Condensed Balance Sheets - Parenthetical - $ / shares |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Details | ||
| Common Stock, Shares Authorized | 125,000,000 | 125,000,000 |
| Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
| Common Stock, Shares, Issued | 21,600,189 | 21,600,189 |
| Common Stock, Shares, Outstanding | 21,600,189 | 21,600,189 |
Condensed Statements of Operations (unaudited) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
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| Details | ||||
| Revenues | $ 228,307 | $ 203,967 | $ 446,420 | $ 434,904 |
| COST OF GOODS SOLD | 161,572 | 144,860 | 290,883 | 279,980 |
| GROSS MARGIN | 66,735 | 59,107 | 155,537 | 154,924 |
| OPERATING EXPENSES | ||||
| General and administrative | 132,424 | 168,786 | 298,877 | 354,750 |
| Research and development | 17,099 | 17,547 | 33,555 | 49,686 |
| Depreciation and amortization | 136 | 136 | 271 | 271 |
| Total Operating Expenses | 149,659 | 186,469 | 332,703 | 404,707 |
| LOSS FROM OPERATIONS | (82,924) | (127,362) | (177,166) | (249,783) |
| OTHER INCOME (EXPENSE) | ||||
| Other Income | 67 | 274 | 67 | 874 |
| Gain on extinguishment of liability | 0 | 0 | 100,655 | 0 |
| Interest expense | (5,524) | (5,409) | (12,332) | (10,293) |
| Total Other Income (Expense) | (5,457) | (5,135) | 88,390 | (9,419) |
| LOSS BEFORE INCOME TAXES | (88,381) | (132,497) | (88,776) | (259,202) |
| INCOME TAX EXPENSE | 800 | 0 | 800 | 0 |
| NET LOSS | $ (89,181) | $ (132,497) | $ (89,576) | $ (259,202) |
| BASIC AND DILUTED LOSS PER SHARE | $ (0.00) | $ (0.01) | $ (0.00) | $ (0.01) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING -BASIC AND DILUTED | 21,600,189 | 21,339,865 | 21,600,189 | 21,339,865 |
NOTE 1 - CONDENSED FINANCIAL STATEMENTS |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Notes | |
| NOTE 1 - CONDENSED FINANCIAL STATEMENTS | NOTE 1 - 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, 2021 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, 2020 audited financial statements. The results of operations for the periods ended June 30, 2021 and 2020 are not necessarily indicative of the operating results for the full years.
In December 2019, a novel strain of coronavirus disease (“COVID-19”) was first reported in Wuhan, China. Less than four months later, on March 11, 2020, the World Health Organization declared COVID-19 a pandemic. The extent of COVID-19’s impact on the Company’s operational and financial performance will depend on future developments, including the duration, spread and intensity of the pandemic, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. As a result, it is not currently possible to ascertain the overall impact of COVID-19 on the Company’s business. However, if the pandemic continues to evolve into a severe worldwide health crisis, the disease could have a material adverse effect on the Company’s business, results of operations, financial condition and cash flows. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES |
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| 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
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. We recognize revenue on various products and services as follows: Products - The Company recognizes revenue from the sale of products (e.g., filters and engine components) 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).
Contracts – Revenues are recognized as performance obligations are satisfied over time (also known as percentage-of-completion method), measured by either achievement of milestones or the ratio of costs incurred up to a given date to estimated total costs for each contract. Contract costs include all direct material, labor, subcontract and other costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, estimated profitability and associated change orders and
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
claims, including those changes arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined.
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 0% and 0% of revenue for the periods ended June 30, 2021 and 2020, 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 100% and 100% of revenue for the periods ended June 30, 2021 and 2020, 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.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Disaggregation of Revenue
The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended June 30, 2021 and June 30, 2020:
The following table presents Omnitek’s revenues disaggregated by region and product type for the six months ended June 30, 2021 and June 30, 2020:
NOTE 2 – 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:
The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $50,542 and $50,053, for the periods ended June 30, 2021 and June 30, 2020, respectively.
Property and Equipment
Property and equipment at June 30, 2021 and December 31, 2020 consisted of the following:
Depreciation expense for the periods ended June 30, 2021 and June 30, 2020 was $271 and $271, 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 3,023,889 and 2,807,223 stock options that would have been included in the fully diluted earnings per share as of June 30, 2021 and June 30, 2020, 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.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.
