Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 13, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Omnitek Engineering Corp. | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2019 | |
Amendment Flag | false | |
Entity Central Index Key | 0001404804 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 20,839,865 | |
Entity Filer Category | Non-accelerated Filer | |
Entity's Reporting Status Current | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity File Number | 000-53955 | |
Entity Incorporation, State Country Code | CA | |
Entity Address, Address Line One | 1333 Keystone Way, #101 | |
Entity Address, City or Town | Vista | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 92081 | |
City Area Code | 760 | |
Local Phone Number | 591-0089 |
Condensed Balance Sheets (unaud
Condensed Balance Sheets (unaudited) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash | $ 80,673 | $ 17,060 |
Accounts receivable, net | 10,691 | 13,442 |
Accounts receivable - related parties | 18,511 | 6,666 |
Inventory, net | 1,238,566 | 1,359,678 |
Contract assets | 13,221 | 12,772 |
Deposits | 6,566 | 5,811 |
Total Current Assets | 1,368,228 | 1,415,429 |
Property and equipment, net | 1,945 | 2,376 |
OTHER ASSETS | ||
Other noncurrent assets | 30,425 | 30,425 |
Total Other Assets | 30,425 | 30,425 |
TOTAL ASSETS | 1,400,598 | 1,448,230 |
CURRENT LIABILITIES | ||
Accounts payable and accrued expenses | 432,290 | 362,363 |
Accrued management compensation | 659,465 | 506,103 |
Accounts payable - related parties | 143,921 | 145,171 |
Notes payable - related parties | 32,000 | 15,000 |
Convertible notes payable | 60,000 | 100,000 |
Contract liabilities | 75,000 | 84,496 |
Customer deposits | 174,293 | 140,338 |
Total Current Liabilities | 1,576,969 | 1,353,471 |
Total Liabilities | 1,576,969 | 1,353,471 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
Common stock, 125,000,000 shares authorized no par value 20,839,865 and 20,420,402 shares issued and outstanding, respectively | 8,502,210 | 8,427,210 |
Additional paid-in capital | 11,990,115 | 11,923,056 |
Accumulated deficit | (20,668,696) | (20,255,507) |
Total Stockholders' Equity (Deficit) | (176,371) | 94,759 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ 1,400,598 | $ 1,448,230 |
Condensed Balance Sheets (una_2
Condensed Balance Sheets (unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common Stock, par or stated value | $ 0 | $ 0 |
Common Stock, shares authorized | 125,000,000 | 125,000,000 |
Common Stock, shares issued | 20,839,865 | 20,420,402 |
Common Stock, shares outstanding | 20,839,865 | 20,420,402 |
Condensed Statements of Operati
Condensed Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
REVENUES | $ 123,366 | $ 265,999 | $ 739,110 | $ 995,085 |
REVENUES, related parties | 13,086 | 14,568 | 13,086 | 14,568 |
Total revenues | 136,452 | 280,567 | 752,196 | 1,009,653 |
COST OF GOODS SOLD | 101,106 | 170,108 | 469,318 | 575,088 |
GROSS MARGIN | 35,346 | 110,459 | 282,878 | 434,565 |
OPERATING EXPENSES | ||||
General and administrative | 179,942 | 184,374 | 599,708 | 618,680 |
Research and development | 27,512 | 29,315 | 79,980 | 81,885 |
Depreciation and amortization | 135 | 1,568 | 431 | 7,294 |
Total Operating Expenses | 207,589 | 215,257 | 680,119 | 707,859 |
LOSS FROM OPERATIONS | (172,243) | (104,798) | (397,241) | (273,294) |
OTHER INCOME (EXPENSE) | ||||
Other income | 0 | 0 | 0 | 950 |
Loss on Extinguishment of Debt | (32,963) | 0 | (32,963) | |
Interest expense | (4,677) | (5,544) | (15,148) | (11,831) |
Total Other Income (Expense) | (4,677) | (38,507) | (15,148) | (43,844) |
LOSS BEFORE INCOME TAXES | (176,920) | (143,305) | (412,389) | (317,138) |
INCOME TAX EXPENSE | 0 | 0 | 800 | 800 |
NET LOSS | $ (176,920) | $ (143,305) | $ (413,189) | $ (317,938) |
BASIC AND DILUTED LOSS PER SHARE | $ (0.01) | $ (0.01) | $ (0.02) | $ (0.02) |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 20,424,961 | 20,411,316 | 20,421,938 | 20,324,970 |
Statements of Stockholders' Equ
Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Total |
Stockholders' Equity, beginning of period, Value at Dec. 31, 2017 | $ 8,411,411 | $ 11,852,363 | $ (19,787,101) | $ 476,673 |
Stockholders' Equity, beginning of period, Shares at Dec. 31, 2017 | 20,281,082 | |||
Value of options issued for services | 21,971 | 21,971 | ||
Net loss | (98,090) | (98,090) | ||
Stockholders' Equity, end of period, Value at Mar. 31, 2018 | $ 8,411,411 | 11,874,334 | (19,885,191) | 400,554 |
Stockholders' Equity, end of period, Shares at Mar. 31, 2018 | 20,281,082 | |||
Stockholders' Equity, beginning of period, Value at Dec. 31, 2017 | $ 8,411,411 | 11,852,363 | (19,787,101) | 476,673 |
Stockholders' Equity, beginning of period, Shares at Dec. 31, 2017 | 20,281,082 | |||
Sale of option for future purchase of common stock | 0 | |||
Conversion of Related Party Note Payable, Value | 15,799 | |||
Loss on Extinguishment of Debt | 32,963 | |||
Stockholders' Equity, end of period, Value at Sep. 30, 2018 | $ 8,427,210 | 11,917,784 | (20,105,039) | 239,955 |
Stockholders' Equity, end of period, Shares at Sep. 30, 2018 | 20,420,402 | |||
Stockholders' Equity, beginning of period, Value at Mar. 31, 2018 | $ 8,411,411 | 11,874,334 | (19,885,191) | 400,554 |
Stockholders' Equity, beginning of period, Shares at Mar. 31, 2018 | 20,281,082 | |||
Value of options issued for services | 5,215 | 5,215 | ||
Net loss | (76,543) | (76,543) | ||
Stockholders' Equity, end of period, Value at Jun. 30, 2018 | $ 8,411,411 | 11,879,549 | (19,961,734) | 329,226 |
Stockholders' Equity, end of period, Shares at Jun. 30, 2018 | 20,281,082 | |||
Value of options issued for services | 5,272 | 5,272 | ||
Conversion of Related Party Note Payable, Value | $ 15,799 | 15,799 | ||
Conversion of Related Party Note Payable, Shares | 139,320 | |||
Loss on Extinguishment of Debt | 32,963 | 32,963 | ||
Net loss | (143,305) | (143,305) | ||
Stockholders' Equity, end of period, Value at Sep. 30, 2018 | $ 8,427,210 | 11,917,784 | (20,105,039) | 239,955 |
Stockholders' Equity, end of period, Shares at Sep. 30, 2018 | 20,420,402 | |||
Stockholders' Equity, beginning of period, Value at Dec. 31, 2018 | $ 8,427,210 | 11,923,056 | (20,255,507) | 94,759 |
Stockholders' Equity, beginning of period, Shares at Dec. 31, 2018 | 20,420,402 | |||
Value of options issued for services | 25,907 | 25,907 | ||
Net loss | (106,226) | (106,226) | ||
Stockholders' Equity, end of period, Value at Mar. 31, 2019 | $ 8,427,210 | 11,948,963 | (20,361,733) | 14,440 |
Stockholders' Equity, end of period, Shares at Mar. 31, 2019 | 20,420,402 | |||
Stockholders' Equity, beginning of period, Value at Dec. 31, 2018 | $ 8,427,210 | 11,923,056 | (20,255,507) | 94,759 |
Stockholders' Equity, beginning of period, Shares at Dec. 31, 2018 | 20,420,402 | |||
Sale of option for future purchase of common stock | 25,000 | |||
Conversion of Related Party Note Payable, Value | 0 | |||
Loss on Extinguishment of Debt | 0 | |||
Stockholders' Equity, end of period, Value at Sep. 30, 2019 | $ 8,502,210 | (20,668,696) | (176,371) | |
Stockholders' Equity, end of period, Shares at Sep. 30, 2019 | 20,839,865 | |||
Stockholders' Equity, beginning of period, Value at Mar. 31, 2019 | $ 8,427,210 | 11,948,963 | (20,361,733) | 14,440 |
Stockholders' Equity, beginning of period, Shares at Mar. 31, 2019 | 20,420,402 | |||
Value of options issued for services | 10,915 | 10,915 | ||
Net loss | (130,043) | (130,043) | ||
Stockholders' Equity, end of period, Value at Jun. 30, 2019 | $ 8,427,210 | 11,959,878 | (20,491,776) | (104,688) |
Stockholders' Equity, end of period, Shares at Jun. 30, 2019 | 20,420,402 | |||
Value of options issued for services | 237 | 237 | ||
Sale of option for future purchase of common stock | $ 25,000 | 25,000 | ||
Sale of common stock, Value | $ 75,000 | 75,000 | ||
Sale of common stock, Shares | 419,463 | |||
Loss on Extinguishment of Debt | ||||
Net loss | (176,920) | (176,920) | ||
Stockholders' Equity, end of period, Value at Sep. 30, 2019 | $ 8,502,210 | $ (20,668,696) | $ (176,371) | |
Stockholders' Equity, end of period, Shares at Sep. 30, 2019 | 20,839,865 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net loss | $ (413,189) | $ (317,938) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization and depreciation expense | 431 | 7,294 |
Options and warrants | 42,059 | 32,458 |
Inventory reserve | 26,667 | 50,000 |
Loss on extinguishment of debt | 0 | 32,963 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 2,751 | (7,308) |
Accounts receivable-related parties | (11,845) | (2,873) |
Contract assets | (449) | |
Deposits | (755) | (11,198) |
Inventory | 94,445 | 52,760 |
Accounts payable and accrued expenses | 69,927 | 16,146 |
Customer deposits | 33,955 | (71,131) |
Accounts payable-related parties | (1,250) | 28,498 |
Contract liabilities | (9,496) | (30,000) |
Accrued management compensation | 153,362 | 105,262 |
Net Cash Used in Operating Activities | (13,387) | (115,067) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | 0 | (2,714) |
Net Cash Used in Investing Activities | 0 | (2,714) |
FINANCING ACTIVITIES | ||
Proceeds from sale of option for future purchase of common stock | 25,000 | 0 |
Proceeds from related party note payable | 17,000 | 0 |
Proceeds from sale of common stock | 75,000 | 0 |
Payments on convertible note payable | (40,000) | 0 |
Proceeds from convertible note payable | 0 | 100,000 |
Net Cash Provided by Financing Activities | 77,000 | 100,000 |
NET INCREASE (DECREASE) IN CASH | 63,613 | (17,781) |
CASH AT BEGINNING OF YEAR | 17,060 | 23,279 |
CASH AT END OF PERIOD | 80,673 | 5,498 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS | ||
Cash paid for: Interest | 14,214 | 7,583 |
Cash paid for: Income taxes | 800 | 800 |
NON CASH FINANCING ACTIVITIES: | ||
Common stock issued for convertible note | $ 0 | $ 15,799 |
NOTE 1 - CONDENSED FINANCIAL ST
NOTE 1 - CONDENSED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
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 September 30, 2019 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, 2018 audited financial statements. The results of operations for the periods ended September 30, 2019 and 2018 are not necessarily indicative of the operating results for the full years. |
NOTE 2 - SIGNIFICANT ACCOUNTING
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
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. Revenue Recognition I We recognize revenue on various products and services as follows: Products Contracts Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Performance Obligations Satisfied Over Time Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 6% and 0% of revenue for the periods ended September 30, 2019 and 2018, respectively. Performance Obligations Satisfied at a Point in Time Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer. Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 94% and 100% of revenue for the periods ended September 30, 2019 and 2018, respectively. Assurance-type warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant. Pre-contract costs are generally not incurred by the Company Contract Estimates Accounting for long-term contracts involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, Omnitek estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Variable Consideration The transaction price for contracts may include variable consideration, which includes increases to transaction price for approved and unapproved change orders, claims and incentives, and reductions to transaction price for liquidated damages. Variable consideration historically has been insignificant. Disaggregation of Revenue The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended September 30, 2019 and September 30, 2018: For the three months ended September 30, For the three months ended September 30, 2019 2018 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 99,423 - 99,423 $ 108,160 - 108,160 International 37,029 - 37,029 172,407 - 172,407 $ 136,452 - 136,452 $ 280,567 - 280,567 Filters $ 35,478 - 35,478 $ 180,549 - 180,549 Components 100,974 - 100,974 100,018 - 100,018 Engineering Services - - - - - - $ 136,452 - 136,452 $ 280,567 - 280,567 The following table presents Omnitek’s revenues disaggregated by region and product type for the nine months ended September 30, 2019 and September 30, 2018: For the nine months ended September 30, For the nine months ended September 30, 2019 2018 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 320,349 - 320,349 $ 414,373 - 414,373 International 387,373 44,474 431,847 595,280 - 595,280 $ 707,722 44,474 752,196 $ 1,009,653 - 1,009,653 Filters $ 452,728 - 452,728 $ 622,165 - 622,165 Components 254,994 - 254,994 387,488 - 387,488 Engineering Services - 44,474 44,474 - - - $ 707,722 44,474 752,196 $ 1,009,653 - 1,009,653 Inventory Inventory is stated at the lower of cost or market. The Company’s inventory consists of finished goods and raw materials and is located in Vista, California, consisting of the following: September 30, December 31, Location : Vista, CA 2019 2018 Raw materials $ 933,579 $ 948,060 Finished goods 1,077,699 1,147,052 Inventory in transit - 10,611 Allowance for obsolete inventory (772,712) (746,045) Total $ 1,238,566 $ 1,359,678 The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $26,667 and $50,000, for the periods ended September 30, 2019 and September 30, 2018, respectively Property and Equipment Property and equipment at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Production equipment $ 64,673 $ 64,673 Computers/Office equipment 28,540 28,540 Tooling equipment 12,380 12,380 Leasehold Improvements 42,451 42,451 Less: accumulated depreciation (146,099) (145,668) Total $ 1,945 $ 2,376 Depreciation expense for the periods ended September 30, 2019 and September 30, 2018 was $431 and $7,294, 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 2,970,140 and 2,563,473 stock options that would have been included in the fully diluted earnings per share as of September 30, 2019 and September 30, 2018, respectively. However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti dilutive. 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 September 30, 2019 and December 31, 2018 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2012. Liquidity and Going Concern Historically, the Company has incurred net losses and negative cash flows from operations. As of September 30, 2019, the Company had an accumulated deficit of $20,668,696 and total stockholders’ deficit of $176,371. At September 30, 2019, the Company had current assets of $1,368,228 including cash of $80,673, and current liabilities of $1,576,969, resulting in negative working capital of $208,741. For the nine months ended September 30, 2019, the Company reported a net loss of $413,189 and net cash used by operating activities of $13,387. Management believes that based on its operating plan, the projected sales for 2019, 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. Whether, and when, the Company can attain profitability and positive cash flows from operations is uncertain. The Company is also uncertain whether it can raise additional capital. These uncertainties cast significant doubt upon the Company’s ability to continue as a going concern. Our financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities should we be unable to continue as a going concern. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-2 - Leases (Topic 842) In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployees Share-Based Payment Accounting Recent Accounting Pronouncements The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. |
NOTE 3 - CONTRACT ASSETS AND LI
NOTE 3 - CONTRACT ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
NOTE 3 - Contract Assets And Liabilities | NOTE 3 - CONTRACT ASSETS AND LIABILITIES The timing of revenue recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) on the balance sheet. For Omnitek’s long-term contracts, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, Omnitek sometimes receives advances or deposits from its customers, before revenue is recognized, resulting in billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities). The table below reconciles the net excess billings to the amounts included in the balance sheets at those dates: September 30, December 31, 2019 2018 Contract assets $ 13,221 $ 12,772 Contract liabilities $ (75,000) $ (84,496) Net amount of contract liabilities in excess of contract assets $ (61,779) $ (71,724) |
NOTE 4 - COMMITMENTS
NOTE 4 - COMMITMENTS | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
NOTE 4 - COMMITMENTS | NOTE 4 – COMMITMENTS Effective September 1, 2019, the Company entered into the Fourth Amendment to the Lease for its facility, reducing the size of the leased space to 21,786 square feet and extending the lease term to August 31, 2020, at which time a new lease extension has to be negotiated. Effective as of September 1, 2019, the base rent is reduced to $14,161 per month, plus a reduced charge for common area maintenance expenses (CAM) reflecting the reduced square footage. The security deposit amount of $14,000 remained the same. Additionally, the amendment calls for payment of past due rents of $89,454, as of September 1, 2019, as follows: (a) An initial payment of $22,363 on or before September 1, 2019 (b) Monthly installments of $10,000 thereafter, until such time as the past due rent has been paid in full. |
