Omnitek Engineering Corp

Previous wording

Our operating expenses for the nine months period ended September 30, 2024 were $507,839 compared with $470,358 for the same period in the prior year, an increase of $37,481 or 8%. General and administrative expense for the nine months ended September 30, 2024 was $451,716 compared with $417,848 for the same period in 2023. Major components of general and administrative expenses for the nine months ended September 30, 2024 were professional fees of $68,485, rent expense of $32,344 and salaries and wages of $171,083. This compares with professional fees of $79,647, rent expense of 32,787, and salaries and wages of $170,054 for the same period a year ago. Research and development expense was $53,758 for the nine months ended September 30, 2024 compared with $51,201 last year.

Current wording

Operating expenses for the three months ended March 31, 2025, were $151,724 compared with $144,952 for the three months ended March 31, 2024, an increase of $6,772. General and administrative expense for the three months ended March 31, 2025, was $132,451 compared with $126,045 for the three months ended March 31, 2024. Major components of general and administrative expenses for the three months ended March 31, 2025, were professional fees of $18,918, rent expense of $10,430 and salary and wages of $55,861. This compares with professional fees of $13,975, rent expense of $10,825, and salary and wages of $57,030 for the three months ended March 31, 2024. For the three months ended March 31, 2025, research and development outlays were $18,309, compared with $18,471 for the three months ended March 31, 2024.

Previous wording

Our net loss for the three-month period ended September 30, 2024 was $32,841, or ($0.00) per share, compared with a net loss of $34,717, or ($0.00) per share, for the same period a year ago.

Current wording

Our net loss for the three months ended March 31, 2025, was $26,660, or ($0.00) per share, compared with a net loss of $66,458, or ($0.00) per share, for the three months ended March 31, 2024. The decreased net loss was primarily due to an uptick in filter sales.

Previous wording

Results for the three-month period ended September 30, 2024 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $353 and depreciation and amortization of $964. For the same period in the prior year, non-cash expenses included options and warrants granted in the amount of $2,619 and depreciation and amortization of $436.

Current wording

Results for the three months ended March 31, 2025, reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $345, and depreciation and amortization of $964. For the three months period ended March 31, 2024, non-cash expenses included options and warrants granted in the amount of $1,963, and depreciation and amortization of $436.

Previous wording

At September 30, 2024, our current liabilities totaled $2,063,174 and our current assets totaled $733,846 resulting in negative working capital of $1,329,328.

Current wording

At March 31, 2025, our current liabilities totaled $2,185,534 and our current assets totaled $855,053, resulting in negative working capital of $1,330,481.

Previous wording

We have historically incurred significant losses, which have resulted in a total accumulated deficit of $22,068,002 at September 30, 2024.

Current wording

We have historically incurred significant losses, which have resulted in a total accumulated deficit of $22,054,144 at March 31, 2025.

Previous wording

We realized a negative cash flow from operations of $26,295 for the nine months period ended September 30, 2024, compared with a negative cash flow of $64,332 during the same period the prior year.

Current wording

We realized a negative cash flow from operations of $109,115 for the three months ended March 31, 2025 compared with a negative cash flow of $53,499 during the three months ended March 31, 2024.

Previous wording

Included in the operating loss of $192,029 for the nine-month period ended September 30, 2024 are non-cash expenses, which are not a drain on our capital resources. During this period, these non-cash expenses included the value of options granted in the amount of $5,010 and depreciation and amortization of $2,365. Additionally, the operating loss included general and administrative expenses of $451,716 and research and development expenses of $53,758.

Current wording

Included in the operating loss of $26,660 for the three months ended March 31, 2025, are non-cash expenses, which are not a drain on our capital resources. During the period, these non-cash expenses include the value of options and warrants granted in the amount of $345 and depreciation and amortization of $964. Additionally, the operating loss included general and administrative expenses of $132,451 and research and development expenses of $18,309.

Previous wording

We realized a $0.00 cash flow from financing activities for the nine months ended September 30, 2024 compared with positive cash flow of $15,113 for the same period the prior year. The positive cash flow for the same period in the prior year was due to proceeds from related party note payable.

Current wording

We realized $50,500 cash flow from financing activities for the three months ended March 31, 2025, compared to $0.00 cash flow for the three months ended March 31, 2024.

Previous wording

Inventories are stated at the lower of market or average cost basis. The Company reviews inventories on hand at least annually and records provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product expiration. Accordingly, the Company has established an allowance for the cost of such obsolete inventory.

Current wording

Inventories are stated at the lower of Net realizable value or average cost basis, cost determined on an average cost basis. Market value for raw materials is based on replacement costs. The Company reviews inventories on hand at least annually and records provisions for estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product expiration. Accordingly, the Company has established an allowance for the cost of such obsolete inventory.

Previous wording

The Company assesses the recoverability of its long-lived assets annually and whenever circumstances indicate that there may be an impairment. The Company compares the estimated undiscounted future cash flows to the carrying value of the long-lived assets to determine if impairment has occurred. In the event that impairment has occurred, the Company recognizes the impairment immediately.

Current wording

The Company assesses the recoverability of its long-lived assets annually and whenever circumstances indicate that there may be an impairment. The Company compares the estimated undiscounted future cash flows to the carrying value of the long-lived assets to determine if an impairment has occurred. In the event that an impairment has occurred, the Company recognizes the impairment immediately.

Previous wording

Products - The Company recognizes revenue from the sale of products as performance obligations are satisfied. Those sales predominantly contain a single delivery element, and revenue is recognized at a single point in time when ownership and risks transfer (i.e. the performance obligation has been satisfied). In general, ownership and risk passes FOB shipping point, or as negotiated.

Current wording

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 products 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. Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Control passes FOB shipping point.