The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of June 30, 2021 and December 31, 2020 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 June 30, 2021, the Company had an accumulated deficit of $21,555,217 and total stockholders’ deficit of $(949,835). At June 30, 2021, the Company had current assets of $867,014 including cash of $20,652, and current liabilities of $1,533,588, resulting in negative working capital of $(666,574). For the six months ended June 30, 2021, the Company reported a net loss of $89,576 and net cash used in operating activities of $189,751. Management believes that based on its operating plan, the projected sales for 2021, 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 for one year from the issuance of these financial statements. 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.
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. |
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NOTE 3 - CONTRACT ASSETS AND LIABILITIES |
6 Months Ended | ||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||
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| 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:
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NOTE 4 - COMMITMENTS |
6 Months Ended |
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Jun. 30, 2021 | |
| Notes | |
| 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 the lease expired. The current lease payment is $14,161 per month, plus common area maintenance expenses (CAM). Under the amended lease, past due rent is payable at monthly installments of $10,000, until such time as the past due rent has been paid in full. The lease is not subject to the right-of-use asset rules under ASU 2016-2 because it qualifies for the short-term lease exception under that pronouncement.
As of June 30, 2021 the outstanding balance of back rent, included in accounts payable, was $42,529 and the security deposit of $14,000 remained the same. In agreement with the landlord, the Company vacated the premises effective July 15, 2021. See Note 9 regarding the lease entered into by the Company effective July 1, 2021. |
NOTE 5 - RELATED PARTY TRANSACTIONS |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||
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| NOTE 5 - RELATED PARTY TRANSACTIONS | NOTE 5 - RELATED PARTY TRANSACTIONS
Accounts Receivable – Related Parties As of June 30, 2021 and December 31, 2020, the Company was owed $18,553 (net of allowance for doubtful accounts of $6,714) and $17,345, respectively, by an entity controlled by the Company’s CEO for the purchase of products and services.
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 June 30, 2021 and December 31, 2020, the Company owed a board member’s company for such expenses, goods and services in the amounts of $128,552 and $121,527, respectively.
Accrued Management Compensation For the periods ended June 30, 2021 and December 31, 2020, the Company’s president was due amounts for services performed for the Company.
As of June 30, 2021 and December 31, 2020 the accrued management fees consisted of the following:
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NOTE 6 - NOTES PAYABLE - RELATED PARTY |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| NOTE 6 - NOTES PAYABLE - RELATED PARTY | NOTE 6 – NOTES PAYABLE - RELATED PARTIES
Convertible Notes – Related Parties
On June 4, 2021 the Company issued a convertible promissory note for $30,000 to its CEO. The note has an annual interest rate of 8% and is unsecured. The note calls for monthly installment payments of $1,050 commencing on July 4, 2021. The unpaid principal amount of the note and all unpaid accrued interest is due and payable on or before June 4, 2023. The note has a conversion feature, wherein, at the maturity date the lender may convert the remaining principal balance and any unpaid accrued interest into shares of the Company’s common stock. The number of shares of common stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the remaining unpaid principal balance and any unpaid accrued interest of this note by (ii) 90% of the average closing price of the common stock of the Company, for the five (5) trading days (between days 15 and 10 days) before the maturity date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 “Derivatives and Hedging.” As the note isn’t convertible until maturity, no derivative liability was recognized as of June 30, 2021.
On June 4, 2021 the Company issued a convertible promissory note for $20,000 to a board member. The note has an annual interest rate of 8% and is unsecured. The principal amount of the note and all accrued interest is due and payable on or before December 4, 2021. The note has a conversion feature, wherein, at the maturity date the lender may convert the remaining principal balance and any unpaid accrued interest into shares of the Company’s common stock. The number of shares of common stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the remaining unpaid principal balance and any unpaid accrued interest of this note by (ii) 90% of the average closing price of the common stock of the Company, for the five (5) trading days (between days 15 and 10 days) before the maturity date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 “Derivatives and Hedging.” As the note isn’t convertible until maturity, no derivative liability was recognized as of June 30, 2021. As of June 30, 2021 and December 31, 2020 Convertible Notes – Related Party consisted of the following:
Notes Payable – Related Parties
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, 2022. As of June 30, 2021 and December 31, 2020 Notes Payable – Related Party consisted of the following:
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NOTE 7 - DEBT |
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| NOTE 7 - DEBT | NOTE 7 – DEBT
Loans payable – SBA
Economic Injury Disaster Loan
On April 21, 2020, the Company obtained a loan (the “SBA EIDL Loan”) under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) adminitstered by the U.S. Small Business Administration. The Company received total proceeds of $199,000 from the SBA EIDL loan.
