : Vista, CA 2017 2016 Raw materials $ 997,817 $ 965,821 Finished goods 1,201,724 1,247,230 Work in process 20,080 - Allowance for obsolete inventory (343,151) (343,151) Total $ 1,876,470 $ 1,869,900 The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $-0- and $-0-, for the periods ended June 30, 2017 and June 30, 2016, respectively. NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Property and Equipment Property and equipment at June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 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 (125,940) (113,492) Total $ 19,391 $ 31,839 Depreciation expense for the six month periods ended June 30, 2017 and June 30, 2016 was $12,448 and $14,183, respectively. 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- and -0- stock options and warrants that would have been included in the fully diluted earnings per share as of June 30, 2017 and December 31, 2016, respectively. Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of June 30, 2017 and December 31, 2016 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. NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Going Concern Historically, the Company has incurred net losses and negative cash flows from operations. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company may raise additional operating capital through the sale of debt or equity securities. Management believes that with sufficient working capital, from financing activities or from sales of the Company’s products, the Company will be able to meet its obligations and continue as a going concern. However, there is no assurance that the Company will be successful in its plan. |
Note 3 - Costs And Estimated Ea
Note 3 - Costs And Estimated Earnings And Billings On Uncompleted Contracts | 15 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 3 - Costs And Estimated Earnings And Billings On Uncompleted Contracts | NOTE 3 – COSTS AND ESTIMATED EARNINGS AND BILLINGS ON UNCOMPLETED CONTRACTS Billing practices for our contracts are governed by the contract terms of each project based on progress toward completion approved by the owner, achievement of milestones or pre-agreed schedules. Billings do not necessarily correlate with revenue recognized under the percentage-of-completion method of accounting. The current liability, “Billings in excess of costs and estimated earnings,” represents billings in excess of revenues recognized. The current asset, “Costs and estimated earnings in excess of billings,” represents revenues recognized in excess of amounts billed to the customer, which are usually billed during normal billing processes following achievement of contractural requirements. The two tables below set forth thet costs incurred and earnings accrued on uncompleted contracts compared with the billings on those contracts through June 30, 2017 and December 31, 2016 and reconcile the net excess billings to the amounts included in the balance sheets at those dates. June 30, December 31, 2017 2016 Cost incurred on uncompleted contracts $ 102,048 $ 100,335 Estimated earnings 50,054 52,138 152,102 152,473 Billings on uncompleted contracts (158,100) (121,500) Costs incurred and estimated earnings over (under) billings on uncompleted contracts (5,998) 30,973 Included in the accompanying balance sheets under the following captions: June 30, December 31, 2017 2016 Costs and estimated earnings in excess of billings on uncompleted contracts $ - $ 30,973 Billings in excess of costs and estimated earnings on uncompleted contracts (5,998) - Net amount of costs and estimated earnings on uncompleted contracts above (below) billings $ (5,998) $ 30,973 |
Note 4 - Related Party Transact
Note 4 - Related Party Transactions | 15 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 4 - Related Party Transactions | NOTE 4 - 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 June 30, 2017, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd. and a For the periods ended June 30, 2017 and December 31, 2016, the Company’s president, chief financial officer and vice president were due amounts for services performed for the Company. June 30, December 31, 2017 2016 Amounts due to the president $ 250,257 $ 210,257 Amounts due to the chief financial officer 72,203 35,962 Amounts due to the vice president 76,694 68,569 Total $ 399,154 $ 314,788 |
Note 5 - Stock Options and Warr
