Omnitek Engineering Corp. Files Q2 2025 10-Q Report

TL;DR

Omnitek Engineering Corp. filed its 10-Q for Q2 2025, check it for the latest financials.

AI Summary

Omnitek Engineering Corp. filed its quarterly report on Form 10-Q for the period ending June 30, 2025. The filing details the company's financial performance and position as of that date. Key financial data and operational updates are provided within this report.

Why It Matters

This filing provides investors and stakeholders with the latest financial snapshot of Omnitek Engineering Corp., crucial for understanding the company's performance and making informed investment decisions.

Risk Assessment

Risk Level: low — This is a standard quarterly financial filing (10-Q) and does not inherently contain new high-risk information.

Key Players & Entities

• Omnitek Engineering Corp. (company) — Filer of the 10-Q report
• 20250630 (date) — End of the reporting period
• 20250819 (date) — Date of filing
• 760-591-0089 (phone_number) — Company business phone number

FAQ

Filing Documents

• omtk-20250630_10q.htm (10-Q) — 544KB
• omtk_ex31z1.htm (EX-31.1) — 8KB
• omtk_ex31z2.htm (EX-31.2) — 8KB
• omtk_ex32.htm (EX-32) — 6KB
• 0001096906-25-001378.txt ( ) — 3324KB
• omtk-20250630_cal.xml (EX-101.CAL) — 28KB
• omtk-20250630_def.xml (EX-101.DEF) — 73KB
• omtk-20250630_lab.xml (EX-101.LAB) — 181KB
• omtk-20250630_pre.xml (EX-101.PRE) — 169KB
• omtk-20250630.xsd (EX-101.SCH) — 40KB
• omtk-20250630_10q_htm.xml (XML) — 504KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 3 Condensed Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024 3 Condensed Statements of Operations for the three and six months ended June 30, 2025 and June 30, 2024 (unaudited) 4 Condensed Statements of Cash Flows for the six months ended June 30, 2025 and June 30, 2024 (unaudited) 5 Condensed Statements of Stockholders' Deficit for the three and six months ended June 30, 2025 and June 30, 2024 (unaudited) 6 Notes to the Unaudited Condensed Financial Statements 7

Management's Discussion and Analysis of the Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of the Financial Condition and Results of Operations 17

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 20

Controls and Procedures

Item 4. Controls and Procedures 21

- OTHER INFORMATION

PART II - OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 22

Risk Factors

Item 1A. Risk Factors 22

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 22

Mine Safety Disclosure

Item 4. Mine Safety Disclosure 22

Other Information

Item 5. Other Information 23

Exhibits

Item 6. Exhibits 24 Page 2 PART I FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS OMNITEK ENGINEERING CORP. Condensed Balance Sheets June 30, 2025 December 31, 2024 (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash $ 32,636 $ 104,445 Accounts receivable, net 3,654 11,075 Accounts receivable – related parties 13,089 3,088 Inventories , net 325,861 267,616 Deposits 337,136 495,540 Total Current Assets 712,376 881,764 Property & Equipment, net 6,744 8,673 LONG-TERM ASSETS Operating lease – right-of-use asset 143,358 212,504 Long-term deposit 13,514 13,514 Total Long-Term Assets 156,872 226,018 TOTAL ASSETS $ 875,992 $ 1,116,455 LIABILITIES AND STOCKHOLDERS' DEFICIT CURRENT LIABILITIES Accounts payable and accrued expenses $ 263,323 $ 334,223 Accrued management compensation 635,734 636,311 Accounts payable - related parties 140,516 139,834 Notes payable - related parties 101,940 44,940 Convertible notes payable – related party 10,000 10,000 Customer deposits 598,327 845,272 Operating lease liabilities - current 171,641 167,461 Total Current Liabilities 1,921,481 2,178,041 LONG-TERM LIABILITIES Loans payable – SBA, net of current portion 199,000 199,000 Operating lease liabilities – long-term - 86,878 Total Long-term Liabilities 199,000 285,878 Total Liabilities 2,120,481 2,463,919 STOCKHOLDERS' DEFICIT Common stock, 125,000,000 shares authorized; no par value; 21,948,091 and 21,948,091 shares, respectively issued and outstanding 8,607,086 8,607,086 Additional paid-in capital 12,076,716 12,072,934 Accumulated deficit ( 21,928,291 ) ( 22,027,484 ) Total Stockholders' Deficit ( 1,244,489 ) ( 1,347,464 ) TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 875,992 $ 1,116,455 The accompanying notes are an integral part of these financial statements. Page 3 OMNITEK ENGINEERING CORP. Condensed Statements of Operations (unaudited) For the Three For the Three For the Six