NOTE 5 - RELATED PARTY TRANSACT
NOTE 5 - RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
NOTE 5 - RELATED PARTY TRANSACTIONS | NOTE 5 - 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 September 30, 2019, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd. and a 20% interest in Omnitek Peru S.A.C. As of September 30, 2019 and December 31, 2018, the Company was owed $18,511 and $6,666 Accounts Payable – Related Parties The Company regularly incurs expenses that are paid to related parties and purchases goods and services from related parties. As of September 30, 2019 and December 31, 2018, the Company owed related parties (primarily for services performed by a company controlled by a board member) for such expenses, goods and services in the amounts of $143,921 and $145,171 Accrued Management Compensation For the periods ended September 30, 2019 and December 31, 2018, the Company’s president and chief financial officer were due amounts for services performed for the Company. As of September 30, 2019 and December 31, 2018 the accrued management fees consisted of the following: September 30, December 31, 2019 2018 Amounts due to the president $ 506,889 $ 399,296 Amounts due to the chief financial officer 152,576 106,807 Total $ 659,465 $ 506,103 |
NOTE 6 - NOTES PAYABLE - RELATE
NOTE 6 - NOTES PAYABLE - RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
NOTE 6 - NOTE PAYABLE - RELATED PARTY TRANSACTIONS | NOTE 6 - NOTE PAYABLE - RELATED PARTY TRANSACTIONS Note Payable – Related Party On September 11, 2019 the Company borrowed $12,000 from a board member. The loan was evidenced by an unsecured promissory note which bears simple interest at the rate of 8% per annum. The principal amount of the note and all accrued interest is due and payable on or before December 11, 2019. On May 28, 2019 the Company issued a promissory note for $5,000 to the Company’s CEO. The note has an annual interest rate of 5% and is unsecured. The principal amount of the note and all accrued interest is due and payable on December 31, 2019. On January 19, 2017 the Company issued a promissory note for $15,000 to the Company’s CEO. The note has an annual interest rate of 5% and is unsecured. The principal amount of the note and all accrued interest is due and payable on or before January 19, 2020. As of September 30, 2019 and December 31, 2018 Note Payable – Related Party consisted of the following: September 30, December 31, 2019 2018 Note payable, related party $ 32,000 $ 15,000 Total $ 32,000 $ 15,000 |
NOTE 7 - CONVERTIBLE NOTE PAYAB
NOTE 7 - CONVERTIBLE NOTE PAYABLE | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
NOTE 7 - CONVERTIBLE NOTE PAYABLE | NOTE 7 - CONVERTIBLE NOTE PAYABLE On June 15, 2018 the Company entered into a Securities Purchase Agreement with an accredited investor, under which the investor purchased a Secured Convertible Promissory Note from the Company in the principal amount of $100,000. Under the terms of the Note simple interest will accrue at a rate of 10% per annum. The note will automatically mature and be due and payable on the eighteen (18) month anniversary. The Company shall make principal payments under the Note in the amount of $5,000 per month, beginning on the seventh month anniversary and continuing each month thereafter through the maturity date. Also commencing on the seventh month anniversary of the Note, the Company shall make interest payments under this Note based on the unpaid principal balance. The Note is secured by the inventory of the Company in accordance with a Security Agreement executed concurrently with the Note and UCC-1 Financing Statement perfecting said security interest. The Note includes a conversion feature wherein, under certain circumstances, the Lender may request a portion of the principal repayment be converted and payable in restricted shares of the Company’s Common Stock at the lesser of five cents ($0.05) per share or 90% of the average closing price calculated over the prior 20 trading days, but not less than $.025 per share. The floor of $0.025 per share prevents the embedded conversion option from qualifying for derivative accounting under ASC 815-15 “Derivative and Hedging”. As of September 30, 2019 and December 31, 2018 Convertible Note Payable consisted of the following: September 30, December 31, 2019 2018 Convertible note payable $ 60,000 $ 100,000 Total $ 60,000 $ 100,000 |
NOTE 8 - STOCK OPTIONS
NOTE 8 - STOCK OPTIONS | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
NOTE 8 - STOCK OPTIONS | NOTE 8 - STOCK OPTIONS During the nine months ended September 30, 2019 and 2018, the Company granted 450,000 and 590,000 options for services, respectively. During the nine months ended September 30, 2019 and 2018, the Company recognized expense of $42,059 and $32,458, 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 $14,741. 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 September 30, 2019 the Company has a total of 550,000 options issued under the 2011 P lan. On September 11, 2015 the Board of Directors adopted the Omnitek Engineering Corp. 2015 Long Term Incentive Plan (the “2015 Plan”), under which 2,500,000 shares of the Company’s Common Stock were reserved for issuance of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion. As of September 30, 2018 the Company has a total of 2,065,556 options issued under the 2015 Plan. In October 2017, the Company’s shareholders approved its 2017 Long-Term Incentive Plan (the “2017 Plan”). Under the 2017 plan, the Company may issue up to 5,000,000 shares of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion. As of September 30, 2019, the Company has a total of 750,000 options issued under the 2017 Plan. During the nine months ended