Note 5 - Stock Options and Warrants | 15 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 5 - Stock Options and Warrants | NOTE 5 - STOCK OPTIONS AND WARRANTS During the six months ended June 30, 2017 and 2016, the Company granted 350,000 and 250,000 options for services, respectively. During the six months ended June 30, 2017 and 2016, the Company recognized expense of $94,733 and $118,068, respectively, for options and warrants that vested during the periods pursuant to ASC Topic 718. Total remaining amount of compensation expense to be recognized in future periods is $59,640. During the six months ended June 30, 2017 and 2016, the Company granted 555,556 and 470,000 options to the CEO for accrued compensation, 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 NOTE 5 - STOCK OPTIONS AND WARRANTS (CONTINUED) options is based on the Company’s evaluation of option holders’ exercise patterns and represents the period of time that options are expected to remain unexercised. The Company uses historical data to estimate the timing and amount of forfeitures. The following table presents the assumptions used to estimate the fair values of the stock options granted: June 30, 2017 June 30, 2016 Expected volatility 105% 87% Expected dividends 0% 0% Expected term 7 Years 7 Years Risk-free interest rate 2.22% 1.52% A summary of the status of the options and warrants granted at June 30, 2017 and December 31, 2016 and changes during the periods then ended is presented below: June 30, December 31, 2017 2016 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 4,510,313 $ 2.81 3,890,313 $ 3.28 Granted 905,556 0.18 720,000 0.28 Exercised - - - - Expired or cancelled (2,725,313) 3.88 (100,000) 2.74 Outstanding at end of period 2,690,556 0.85 4,510,313 2.81 Exercisable 2,430,556 $ 0.85 4,222,813 $ 2.93 A summary of the status of the options and warrants outstanding at June 30, 2017 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-0.99 1,950,556 5.93 years 1,717,223 0.26 $1.00-1.99 215,000 1.63 years 215,000 1.41 $2.00-2.99 525,000 2.27 years 498,333 2.52 $0.01-2.99 2,690,556 4.87 years 2,430,556 $0.85 |
Note 6 - Subsequent Events
Note 6 - Subsequent Events | 15 Months Ended |
Jun. 30, 2017 | |
Notes | |
Note 6 - Subsequent Events | In accordance with ASC 855, the Company’s management has evaluated the subsequent events through the date the financial statements were issued and has found no subsequent events to report. |
Note 2 - Significant Accounti12
Note 2 - Significant Accounting Policies (Policies) | 15 Months Ended |
Jun. 30, 2017 | |
Policies | |
Use of Estimates | Use of 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. |
Inventory | 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, consisting of the following: June 30, December 31, Location : Vista, CA 2017 2016 Raw materials $ 997,817 $ 965,821 Finished goods 1,201,724 1,247,230 Work in process 20,080 - Allowance for obsolete inventory (343,151) (343,151) Total $ 1,876,470 $ 1,869,900 The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $-0- and $-0-, for the periods ended June 30, 2017 and June 30, 2016, respectively. |
Property and Equipment | Property and Equipment Property and equipment at June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 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 (125,940) (113,492) Total $ 19,391 $ 31,839 Depreciation expense for the six month periods ended June 30, 2017 and June 30, 2016 was $12,448 and $14,183, respectively. |
Basic and Diluted Loss Per Share | 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- and -0- stock options and warrants that would have been included in the fully diluted earnings per share as of June 30, 2017 and December 31, 2016, respectively. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of June 30, 2017 and December 31, 2016 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. |
Going Concern | Going Concern Historically, the Company has incurred net losses and negative cash flows from operations. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company may raise additional operating capital through the sale of debt or equity securities. Management believes that with sufficient working capital, from financing activities or from sales of the Company’s products, the Company will be able to meet its obligations and continue as a going concern. However, there is no assurance that the Company will be successful in its plan. |
Note 2 - Significant Accounti13
Note 2 - Significant Accounting Policies (Tables) | 15 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of 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, consisting of the following: June 30, December 31, Location : Vista, CA 2017 2016 Raw materials $ 997,817 $ 965,821 Finished goods 1,201,724 1,247,230 Work in process 20,080 - Allowance for obsolete inventory (343,151) (343,151) Total $ 1,876,470 $ 1,869,900 |
Schedule of Property and Equipment | Property and equipment at June 30, 2017 and December 31, 2016 consisted of the following: June 30, December 31, 2017 2016 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 (125,940) (113,492) Total $ 19,391 $ 31,839 |
Note 3 - Costs And Estimated 14
Note 3 - Costs And Estimated Earnings And Billings On Uncompleted Contracts (Tables) | 15 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Costs in Excess of Billings | June 30, December 31, 2017 2016 Cost incurred on uncompleted contracts $ 102,048 $ 100,335 Estimated earnings 50,054 52,138 152,102 152,473 Billings on uncompleted contracts (158,100) (121,500) Costs incurred and estimated earnings over (under) billings on uncompleted contracts (5,998) 30,973 |
Schedule of long term contracts | Included in the accompanying balance sheets under the following captions: June 30, December 31, 2017 2016 Costs and estimated earnings in excess of billings on uncompleted contracts $ - $ 30,973 Billings in excess of costs and estimated earnings on uncompleted contracts (5,998) - Net amount of costs and estimated earnings on uncompleted contracts above (below) billings $ (5,998) $ 30,973 |
Note 4 - Related Party Transa15
Note 4 - Related Party Transactions (Tables) | 15 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Accrued Management Fees | As of June 30, 2017 and December 31, 2016 the accrued management fees consisted of the following: June 30, December 31, 2017 2016 Amounts due to the president $ 250,257 $ 210,257 Amounts due to the chief financial officer 72,203 35,962 Amounts due to the vice president 76,694 68,569 Total $ 399,154 $ 314,788 |
Note 5 - Stock Options and Wa16
Note 5 - Stock Options and Warrants (Tables) | 15 Months Ended |
Jun. 30, 2017 | |
Tables/Schedules | |
Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted | The following table presents the assumptions used to estimate the fair values of the stock options granted: June 30, 2017 June 30, 2016 Expected volatility 105% 87% Expected dividends 0% 0% Expected term 7 Years 7 Years Risk-free interest rate 2.22% 1.52% |
Schedule of Stock Options and Warrants, Activity | A summary of the status of the options and warrants granted at June 30, 2017 and December 31, 2016 and changes during the periods then ended is presented below: June 30, December 31, 2017 2016 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 4,510,313 $ 2.81 3,890,313 $ 3.28 Granted 905,556 0.18 720,000 0.28 Exercised - - - - Expired or cancelled (2,725,313) 3.88 (100,000) 2.74 Outstanding at end of period 2,690,556 0.85 4,510,313 2.81 Exercisable 2,430,556 $ 0.85 4,222,813 $ 2.93 |
Summary of the Status of the Options and Warrants Outstanding | A summary of the status of the options and warrants outstanding at June 30, 2017 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-0.99 1,950,556 5.93 years 1,717,223 0.26 $1.00-1.99 215,000 1.63 years 215,000 1.41 $2.00-2.99 525,000 2.27 years 498,333 2.52 $0.01-2.99 2,690,556 4.87 years 2,430,556 $0.85 |
Note 2 - Significant Accounti17
Note 2 - Significant Accounting Policies: Inventory: Schedule of Inventory (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Details | ||
Raw materials | $ 997,817 | $ 965,821 |
Finished goods | 1,201,724 | 1,247,230 |
Work in process | 20,080 | 0 |
Allowance for obsolete inventory | (343,151) | (343,151) |
Total | $ 1,876,470 | $ 1,869,900 |
Note 2 - Significant Accounti18
Note 2 - Significant Accounting Policies: Inventory (Details) - USD ($) | 6 Months Ended | 15 Months Ended |
Jun. 30, 2016 | Jun. 30, 2017 | |
Details | ||
Expense for Obsolete Inventory | $ 0 | $ 0 |
Note 2 - Significant Accounti19
Note 2 - Significant Accounting Policies: Property and Equipment: Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Less: accumulated depreciation | $ (125,940) | $ (113,492) |
Total | 19,391 | 31,839 |
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 2 - Significant Accounti20
Note 2 - Significant Accounting Policies: Property and Equipment (Details) - USD ($) | 6 Months Ended | 15 Months Ended |
Jun. 30, 2016 | Jun. 30, 2017 | |
Details | ||
Depreciation expense | $ 14,183 | $ 12,448 |
Note 2 - Significant Accounti21
Note 2 - Significant Accounting Policies: Basic and Diluted Loss Per Share (Details) - shares | 6 Months Ended | 15 Months Ended |
Jun. 30, 2016 | Jun. 30, 2017 | |
Details | ||
Incremental Common Shares Attributable to Dilutive Effect of Options and Warrants | 0 | 0 |
Note 2 - Significant Accounti22
Note 2 - Significant Accounting Policies: Income Taxes (Details) | 15 Months Ended |
Jun. 30, 2017USD ($) | |
Details | |
Accrued Interest or penalties related to uncertain tax positions | $ 0 |
Note 3 - Costs And Estimated 23
Note 3 - Costs And Estimated Earnings And Billings On Uncompleted Contracts: Schedule of Costs in Excess of Billings (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Details | ||
Cost incurred on uncompleted contracts | $ 102,048 | $ 100,335 |
Estimated earnings | 50,054 | 52,138 |
Receivables, Long-term Contracts or Programs | 152,102 | 152,473 |
Billings on uncompleted contracts | (158,100) | (121,500) |
Billings in Excess of Cost | $ (5,998) | $ 30,973 |
Note 3 - Costs And Estimated 24
Note 3 - Costs And Estimated Earnings And Billings On Uncompleted Contracts: Schedule of long term contracts (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Details | ||
Costs and estimated earnings in excess of billings on uncompleted contracts | $ 0 | $ 30,973 |
