Consolidated SEC Viewer Rendering

Document and Entity Information

v3.24.1
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2023
Apr. 12, 2024
Jun. 30, 2023
Details      
Registrant CIK 0001404804    
Fiscal Year End --12-31    
Document Financial Statement Error Correction false    
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Securities Act 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 Shell Company false    
Entity Public Float     $ 398,207
Entity Common Stock, Shares Outstanding   21,948,091  
Amendment Flag false    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Document Transition Report false    
Auditor Firm ID 3223    
Auditor Name Mercurius & Associates LLP    
Auditor Location New Delhi, India    

Balance Sheets

v3.24.1
Balance Sheets - USD ($)
Dec. 31, 2023
Dec. 31, 2022
CURRENT ASSETS    
Cash $ 73,703 $ 56,379
Accounts receivable, net 12,233 10,180
Accounts receivable - related parties 1,304 2,252
Inventory Net 370,838 543,353
Deposits 24,443 7,657
Total Current Assets 482,521 619,821
PROPERTY & EQUIPMENT, net 5,667 7,412
OTHER ASSETS    
Operating lease - right-of-use asset 345,459 472,342
Long-term deposit 13,514 13,514
Total Long-Term Assets 364,640 493,268
TOTAL ASSETS 847,161 1,113,089
CURRENT LIABILITIES    
Accounts payable and accrued expenses 323,236 353,591
Accrued management compensation 635,158 635,158
Accounts payable - related parties 131,285 127,192
Notes payable - related parties 37,940 15,000
Convertible notes payable - related party 10,000 32,827
Customer deposits 310,025 231,418
Operating lease liabilities - current 131,868 118,756
Total Current Liabilities 1,579,512 1,513,942
LONG-TERM LIABILITIES    
Loans payable - SBA 199,000 199,000
Operating lease liabilities - long-term 254,339 386,207
Total Long-term Liabilities 453,339 585,207
Total Liabilities 2,032,851 2,099,149
STOCKHOLDERS' DEFICIT    
Common stock, 125,000,000 shares authorized; no par value; 21,948,091 and 21,948,091 shares, respectively issued and outstanding 8,607,086 8,607,086
Additional paid-in capital 12,067,571 12,051,795
Accumulated deficit (21,860,347) (21,644,941)
Total Stockholders' Deficit (1,185,690) (986,060)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 847,161 $ 1,113,089

Balance Sheets - Parenthetical

v3.24.1
Balance Sheets - Parenthetical - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Balance Sheets    
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 21,948,091
Common Stock, Shares, Outstanding 21,948,091 21,948,091

Statements of Operations

v3.24.1
Statements of Operations - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Statements of Operations    
Revenues $ 1,055,314 $ 1,070,787
COST OF GOODS SOLD 644,660 649,427
GROSS MARGIN 410,654 421,360
OPERATING EXPENSES    
General and administrative 537,473 526,836
Research and development 67,576 66,444
Depreciation and amortization 1,745 2,500
Total Operating Expenses 606,794 595,780
LOSS FROM OPERATIONS (196,140) (174,420)
OTHER INCOME (EXPENSE)    
Allowance for obsolete inventory (84,068) 0
Reversal of allowance for obsolete inventory 88,945 0
Interest expense (23,343) (21,489)
Total Other Income (Expense) (18,466) (21,489)
LOSS BEFORE INCOME TAXES (214,606) (195,909)
INCOME TAX EXPENSE 800 800
NET LOSS $ (215,406) $ (196,709)
BASIC AND DILUTED LOSS PER SHARE $ (0.01) $ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC 21,948,091 21,948,091
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED 21,948,091 21,948,091

Statements of Stockholders' Deficit

v3.24.1
Statements of Stockholders' Deficit - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings
Total
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 21,948,091      
Net income (loss) $ 0 $ 0 $ (196,709) $ (196,709)
Shares, Outstanding, Ending Balance at Dec. 31, 2022 21,948,091      
Equity, Attributable to Parent, Beginning Balance at Dec. 31, 2021 $ 8,607,086 12,033,454 (21,448,232) (807,692)
Options and warrants issued for services 0 18,341 0 18,341
Equity, Attributable to Parent, Ending Balance at Dec. 31, 2022 8,607,086 12,051,795 (21,644,941) (986,060)
Net income (loss) $ 0 0 (215,406) (215,406)
Shares, Outstanding, Ending Balance at Dec. 31, 2023 21,948,091      
Options and warrants issued for services $ 0 15,776 0 15,776
Equity, Attributable to Parent, Ending Balance at Dec. 31, 2023 $ 8,607,086 $ 12,067,571 $ (21,860,347) $ (1,185,690)