September 30, 2019 and 2018 the Company issued -0- and -0- warrants, respectively. The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. When determining expected volatility, the Company considers the historical performance of the Company’s stock, as well as implied volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, based on the options’ expected term. The expected term of the options is based on the Company’s evaluation of option holders’ exercise patterns and represents the period of time that options are expected to remain unexercised. The Company uses historical data to estimate the timing and amount of forfeitures. The following table presents the assumptions used to estimate the fair values of the stock options granted: September 30, 2019 September 30, 2018 Expected volatility 142 % 150 % Expected dividends 0 % 0 % Expected term 7 Years 7 Years Risk-free interest rate 2.01 % 2.46 % A summary of the status of the options granted at September 30, 2019 and December 31, 2018 and changes during the periods then ended is presented below: September 30, December 31, 2019 2018 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 2,965,556 $ 0.63 2,600,556 $ 0.82 Granted 450,000 0.08 590,000 0.07 Exercised - - - - Expired or cancelled (50,000) 2.25 (225,000) 1.33 Outstanding at end of period 3,365,556 0.53 2,965,556 0.63 Exercisable 2,970,140 $ 0.56 2,556,390 $ 0.67 A summary of the status of the options outstanding at September 30, 2019 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-0.99 2,890,556 4.43 years 2,495,140 0.21 $1.00-1.99 75,000 0.43 years 75,000 1.37 $2.00-2.99 400,000 0.08 years 400,000 2.56 $0.01-2.99 3,365,556 3.83 years 2,970,140 $0.56 |
NOTE 2 - SIGNIFICANT ACCOUNTI_2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Policy Text Block [Abstract] | |
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. |
Revenue Recognition | Revenue Recognition I We recognize revenue on various products and services as follows: Products Contracts Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. Performance Obligations Satisfied Over Time Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 6% and 0% of revenue for the periods ended September 30, 2019 and 2018, respectively. Performance Obligations Satisfied at a Point in Time Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer. Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 94% and 100% of revenue for the periods ended September 30, 2019 and 2018, respectively. Assurance-type warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant. Pre-contract costs are generally not incurred by the Company Contract Estimates Accounting for long-term contracts involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts, Omnitek estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognizes that profit over the life of the contract. Variable Consideration The transaction price for contracts may include variable consideration, which includes increases to transaction price for approved and unapproved change orders, claims and incentives, and reductions to transaction price for liquidated damages. Variable consideration historically has been insignificant. Disaggregation of Revenue The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended September 30, 2019 and September 30, 2018: For the three months ended September 30, For the three months ended September 30, 2019 2018 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 99,423 - 99,423 $ 108,160 - 108,160 International 37,029 - 37,029 172,407 - 172,407 $ 136,452 - 136,452 $ 280,567 - 280,567 Filters $ 35,478 - 35,478 $ 180,549 - 180,549 Components 100,974 - 100,974 100,018 - 100,018 Engineering Services - - - - - - $ 136,452 - 136,452 $ 280,567 - 280,567 The following table presents Omnitek’s revenues disaggregated by region and product type for the nine months ended September 30, 2019 and September 30, 2018: For the nine months ended September 30, For the nine months ended September 30, 2019 2018 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 320,349 - 320,349 $ 414,373 - 414,373 International 387,373 44,474 431,847 595,280 - 595,280 $ 707,722 44,474 752,196 $ 1,009,653 - 1,009,653 Filters $ 452,728 - 452,728 $ 622,165 - 622,165 Components 254,994 - 254,994 387,488 - 387,488 Engineering Services - 44,474 44,474 - - - $ 707,722 44,474 752,196 $ 1,009,653 - 1,009,653 |
Inventory | Inventory Inventory is stated at the lower of cost or market. The Company’s inventory consists of finished goods and raw materials and is located in Vista, California, consisting of the following: September 30, December 31, Location : Vista, CA 2019 2018 Raw materials $ 933,579 $ 948,060 Finished goods 1,077,699 1,147,052 Inventory in transit - 10,611 Allowance for obsolete inventory (772,712) (746,045) Total $ 1,238,566 $ 1,359,678 The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $26,667 and $50,000, for the periods ended September 30, 2019 and September 30, 2018, respectively |
Property and Equipment | Property and Equipment Property and equipment at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Production equipment $ 64,673 $ 64,673 Computers/Office equipment 28,540 28,540 Tooling equipment 12,380 12,380 Leasehold Improvements 42,451 42,451 Less: accumulated depreciation (146,099) (145,668) Total $ 1,945 $ 2,376 Depreciation expense for the periods ended September 30, 2019 and September 30, 2018 was $431 and $7,294, 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 2,970,140 and 2,563,473 stock options that would have been included in the fully diluted earnings per share as of September 30, 2019 and September 30, 2018, respectively. However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti dilutive. |
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 September 30, 2019 and December 31, 2018 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2012. |