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) NOTE 1 – ORGANIZATION AND BUSINESS ACTIVITY Omnitek Engineering, Corp. ("Omnitek" or "the Company") was incorporated on October 9, 2001 under the laws of the State of California. Omnitek develops and sells proprietary technology to convert diesel engines to an alternative fuel, new alternative fuel engines, and complementary products. Omnitek products are available for stationary applications and the global transportation markets – including light commercial vehicles, buses, heavy-duty trucks, as well as rail and marine applications. The technology can be applied for compressed natural gas ("CNG"), liquefied natural gas ("LNG"), renewable natural gas ("Biogas" or "RNG"), or Hydrogen ("H2"), as well as liquid petroleum gas ("Propane" or LPG"). Omnitek began operations on October 10, 2001, and was a spin-off from Nology Engineering, Inc. NOTE 2 - CONDENSED FINANCIAL STATEMENTS The accompanying condensed 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, 2025 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, 2024 audited financial statements. The results of operations for the periods ended June 30, 2025 and June 30, 2024 are not necessarily indicative of the operating results for the full years. NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES Accounting Methods The Company's financial statements are prepared

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (Continued) We recognize revenue on various products and services as follows: Products - The Company recognizes revenue from the sale of products as performance obligations are satisfied. This type of revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation has been satisfied). Control passes FOB shipping point, or as negotiated. 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. 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. Assurance-type warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant. Disaggregation of Revenue The following table presents Omnitek's revenues disaggregated by region and product type: For the three months ended June 30, 2025 For the three months ended June 30, 2024 Seg

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (Continued) 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: Location : Vista, CA June 30, December 31, 2025 2024 Raw materials $ 812,397 $ 841,054 Finished goods 539,581 434,611 Total $ 1,351,978 $ 1,275,665 Allowance for obsolete inventory Opening allowance 1,008,049 922,878 Allowance (Reversal) for the Year 18,068 85,171 Closing allowance 1,026,117 1,008,049 Total $ 325,861 $ 267,616 The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $ 18,068 and $ 85,171 , for the periods ended June 30, 2025, and December 31, 2024, respectively. Property and Equipment Property and equipment at June 30, 2025 and December 31, 2024 consisted of the following: June 30, December 31, 2025 2024 Production/Office equipment $ 74,792 $ 74,792 Leasehold Improvements 4,689 4,689 Less: accumulated depreciation ( 72,737 ) ( 70,808 ) Total $ 6,744 $ 8,673 Depreciation expense for the periods ended June 30, 2025 and June 30, 2024 was $ 1,928 and $ 1,401 respectively. Leases ASC 842 supersedes the lease requirements in ASC 840 "Leases" and generally requires lessees to recognize operating and finance lease liabilities and corresponding right-of-use ("ROU") assets on the balance sheet and to provide enhanced disclosures surrounding the amount, timing and uncertainty of cash flows arising from leasing arrangements. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term.

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (Continued) The Company determines the present value of minimum future lease payments for operating leases by estimating a rate of interest that it would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments and a similar economic environment (the "incremental borrowing rate" or "IBR").The Company determines the appropriate IBR by identifying a reference rate and making adjustments that take into consideration financing options and certain lease-specific circumstances. The Company's lease consists of an operating lease for general office space and warehouse facilities. The Company recognizes rent expense for this lease on a straight-line basis over the lease term. Because the lease does not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease Commencement Date in determining the present value of future lease payments. 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 1,900,000 and 2,340,000 stock options and warrants that would have been included in the fully diluted earnings per share as of June 30, 2025 and June 30, 2024, respectively. However, the common stock equivalents were not included in the 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

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (Continued) Stock-based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. Liquidity and Going Concern Historically, the Company has incurred net losses and negative cash flows from operations. As of June 30, 2025, the Company had an accumulated deficit of $ 21,928,291 and total stockholders' deficit of $ 1,244,489 . At June 30, 2025, the Company had current assets of $ 712,376 including cash of $ 32,636 , and current liabilities of $ 1,921,481 , resulting in negative working capital of $ 1,209,105 . For the six months ended June 30, 2025, the Company reported net income of $ 99,193 and net cash used in operating activities of $ 128,809 . Management believes that based on its operating plan, the projected sales for 2025, 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 substantial doubt upon the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements. Our financial statements have been prepared on a going concern basis, which assumes the real

Notes to Financial Statements

Notes to Financial Statements June 30, 2025 (unaudited) NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES (Continued) In December 2023, the FASB issued ASU 2023-09," Income Taxes (Topic 740): Improvements to Income Tax Disclosures", which amends the disclosure to address investor requests for more transparency about income tax information through improvements to income tax disclosures primarily related to the rate reconciliation and income taxes paid information and includes certain other amendments to improve the effectiveness of income tax disclosures. For entities other than public business entities, the requirements will be effective for annual periods beginning after December 15, 2025. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. The Company is currently assessing potential impacts of ASU 2023-09 and does not expect the adoption of this guidance will have a material impact on its financial statements and disclosures and the Company is in a loss position and not incurring any tax expenses. NOTE 4 – CUSTOMER DEPOSITS The customers deposit account relates to payments received from customers before product has been shipped. When the product is shipped the Company recognizes the associated revenue by reclassifying the customer deposit to the appropriate revenue account. For the periods ended June 30, 2025 and December 31, 2024, the balance due under customer deposits was $ 598,327 and $ 845,272 , respectively. NOTE 5 – OPERATING LEASE The Company's leases consist of an operating lease fo

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