Statements of Cash Flows

v3.24.1
Statements of Cash Flows - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
OPERATING ACTIVITIES    
Net income (loss) $ (215,406) $ (196,709)
Adjustments to reconcile net loss to net cash used in operating activities    
Amortization and depreciation expense 1,745 2,500
Options and warrants issued for services 15,776 18,341
Write-off of contract asset 0 13,221
Amortization of ROU asset 126,883 127,261
Inventory reserve (4,877) (3,980)
Changes in operating assets and liabilities    
Accounts receivable (2,053) (625)
Operating lease liability (118,756) (106,149)
Accounts receivable-related parties 948 (2,252)
Deposits (16,786) (3,427)
Inventory 177,392 177,671
Accounts payable and accrued expenses (30,355) (19,304)
Customer deposits 78,607 60,548
Contract liability 0 (75,000)
Accounts payable-related parties 4,093 2,720
Accrued management compensation 0 14,423
Net Cash Provided by (Used in) Operating Activities 17,211 9,239
INVESTING ACTIVITIES    
Purchase of fixed assets 0 (1,445)
Net Cash Used in Investing Activities 0 (1,445)
FINANCING ACTIVITIES    
Proceeds (payments on) from related party payable 113 (11,089)
Net Cash Provided by (Used in) Financing Activities 113 (11,089)
NET CHANGE IN CASH 17,324 (3,295)
CASH AT BEGINNING OF YEAR 56,379 59,674
CASH AT END OF YEAR 73,703 56,379
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS    
Interest 27,537 17,713
Income taxes $ 800 $ 800

NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY

v3.24.1
NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY
 12 Months Ended
Dec. 31, 2023
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 proprietary technology to convert diesel engines to an alternative fuel, new gaseous fuel 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”), renewable natural gas (“Biogas” or “RNG”), or Hydrogen (“H2”), as well as liquid petroleum gas (“Propane” or LPG”). Omnitek began operations on October 10, 2001, and was a spin-off from Nology Engineering, Inc.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 2 - SUMMARY OF 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, 2023, and 2022, was $0 and $0, respectively. Additionally, bad debt expense for the years ended December 31, 2023, and 2022, was $0 and $0, respectively.

 

e.       Inventories

 

Inventories are stated at the lower of cost or market value, 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.

 

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

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

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, 2023, or 2022.

 

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 as performance obligations are satisfied. This type of revenue is primarily generated from the sale of finished products to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Control passes FOB shipping point.

 

Performance Obligations

 

A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct.

 

Performance Obligations Satisfied Over Time 

 

Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the years ended December 31, 2023, and 2022, respectively.

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Performance Obligations Satisfied at a Point in Time

 

Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 100% and 100% of revenue for the years ended December 31, 2023, and 2022, 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.

 

Disaggregation of Revenue

 

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

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2023

 

 

 

 

2022

 

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

342,146

-

342,146

 

$

376,453

-

376,453

International

 

 

713,168

 

713,168

 

 

694,334

 

694,334

 

 

$

1,055,314

 

1,055,314

 

$

1,070,787

 

1,070,787

 

 

 

 

 

 

 

 

 

 

 

Filters

 

 

528,917

-

528,917

 

 

520,386

-

520,386

Components

 

 

526,397

-

526,397

 

 

549,581

-

549,581

Engineering Services

 

 

-

 

-

 

 

820

 

820

 

 

$

1,055,314

 

1,055,314

 

$

1,070,787

 

1,070,787

 

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, 2023, and 2022, the Company incurred research and development expenses of $67,576 and $66,444, respectively.

 

k.       Advertising

 

The Company follows the policy of charging the costs of advertising to expense as incurred. During the years ended December 31, 2023, and 2022, the Company expensed $-0- and $-0-, respectively.