Liquidity and Going Concern | Liquidity and Going Concern Historically, the Company has incurred net losses and negative cash flows from operations. As of September 30, 2019, the Company had an accumulated deficit of $20,668,696 and total stockholders’ deficit of $176,371. At September 30, 2019, the Company had current assets of $1,368,228 including cash of $80,673, and current liabilities of $1,576,969, resulting in negative working capital of $208,741. For the nine months ended September 30, 2019, the Company reported a net loss of $413,189 and net cash used by operating activities of $13,387. Management believes that based on its operating plan, the projected sales for 2019, 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. Whether, and when, the Company can attain profitability and positive cash flows from operations is uncertain. The Company is also uncertain whether it can raise additional capital. These uncertainties cast significant doubt upon the Company’s ability to continue as a going concern. Our financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities should we be unable to continue as a going concern. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-2 - Leases (Topic 842) In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployees Share-Based Payment Accounting |
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. |
NOTE 2 - SIGNIFICANT ACCOUNTI_3
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended September 30, 2019 and September 30, 2018: For the three months ended September 30, For the three months ended September 30, 2019 2018 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 99,423 - 99,423 $ 108,160 - 108,160 International 37,029 - 37,029 172,407 - 172,407 $ 136,452 - 136,452 $ 280,567 - 280,567 Filters $ 35,478 - 35,478 $ 180,549 - 180,549 Components 100,974 - 100,974 100,018 - 100,018 Engineering Services - - - - - - $ 136,452 - 136,452 $ 280,567 - 280,567 The following table presents Omnitek’s revenues disaggregated by region and product type for the nine months ended September 30, 2019 and September 30, 2018: For the nine months ended September 30, For the nine months ended September 30, 2019 2018 Consumer Long-term Consumer Long-term Segments Products Contract Total Products Contract Total Domestic $ 320,349 - 320,349 $ 414,373 - 414,373 International 387,373 44,474 431,847 595,280 - 595,280 $ 707,722 44,474 752,196 $ 1,009,653 - 1,009,653 Filters $ 452,728 - 452,728 $ 622,165 - 622,165 Components 254,994 - 254,994 387,488 - 387,488 Engineering Services - 44,474 44,474 - - - $ 707,722 44,474 752,196 $ 1,009,653 - 1,009,653 |
Schedule of Inventory | The Company’s inventory consists of finished goods and raw materials and is located in Vista, California, consisting of the following: September 30, December 31, Location : Vista, CA 2019 2018 Raw materials $ 933,579 $ 948,060 Finished goods 1,077,699 1,147,052 Inventory in transit - 10,611 Allowance for obsolete inventory (772,712) (746,045) Total $ 1,238,566 $ 1,359,678 |
Schedule of Property and Equipment | Property and equipment at September 30, 2019 and December 31, 2018 consisted of the following: September 30, December 31, 2019 2018 Production equipment $ 64,673 $ 64,673 Computers/Office equipment 28,540 28,540 Tooling equipment 12,380 12,380 Leasehold Improvements 42,451 42,451 Less: accumulated depreciation (146,099) (145,668) Total $ 1,945 $ 2,376 |
NOTE 3 - CONTRACT ASSETS AND _2
NOTE 3 - CONTRACT ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosure Text Block [Abstract] | |
Schedule of Costs in Excess of Billings | The table below reconciles the net excess billings to the amounts included in the balance sheets at those dates: September 30, December 31, 2019 2018 Contract assets $ 13,221 $ 12,772 Contract liabilities $ (75,000) $ (84,496) Net amount of contract liabilities in excess of contract assets $ (61,779) $ (71,724) |
NOTE 5 - RELATED PARTY TRANSA_2
NOTE 5 - RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Accrued Management Fees | As of September 30, 2019 and December 31, 2018 the accrued management fees consisted of the following: September 30, December 31, 2019 2018 Amounts due to the president $ 506,889 $ 399,296 Amounts due to the chief financial officer 152,576 106,807 Total $ 659,465 $ 506,103 |
NOTE 6 - NOTES PAYABLE - RELA_2
NOTE 6 - NOTES PAYABLE - RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Note Payable Related Party | As of September 30, 2019 and December 31, 2018 Note Payable – Related Party consisted of the following: September 30, December 31, 2019 2018 Note payable, related party $ 32,000 $ 15,000 Total $ 32,000 $ 15,000 |
Note 7 - CONVERTIBLE NOTE PAY_2
Note 7 - CONVERTIBLE NOTE PAYABLE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Table Text Block Supplement [Abstract] | |
Schedule of Convertible Note payable | As of September 30, 2019 and December 31, 2018 Convertible Note Payable consisted of the following: September 30, December 31, 2019 2018 Convertible note payable $ 60,000 $ 100,000 Total $ 60,000 $ 100,000 |
NOTE 8 - STOCK OPTIONS (Tables)
NOTE 8 - STOCK OPTIONS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Table Text Block Supplement [Abstract] | |
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: September 30, 2019 September 30, 2018 Expected volatility 142 % 150 % Expected dividends 0 % 0 % Expected term 7 Years 7 Years Risk-free interest rate 2.01 % 2.46 % |
Schedule of Stock Options | A summary of the status of the options granted at September 30, 2019 and December 31, 2018 and changes during the periods then ended is presented below: September 30, December 31, 2019 2018 Weighted-Average Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding at beginning of year 2,965,556 $ 0.63 2,600,556 $ 0.82 Granted 450,000 0.08 590,000 0.07 Exercised - - - - Expired or cancelled (50,000) 2.25 (225,000) 1.33 Outstanding at end of period 3,365,556 0.53 2,965,556 0.63 Exercisable 2,970,140 $ 0.56 2,556,390 $ 0.67 |
Summary of the Status of the Options | A summary of the status of the options outstanding at September 30, 2019 is presented below: Range of Exercise Prices Number Outstanding Weighted-Average Remaining Contractual Life Number Exercisable Weighted-Average Exercise Price $0.01-0.99 2,890,556 4.43 years 2,495,140 0.21 $1.00-1.99 75,000 0.43 years 75,000 1.37 $2.00-2.99 400,000 0.08 years 400,000 2.56 $0.01-2.99 3,365,556 3.83 years 2,970,140 $0.56 |
NOTE 2 - SIGNIFICANT ACCOUNTI_4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Performance Obligations (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Performance Obligations Satisfied Over Time [Member] | ||
Revenue percentage | 6.00% | 0.00% |
Performance Obligations Satisfied at a Point in Time [Member] | ||
Revenue percentage | 94.00% | 100.00% |
NOTE 2 - SIGNIFICANT ACCOUNTI_5
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES : Revenue Recognition: Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Consumer Products | $ 136,452 | $ 280,567 | $ 707,722 | $ 1,009,653 |
Long-term Contract | 0 | 0 | 44,474 | 0 |
Revenues | 123,366 | 265,999 | 739,110 | 995,085 |
Domestic | ||||
Consumer Products | 99,423 | 108,160 | 320,349 | 414,373 |
Long-term Contract | 0 | 0 | 0 | 0 |
Revenues | 99,423 | 108,160 | 320,349 | 414,373 |
International | ||||
Consumer Products | 37,029 | 172,407 | 387,373 | 595,280 |
Long-term Contract | 0 | 0 | 44,474 | 0 |
Revenues | 37,029 | 172,407 | 431,847 | 595,280 |
Filters | ||||
Consumer Products | 35,478 | 180,549 | 452,728 | 622,165 |
Long-term Contract | 0 | 0 | 0 | 0 |
Revenues | 35,478 | 180,549 | 452,728 | 622,165 |
Components | ||||
Consumer Products | 100,974 | 100,018 | 254,994 | 387,488 |
Long-term Contract | 0 | 0 | 0 | 0 |
Revenues | 100,974 | 100,018 | 254,994 | 387,488 |
Engineering Services | ||||
Consumer Products | 0 | 0 | 0 | 0 |
Long-term Contract | 0 | 0 | 44,474 | 0 |
Revenues | $ 0 | $ 0 | $ 44,474 | $ 0 |
NOTE 2 - SIGNIFICANT ACCOUNTI_6
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Text Block [Abstract] | ||
Expense for Obsolete Inventory | $ 26,667 | $ 50,000 |
NOTE 2 - SIGNIFICANT ACCOUNTI_7
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory: Schedule of Inventory (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Text Block [Abstract] | ||
Raw materials | $ 933,579 | $ 948,060 |
Finished goods | 1,077,699 | 1,147,052 |
Inventory in transit | 0 | 10,611 |
Allowance for obsolete inventory | (772,712) | (746,045) |
Total | $ 1,238,566 | $ 1,359,678 |
NOTE 2 - SIGNIFICANT ACCOUNTI_8
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Schedule of Property and Equipment (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Less: accumulated depreciation | $ (146,099) | $ (145,668) |
Total | 1,945 | 2,376 |
Production Equipment | ||
Property, Plant and Equipment, Gross | 64,673 | 64,673 |
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 ACCOUNTI_9
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Text Block [Abstract] | ||
Depreciation expense | $ 431 | $ 7,294 |
NOTE 2 - SIGNIFICANT ACCOUNT_10
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Text Block [Abstract] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,970,140 | 2,563,473 |
NOTE 2 - SIGNIFICANT ACCOUNT_11
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure Text Block [Abstract] | ||
Accrued interest and penalties | $ 0 | $ 0 |
NOTE 2 - SIGNIFICANT ACCOUNT_12
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Text Block [Abstract] | ||||||||||
Accumulated deficit | $ (20,668,696) | $ (20,668,696) | $ (20,255,507) | |||||||
Total Stockholders' Equity | (176,371) | $ 239,955 | (176,371) | $ 239,955 | $ (104,688) | $ 14,440 | 94,759 | $ 329,226 | $ 400,554 | $ 476,673 |
Total Current Assets | 1,368,228 | 1,368,228 | 1,415,429 | |||||||
Cash | 80,673 | 5,498 | 80,673 | 5,498 | 17,060 | $ 23,279 | ||||
Total Current Liabilities | 1,576,969 | 1,576,969 | $ 1,353,471 | |||||||
Working Capital | (208,741) | (208,741) | ||||||||
NET LOSS | $ (176,920) | $ (143,305) | (413,189) | (317,938) | ||||||
Net Cash Used in Operating Activities | $ (13,387) | $ (115,067) |
NOTE 3 - CONTRACT ASSETS AND _3
NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Net excess billings (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Notes to Financial Statements | ||
Contract assets | $ 13,221 | $ 12,772 |
Contract liabilities | (75,000) | (84,496) |
Net amount of contract liabilities in excess of Contract assets | $ (61,779) | $ (71,724) |
NOTE 4 - COMMITMENTS (Details)
NOTE 4 - COMMITMENTS (Details) | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Lease expiration date | Aug. 31, 2020 |
Base Rent | $ 14,161 |
Security deposit | $ 14,000 |
Rent payment description | Payment of past due rents of $89,454, as of September 1, 2019, as follows: (a) An initial payment of $22,363 on or before September 1, 2019. (b) Monthly installments of $10,000 thereafter, until such time as the past due rent has been paid in full. |
NOTE 5 - RELATED PARTY TRANSA_3
NOTE 5 - RELATED PARTY TRANSACTIONS (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts receivable - related parties | $ 18,511 | $ 6,666 |
Accounts payable - related parties | $ 143,921 | $ 145,171 |
Omnitek Peru SAC | ||
Noncontrolling Interest, Ownership Percentage by Parent | 20.00% | |
Omnitek Engineering Thailand Co Ltd | ||
Noncontrolling Interest, Ownership Percentage by Parent | 15.00% |
NOTE 5 - RELATED PARTY TRANSA_4
NOTE 5 - RELATED PARTY TRANSACTIONS : Schedule of Related Party Transactions (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Accrued management compensation | $ 659,465 | $ 506,103 |