The SBA EIDL Loan is evidenced by a Loan Authorization and Agreement, a Secured Promissory Note (the “Note” and Security Agreement. Interest on the unpaid principal balance of the Note shall accrue at the rate of three and 75/100 percent (3.75%) per annum. Pursuant to the terms of the Note, commencing May 21, 2021 (i.e., twelve (12) months from the Note date), the Company shall make principal and interest payments in the amount of $970 every month, with any unpaid principal and accrued interest due and payable on April 21, 2050. In April 2021, the SBA announced that they were extending the first payment due date for all loans until 2022. For COVID-19 EIDL loans made in calendar year 2020, the first payment due date is extended until 24 months from the date of the note. The obligations under the Loan Authorization and Agreement, and the Note shall be secured pursuant to the Security Agreement and a first position lien and security interest in the Collateral (as defined in the Security Agreement). The collateral in which the security interest is granted includes all tangible and intangible personal property, including, but not limited to: (a) inventory, and (b) equipment.
Payroll Protection Program
On May 28, 2020, the Company received funds pursuant to a Paycheck Protection Program loan (the “SBA PPP Loan”) from Riverview Bank, under recently enacted CARES Act administered by U.S. Small Business Administration. The Company received total proceeds of $100,000 from the SBA PPP Loan. In accordance with the requirements of the CARES Act, the Company will use proceeds from the SBA PPP Loan primarily for payroll costs. The SBA PPP Loan was scheduled to mature on May 22, 2022 but allowed for forgiveness if certain conditions were met. On January 30, 2021, the Company was notified by the SBA that the loan had been forgiven in its entirety, including outstanding principal of $100,000 and accrued interest of $655.
On March 3, 2021 the Company received funds pursuant to a Paycheck Protection Program loan (the “PPP loan”) from LIBERTY CP2, SPV, LP, under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) administered by the SBA. The Company received total proceeds of $100,000 from the PPP loan. The loan carried an interest rate of 1.00%. Pursuant to the terms of the note, the first payment shall be determined based on the deferment period and time required to process any application for forgiveness. The Note shall be due on March 1, 2026, or as determined by the SBA and Department of the Treasury.
As of June 30, 2021, and December 31, 2020 Debt consisted of the following:
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NOTE 8 - STOCK OPTIONS AND WARRANTS |
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| NOTE 8 - STOCK OPTIONS AND WARRANTS | NOTE 8 - STOCK OPTIONS
During the six months ended June 30, 2021 and 2020, the Company granted 400,000 and 150,000 options for services, respectively. During the six months ended June 30, 2021 and 2020, the Company recognized expense of $13,874 and $12,078, respectively, for options that vested during the periods pursuant to ASC Topic 718. Total remaining amount of compensation expense to be recognized in future periods is $27,983.
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 June 30, 2021 the Company has a total of 75,000 options issued under the 2011 Plan. 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 June 30, 2021 the Company has a total of 1,915,556 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 June 30, 2021, the Company has a total of 1,008,333 options issued under the 2017 Plan.
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:
NOTE 8 - STOCK OPTIONS (CONTINUED)
A summary of the status of the options granted at June 30, 2021 and December 31, 2020 and changes during the periods then ended is presented below:
A summary of the status of the options outstanding at June 30, 2021 is presented below:
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NOTE 9 - SUBSEQUENT EVENT |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Notes | |
| NOTE 9 - SUBSEQUENT EVENT | NOTE 9 - SUBSEQUENT EVENTS
Effective July 1, 2021, the Company entered into a lease for the premises located at 1345 Specialty Drive, Vista, California, consisting of Suites D & E, containing approximately 11,751 square feet of rentable area. The lease commences July 1, 2021 and expires on June 30, 2026. The monthly base rent under the lease is $9,988 per month and monthly operating expenses during the term of the lease, subject to adjustment per the lease, of $1,175 per month. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Policies | |
| Use of Estimates | Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Revenue Recognition | Revenue Recognition
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. We recognize revenue on various products and services as follows: Products - The Company recognizes revenue from the sale of products (e.g., filters and engine components) 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).
Contracts – Revenues are recognized as performance obligations are satisfied over time (also known as percentage-of-completion method), measured by either achievement of milestones or the ratio of costs incurred up to a given date to estimated total costs for each contract. Contract costs include all direct material, labor, subcontract and other costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, estimated profitability and associated change orders and
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
claims, including those changes arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income and are recognized in the period in which the revisions are determined.
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 0% and 0% of revenue for the periods ended June 30, 2021 and 2020, 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 100% and 100% of revenue for the periods ended June 30, 2021 and 2020, 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.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Disaggregation of Revenue
The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended June 30, 2021 and June 30, 2020:
The following table presents Omnitek’s revenues disaggregated by region and product type for the six months ended June 30, 2021 and June 30, 2020:
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
| Policies | |||||||||||||||||||||||||||||||||||||||||||
| Inventory | Inventory
Inventory is stated at the lower of cost or market. The Company’s inventory consists of finished goods and raw material and is located in Vista, California, consisting of the following:
The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $50,542 and $50,053, for the periods ended June 30, 2021 and June 30, 2020, respectively. |
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Policies | |||||||||||||||||||||||||||||||||||||||||||||||||
| Property and Equipment | Property and Equipment
Property and equipment at June 30, 2021 and December 31, 2020 consisted of the following:
Depreciation expense for the periods ended June 30, 2021 and June 30, 2020 was $271 and $271, respectively. |
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Policies | |
| 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 3,023,889 and 2,807,223 stock options that would have been included in the fully diluted earnings per share as of June 30, 2021 and June 30, 2020, respectively. However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti-dilutive. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Policies | |
| 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.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.
The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of June 30, 2021 and December 31, 2020 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. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Policies | |
| Liquidity and Going Concern | Liquidity and Going Concern
Historically, the Company has incurred net losses and negative cash flows from operations. As of June 30, 2021, the Company had an accumulated deficit of $21,555,217 and total stockholders’ deficit of $(949,835). At June 30, 2021, the Company had current assets of $867,014 including cash of $20,652, and current liabilities of $1,533,588, resulting in negative working capital of $(666,574). For the six months ended June 30, 2021, the Company reported a net loss of $89,576 and net cash used in operating activities of $189,751. Management believes that based on its operating plan, the projected sales for 2021, 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 for one year from the issuance of these financial statements. 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. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies) |
6 Months Ended |
|---|---|
Jun. 30, 2021 | |
| Policies | |
| 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 ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Tables) |
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregation of Revenue | The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended June 30, 2021 and June 30, 2020:
The following table presents Omnitek’s revenues disaggregated by region and product type for the six months ended June 30, 2021 and June 30, 2020:
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory: Schedule Of Inventory Current (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Inventory Current |
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||
| Property Plant And Equipment |
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NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||
| Long-Term Contract or Program Disclosure |
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NOTE 5 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||
| Schedule Of Related Party Transactions Table |
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NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||
| Schedule of Convertible Notes - Related Parties |
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NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||
| Schedule Of Notes Payable Related Party table |
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NOTE 7 - DEBT: Schedule of Debt (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Debt | As of June 30, 2021, and December 31, 2020 Debt consisted of the following:
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NOTE 8 - STOCK OPTIONS AND WARRANTS: The following table presents the assumptions used to estimate the fair values of the stock options granted (Tables) |
6 Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||
| The following table presents the assumptions used to estimate the fair values of the stock options granted |
The following table presents the assumptions used to estimate the fair values of the stock options granted:
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NOTE 8 - STOCK OPTIONS AND WARRANTS: Schedule Of Share Based Compensation Stock Options Activity (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule Of Share Based Compensation Stock Options Activity |
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NOTE 8 - STOCK OPTIONS AND WARRANTS: Summary of the Status of the Options (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2021 | |||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||
| Summary of the Status of the Options |
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Details) |
3 Months Ended | |
|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
| Transferred over Time | ||
| Concentration Risk, Percentage | 0.00% | 0.00% |
| Transferred at Point in Time | ||
| Concentration Risk, Percentage | 100.00% | 100.00% |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||
|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
| Geographic Distribution, Domestic | ||||
| Products | $ 101,088 | $ 187,810 | $ 233,869 | $ 366,037 |
| Contract | 0 | 0 | 0 | 0 |
| Revenues | 101,088 | 187,810 | 233,869 | 366,037 |
| Geographic Distribution, Foreign | ||||
| Products | 127,220 | 16,157 | 212,551 | 68,867 |
| Contract | 0 | 0 | 0 | 0 |
| Revenues | 127,220 | 16,157 | 212,551 | 68,867 |
| Filters | ||||
| Products | 106,051 | 52,001 | 210,407 | 163,942 |
| Contract | 0 | 0 | 0 | 0 |
| Revenues | 106,051 | 52,001 | 210,407 | 163,942 |
| Components | ||||
| Products | 122,257 | 151,966 | 227,543 | 270,962 |
| Contract | 0 | 0 | 0 | 0 |
| Revenues | 122,257 | 151,966 | 227,543 | 270,962 |
| Engineering Services | ||||
| Products | 0 | 0 | 8,470 | 0 |
| Contract | 0 | 0 | 0 | 0 |
| Revenues | 0 | 0 | 8,470 | 0 |
| Products | 228,307 | 203,967 | 446,420 | 434,904 |
| Contract | 0 | 0 | 0 | 0 |
| Revenues | $ 228,307 | $ 203,967 | $ 446,420 | $ 434,904 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory: Schedule Of Inventory Current (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Details | ||
| Raw materials | $ 849,473 | $ 917,567 |
| Finished goods | 884,145 | 962,608 |
| Work in progress | 0 | 0 |
| Allowance for obsolete inventory | (969,354) | (1,058,309) |
| Inventory Net | $ 764,264 | $ 821,866 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
| Details | ||
| Inventory Reserve Adjustment | $ 50,542 | $ 50,053 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Details) - USD ($) |
Jun. 30, 2021 |
Jun. 30, 2020 |
|---|---|---|
| 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 |
| Land and Land Improvements | ||
| Property Plant And Equipment Gross | 42,451 | 42,451 |
| Property Plant And Equipment Gross | 995 | 1,266 |
| Less: accumulated depreciation | $ (147,049) | $ (146,778) |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details) - USD ($) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
| Details | ||
| Depreciation | $ 271 | $ 271 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Details) - shares |
3 Months Ended | |
|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
| Details | ||
| Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,023,889 | 2,807,223 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Mar. 31, 2021 |
Jun. 30, 2020 |
Mar. 31, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
|
| Details | |||||||
| Accumulated deficit | $ 21,555,217 | $ 21,555,217 | $ 21,465,641 | ||||
| Total Stockholders' Deficit | (949,835) | (949,835) | (874,133) | ||||
| Total Current Assets | 867,014 | 867,014 | 961,226 | ||||
| Cash | 20,652 | 20,652 | 60,729 | ||||
| Total Current Liabilities | 1,533,588 | 1,533,588 | $ 1,621,456 | ||||
| Working Capital | (666,574) | (666,574) | |||||
| NET LOSS | $ 89,181 | $ 395 | $ 132,497 | $ 126,705 | 89,576 | $ 259,202 | |
| Net Cash Used in Operating Activities | $ 189,751 | $ 201,204 | |||||
NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Details | ||
| Contract assets | $ 13,221 | $ 13,221 |
| Contract liabilities | (75,000) | (75,000) |
| Net amount of contract liabilities in excess of contract assets | $ (61,779) | $ (61,779) |
NOTE 4 - COMMITMENTS (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2021
USD ($)
| |
| Details | |
| Lease Expiration Date | Aug. 31, 2020 |
| Operating Lease, Payments | $ 14,161 |
| Other Commitment | 42,529 |
| Security Deposit | $ 14,000 |
NOTE 5 - RELATED PARTY TRANSACTIONS (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Details | ||
| Accounts Receivable, Related Parties, Current | $ 18,553 | $ 17,345 |
| Accounts Receivable, Allowance for Credit Loss | 6,714 | |
| Accounts payable - related parties | $ 128,552 | $ 121,527 |
NOTE 5 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
Jun. 30, 2020 |
|---|---|---|---|
| President | |||
| Accrued management compensation | $ 611,888 | $ 595,158 | |
| Accrued management compensation | $ 611,888 | $ 595,158 | $ 595,158 |
NOTE 6 - NOTES PAYABLE - RELATED PARTY (Details) - USD ($) |
6 Months Ended | ||
|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2021 |
Dec. 31, 2020 |
|
| Convertible Note payable, related parties | $ 50,000 | $ 50,000 | $ 0 |
| Debt Instrument, Interest Rate During Period | 5.00% | ||
| Debt Conversion, Original Debt, Amount | $ 15,000 | ||
| Chief Executive Officer | |||
| Convertible Note payable, related parties | $ 30,000 | 30,000 | |
| Debt Instrument, Interest Rate During Period | 8.00% | ||
| Board Member | |||
| Convertible Note payable, related parties | $ 20,000 | $ 20,000 | |
| Debt Instrument, Interest Rate During Period | 8.00% |
NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Details | ||
| Convertible Note payable, related parties | $ 50,000 | $ 0 |
| Convertible notes payable - related party | (32,600) | 0 |
| Convertible note payable - related party, net of current portion | $ 17,400 | $ 0 |
NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| Details | ||
| Note payable - related party | $ 15,000 | $ 15,000 |
| Notes Payable, Related Parties | $ 15,000 | $ 15,000 |
NOTE 7 - DEBT (Details) - USD ($) |
6 Months Ended | 14 Months Ended | ||||
|---|---|---|---|---|---|---|
Mar. 03, 2021 |
May 28, 2020 |
Jun. 30, 2021 |
Jun. 30, 2020 |
Jun. 30, 2021 |
Jan. 30, 2021 |
|
| Proceeds from loans payable - SBA | $ 100,000 | $ 299,000 | ||||
| SBA EIDL Loan | ||||||
| Proceeds from loans payable - SBA | $ 199,000 | |||||
| Debt Instrument, Interest Rate, Effective Percentage | 3.75% | 3.75% | ||||
| Interest Expense, Debt | $ 970 | |||||
| Debt Instrument, Maturity Date | Apr. 21, 2050 | |||||
| SBA PPP Loan | ||||||
| Proceeds from loans payable - SBA | $ 100,000 | |||||
| Debt Instrument, Maturity Date | May 22, 2022 | |||||
| Debt Instrument, Face Amount | $ 100,000 | |||||
| Interest Payable, Current | $ 655 | |||||
| PPP Loan | ||||||
| Proceeds from loans payable - SBA | $ 100,000 | |||||
| Debt Instrument, Interest Rate, Effective Percentage | 1.00% | |||||
NOTE 7 - DEBT: Schedule of Debt (Details) - USD ($) |
Jun. 30, 2021 |
Dec. 31, 2020 |
|---|---|---|
| SBA EIDL Loan | ||
| Loans Payable | $ 198,674 | $ 199,000 |
| SBA PPP Loan | ||
| Loans Payable | 100,000 | 100,000 |
| Loans Payable, Current | (4,024) | (69,551) |
| Loans Payable, Noncurrent | $ 243,026 | $ 229,449 |
NOTE 8 - STOCK OPTIONS AND WARRANTS (Details) - USD ($) |
6 Months Ended | 12 Months Ended | |||||
|---|---|---|---|---|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
Oct. 01, 2017 |
Sep. 11, 2015 |
Aug. 03, 2011 |
|
| Granted | 400,000 | 150,000 | |||||
| Options issued for services | $ 13,874 | $ 12,078 | |||||
| Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 27,983 | ||||||
| Outstanding | 3,290,556 | 2,890,556 | 2,940,556 | ||||
| Employee Stock Option | |||||||
| Granted | 400,000 | 150,000 | |||||
| Employee Stock Option | 2011 Long Term Incentive Plan | |||||||
| Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,000,000 | ||||||
| Outstanding | 75,000 | ||||||
| Employee Stock Option | 2015 Long Term Incentive Plan | |||||||
| Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 2,500,000 | ||||||
| Outstanding | 1,915,556 | ||||||
| Employee Stock Option | 2017 Long Term Incentive Plan | |||||||
| Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 5,000,000 | ||||||
| Outstanding | 1,008,333 | ||||||
NOTE 8 - STOCK OPTIONS AND WARRANTS: The following table presents the assumptions used to estimate the fair values of the stock options granted (Details) |
6 Months Ended | |
|---|---|---|
Jun. 30, 2021 |
Jun. 30, 2020 |
|
| Details | ||
| Expected volatility | 201.00% | 159.00% |
| Expected dividends | 0.00% | 0.00% |
| Expected term | 7 years | 7 years |
| Risk-free interest rate | 1.20% | 0.60% |
NOTE 8 - STOCK OPTIONS AND WARRANTS: Schedule Of Share Based Compensation Stock Options Activity (Details) - $ / shares |
6 Months Ended | 12 Months Ended | |
|---|---|---|---|
Jun. 30, 2021 |
Dec. 31, 2020 |
Dec. 31, 2019 |
|
| Details | |||
| Outstanding | 3,290,556 | 2,890,556 | 2,940,556 |
| Outstanding, Weighted Average Exercise Price | $ 0.19 | $ 0.20 | $ 0.25 |
| Granted | 400,000 | 150,000 | |
| Granted, Weighted Average Exercise Price | $ 0.11 | $ 0.06 | |
| Exercised | 0 | 0 | |
| Exercised, Weighted Average Exercise Price | $ 0 | $ 0 | |
| Expired or cancelled | 0 | (200,000) | |
| Expired or cancelled, Weighted Average Exercise Price | $ 0 | $ 0.87 | |
| Exercisable | 3,023,889 | 2,882,223 | |
| Exercisable, Weighted Average Exercise Price | $ 0.19 | $ 0.20 |
NOTE 8 - STOCK OPTIONS AND WARRANTS: Summary of the Status of the Options (Details) |
6 Months Ended |
|---|---|
|
Jun. 30, 2021
$ / shares
shares
| |
| Details | |
| Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | $ 0.01 |
| Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 0.99 |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares | 3,290,556 |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 3 years 5 months 16 days |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares | 3,023,889 |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 0.19 |
000010 - Document - Document and Entity Information
000020 - Statement - Condensed Balance Sheets
000030 - Statement - Condensed Balance Sheets - Parenthetical
000040 - Statement - Condensed Statements of Operations (unaudited)
000050 - Statement - Condensed Statements of Stockholders' Equity (Deficit) (unaudited)
000060 - Statement - Condensed Statements of Cash Flows (unaudited)
000070 - Disclosure - NOTE 1 - CONDENSED FINANCIAL STATEMENTS
000080 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
000090 - Disclosure - NOTE 3 - CONTRACT ASSETS AND LIABILITIES
000100 - Disclosure - NOTE 4 - COMMITMENTS
000110 - Disclosure - NOTE 5 - RELATED PARTY TRANSACTIONS
000120 - Disclosure - NOTE 6 - NOTES PAYABLE - RELATED PARTY
000130 - Disclosure - NOTE 7 - DEBT
000140 - Disclosure - NOTE 8 - STOCK OPTIONS AND WARRANTS
000150 - Disclosure - NOTE 9 - SUBSEQUENT EVENT
000160 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)
000170 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)
000180 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory (Policies)
000190 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies)
000210 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)
000310 - Disclosure - NOTE 7 - DEBT: Schedule of Debt (Tables)
000350 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Details)
000380 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Inventory (Details)
000400 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details)
000440 - Disclosure - NOTE 4 - COMMITMENTS (Details)
000450 - Disclosure - NOTE 5 - RELATED PARTY TRANSACTIONS (Details)
000470 - Disclosure - NOTE 6 - NOTES PAYABLE - RELATED PARTY (Details)
000500 - Disclosure - NOTE 7 - DEBT (Details)
000510 - Disclosure - NOTE 7 - DEBT: Schedule of Debt (Details)
000520 - Disclosure - NOTE 8 - STOCK OPTIONS AND WARRANTS (Details)