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

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, 2023, 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 2,720,556 and 3,207,222 stock options and warrants that would have been included in the fully diluted earnings per share computation as of December 31, 2023 and 2022, respectively. However, in 2023, the common stock equivalents were not included in the loss per share computation because they are 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:

 

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.

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

p.       Concentration of Risks

 

Customers

 

During the year ended December 31, 2023, eight customers accounted for approximately 91% of sales.

 

During the year ended December 31, 2022, eight customers accounted for approximately 81% of sales.

 

Suppliers

 

During the year ended December 31, 2023, four suppliers accounted for 78% of products purchased.

 

During the year ended December 31, 2022, four suppliers accounted for 82% of products purchased.

 

q.       Liquidity and Going Concern

 

Historically, the Company has incurred net losses and positive cash flows from operations. As of December 31, 2023, the Company had an accumulated deficit of $21,860,347 and total stockholders’ deficit of $1,185,690. At December 31, 2023, the Company had current assets of $482,521 including cash of $73,703, and current liabilities of $1,579,512, resulting in negative working capital of $1,096,991.  For 2023, the Company reported a net loss of $215,406 and net cash provided by operating activities of $17,211.  Management believes that based on its operating plan, the projected sales for 2024, 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 - CUSTOMER DEPOSITS

v3.24.1
NOTE 3 - CUSTOMER DEPOSITS
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 3 - CUSTOMER DEPOSITS

NOTE 3 – CUSTOMER DEPOSITS

 

The customers deposit account relates to payments received from customers before product has been shipped. When the product is shipped the Company recognizes the associated revenue by reclassifying the customer deposit to the appropriate revenue account. By contrast, the Contract Liabilities account (see Note 4) relates to long-term contracts where revenue is recognized over the term of the contract. For the periods ended December 31, 2023 and December 31, 2022, the balance due under customer deposits was $310,025 and $231,418, respectively.

NOTE 4 - CONTRACT ASSETS AND LIABILITIES

v3.24.1
NOTE 4 - CONTRACT ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 4 - CONTRACT ASSETS AND LIABILITIES

NOTE 4 – 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. As of December 31, 2023, the company had no long-term contract liabilities.

NOTE 5 - OPERATING LEASES

v3.24.1
NOTE 5 - OPERATING LEASES
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 5 - OPERATING LEASES

NOTE 5 – OPERATING LEASE

 

The Company’s lease consists of an operating lease for general office space and warehouse facilities. The Company recognizes rent expense for this lease on a straight-line basis over the lease term. Because the lease does not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease Commencement Date in determining the present value of future lease payments.

 

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.

 

During the year ended December 31, 2023, cash paid for amounts included in the measurement of operating lease liabilities was $118,756 and the Company recorded operating lease expenses included in operating expenses of $43,298 and cost of sales of $105,864, for a total of $149,162.

 

Supplemental balance sheet information related to leases as of December 31, 2023 was as follows:

 

 

Operating leases:

 

 

 

 

 

Operating lease right-of-use-assets

 

 

 

 

345,459

Operating lease liabilities - current

 

 

 

 

131,868

Operating lease liabilities – long-term

 

 

 

 

254,339

Incremental borrowing rate:

 

 

 

 

 

Operating leases

 

 

 

 

4.94%

 

As of December 31, 2023, maturities of operating lease liabilities were as follows:

 

Years ending December 31,

 

 

 

2023

 

 

 

 

-

2024

 

 

 

 

148,074

2025

 

 

 

 

176,268

Thereafter

 

 

 

 

88,134

Total lease payments

 

 

 

 

412,476

Less: Imputed interest

 

 

 

 

(26,269)

Total lease liability

 

 

 

 

386,207

Less: current lease liability

 

 

 

 

(131,868)

Long-term lease liability

 

 

 

$

254,339

NOTE 6 - INVENTORIES

v3.24.1
NOTE 6 - INVENTORIES
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 6 - INVENTORIES

NOTE 6 – INVENTORIES

 

Inventories are located in Vista, California and at December 31, 2023, and 2022, consisted of the following:

 

 

December 31,

 

December 31,

 

2023

 

2022

Raw materials

$

799,642 

 

