Omnitek Engineering Corp

Previous wording

Total cost of goods sold decreased to $561,853 in 2024 from $644,660 in 2023, for a decrease of $82,807. Gross margin was $457,873 in 2024 compared with $410,654 in 2023. Gross margin as a percentage of sales for 2024 was 45 percent compared with 39 percent in 2023.

Current wording

Total cost of goods was $897,425 in 2025 Compared with $561,853 in 2024, for an increase of $280,625. Gross margin was $552,525 in 2025 compared with $457,873 in 2024. Gross margin as a percentage of sales for 2025 was 38% compared with 45% in 2024.

Previous wording

Our operating expenses for 2024 were $606,373 compared with $606,794 in 2023, a decrease of $421, or 0.06%. General and administrative expense for 2024 was $532,721 compared with $537,473 in 2023. Major components of general and administrative expenses in 2024 were insurance expense of $63,971, rent expense of $43,038 and salary and wages of $219,981. This compares with insurance expense of $53,056, rent expense of $43,298, and salary and wages of $225,609 in 2023. Research and development outlays were $70,323 in 2024 compared with $67,576 in 2023. The increase in general and administrative expense was primarily due to increase in litigation expense.

Current wording

Our operating expenses for 2025 were $638,416 compared with $606,373 in 2024, an increase of $32,043, or 5%. General and administrative expense for 2025 was $566,152 compared with $532,721 in 2024. Major components of general and administrative expenses in 2025 were insurance expense of $69,261 rent expense of $41,720 and salary and wages of $214,825. This compares with insurance expense of $63,971 rent expense of $43,038, and salary and wages of $219,981 in 2024. Research and development outlays were $68,407 in 2025 compared with $70,323 in 2024.

Previous wording

Our net loss in 2024 was $167,137, or ($0.01) per share, compared with $215,406, or ($0.01) per share, in 2023. Additionally, operating loss for the year ended December 31, 2024 was $148,500 compared with $196,140 for the year ended December 31, 2023.

Current wording

Our net income in 2025 was $273,639, or $0.01 per share, compared with a net loss of $167,137, or ($0.01) per share, in 2024. Additionally, operating loss for the year ended December 31, 2025 was $85,891 compared with $148,500 for the year ended December 31, 2024.

Previous wording

Results for the year ended December 31, 2024 reflect non-cash expenses, including the value of options and warrants granted in the amount of $5,363 and depreciation and amortization of $3,329. For the year ended December 31, 2023, non-cash expenses included the value of options and warrants granted of $15,776, depreciation and amortization of $1,745.

Current wording

Results for the year ended December 31, 2025 reflect non-cash expenses, including the value of options and warrants granted in the amount of $4,488 and depreciation and amortization of $3,857. For the year ended December 31, 2024, non-cash expenses included the value of options and warrants granted of $5,363, depreciation and amortization of $3,329.

Previous wording

At December 31, 2024, our current liabilities totaled $2,178,041 and our current assets totaled $881,764, resulting in negative working capital of $1,296,277.

Current wording

At December 31, 2025, our current liabilities totaled $1,624,723 and our current assets totaled $663,961, resulting in negative working capital of $960,762.

Previous wording

We have historically incurred significant losses, which have resulted in a total accumulated deficit of $22,027,484 at December 31, 2024.

Current wording

We have historically incurred significant losses, which have resulted in a total accumulated deficit of $21,753,845 at December 31, 2025.

Previous wording

We realized positive cash flow from operations of $30,077 for the year ended December 31, 2024, compared with positive cash flow of $17,211 for the year ended December 31, 2023.

Current wording

We realized negative cash flow from operations of $244,348 for the year ended December 31, 2025, compared with positive cash flow of $30,077 for the year ended December 31, 2024.

Previous wording

Included in the net loss of $167,137 for the year ended December 31, 2024, are non-cash expenses, which are not a drain on our capital resources. In 2024, these non-cash expenses include the value of options and warrants granted in the amount of $5,363 and depreciation and amortization of $3,329.

Current wording

Included in the net income of $273,639 for the year ended December 31, 2025, are non-cash expenses, which are not a drain on our capital resources. In 2025, these non-cash expenses include the value of options and warrants granted in the amount of $4,488 and depreciation and amortization of $3,857.

Previous wording

The Company’s financial statements are prepared using the accrual method of accounting. 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

Current wording

The Company’s financial statements are prepared using the accrual method of accounting. 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. Areas where significant estimates are required include the following:

Previous wording

Historically, the Company has incurred net losses and negative cash flows from operations. Management believes that based on its operating plan, the projected sales, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months from the date these financial statements were issued. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. From time to time the Company has raised additional capital through the sale of equity

Current wording

Historically, the Company has incurred net losses and negative cash flows from operations. Management believes that based on its operating plan, the projected sales, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months from the date these financial statements were issued. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. From time to time the Company has raised additional capital through the sale of equity and financing activities to support its operations, and should the need arise will attempt to do so in the future,

Previous wording

Page26 and financing activities to support its operations, and should the need arise will attempt to do so in the future, however, it is uncertain whether the Company will be successful in its efforts to raise additional capital in the future, if necessary.

Current wording

Page27 however, it is uncertain whether the Company will be successful in its efforts to raise additional capital in the future, if necessary.

Previous wording

In general, revenue is recognized when a performance obligation is met. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition.

Current wording

In general, revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition.