Consolidated SEC Viewer Rendering

Document and Entity Information

v3.21.4
Document and Entity Information - shares
 12 Months Ended
Dec. 31, 2021
Mar. 31, 2022
Details    
Registrant CIK 0001404804  
Fiscal Year End --12-31  
Document Type 10-K  
Document Annual Report true  
Document Period End Date Dec. 31, 2021  
Entity File Number 000-53955  
Entity Registrant Name OMNITEK ENGINEERING CORP.  
Entity Incorporation, State or Country Code CA  
Entity Tax Identification Number 33-0984450  
Entity Address, Address Line One 1345 Specialty Dr. #E  
Entity Address, City or Town Vista  
Entity Address, State or Province CA  
Entity Address, Postal Zip Code 92081  
City Area Code 760  
Local Phone Number 591-0089  
Entity Well-known Seasoned Issuer No  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business true  
Entity Emerging Growth Company false  
Entity Ex Transition Period false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   21,948,091
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus FY  
Document Transition Report false  
Auditor Firm ID 3627  
Auditor Name Sadler, Gibb & Associates, LLC  
Auditor Location Draper, UT  

Balance Sheets

v3.21.4
Balance Sheets - USD ($)
Dec. 31, 2021
Dec. 31, 2020
CURRENT ASSETS    
Cash $ 59,674 $ 60,729
Accounts receivable, net 9,555 9,455
Accounts receivable - related parties 0 17,345
Inventory Net 717,044 821,866
Contract assets 13,221 13,221
Deposits 4,230 38,610
Total Current Assets 803,724 961,226
PROPERTY & EQUIPMENT, net 14,373 1,266
OTHER ASSETS    
Operating lease - Right-of-use asset 593,697 0
Long-term deposit 13,514 14,280
Total Other Assets 607,211 14,280
TOTAL ASSETS 1,425,308 976,772
CURRENT LIABILITIES    
Accounts payable and accrued expenses 373,221 468,839
Accrued management compensation 620,735 595,158
Accounts payable - related parties 124,472 121,527
Notes payable - related parties, current portion 15,000 15,000
Convertible notes payable - related party 31,090 0
Contract liabilities 75,000 75,000
Customer deposits 170,870 276,381
Operating lease liabilities - current 106,149 0
Current portion, long-term debt 0 69,551
Total Current Liabilities 1,516,537 1,621,456
LONG-TERM LIABILITIES    
Loans payable - SBA, net of current portion 198,674 229,449
Convertible notes payable - related party, net of current portion 12,826 0
Operating lease liabilities - long-term 504,963 0
Total Long-term Liabilities 716,463 229,449
Total Liabilities 2,233,000 1,850,905
STOCKHOLDERS' DEFICIT    
Common stock, 125,000,000 shares authorized; no par value; 21,948,091 and 21,600,189 shares, respectively issued and outstanding 8,607,086 8,578,210
Additional paid-in capital 12,033,454 12,013,298
Accumulated deficit (21,448,232) (21,465,641)
Total Stockholders' Deficit (807,692) (874,133)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 1,425,308 $ 976,772

Balance Sheets - Parenthetical

v3.21.4
Balance Sheets - Parenthetical - $ / shares
Dec. 31, 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 21,948,091 21,600,189
Common Stock, Shares, Outstanding 21,948,091 21,600,189

Statements of Operations

v3.21.4
Statements of Operations - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Details    
Revenues $ 1,097,467 $ 875,997
COST OF GOODS SOLD 573,700 519,527
INVENTORY RESERVE ADJUSTMENT 47,959 69,417
Total Cost of Goods Sold 621,659 588,944
GROSS MARGIN 475,808 287,053
OPERATING EXPENSES    
General and administrative 600,169 671,672
Research and development 63,829 82,052
Depreciation and amortization 1,302 543
Total Operating Expenses 665,300 754,267
LOSS FROM OPERATIONS (189,492) (467,214)
OTHER INCOME (EXPENSE)    
Other income (expense) 32,100 (1,840)
Forgiveness of debt 200,321 0
Interest expense (24,720) (19,858)
Total Other Expense 207,701 (21,698)
INCOME (LOSS) BEFORE INCOME TAXES 18,209 (488,912)
INCOME TAX EXPENSE 800 800
NET INCOME (LOSS) $ 17,409 $ (489,712)
BASIC AND DILUTED LOSS PER SHARE $ 0.00 $ (0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC 21,600,189 21,461,492
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - FULLY DILUTED 23,708,115 21,461,492

Condensed Statements of Stockholders' Equity (Deficit) (unaudited)

v3.21.4
Condensed Statements of Stockholders' Equity (Deficit) (unaudited) - USD ($)
Common Stock
Common Stock Subscribed
Additional Paid-in Capital
Retained Earnings
Total
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2019 $ 8,527,210 $ 20,000 $ 11,997,842 $ (20,975,929) $ (430,877)
Shares, Outstanding, Beginning Balance at Dec. 31, 2019 21,339,865        
Adjustments to Additional Paid in Capital, Warrant Issued $ 0 0 15,456 0 15,546
Common stock issued for stock subscription $ 51,000 (51,000) 0   0
Common stock issued for stock subscription, shares 260,324        
Deposit - Stock purchase agreement   31,000 0   31,000
Net income (loss) $ 0 0 0 (489,712) (489,712)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2020 $ 8,578,210 0 12,013,298 (21,465,641) (874,133)
Shares, Outstanding, Ending Balance at Dec. 31, 2020 21,600,189        
Adjustments to Additional Paid in Capital, Warrant Issued $ 0 0 19,112 0 19,112
Common stock issued for trade payable $ 28,876 0 1,044 0 29,920
Common stock issued for trade payable Share 347,902        
Net income (loss) $ 0 0 0 17,409 17,409
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2021 $ 8,607,086 $ 0 $ 12,033,454 $ (21,448,232) $ (807,692)
Shares, Outstanding, Ending Balance at Dec. 31, 2021 21,948,091        

Statements of Cash Flows

v3.21.4
Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
OPERATING ACTIVITIES    
Net income (loss) $ 17,409 $ (489,712)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization 1,302 543
Options and warrants granted 19,112 15,456
Forgiveness of debt (200,321) 0
Loss on abandoned asset 90 0
Amortization of ROU asset 58,653 0
Inventory reserve 53,453 69,417
Changes in operating assets and liabilities    
Accounts receivable (26,100) (1,993)
Operating lease liability (41,238) 0
Accounts receivable-related parties 17,345 (633)
Deposits 34,380 (19,965)
Inventory 51,369 131,082
Other non-current assets 766 0
Accounts payable and accrued expenses (65,377) (105,506)
Customer deposits (105,511) 112,700
Accounts payable-related parties 2,945 (12,550)
Accrued management compensation 25,577 53,654
Net Cash Used in Operating Activities (130,146) (247,507)
INVESTING ACTIVITIES    
Purchase of fixed assets (14,499) 0
Net Cash Used in Investing Activities (14,499) 0
FINANCING ACTIVITIES    
Payments on convertible notes payable (6,410) (15,000)
Proceeds from common stock subscription 0 31,000
Proceeds from long-term debt 100,000 299,000
Proceeds from (payments on) notes payable - related party 50,000 (27,000)
Net Cash Provided by Financing Activities 143,590 288,000
NET CHANGE IN CASH (1,055) 40,493
CASH AT BEGINNING OF YEAR 60,729 20,236
CASH AT END OF YEAR 59,674 60,729
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS    
Interest 17,913 17,104
Income taxes 800 800
NON-CASH INVESTING AND FINANCING ACTIVITIES    
Common stock issued for stock subscription 0 51,000
Common stock issued for trade payable $ 29,920 $ 0

NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY

v3.21.4
NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY

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 a proprietary technology to convert diesel engines to an alternative fuel, new natural gas engines, and complementary products. Omnitek products are available for stationary applications and the global transportation markets, which includes light commercial vehicles, minibuses, heavy-duty trucks, municipal buses, as well as rail and marine applications. The technology can be applied for compressed natural gas (“CNG”), liquefied natural gas (“LNG”), or renewable natural gas (“Biogas” or “RNG”), 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 - SIGNIFICANT ACCOUNTING POLICIES

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

a.       Accounting Methods

 

The Company's financial statements are prepared using the accrual method of accounting.  The Company has elected a December 31, year-end.

 

b.       Use of Estimates in Preparing Financial Statements

 

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. The Company also regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances, inventory valuation allowances, allowance for doubtful receivables and valuations of equity-based payments.

 

c.       Cash and Cash Equivalents

 

For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

 

d.       Accounts Receivable

 

Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis.  Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts.  Trade receivables are written off when deemed uncollectible.  Recoveries of trade receivables previously written off are recorded when received.   Allowance for doubtful accounts for the years ended December 31, 2021 and 2020 was $41,000 and $15,000, respectively. Additionally, bad debt expense for the years ended December 31, 2021 and 2020 was $26,000 and $-0-, respectively.

 

e.       Inventories

 

Inventories are stated at the lower of cost or market, cost determined on an average cost basis.  Market value for raw materials is based on replacement costs. Inventory costs include material, labor and manufacturing overhead.  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.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

f.       Long-Lived Assets

 

The Company assesses the recoverability of its long-lived assets annually and whenever circumstances would 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 will recognize the impairment immediately. No impairment expense was

recognized as of December 31, 2021 or 2020.

 

g.       Property and Equipment

 

Property and equipment are recorded at cost.  Depreciation and amortization are calculated on the straight-line method over the shorter of the lease term or the estimated useful lives of the assets ranging from three to five years.

 

h.        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). Control passes FOB shipping point.

 

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 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

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

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 1% and 0% of revenue for the years ended December 31, 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 99% and 100% of revenue for the years ended December 31, 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.

 

Disaggregation of Revenue

 

The following table presents Omnitek’s revenues disaggregated by region and product type:

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2021

 

 

 

 

2020

 

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

396,750

-

396,750

 

$

606,629

-

606,629

International

 

 

693,052

7,665

700,717

 

 

269,368

-

269,368

 

 

$

1,089,802

7,665

1,097,467

 

$

875,997

-

875,997

 

 

 

 

 

 

 

 

 

 

 

Filters

 

 

693,768

-

693,768

 

 

324,961

-

324,961

Components

 

 

395,176

-

395,176

 

 

551,036

-

551,036

Engineering Services

 

 

858

7,665

8,523

 

 

-

-

-

 

 

$

1,089,802

7,665

1,097,467

 

$

875,997

-

875,997

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

i.       Cost of Goods Sold

 

The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of goods sold.

 

j.       Research and Development

 

The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2021 and 2020, the Company incurred research and development expenses of $63,829 and $82,052, respectively.

 

k.       Advertising

 

The Company follows the policy of charging the costs of advertising to expense as incurred. During the years ended December 31, 2021 and 2020, the Company expensed $-0- and $-0-, respectively.

 

l.       Provision for Income Taxes

 

The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.

 

The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of December 31, 2021, 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.

 

m.       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 3,065,556 vested stock options and warrants that were included in the fully diluted earnings per share computation as of December 31, 2021. As of December 31, 2020 the Company had 2,882,223 Stock Options and Warrants that would have been included in the fully diluted earnings per share computation. However, the common stock equivalents were not included in the computation because they were anti-dilutive.  

 

n.       Fair Value Measurements

 

The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Level 1 – Quoted prices in active markets for identical assets or liabilities;

 

Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and

 

Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

 

o.       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.

 

p.       Concentration of Risks

 

Customers

 

During the year ended December 31, 2021, eight customers accounted for approximately 84% of sales.

 

During the year ended December 31, 2020, eight customers accounted for approximately 80% of sales.

 

Suppliers

 

During the year ended December 31, 2021, four suppliers accounted for 81% of products purchased.

 

During the year ended December 31, 2020, eight suppliers accounted for 71% of products purchased.

 

q.       Liquidity and Going Concern

 

Historically, the Company has incurred net losses and negative cash flows from operations.  As of December 31, 2021, the Company had an accumulated deficit of $21,448,232 and total stockholders’ deficit of ($807,692).  At December 31, 2021, the Company had current assets of $803,724 including cash of $59,674, and current liabilities of $1,516,537, resulting in negative working capital of $712,813. For 2021, the Company reported net income of $17,409 and net cash used by operating activities of $130,146. Management believes that based on its operating plan, the projected sales for 2022, 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. 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 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.     

 

r.       Recent Accounting Pronouncements

 

The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements.

NOTE 3 - CONTRACT ASSETS AND LIABILITIES

v3.21.4
NOTE 3 - CONTRACT ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 3 - CONTRACT ASSETS AND LIABILITIES

NOTE 3 – CONTRACT ASSETS AND LIABILITIES

 

Contract Balances

 

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:

 

 

December 31,

 

December 31,

 

2021

 

2020

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 - LEASES

v3.21.4
NOTE 4 - LEASES
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 4 - LEASES

NOTE 4 – LEASES

 

The Company’s leases consist 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.

 

On June 3, 2021, the Company entered into a lease for the premises located at 1345 Specialty Drive #E, Vista, CA, containing approximately 11,751 square feet of rentable area. The lease commenced on 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 under the lease, is $1,175 per month.  On Commencement Date the Company recognized a ROU asset of $653,701 and a lease liability of $652,350.

 

In agreement with the Company’s former landlord, the Company vacated the previous leasehold effective July 15, 2021. As of December 31, 2021 the outstanding balance of back rent, included in accounts payable, was $23,374.

 

During the year ended December 31, 2021, cash paid for amounts included in the measurement of operating lease liabilities was $56,990 and the Company recorded operating lease expenses included in operating expenses of $74,581.

 

Supplemental balance sheet information related to leases as of December 31, 2021 was as follows:

 

Operating leases:

 

 

 

 

 

Operating lease right-of-use-assets

 

 

 

 

593,697

 

 

 

 

 

 

Operating lease liabilities - current

 

 

 

 

106,149

Operating lease liabilities – long-term

 

 

 

 

504,963

Total operating lease liabilities

 

 

 

$

611,112

 

 

Incremental borrowing rate:

 

 

 

 

 

Operating leases

 

 

 

 

4.94%

 

 

NOTE 4 – LEASES (Continued)

 

As of December 31, 2021, maturities of operating lease liabilities were as follows:

Years ending December 31,

 

 

 

2022

 

 

 

 

133,956

2023

 

 

 

 

141,036

2024

 

 

 

 

148,074

2025

 

 

 

 

176,268

Thereafter

 

 

 

 

88,134

Total lease payments

 

 

 

 

687,468

Less: Imputed interest

 

 

 

 

(76,356)

Total lease liability

 

 

 

 

611,112

Less: current lease liability

 

 

 

 

(106,149)

Long-term lease liability

 

 

 

$

504,963

NOTE 5 - INVENTORIES

v3.21.4
NOTE 5 - INVENTORIES
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 5 - INVENTORIES

NOTE 5 – INVENTORIES

 

Inventories are located in Vista, California and at December 31, 2021 and 2020 consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Raw materials

$

846,499

 

$

917,567

Finished goods

 

802,280

 

 

962,608

Allowance for obsolete inventory

 

(931,735)

 

 

(1,058,309)

Total

$

717,044

 

$

821,866

 

The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $47,959 and $69,417, for the years ended December 31, 2021 and December 31, 2020, respectively.

NOTE 6 - PROPERTY AND EQUIPMENT

v3.21.4
NOTE 6 - PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 6 - PROPERTY AND EQUIPMENT

NOTE 6 – PROPERTY AND EQUIPMENT

 

Property and equipment at December, 2021 and 2020 consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Production equipment

$

68,456   

 

$

64,673   

Computers/Office equipment

 

-   

 

 

28,540   

Tooling equipment

 

-   

 

 

12,380   

Leasehold Improvements

 

10,627   

 

 

42,451   

Less: accumulated depreciation

 

(64,710)  

 

 

(146,778)  

Total

$

14,373   

 

$

1,266   

 

Depreciation expense for the years ended December 31, 2021 and 2020 was $1,302 and $543, respectively.

NOTE 7 - CUSTOMER DEPOSITS

v3.21.4
NOTE 7 - CUSTOMER DEPOSITS
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 7 - CUSTOMER DEPOSITS

NOTE 7 – CUSTOMER DEPOSITS

 

The Company may require a customer deposit from domestic and international customers.  As of December 31, 2021 and 2020 the Company had customer deposits of $170,870 and $276,381, respectively.

NOTE 8 - NOTES PAYABLE - RELATED PARTY

v3.21.4
NOTE 8 - NOTES PAYABLE - RELATED PARTY
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 8 - NOTES PAYABLE - RELATED PARTY

NOTE 8 – 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 December 31, 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 December 31, 2021. On December 14, 2021, the Convertible Promissory Note dated June 4, 2021, in the original principal amount of $20,000, with an original Maturity Date of December 4, 2021, was extended for an additional period of 3 months until March 4, 2022. On March 4, 2022, the Note was extended for an additional period of 3 months until June 4, 2022.

 

As of December 31, 2021 and December 31, 2020 Convertible Notes – Related Party consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Convertible Note payable, related parties

$

43,916

 

$

-

Less current portion

 

(31,090)

 

$

-

Total

$

12,826

 

$

-

 

Notes Payable – Related Party

 

On January 19, 2017 the Company issued a promissory note for $15,000 to a related party. 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 December 31, 2021 and December 31, 2020 Note Payable – Related Party consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Note payable, related party

$

15,000

 

$

15,000

Total

$

15,000

 

$

15,000

NOTE 9 - DEBT

v3.21.4
NOTE 9 - DEBT
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 9 - DEBT

NOTE 9 – 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, 2022 (i.e., twenty-four (24) 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. 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.

 

On November 11, 2021, the Company applied for the Targeted SBA EIDL Advance Asistance, 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 $15,000 from the Targeted SBA EIDL Advance Asistance SBA EIDL loan. Application No. 3600495802 was approved in the amount of $5,000.00, and application No. 3600495802 was approved in the amount of $10,000.00. The Targeted EIDL Advance does not need to be repaid.

 

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 is scheduled to mature on May 22, 2022 and has a 1.00% interest rate and is subject to the terms and conditions applicable to loans adminstered by the SBA under the CARES Act. 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. On November 15, 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 $710.

 

As of December 31, 2021 and December 31, 2020 Debt consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Loan payable – SBA EIDL

$

198,674

 

$

199,000

Loan payable – SBA PPP

$

-

 

$

100,000

Less current portion

 

-

 

 

(69,551)

Total

$

198,674

 

$

229,449

NOTE 10 - COMMITMENTS

v3.21.4
NOTE 10 - COMMITMENTS
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 10 - COMMITMENTS

NOTE 10 – COMMITMENTS

 

As of December 31, 2021 and 2020, the Company had outstanding purchase commitments for inventory totaling $179,240 and $151,411, respectively. Of these amounts, the Company had prepayments of $4,230 as of December 31, 2021 and $38,610 as of December 31, 2020 and had commitments for future cash outlays for inventory totaling $175,010 and $112,801, respectively.

NOTE 11 - RELATED PARTY TRANSACTIONS

v3.21.4
NOTE 11 - RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 11 - RELATED PARTY TRANSACTIONS

NOTE 11 – RELATED PARTY TRANSACTIONS

 

Accounts Receivable – Related Parties

 

As of December 31, 2021 and December 31, 2020, the Company was owed $0 and $17,345, respectively, by an entity controlled by the Company’s CEO for the purchase of products and services.

 

Accrued Management Expenses

 

During the periods ended December 31, 2021 and December 31, 2020, the Company’s president was due amounts for services performed for the Company.  As of December 31, 2021 and December 31, 2020 the accrued management fees consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Amounts due to the president

$

620,735

 

$

595,158

Total

$

620,735

 

$

595,158

NOTE 12 - STOCKHOLDERS' EQUITY

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 12 - STOCKHOLDERS' EQUITY

NOTE 12 – STOCKHOLDERS’ EQUITY

 

Common Stock

 

On December 14, 2021, in consideration of $28,876 of legal services provided to the Corporation by Chachas Law Group P.C., and pursuant to the Subscription and Purchase Agreement dated December 14, 2021, the Corporation issued 347,902 shares of common stock at a price of $0.083 per share, representing the 10-day closing average of the Common Stock. Fair market value of the shares issued at time of closing was $29,920.

 

On September 6, 2019 the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with a purchaser wherein the purchaser agreed to buy an aggregate of 3,579,014 restricted shares of common stock of the Company at a price of $0.1788 per share for an aggregate purchase price of $640,000. Subject to the default and penalty provisions in the Purchase Agreement, the sale and purchase of the restricted shares and payment of the purchase price shall be made in 20 tranches. In accordance with these terms, purchaser paid $75,000 on September 30, 2019 and was issued 419,463 restricted shares of the Company’s restricted common stock. Between October 1, 2019 and December 31, 2019 the purchaser made cumulative payments of $20,000 towards the $90,000 required under the agreement and was therefore in default under the terms of the agreement. In accordance with a provision in the agreement the Company elected to waive the default but assess a $0.03 per share penalty for all future installment payments, increasing the purchase price to $.2033 per share. The $20,000 paid by the purchaser as of December 31, 2019 has been classified as Common Stock Subscribed on the balance sheet. The purchaser made additional payments totaling $31,000 in January and February 2020. Pursuant to the terms of the agreement, on July 14, 2020 the Company issued 260,324 restricted shares of common stock in exchange for the cumulative payments of $51,000. The agreement was terminated effective July 14, 2020 due to non-performance by the purchaser.

 

Additionally, subject to the payment by the purchaser of the additional sum of $25,000 by September 30, 2019, the Company shall grant to the purchaser, an option to purchase an additional 3,579,014 restricted shares of common stock for an additional $640,000. The $25,000 option purchase price is consideration for the option and shall be non-refundable and shall not be applied to the purchase of any restricted shares. The purchaser made a timely payment of $25,000 on September 30, 2019 to purchase the option but did not make the initial option tranche exercise payment of $75,000 by March 31, 2020. Therefore, the option to purchase the option shares has expired.

 

 

NOTE 12 – STOCKHOLDERS’ EQUITY (continued)

 

Options and Warrants

 

During the years ended December 31, 2021 and 2020, the Company granted 400,000 and 150,000 options for services, respectively.  During the years ended December 31, 2021 and 2020, respectively, the Company recognized expense of $19,112 and $15,456 related to options that vested during the years, pursuant to ASC Topic 718. The total remaining amount of compensation expense to be recognized in future periods is $22,745. No future compensation expense has been calculated for 150,000 options that were granted in 2015 due to the low probability that any of these options will vest before maturity.  These options expired on October 1, 2020.

 

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 Non-Qualified Stock Options to employees and consultants at its discretion. As of December 31, 2021, the Company has a total of 75,000 options issued under the 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 December 31, 2021, the Company has a total of 1,915,556 options issued under the 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 December 31, 2021, the Company has a total of 1,300,000 options issued under the plan. During the year ended December 31, 2021 and 2020 the Company issued -0- and -0- warrants, respectively.

 

The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value.  The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. When determining expected volatility, the Company considers the historical performance of the Company’s stock, as well as implied volatility. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant, based on the options’ expected term. The expected term of the options is based on the Company’s evaluation of option holders’ exercise patterns and represents the period of time that options are expected to remain unexercised. The Company uses historical data to estimate the timing and amount of forfeitures.

 

The following table presents the assumptions used to estimate the fair values of the stock options granted:

 

 

December 31,

2021

 

December 31,

2020

Expected volatility

201%

 

159%

Expected dividends

0%

 

0%

Expected term

7 Years

 

7 Years

Risk-free interest rate

1.20%

 

.60%

 

 

 

NOTE 12 – STOCKHOLDERS’ EQUITY (continued)

 

A summary of the status of the options granted at December 31, 2021 and December 31, 2020 and changes during the years then ended is presented below:  

 

 

December 31,

2021

 

December 31,

2020

 

 

 

 

Weighted-Average

 

 

 

 

Weighted-Average

 

Shares

 

 

Exercise Price

 

Shares

 

 

Exercise Price

Outstanding at beginning of year

2,890,556

 

$

0.20

 

2,940,556

 

$

0.25

Granted

400,000

 

 

0.11

 

150,000

 

 

0.06

Exercised

-

 

 

-

 

-

 

 

-

Expired or cancelled

-

 

 

-

 

(200,000)

 

 

0.87

Outstanding at end of year

3,290,556

 

 

0.19

 

2,890,556

 

 

0.20

Exercisable

3,065,556

 

$

0.19

 

2,882,223

 

$

0.20

 

A summary of the status of the options outstanding at December 31, 2021 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01-1.00

 

3,290,556

 

2.96 years

 

 

3,065,556

 

$0.19

 

A summary of the status of the options and warrants outstanding at December 31, 2020 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01 - 1.00

 

2,890,556

 

3.51 years

 

2,882,223

 

$0.20

NOTE 13 - INCOME TAXES

v3.21.4
NOTE 13 - INCOME TAXES
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 13 - INCOME TAXES

NOTE 13 – INCOME TAXES

 

The provision for income taxes for the year ended December 31, 2021 and 2020 consists of the following:

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Federal

 

 

 

 

 

 

Current

 

$

-   

 

 

$

-   

 

Deferred

 

 

-   

 

 

 

-   

 

State

 

 

 

 

 

 

 

 

Current

 

$

800   

 

 

$

800   

 

Deferred

 

 

-   

 

 

 

-   

 

  Income tax expense

 

$

800   

 

 

$

800   

 

 

 

NOTE 13 – INCOME TAXES (continued)

 

Net deferred tax assets consist of the following components as of December 31, 2021 and 2020:

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryover

 

$

7,428,249   

 

 

 

7,367,497   

 

Research and development carry forward

 

 

131,088   

 

 

 

131,088   

 

Inventory reserve

 

 

223,616   

 

 

 

253,994   

 

Allowance for doubtful accounts

 

 

3,600   

 

 

 

3,600   

 

Warranty allowance

 

 

3,068   

 

 

 

3,068   

 

Accrued compensation

 

 

148,976   

 

 

 

142,838   

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Depreciation

 

 

(33,476)  

 

 

 

(39,927)  

 

Valuation allowance

 

 

(7,905,122)  

 

 

 

(7,862,158)  

 

Net deferred tax asset

 

$

-   

 

 

 

-   

 

 

The income tax provision differs from the amount of income tax determined by applying the estimated U.S. federal and state income tax rate of 24% as of December 31, 2021 and December 31, 2020 to pretax income

from continuing operations for the year ended December 31, 2021 and 2020 due to the following:  

 

 

 

 

 

 

 

  

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

 

2020

Book income (loss)   

 

$

4,178  

 

 

 

(117,532)  

Meals and entertainment   

 

 

-   

 

 

 

-   

State tax deduction

 

 

-   

 

 

 

-   

Deferred rent

 

 

-  

 

 

 

-  

Stock/Options for services

 

 

4,587   

 

 

 

3,709   

Officer’s life ins premium

 

 

1,181   

 

 

 

1,181   

Depreciation

 

 

(6,451)  

 

 

 

(8,265)  

Accrued compensation

 

 

6,138   

 

 

 

(26,801)   

Inventory reserve

 

 

(30,378)   

 

 

 

16,660   

Valuation allowance

 

 

42,289   

 

 

 

262,894   

Net operating loss carryover

 

 

(20,744)  

 

 

 

(131,046)  

Income Tax Expense

 

$

800   

 

 

 

800   

 

On December 21, 2017, the TCJA was enacted. Among other things, the TCJA reduces the U.S. federal corporate tax rate from 35 percent to 21 percent beginning January 1, 2018, requires companies to pay a one-time transition tax on certain previously unremitted earnings on non-U.S. subsidiaries, creates new taxes on certain foreign sourced

earnings and imposes additional limitations on certain deductions, including interest expense and net operating losses arising after 2017. The Company has assessed the impact of the TCJA and is not subject to the one-time transition tax. The Company remeasured certain deferred tax assets and liabilities based on the rates that they are expected to reverse in the future, which is generally 21 percent under TCJA. The decrease in the Company’s net deferred tax assets was offset by a corresponding decrease in its valuation allowance.  

 

At December 31, 2021, the Company had net operating loss carry forwards of approximately $7,453,932 through 2034.  No tax benefit has been reported in the December 31, 2021 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

NOTE 14 - SUBSEQUENT EVENT

v3.21.4
NOTE 14 - SUBSEQUENT EVENT
 12 Months Ended
Dec. 31, 2021
Notes  
NOTE 14 - SUBSEQUENT EVENT

NOTE 14 – SUBSEQUENT EVENTS

 

On January 19, 2022 the Company and Werner Funk, President and CEO, agreed to a one-year extension of the $15,000 related party note payable due to Mr. Funk. The extended due date is January 19, 2023.  

 

On June 4, 2021 the Company issued a convertible promissory note for $20,000 to a board member with an original Maturity Date of December 4, 2021. The Note was extended for an additional period of 3 months until March 4, 2022. On March 4, 2022, the Note was extended for an additional period of 3 months until June 4, 2022.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Accounting Methods (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Accounting Methods (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
a. Accounting Methods

a.       Accounting Methods

 

The Company's financial statements are prepared using the accrual method of accounting.  The Company has elected a December 31, year-end.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: b. Use of Estimates in Preparing Financial Statements (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: b. Use of Estimates in Preparing Financial Statements (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
b. Use of Estimates in Preparing Financial Statements

b.       Use of Estimates in Preparing Financial Statements

 

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. The Company also regularly evaluates estimates and assumptions related to deferred income tax asset valuation allowances, inventory valuation allowances, allowance for doubtful receivables and valuations of equity-based payments.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: c. Cash and Cash Equivalents (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: c. Cash and Cash Equivalents (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
c. Cash and Cash Equivalents

c.       Cash and Cash Equivalents

 

For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
d. Accounts Receivable

d.       Accounts Receivable

 

Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis.  Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts.  Trade receivables are written off when deemed uncollectible.  Recoveries of trade receivables previously written off are recorded when received.   Allowance for doubtful accounts for the years ended December 31, 2021 and 2020 was $41,000 and $15,000, respectively. Additionally, bad debt expense for the years ended December 31, 2021 and 2020 was $26,000 and $-0-, respectively.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
e. Inventory

e.       Inventories

 

Inventories are stated at the lower of cost or market, cost determined on an average cost basis.  Market value for raw materials is based on replacement costs. Inventory costs include material, labor and manufacturing overhead.  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.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: f. Long-Lived Assets (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: f. Long-Lived Assets (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
f. Long-Lived Assets

f.       Long-Lived Assets

 

The Company assesses the recoverability of its long-lived assets annually and whenever circumstances would 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 will recognize the impairment immediately. No impairment expense was

recognized as of December 31, 2021 or 2020.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: g. Property and Equipment (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: g. Property and Equipment (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
g. Property and Equipment

g.       Property and Equipment

 

Property and equipment are recorded at cost.  Depreciation and amortization are calculated on the straight-line method over the shorter of the lease term or the estimated useful lives of the assets ranging from three to five years.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
h. Revenue Recognition

h.        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). Control passes FOB shipping point.

 

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 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

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

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 1% and 0% of revenue for the years ended December 31, 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 99% and 100% of revenue for the years ended December 31, 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.

 

Disaggregation of Revenue

 

The following table presents Omnitek’s revenues disaggregated by region and product type:

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2021

 

 

 

 

2020

 

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

396,750

-

396,750

 

$

606,629

-

606,629

International

 

 

693,052

7,665

700,717

 

 

269,368

-

269,368

 

 

$

1,089,802

7,665

1,097,467

 

$

875,997

-

875,997

 

 

 

 

 

 

 

 

 

 

 

Filters

 

 

693,768

-

693,768

 

 

324,961

-

324,961

Components

 

 

395,176

-

395,176

 

 

551,036

-

551,036

Engineering Services

 

 

858

7,665

8,523

 

 

-

-

-

 

 

$

1,089,802

7,665

1,097,467

 

$

875,997

-

875,997

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: i. Cost of Goods Sold (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: i. Cost of Goods Sold (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
i. Cost of Goods Sold

i.       Cost of Goods Sold

 

The Company includes product costs (i.e. material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of goods sold.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
j. Research and Development

j.       Research and Development

 

The Company expenses the costs of researching and developing its products during the period incurred. During the years ended December 31, 2021 and 2020, the Company incurred research and development expenses of $63,829 and $82,052, respectively.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
k. Advertising

k.       Advertising

 

The Company follows the policy of charging the costs of advertising to expense as incurred. During the years ended December 31, 2021 and 2020, the Company expensed $-0- and $-0-, respectively.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: l. Provision for Income Taxes (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: l. Provision for Income Taxes (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
l. Provision for Income Taxes

l.       Provision for Income Taxes

 

The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.

 

The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of December 31, 2021, 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: m. Basic and Diluted Loss Per Share (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
m. Basic and Diluted Loss Per Share

m.       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 3,065,556 vested stock options and warrants that were included in the fully diluted earnings per share computation as of December 31, 2021. As of December 31, 2020 the Company had 2,882,223 Stock Options and Warrants that would have been included in the fully diluted earnings per share computation. However, the common stock equivalents were not included in the computation because they were anti-dilutive.  

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: n. Fair Value Measurements (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: n. Fair Value Measurements (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
n. Fair Value Measurements

n.       Fair Value Measurements

 

The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories:

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Level 1 – Quoted prices in active markets for identical assets or liabilities;

 

Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and

 

Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: o. Stock-based Compensation (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: o. Stock-based Compensation (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
o. Stock-based Compensation

o.       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.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
p. Concentration of Risks

p.       Concentration of Risks

 

Customers

 

During the year ended December 31, 2021, eight customers accounted for approximately 84% of sales.

 

During the year ended December 31, 2020, eight customers accounted for approximately 80% of sales.

 

Suppliers

 

During the year ended December 31, 2021, four suppliers accounted for 81% of products purchased.

 

During the year ended December 31, 2020, eight suppliers accounted for 71% of products purchased.

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
q. Liquidity and Going Concern

q.       Liquidity and Going Concern

 

Historically, the Company has incurred net losses and negative cash flows from operations.  As of December 31, 2021, the Company had an accumulated deficit of $21,448,232 and total stockholders’ deficit of ($807,692).  At December 31, 2021, the Company had current assets of $803,724 including cash of $59,674, and current liabilities of $1,516,537, resulting in negative working capital of $712,813. For 2021, the Company reported net income of $17,409 and net cash used by operating activities of $130,146. Management believes that based on its operating plan, the projected sales for 2022, 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. 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 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: r. Recent Accounting Pronouncements (Policies)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: r. Recent Accounting Pronouncements (Policies)
 12 Months Ended
Dec. 31, 2021
Policies  
r. Recent Accounting Pronouncements

r.       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: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Disaggregation of Revenue

The following table presents Omnitek’s revenues disaggregated by region and product type:

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2021

 

 

 

 

2020

 

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

396,750

-

396,750

 

$

606,629

-

606,629

International

 

 

693,052

7,665

700,717

 

 

269,368

-

269,368

 

 

$

1,089,802

7,665

1,097,467

 

$

875,997

-

875,997

 

 

 

 

 

 

 

 

 

 

 

Filters

 

 

693,768

-

693,768

 

 

324,961

-

324,961

Components

 

 

395,176

-

395,176

 

 

551,036

-

551,036

Engineering Services

 

 

858

7,665

8,523

 

 

-

-

-

 

 

$

1,089,802

7,665

1,097,467

 

$

875,997

-

875,997

NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables)

v3.21.4
NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Long-Term Contract or Program Disclosure

 

 

December 31,

 

December 31,

 

2021

 

2020

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 - LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Tables)

v3.21.4
NOTE 4 - LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Supplemental Balance Sheet Information Related to Leases

 

Operating leases:

 

 

 

 

 

Operating lease right-of-use-assets

 

 

 

 

593,697

 

 

 

 

 

 

Operating lease liabilities - current

 

 

 

 

106,149

Operating lease liabilities – long-term

 

 

 

 

504,963

Total operating lease liabilities

 

 

 

$

611,112

 

 

Incremental borrowing rate:

 

 

 

 

 

Operating leases

 

 

 

 

4.94%

 

NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables)

v3.21.4
NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Maturities of Operating Lease Liabilities

As of December 31, 2021, maturities of operating lease liabilities were as follows:

Years ending December 31,

 

 

 

2022

 

 

 

 

133,956

2023

 

 

 

 

141,036

2024

 

 

 

 

148,074

2025

 

 

 

 

176,268

Thereafter

 

 

 

 

88,134

Total lease payments

 

 

 

 

687,468

Less: Imputed interest

 

 

 

 

(76,356)

Total lease liability

 

 

 

 

611,112

Less: current lease liability

 

 

 

 

(106,149)

Long-term lease liability

 

 

 

$

504,963

NOTE 5 - INVENTORIES: Schedule of Inventories (Tables)

v3.21.4
NOTE 5 - INVENTORIES: Schedule of Inventories (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Inventories

Inventories are located in Vista, California and at December 31, 2021 and 2020 consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Raw materials

$

846,499

 

$

917,567

Finished goods

 

802,280

 

 

962,608

Allowance for obsolete inventory

 

(931,735)

 

 

(1,058,309)

Total

$

717,044

 

$

821,866

NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Tables)

v3.21.4
NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Property and Equipment

Property and equipment at December, 2021 and 2020 consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Production equipment

$

68,456   

 

$

64,673   

Computers/Office equipment

 

-   

 

 

28,540   

Tooling equipment

 

-   

 

 

12,380   

Leasehold Improvements

 

10,627   

 

 

42,451   

Less: accumulated depreciation

 

(64,710)  

 

 

(146,778)  

Total

$

14,373   

 

$

1,266   

NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables)

v3.21.4
NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Convertible Notes - Related Parties

 

 

December 31,

 

December 31,

 

2021

 

2020

Convertible Note payable, related parties

$

43,916

 

$

-

Less current portion

 

(31,090)

 

$

-

Total

$

12,826

 

$

-

NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables)

v3.21.4
NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule Of Notes Payable Related Party table

 

 

December 31,

 

December 31,

 

2021

 

2020

Note payable, related party

$

15,000

 

$

15,000

Total

$

15,000

 

$

15,000

NOTE 9 - DEBT: Schedule of Debt (Tables)

v3.21.4
NOTE 9 - DEBT: Schedule of Debt (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Debt

As of December 31, 2021 and December 31, 2020 Debt consisted of the following:

 

 

December 31,

 

December 31,

 

2021

 

2020

Loan payable – SBA EIDL

$

198,674

 

$

199,000

Loan payable – SBA PPP

$

-

 

$

100,000

Less current portion

 

-

 

 

(69,551)

Total

$

198,674

 

$

229,449

NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Tables)

v3.21.4
NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule Of Related Party Transactions Table

 

 

December 31,

 

December 31,

 

2021

 

2020

Amounts due to the president

$

620,735

 

$

595,158

Total

$

620,735

 

$

595,158

NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted (Tables)

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted

The following table presents the assumptions used to estimate the fair values of the stock options granted:

 

 

December 31,

2021

 

December 31,

2020

Expected volatility

201%

 

159%

Expected dividends

0%

 

0%

Expected term

7 Years

 

7 Years

Risk-free interest rate

1.20%

 

.60%

NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Stock Options and Warrants, Activity (Tables)

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Stock Options and Warrants, Activity (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Stock Options and Warrants, Activity

A summary of the status of the options granted at December 31, 2021 and December 31, 2020 and changes during the years then ended is presented below:  

 

 

December 31,

2021

 

December 31,

2020

 

 

 

 

Weighted-Average

 

 

 

 

Weighted-Average

 

Shares

 

 

Exercise Price

 

Shares

 

 

Exercise Price

Outstanding at beginning of year

2,890,556

 

$

0.20

 

2,940,556

 

$

0.25

Granted

400,000

 

 

0.11

 

150,000

 

 

0.06

Exercised

-

 

 

-

 

-

 

 

-

Expired or cancelled

-

 

 

-

 

(200,000)

 

 

0.87

Outstanding at end of year

3,290,556

 

 

0.19

 

2,890,556

 

 

0.20

Exercisable

3,065,556

 

$

0.19

 

2,882,223

 

$

0.20

NOTE 12 - STOCKHOLDERS' EQUITY: Summary of the Status of the Options (Tables)

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY: Summary of the Status of the Options (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Summary of the Status of the Options

A summary of the status of the options outstanding at December 31, 2021 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01-1.00

 

3,290,556

 

2.96 years

 

 

3,065,556

 

$0.19

 

A summary of the status of the options and warrants outstanding at December 31, 2020 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01 - 1.00

 

2,890,556

 

3.51 years

 

2,882,223

 

$0.20

NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Tables)

v3.21.4
NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Components of Income Tax Expense (Benefit)

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Federal

 

 

 

 

 

 

Current

 

$

-   

 

 

$

-   

 

Deferred

 

 

-   

 

 

 

-   

 

State

 

 

 

 

 

 

 

 

Current

 

$

800   

 

 

$

800   

 

Deferred

 

 

-   

 

 

 

-   

 

  Income tax expense

 

$

800   

 

 

$

800   

 

NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Tables)

v3.21.4
NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Deferred Tax Assets and Liabilities

 

 

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryover

 

$

7,428,249   

 

 

 

7,367,497   

 

Research and development carry forward

 

 

131,088   

 

 

 

131,088   

 

Inventory reserve

 

 

223,616   

 

 

 

253,994   

 

Allowance for doubtful accounts

 

 

3,600   

 

 

 

3,600   

 

Warranty allowance

 

 

3,068   

 

 

 

3,068   

 

Accrued compensation

 

 

148,976   

 

 

 

142,838   

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Depreciation

 

 

(33,476)  

 

 

 

(39,927)  

 

Valuation allowance

 

 

(7,905,122)  

 

 

 

(7,862,158)  

 

Net deferred tax asset

 

$

-   

 

 

 

-   

 

NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Tables)

v3.21.4
NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Tables)
 12 Months Ended
Dec. 31, 2021
Tables/Schedules  
Schedule of Effective Income Tax Rate Reconciliation

 

 

 

 

 

 

 

  

 

December 31,

 

 

December 31,

 

 

 

2021

 

 

 

2020

Book income (loss)   

 

$

4,178  

 

 

 

(117,532)  

Meals and entertainment   

 

 

-   

 

 

 

-   

State tax deduction

 

 

-   

 

 

 

-   

Deferred rent

 

 

-  

 

 

 

-  

Stock/Options for services

 

 

4,587   

 

 

 

3,709   

Officer’s life ins premium

 

 

1,181   

 

 

 

1,181   

Depreciation

 

 

(6,451)  

 

 

 

(8,265)  

Accrued compensation

 

 

6,138   

 

 

 

(26,801)   

Inventory reserve

 

 

(30,378)   

 

 

 

16,660   

Valuation allowance

 

 

42,289   

 

 

 

262,894   

Net operating loss carryover

 

 

(20,744)  

 

 

 

(131,046)  

Income Tax Expense

 

$

800   

 

 

 

800   

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Details)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Transferred over Time    
Concentration Risk, Percentage 1.00% 0.00%
Transferred at Point in Time    
Concentration Risk, Percentage 99.00% 100.00%

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Details)

v3.21.4
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Geographic Distribution, Domestic    
Products $ 396,750 $ 606,629
Contract 0 0
Revenues 396,750 606,629
Geographic Distribution, Foreign    
Products 693,052 269,368
Contract 7,665 0
Revenues 700,717 269,368
Filters    
Products 693,768 324,961
Contract 0 0
Revenues 693,768 324,961
Components    
Products 395,176 551,036
Contract 0 0
Revenues 395,176 551,036
Engineering Services    
Products 858 0
Contract 7,665 0
Revenues 8,523 0
Products 1,089,802 875,997
Contract 7,665 0
Revenues $ 1,097,467 $ 875,997

NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details)

v3.21.4
NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details) - USD ($)
Dec. 31, 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 - LEASES (Details)

v3.21.4
NOTE 4 - LEASES (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Adoption of ASC 842 - ROU Asset $ 653,701  
Adoption of ASC 842 - ROU Liability 652,350  
Accounts payable and accrued expenses 373,221 $ 468,839
Back Rent    
Accounts payable and accrued expenses $ 23,374  

NOTE 4 - LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Details)

v3.21.4
NOTE 4 - LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Details)
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Details    
Operating lease - Right-of-use asset $ 593,697 $ 0
Operating lease liabilities - current 106,149 0
Operating lease liabilities - long-term 504,963 $ 0
Operating Lease, Liability $ 611,112  
Operating leases Incremental Borrowing Rate 0.0494  

NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Details)

v3.21.4
NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Details    
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year $ 133,956  
Lessee, Operating Lease, Liability, to be Paid, Year Two 141,036  
Lessee, Operating Lease, Liability, to be Paid, Year Three 148,074  
Lessee, Operating Lease, Liability, to be Paid, Year Four 176,268  
Lessee, Operating Lease, Liability, to be Paid, Thereafter 88,134  
Lessee, Operating Lease, Liability, to be Paid 687,468  
Operating Lease, Imputed interest (76,356)  
Operating Lease, Liability 611,112  
Operating lease liabilities - current (106,149) $ 0
Operating lease liabilities - long-term $ 504,963 $ 0

NOTE 5 - INVENTORIES: Schedule of Inventories (Details)

v3.21.4
NOTE 5 - INVENTORIES: Schedule of Inventories (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Details    
Raw materials $ 846,499 $ 917,567
Finished goods 802,280 962,608
Allowance for obsolete inventory (931,735) (1,058,309)
Inventory Net $ 717,044 $ 821,866

NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Details)

v3.21.4
NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
PROPERTY & EQUIPMENT, net $ 14,373 $ 1,266
Less: accumulated depreciation (64,710) (146,778)
Production Equipment    
PROPERTY & EQUIPMENT, net 68,456 64,673
Computer Equipment    
PROPERTY & EQUIPMENT, net 0 28,540
Equipment    
PROPERTY & EQUIPMENT, net 0 12,380
Leasehold Improvements    
PROPERTY & EQUIPMENT, net $ 10,627 $ 42,451

NOTE 6 - PROPERTY AND EQUIPMENT (Details)

v3.21.4
NOTE 6 - PROPERTY AND EQUIPMENT (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Details    
Depreciation and amortization $ 1,302 $ 543

NOTE 7 - CUSTOMER DEPOSITS (Details)

v3.21.4
NOTE 7 - CUSTOMER DEPOSITS (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Details    
Customer deposits $ 170,870 $ 276,381

NOTE 8 - NOTES PAYABLE - RELATED PARTY (Details)

v3.21.4
NOTE 8 - NOTES PAYABLE - RELATED PARTY (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2020
Convertible Note payable, related parties $ 43,916 $ 43,916 $ 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 8 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details)

v3.21.4
NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Details    
Convertible Note payable, related parties $ 43,916 $ 0
Convertible notes payable - related party (31,090) 0
Convertible notes payable - related party, net of current portion $ 12,826 $ 0

NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details)

v3.21.4
NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Details    
Notes payable - related parties, current portion $ 15,000 $ 15,000
Notes Payable, Related Parties $ 15,000 $ 15,000

NOTE 9 - DEBT (Details)

v3.21.4
NOTE 9 - DEBT (Details) - USD ($)
 20 Months Ended
Mar. 03, 2021
May 28, 2020
Dec. 31, 2021
Jan. 30, 2021
SBA EIDL Loan        
Proceeds from Loans     $ 199,000  
Debt Instrument, Interest Rate, Effective Percentage     3.75%  
Interest Expense, Debt     $ 970  
Debt Instrument, Maturity Date     Apr. 21, 2050  
SBA PPP Loan        
Proceeds from Loans   $ 100,000    
Debt Instrument, Maturity Date   May 22, 2022    
Debt Instrument, Face Amount       $ 100,000
Interest Payable, Current       $ 655
PPP Loan        
Proceeds from Loans $ 100,000      
Debt Instrument, Interest Rate, Effective Percentage 1.00%      

NOTE 9 - DEBT: Schedule of Debt (Details)

v3.21.4
NOTE 9 - DEBT: Schedule of Debt (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
SBA EIDL Loan    
Loans Payable $ 198,674 $ 199,000
SBA PPP Loan    
Loans Payable 0 100,000
Loans Payable, Current 0 (69,551)
Loans Payable, Noncurrent $ 198,674 $ 229,449

NOTE 10 - COMMITMENTS (Details)

v3.21.4
NOTE 10 - COMMITMENTS (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Details    
Purchase Commitment, Remaining Minimum Amount Committed $ 179,240 $ 151,411
Prepayment of Purchase Commitments for Inventory 4,230 38,610
Commitments for Future Cash Outlays for Inventory $ 175,010 $ 112,801

NOTE 11 - RELATED PARTY TRANSACTIONS (Details)

v3.21.4
NOTE 11 - RELATED PARTY TRANSACTIONS (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Details    
Accounts Receivable, Related Parties, Current $ 0 $ 17,345

NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details)

v3.21.4
NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
President    
Accrued management compensation $ 620,735 $ 595,158
Accrued management compensation $ 620,735 $ 595,158

NOTE 12 - STOCKHOLDERS' EQUITY (Details)

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY (Details) - USD ($)
 12 Months Ended
Jul. 14, 2020
Sep. 30, 2019
Sep. 06, 2019
Dec. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Oct. 01, 2017
Sep. 11, 2015
Aug. 03, 2011
Common stock issued for trade payable       $ 29,920          
Common stock issued for trade payable       $ 29,920 $ 0        
Granted       400,000 150,000        
Options and warrants granted       $ 19,112 $ 15,456        
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount       $ 22,745          
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       1,300,000          
Securities Purchase Agreement                  
Stock Issued During Period, Shares, Restricted Stock Award, Gross 260,324 3,579,014 3,579,014            
Share Price     $ 0.1788            
Stock Issued During Period, Value, Restricted Stock Award, Gross $ 51,000 $ 640,000 $ 640,000            
Common Stock                  
Common stock issued for trade payable       $ 28,876          
Common stock issued for trade payable Share       347,902          

NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted (Details)

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted (Details)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 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 12 - STOCKHOLDERS' EQUITY: Schedule of Stock Options and Warrants, Activity (Details)

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Stock Options and Warrants, Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 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  
Outstanding 3,290,556 2,890,556  
Exercisable 3,065,556 2,882,223  
Exercisable, Weighted Average Exercise Price $ 0.19 $ 0.20  

NOTE 12 - STOCKHOLDERS' EQUITY: Summary of the Status of the Options (Details)

v3.21.4
NOTE 12 - STOCKHOLDERS' EQUITY: Summary of the Status of the Options (Details) - $ / shares
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number 3,290,556 2,890,556
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term 2 years 11 months 16 days 3 years 6 months 4 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number 3,065,556 2,882,223
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price $ 0.19 $ 0.20
Minimum    
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit 0.01 0.01
Maximum    
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit $ 1.00 $ 1.00

NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details)

v3.21.4
NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Federal    
Current $ 0 $ 0
Deferred 0 0
State    
Current 800 800
Deferred 0 0
INCOME TAX EXPENSE $ 800 $ 800

NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Details)

v3.21.4
NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets    
Net operating loss carryover $ 7,428,249 $ 7,367,497
Research and development carry forward 131,088 131,088
Inventory reserve 223,616 253,994
Allowance for doubtful accounts 3,600 3,600
Warranty allowance 3,068 3,068
Accrued compensation 148,976 142,838
Deferred tax liabilities    
Depreciation (33,476) (39,927)
Valuation allowance (7,905,122) (7,862,158)
Net deferred tax asset $ 0 $ 0

NOTE 13 - INCOME TAXES (Details)

v3.21.4
NOTE 13 - INCOME TAXES (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Details    
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 24.00% 24.00%
Operating Loss Carryforwards $ 7,453,932  

NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Details)

v3.21.4
NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
 12 Months Ended
Dec. 31, 2021
Dec. 31, 2020
Details    
Book income (loss) $ 4,178 $ (117,532)
Meals and entertainment 0 0
State tax deduction 0 0
Deferred rent 0 0
Stock/Options for services 4,587 3,709
Officer's life ins premium 1,181 1,181
Depreciation (6,451) (8,265)
Accrued compensation 6,138 (26,801)
Inventory reserve (30,378) 16,660
Valuation allowance 42,289 262,894
Net operating loss carryover (20,744) (131,046)
Income Tax Expense $ 800 $ 800

Element Counts

Number of Extension Elements: 261
Number of Contexts: 80
Number of Segments: 29
Number of Units: 4

Content Summary

Documents

000010 - Document - Document and Entity Information

Statements

000020 - Statement - Balance Sheets

000030 - Statement - Balance Sheets - Parenthetical

000040 - Statement - Statements of Operations

000050 - Statement - Condensed Statements of Stockholders' Equity (Deficit) (unaudited)

000060 - Statement - Statements of Cash Flows

Notes to Financials (level 1)

000070 - Disclosure - NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY

000080 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

000090 - Disclosure - NOTE 3 - CONTRACT ASSETS AND LIABILITIES

000100 - Disclosure - NOTE 4 - LEASES

000110 - Disclosure - NOTE 5 - INVENTORIES

000120 - Disclosure - NOTE 6 - PROPERTY AND EQUIPMENT

000130 - Disclosure - NOTE 7 - CUSTOMER DEPOSITS

000140 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTY

000150 - Disclosure - NOTE 9 - DEBT

000160 - Disclosure - NOTE 10 - COMMITMENTS

000170 - Disclosure - NOTE 11 - RELATED PARTY TRANSACTIONS

000180 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY

000190 - Disclosure - NOTE 13 - INCOME TAXES

000200 - Disclosure - NOTE 14 - SUBSEQUENT EVENT

Policies (level 2)

000210 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: a. Accounting Methods (Policies)

000220 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: b. Use of Estimates in Preparing Financial Statements (Policies)

000230 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: c. Cash and Cash Equivalents (Policies)

000240 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Policies)

000250 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Policies)

000260 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: f. Long-Lived Assets (Policies)

000270 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: g. Property and Equipment (Policies)

000280 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Policies)

000290 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: i. Cost of Goods Sold (Policies)

000300 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Policies)

000310 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Policies)

000320 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: l. Provision for Income Taxes (Policies)

000330 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Policies)

000340 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: n. Fair Value Measurements (Policies)

000350 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: o. Stock-based Compensation (Policies)

000360 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Policies)

000370 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Policies)

000380 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: r. Recent Accounting Pronouncements (Policies)

Tables/Schedules (level 3)

000390 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)

000400 - Disclosure - NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables)

000410 - Disclosure - NOTE 4 - LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Tables)

000420 - Disclosure - NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables)

000430 - Disclosure - NOTE 5 - INVENTORIES: Schedule of Inventories (Tables)

000440 - Disclosure - NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Tables)

000450 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables)

000460 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables)

000470 - Disclosure - NOTE 9 - DEBT: Schedule of Debt (Tables)

000480 - Disclosure - NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Tables)

000490 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted (Tables)

000500 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Stock Options and Warrants, Activity (Tables)

000510 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Summary of the Status of the Options (Tables)

000520 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Tables)

000530 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Tables)

000540 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Tables)

Details (level 4)

000550 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Details)

000560 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Details)

000570 - Disclosure - NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details)

000580 - Disclosure - NOTE 4 - LEASES (Details)

000590 - Disclosure - NOTE 4 - LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Details)

000600 - Disclosure - NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Details)

000610 - Disclosure - NOTE 5 - INVENTORIES: Schedule of Inventories (Details)

000620 - Disclosure - NOTE 6 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Details)

000630 - Disclosure - NOTE 6 - PROPERTY AND EQUIPMENT (Details)

000640 - Disclosure - NOTE 7 - CUSTOMER DEPOSITS (Details)

000650 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTY (Details)

000660 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details)

000670 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details)

000680 - Disclosure - NOTE 9 - DEBT (Details)

000690 - Disclosure - NOTE 9 - DEBT: Schedule of Debt (Details)

000700 - Disclosure - NOTE 10 - COMMITMENTS (Details)

000710 - Disclosure - NOTE 11 - RELATED PARTY TRANSACTIONS (Details)

000720 - Disclosure - NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details)

000730 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY (Details)

000740 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Assumptions Used to Estimate the Fair Values of Stock Options Granted (Details)

000750 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Stock Options and Warrants, Activity (Details)

000760 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Summary of the Status of the Options (Details)

000770 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details)

000780 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Details)

000790 - Disclosure - NOTE 13 - INCOME TAXES (Details)

000800 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Details)

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