$

836,833 

Finished goods

 

494,074 

 

 

634,275 

Total

$

1,293,716 

 

$

1,471,108 

Allowance for obsolete inventory

 

 

 

 

 

Opening allowance

 

927,755 

 

 

931,735 

Additional allowance created during the Year

 

84,068 

 

 

 

Earlier year allowance write back

 

(88,945)

 

 

(3,980)

Closing allowance

 

922,878 

 

 

927,755 

Total

$

370,838 

 

$

543,353 

 

NOTE 6 – INVENTORIES (continued)

 

The Company has established an allowance for obsolete inventory. The net change in obsolete inventory was a decrease of $4,877 and $3,980, for the years ended December 31, 2023, and December 31, 2022, respectively.

NOTE 7 - PROPERTY AND EQUIPMENT

v3.24.1
NOTE 7 - PROPERTY AND EQUIPMENT
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 7 - PROPERTY AND EQUIPMENT

NOTE 7 – PROPERTY AND EQUIPMENT

 

Property and equipment at December, 2023, and 2022, consisted of the following:

 

 

December 31,

 

December 31,

2023

 

2022

Production equipment

$

68,456  

 

$

68,456  

Leasehold Improvements

 

4,689  

 

 

4,689  

Less: accumulated depreciation

 

(67,478) 

 

 

(65,733) 

Total

$

5,667  

 

$

7,412  

 

Depreciation expense for the years ended December 31, 2023, and 2022, was $1,745 and $2,500, respectively.

NOTE 8 - NOTES PAYABLE - RELATED PARTIES

v3.24.1
NOTE 8 - NOTES PAYABLE - RELATED PARTIES
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 8 - NOTES PAYABLE - RELATED PARTIES

NOTE 8 – NOTES PAYABLE – RELATED PARTIES

 

Convertible Notes – Related Parties

 

On June 4, 2021, the Company issued an unsecured convertible promissory note for $30,000 to its CEO. Simple interest at the rate of 8% per annum accrues on the unpaid principal balance of the note. The note calls for monthly installment payments of $1,050 commencing on July 4, 2021. The unpaid principal and accrued interest was due and payable on or before June 4, 2023. On the maturity date, June 4, 2023, the lender elected to transfer the unpaid principal balance of $7,940 to the Working Capital Promissory Note.

 

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. On December 14, 2021, the maturity date of convertible promissory note was extended for an additional period of 3 months until March 4, 2022. Subsequently the maturity date was extended for additional periods to June 4, 2022, September 4, 2022, December 4, 2022, June 4, 2023 and December 4, 2023. On December 4, 2023 the Company made a payment of $10,000 reducing the outstanding balance to $10,000 and also extended the note until December 4, 2024. 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 is not convertible until maturity, no derivative liability was recognized as of December 31, 2023.

 

As of December 31, 2023, and December 31, 2022, Convertible Notes – Related Party consisted of the following:

 

 

 

December 31,

2023

 

December 31,

2022

Convertible Notes payable, related parties

 

$

 10,000 

 

 

$

32,827

Less current portion

 

 

(10,000)

 

 

 

(32,827)

Total

 

$

 - 

 

 

 

-

 

 

NOTE 8 – NOTES PAYABLE – RELATED PARTIES (continued)

 

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, 2018. The maturity date of the note was extended annually for additional one-year period, with a current due date of January 19, 2024. On September 15, 2023, the lender elected to transfer the unpaid principal balance of $15,000 to the Working Capital Promissory Note.

 

On March 23, 2023, the Company issued a Working Capital Promissory Note, in favor of its CEO, evidencing the additional loans to the Company by the CEO, with an Initial Principal Balance of $20,000, and to evidence any future additional loans by the CEO to the Company thereafter. Pursuant to the terms of the note, the unpaid principal and accrued simple interest at the rate of 8.0% per annum (“Applicable Rate”) shall be due and payable on or before March 22, 2024, (the “Maturity Date”). The principal amount of the note shall be increased by the amount of any additional advances of funds made by the CEO to the Company, from time-to-time, with interest thereon at the applicable Rate, from the date of such advance.