Billings in excess of costs and estimated earnings | (5,998) | 0 |
Billings in Excess of Cost | $ (5,998) | $ 30,973 |
Note 4 - Related Party Transa25
Note 4 - Related Party Transactions (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts receivable - related parties | $ 7,513 | $ 7,005 |
Accounts payable - related parties | 56,702 | 18,373 |
Nology Engineering Inc | ||
Accounts payable - related parties | $ 56,702 | $ 18,373 |
Omnitek Engineering Thailand Co Ltd | ||
Noncontrolling Interest, Ownership Percentage by Parent | 15.00% | |
Omnitek Peru SAC | ||
Noncontrolling Interest, Ownership Percentage by Parent | 20.00% |
Note 4 - Related Party Transa26
Note 4 - Related Party Transactions: Schedule of Accrued Management Fees (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accrued management compensation | $ 399,154 | $ 314,788 |
Total | 399,154 | 314,788 |
President | ||
Accrued management compensation | 250,257 | 210,257 |
Total | 250,257 | 210,257 |
Chief Financial Officer | ||
Accrued management compensation | 72,203 | 35,962 |
Total | 72,203 | 35,962 |
Vice President | ||
Accrued management compensation | 76,694 | 68,569 |
Total | $ 76,694 | $ 68,569 |
Note 5 - Stock Options and Wa27
Note 5 - Stock Options and Warrants (Details) - USD ($) | Dec. 31, 2014 | Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 11, 2015 | Aug. 03, 2011 | Apr. 30, 2007 |
Granted | 720,000 | 905,556 | ||||||
Expense recognized for options and warrants vested | $ 118,068 | $ 94,733 | ||||||
Total remaining amount of compensation expense to be recognized in future periods | $ 59,640 | |||||||
Options expired | 100,000 | 2,725,313 | ||||||
Shares outstanding | 2,690,556 | 4,510,313 | 3,890,313 | |||||
Warrants, Granted | 0 | 0 | ||||||
President | ||||||||
Granted | 470,000 | 555,556 | ||||||
Employee Stock Option | ||||||||
Granted | 250,000 | 350,000 | ||||||
Employee Stock Option | 2006 Long Term Incentive Plan | ||||||||
Number of Shares Authorized | 10,000,000 | |||||||
Options expired | 2,590,000 | |||||||
Employee Stock Option | 2011 Long Term Incentive Plan | ||||||||
Number of Shares Authorized | 1,000,000 | |||||||
Shares outstanding | 815,000 | |||||||
Employee Stock Option | 2015 Long Term Incentive Plan | ||||||||
Number of Shares Authorized | 2,500,000 | |||||||
Shares outstanding | 1,875,556 |
Note 5 - Stock Options and Wa28
Note 5 - Stock Options and Warrants: Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted (Details) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Details | ||
Expected volatility | 105.00% | 87.00% |
Expected dividends | 0.00% | 0.00% |
Expected term | 7 years | 7 years |
Risk-free interest rate | 2.22% | 1.52% |
Note 5 - Stock Options and Wa29
Note 5 - Stock Options and Warrants: Schedule of Stock Options and Warrants, Activity (Details) - $ / shares | 6 Months Ended | 15 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares outstanding | 2,690,556 | 4,510,313 | 3,890,313 | |
Outstanding, Weighted Average Exercise Price | $ 0.85 | $ 2.81 | $ 3.28 | |
Granted | 720,000 | 905,556 | ||
Granted, Weighted Average Exercise Price | $ 0.28 | $ 0.18 | ||
Exercised, Weighted Average Exercise | $ 0 | $ 0 | ||
Expired or cancelled | (100,000) | (2,725,313) | ||
Expired or cancelled, Weighted Average Exercise Price | $ 2.74 | $ 3.88 | ||
Exercisable | 2,430,556 | 4,222,813 | ||
Exercisable, Weighted Average Exercise Price | $ 0.85 | $ 2.93 | ||
Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 |
Note 5 - Stock Options and Wa30
Note 5 - Stock Options and Warrants: Summary of the Status of the Options and Warrants Outstanding (Details) | 15 Months Ended |
Jun. 30, 2017$ / sharesshares | |
$0.01-0.99 | |
Exercise Price Range, Lower Range Limit | $ 0.01 |
Exercise Price Range, Upper Range Limit | $ 0.99 |
Number Outstanding | shares | 1,950,556 |
Weighted-Average Remaining Contractual Life | 5 years 11 months 4 days |
Number Exercisable | shares | 1,717,223 |
Weighted-Average Exercise Price | $ 0.26 |
$1.00-1.99 | |
Exercise Price Range, Lower Range Limit | 1 |
Exercise Price Range, Upper Range Limit | $ 1.99 |
Number Outstanding | shares | 215,000 |
Weighted-Average Remaining Contractual Life | 1 year 7 months 17 days |
Number Exercisable | shares | 215,000 |
Weighted-Average Exercise Price | $ 1.41 |
$2.00-2.99 | |
Exercise Price Range, Lower Range Limit | 2 |
Exercise Price Range, Upper Range Limit | $ 2.99 |
Number Outstanding | shares | 525,000 |
Weighted-Average Remaining Contractual Life | 2 years 3 months 7 days |
Number Exercisable | shares | 498,333 |
Weighted-Average Exercise Price | $ 2.52 |
$0.01-2.99 | |
Exercise Price Range, Lower Range Limit | 0.01 |
Exercise Price Range, Upper Range Limit | $ 2.99 |
Number Outstanding | shares | 2,690,556 |
Weighted-Average Remaining Contractual Life | 4 years 10 months 13 days |
Number Exercisable | shares | 2,430,556 |
Weighted-Average Exercise Price | $ 0.85 |