President | ||
Accrued management compensation | 506,889 | 399,296 |
Chief Financial Officer | ||
Accrued management compensation | $ 152,576 | $ 106,807 |
NOTE 6 - NOTES PAYABLE - RELA_3
NOTE 6 - NOTES PAYABLE - RELATED PARTY TRANSACTIONS (Details) - Notes Payable Related Party - USD ($) | Oct. 11, 2019 | May 28, 2019 | Jan. 19, 2018 |
Chief Executive Officer [Member] | |||
Promissory note | $ 5,000 | $ 15,000 | |
Debt Instrument, Interest Rate During Period | 5.00% | 5.00% | |
Debt Instrument, Maturity Date | Dec. 31, 2019 | Jan. 19, 2020 | |
Board Member | |||
Promissory note | $ 12,000 | ||
Debt Instrument, Interest Rate During Period | 8.00% | ||
Debt Instrument, Maturity Date | Dec. 11, 2019 |
NOTE 6 - NOTES PAYABLE - RELA_4
NOTE 6 - NOTES PAYABLE - RELATED PARTY TRANSACTIONS: Schedule of Note Payable Related Party (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Notes to Financial Statements | ||
Note payable, related party | $ 32,000 | $ 15,000 |
Total | $ 32,000 | $ 15,000 |
NOTE 7 - CONVERTIBLE NOTE PAY_3
NOTE 7 - CONVERTIBLE NOTE PAYABLE (Details) - Secured Convertible Promissory Note - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Jun. 15, 2018 | |
Debt Instrument, Face Amount | $ 100,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |
Debt Instrument, Periodic Payment | $ 5,000 | |
Debt Instrument, Convertible, Conversion Price | $ 0.025 | |
Debt Instrument, Description | The note will automatically mature and be due and payable on the eighteen (18) month anniversary. The Company shall make principal payments under the Note in the amount of $5,000 per month | |
Debt Instrument, Convertible, Conversion Price | The Note includes a may request a portion of the principal repayment be converted and payable in restricted shares of the Company’s Common Stock at the lesser of five cents ($0.05) per share or 90% of the average closing price calculated over the prior 20 trading days, but not less than $.025 per share. |
NOTE 7 - CONVERTIBLE NOTE PAY_4
NOTE 7 - CONVERTIBLE NOTE PAYABLE: Convertible Note Payable (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Disclosure Text Block [Abstract] | ||
Convertible note payable | $ 60,000 | $ 100,000 |
Total | $ 60,000 | $ 100,000 |
NOTE 8 - STOCK OPTIONS (Details
NOTE 8 - STOCK OPTIONS (Details) - USD ($) | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 11, 2015 | Aug. 03, 2011 | |
Granted | 450,000 | 590,000 | ||||
Expense recognized for options and warrants vested | $ 42,059 | $ 32,458 | ||||
Total remaining amount of compensation expense to be recognized in future periods | $ 14,741 | |||||
Shares outstanding | 3,365,556 | 2,965,556 | 2,965,556 | 2,600,556 | ||
Warrant | ||||||
Granted | 0 | 0 | ||||
2017 Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | |||||
Shares outstanding | 750,000 | |||||
Employee Stock Option | ||||||
Granted | 250,000 | 590,000 | ||||
Employee Stock Option | 2011 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | |||||
Shares outstanding | 550,000 | |||||
Employee Stock Option | 2015 Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 | |||||
Shares outstanding | 2,065,556 |
NOTE 8 - STOCK OPTIONS _ Sched
NOTE 8 - STOCK OPTIONS : Schedule of Assumptions Used (Details) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Text Block [Abstract] | ||
Expected volatility | 142.00% | 150.00% |
Expected dividends | 0.00% | 0.00% |
Expected term | 7 years | 7 years |
Risk-free interest rate | 2.01% | 2.46% |
NOTE 8 - STOCK OPTIONS _ Schedu
NOTE 8 - STOCK OPTIONS : Schedule of Stock Options and Warrants, Activity (Details) - $ / shares | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Text Block [Abstract] | ||
Outstanding at beginning of year | 2,965,556 | 2,600,556 |
Outstanding, Weighted Average Exercise Price at beginning of year | $ 0.63 | $ 0.82 |
Granted | 450,000 | 590,000 |
Granted, Weighted Average Exercise Price | $ 0.08 | $ 0.07 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 |
Exercised, Weighted Average Exercise | $ 0 | $ 0 |
Expired or cancelled | (50,000) | (225,000) |
Expired or cancelled, Weighted Average Exercise Price | $ 2.25 | $ 1.33 |
Outstanding at end of year | 3,365,556 | 2,965,556 |
Outstanding, Weighted Average Exercise Price at end of year | $ 0.53 | $ 0.63 |
Exercisable | 2,970,140 | 2,556,390 |
Exercisable, Weighted Average Exercise Price | $ 0.56 | $ 0.67 |
NOTE 8 - STOCK OPTIONS_ Summary
NOTE 8 - STOCK OPTIONS: Summary of the Status of the Options and Warrants Outstanding (Details) | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | |
$0.01-0.99 | |
Exercise Price Range, Lower Range Limit | $ 0.01 |
Exercise Price Range, Upper Range Limit | $ 0.99 |
Number Outstanding | shares | 2,890,556 |
Weighted-Average Remaining Contractual Life | 4 years 5 months 5 days |
Number Exercisable | shares | 2,495,140 |
Weighted-Average Exercise Price | $ 0.21 |
$1.00-1.99 | |
Exercise Price Range, Lower Range Limit | 1 |
Exercise Price Range, Upper Range Limit | $ 1.99 |
Number Outstanding | shares | 75,000 |
Weighted-Average Remaining Contractual Life | 5 months 5 days |
Number Exercisable | shares | 75,000 |
Weighted-Average Exercise Price | $ 1.37 |
$2.00-2.99 | |
Exercise Price Range, Lower Range Limit | 2 |
Exercise Price Range, Upper Range Limit | $ 2.99 |
Number Outstanding | shares | 400,000 |
Weighted-Average Remaining Contractual Life | 29 days |
Number Exercisable | shares | 400,000 |
Weighted-Average Exercise Price | $ 2.56 |
$0.01-2.99 | |
Exercise Price Range, Lower Range Limit | 0.01 |
Exercise Price Range, Upper Range Limit | $ 2.99 |
Number Outstanding | shares | 3,365,556 |
Weighted-Average Remaining Contractual Life | 3 years 9 months 29 days |
Number Exercisable | shares | 2,970,140 |
Weighted-Average Exercise Price | $ 0.56 |