 

As of December 31, 2023, and December 31, 2022 Note Payable – Related Party consisted of the following:

 

 

 

December 31,

2023

 

December 31,

2022

Note payable, related party, current portion

 

$

37,940

 

 

$

15,000

Total

 

$

37,940

 

 

$

15,000

NOTE 9 - DEBT

v3.24.1
NOTE 9 - DEBT
 12 Months Ended
Dec. 31, 2023
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 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 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 (30) 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. As of December 31, 2023, accrued interest was $12,020. Current monthly payments are applied to the accrued interest. 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.

 

As of December 31, 2023, and December 31, 2022, Debt consisted of the following:

 

 

December 31,

 

December 31,

2023

 

2022

Loan payable – SBA EIDL

$

199,000

 

$

199,000

Less current portion

 

-

 

 

-

Total

$

199,000

 

$

199,000

 

As of December 31, 2023 accrued interest was $12,020.

NOTE 10 - COMMITMENTS AND CONTINGENCIES

v3.24.1
NOTE 10 - COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 10 - COMMITMENTS AND CONTINGENCIES

NOTE 10 – COMMITMENTS

 

As of December 31, 2023, and 2022, the Company had outstanding purchase commitments for inventory totaling $195,606 and $188,946, respectively. Of these amounts, the Company had prepayments of $23,113 as of December 31, 2023, and $7,657 as of December 31, 2022, and had commitments for future cash outlays for inventory totaling $172,493 and $181,289, respectively.

NOTE 11 - RELATED PARTY TRANSACTIONS

v3.24.1
NOTE 11 - RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 11 - RELATED PARTY TRANSACTIONS

NOTE 11 – RELATED PARTY TRANSACTIONS

 

Accounts Payable – Related Parties

 

The Company regularly incurs expenses that are paid to related parties and purchases goods and services from related parties. As of December 31, 2023, the Company owed two board members for such services $129,950 and a board member’s company for such goods in the amounts of $1,335.

 

Accounts Receivable – Related Parties

 

As of December 31, 2023, and December 31, 2022, the Company was owed $1,304 and $2,252, 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, 2023, and December 31, 2022, the Company’s president was due amounts for services performed for the Company. As of December 31, 2023, and December 31, 2022 the accrued management fees consisted of the following:

 

 

 

December 31, 2023

 

December 31, 2022

Amounts due to the president

$

635,158

 

$

635,158

Total

$

635,158

 

$

635,158

NOTE 12 - STOCKHOLDERS' EQUITY

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 12 - STOCKHOLDERS' EQUITY

NOTE 12 – STOCKHOLDERS’ EQUITY

 

Options and Warrants

 

The Company has no warrants outstanding.

 

On April 14, 2023, options to purchase 570,000 shares of common Stock at an exercise price of $0.286 per share, and options to purchase 150,000 shares of common Stock at an exercise price of $0.26 per share, expired.

 

During the years ended December 31, 2023, and 2022, the Company granted 150,000 and 150,000 options for services, respectively. During the years ended December 31, 2023, and 2022, respectively, the Company recognized expenses of $15,776 and $18,341 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 $1,963.

 

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

 

NOTE 12 – STOCKHOLDERS’ EQUITY (continued)

 

at its discretion. As of December 31, 2023, the Company had a total of 1,145,556 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, 2023, the Company had a total of 1,600,000 options issued under the plan. During the year ended December 31, 2023, and 2022, 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,

2023

 

December 31,

2022

Expected volatility

206%

 

207%

Expected dividends

0%

 

0%

Expected term

7 Years

 

7 Years

Risk-free interest rate

3.63%

 

2.95%

 

A summary of the status of the options granted at December 31, 2023 and December 31, 2022 and changes during the years then ended is presented below:  

 

 

 

December 31,

2023

 

December 31,

2022

 

 

 

 

Weighted-Average

 

 

 

 

Weighted-Average

 

Shares

 

 

Exercise Price

 

Shares

 

 

Exercise Price

Outstanding at beginning of year

3,265,556

 

$

0.15

 

3,290,556

 

$

0.19

Granted

150,000

 

 

0.04

 

150,000

 

 

0.05

Exercised

-

 

 

-

 

-

 

 

-

Expired or cancelled

(670,000)

 

 

0.28

 

(175,000)

 

 

0.77

Outstanding at end of year

2,745,556

 

 

0.11

 

3,265,556

 

 

0.15

Exercisable

2,720,556

 

$

0.11

 

3,140,556

 

$

0.15

 

 

NOTE 12 – STOCKHOLDERS’ EQUITY (continued)

 

A summary of the status of the options outstanding at December 31, 2023 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01-1.00

 

2,745,556

 

2.04 years

 

2,720,556

 

$0.11

 

A summary of the status of the options outstanding at December 31, 2022 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01 - 1.00

 

3,265,556

 

2.28 years

 

3,140,556

 

$0.15

NOTE 13 - INCOME TAXES

v3.24.1
NOTE 13 - INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 13 - INCOME TAXES

NOTE 13 – INCOME TAXES

 

The provision for income taxes for the year ended December 31, 2023 and 2022 consists of the following:

 

 

 

 

December 31,

 

December 31,

 

2023

 

2022

Federal

 

 

 

 

Current

 

$

- 

 

$

- 

Deferred

 

 

- 

 

 

- 

State

 

 

 

 

 

 

Current

 

$

800 

 

$

800 

Deferred

 

 

- 

 

 

- 

  Income tax expense

 

$

800 

 

$

800 

 

Net deferred tax assets consist of the following components as of December 31, 2023, and 2022:

 

 

 

December 31,

 

December 31,

 

 

2023

 

2022

 

Deferred tax assets:

 

 

 

 

 

Net operating loss carryover

 

$

8,035,407  

 

$

7,839,147  

 

Research and development carry forward

 

 

131,088  

 

 

131,088  

 

Inventory reserve

 

 

221,491  

 

 

222,661  

 

Allowance for doubtful accounts

 

 

3,600  

 

 

3,600  

 

Warranty allowance

 

 

3,068  

 

 

3,068  

 

Accrued compensation

 

 

152,438  

 

 

152,438  

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Depreciation

 

 

(34,482) 

 

 

(34,066) 

 

Valuation allowance

 

 

(8,512,610) 

 

 

(8,317,935) 

 

Net deferred tax asset

 

$

-  

 

$

-  

 

 

 

NOTE 13 – INCOME TAXES (continued)

 

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, 2023 and December 31, 2022 to pretax income from continuing operations for the year ended December 31, 2023 and 2022 due to the following:  

 

 

  

 

December 31,

 

December 31,

 

 

2023

 

 

2022

Book income (loss)   

 

$

(51,697) 

 

$

(47,210) 

Meals and entertainment   

 

 

-  

 

 

-  

State tax deduction

 

 

-  

 

 

-  

Deferred rent

 

 

-  

 

 

-  

Stock/Options for services

 

 

3,786  

 

 

4,402  

Officer’s life ins premium

 

 

260  

 

 

797  

Depreciation

 

 

416  

 

 

590  

Accrued compensation

 

 

-  

 

 

3,462  

Inventory reserve

 

 

(1,170) 

 

 

(955) 

Valuation allowance

 

 

97,611  

 

 

78,629  

Net operating of carryover

 

 

(48,406) 

 

 

(38,915) 

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, 2023, the Company had net operating loss carry forwards of approximately $8,035,407 through 2034.  No tax benefit has been reported in the December 31, 2023, 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 - CONTINGENT LIABILITY

v3.24.1
NOTE 14 - CONTINGENT LIABILITY
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 14 - CONTINGENT LIABILITY

NOTE 14 – CONTINGENT LIABILITY

 

On September 16, 2022 the Company received a Summons and was named as a cross-defendant in the matter of Olson-Ecologic Engine Testing Laboratories, LLC -v- Michael Naylor, Omnitek Engineering Corp., and Moto Concerto, Inc., filed in the Superior Court of the State of California, County of Orange, Central Justice Center, Case No. 30-2020-01171344. Olson-Ecologic Engine Testing Laboratories, LLC filed the cross-complaint in response to the original complaint filed by Michael Naylor against Olson-Ecologic Engine Testing Laboratories. Omnitek served as a subcontractor to Olson-Ecologic who received a grant in May 2017 from the California Energy Commission. In October 2017, very early in the project and before completion of the project, which was to run into 2020, Olson-Ecologic advised Omnitek that the California Energy Commission had terminated the project. In the cross-complaint Olson-Ecologic alleges that Omnitek participated with Mr. Naylor in overcharging Olson-Ecologic, however, Olson-Ecologic does not provide a specific statement of facts or actions of what Omnitek allegedly did. Olson-Ecologic’s cross-complaint and allegations against Omnitek are without merit and Omnitek will vigorously defend the cross-complaint. As of the time of this report there are no new developments as the case was continued to May 6, 2024.

NOTE 15 - SUBSEQUENT EVENT

v3.24.1
NOTE 15 - SUBSEQUENT EVENT
 12 Months Ended
Dec. 31, 2023
Notes  
NOTE 15 - SUBSEQUENT EVENT

NOTE 15 – SUBSEQUENT EVENTS

 

The Company reports no subsequent events through the date these financial statements were issued.

 

None

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Accounting Methods (Policies)
 12 Months Ended
Dec. 31, 2023
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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: b. Use of Estimates in Preparing Financial Statements (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: b. Use of Estimates in Preparing Financial Statements (Policies)
 12 Months Ended
Dec. 31, 2023
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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: c. Cash and Cash Equivalents (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: c. Cash and Cash Equivalents (Policies)
 12 Months Ended
Dec. 31, 2023
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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Policies)
 12 Months Ended
Dec. 31, 2023
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, 2023, and 2022, was $0 and $0, respectively. Additionally, bad debt expense for the years ended December 31, 2023, and 2022, was $0 and $0, respectively.

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: e. Inventories (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: e. Inventories (Policies)
 12 Months Ended
Dec. 31, 2023
Policies  
e. Inventories

e.       Inventories

 

Inventories are stated at the lower of cost or market value, 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: f. Long-Lived Assets (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: f. Long-Lived Assets (Policies)
 12 Months Ended
Dec. 31, 2023
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

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

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, 2023, or 2022.

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: g. Property and Equipment (Policies)
 12 Months Ended
Dec. 31, 2023
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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Policies)
 12 Months Ended
Dec. 31, 2023
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 as performance obligations are satisfied. This type of revenue is primarily generated from the sale of finished products to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer. Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Control passes FOB shipping point.

 

Performance Obligations

 

A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct.

 

Performance Obligations Satisfied Over Time 

 

Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the years ended December 31, 2023, and 2022, respectively.

 

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

 

Performance Obligations Satisfied at a Point in Time

 

Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 100% and 100% of revenue for the years ended December 31, 2023, and 2022, 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.

 

Disaggregation of Revenue

 

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

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2023

 

 

 

 

2022

 

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

342,146

-

342,146

 

$

376,453

-

376,453

International

 

 

713,168

 

713,168

 

 

694,334

 

694,334

 

 

$

1,055,314

 

1,055,314

 

$

1,070,787

 

1,070,787

 

 

 

 

 

 

 

 

 

 

 

Filters

 

 

528,917

-

528,917

 

 

520,386

-

520,386

Components

 

 

526,397

-

526,397

 

 

549,581

-

549,581

Engineering Services

 

 

-

 

-

 

 

820

 

820

 

 

$

1,055,314

 

1,055,314

 

$

1,070,787

 

1,070,787

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: i. Cost of Goods Sold (Policies)
 12 Months Ended
Dec. 31, 2023
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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Policies)
 12 Months Ended
Dec. 31, 2023
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, 2023, and 2022, the Company incurred research and development expenses of $67,576 and $66,444, respectively.

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Policies)
 12 Months Ended
Dec. 31, 2023
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, 2023, and 2022, the Company expensed $-0- and $-0-, respectively.

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: l. Provision for Income Taxes (Policies)
 12 Months Ended
Dec. 31, 2023
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, 2023, 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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Policies)
 12 Months Ended
Dec. 31, 2023
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 2,720,556 and 3,207,222 stock options and warrants that would have been included in the fully diluted earnings per share computation as of December 31, 2023 and 2022, respectively. However, in 2023, the common stock equivalents were not included in the loss per share computation because they are anti-dilutive.

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: n. Fair Value Measurements (Policies)
 12 Months Ended
Dec. 31, 2023
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:

 

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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: o. Stock-based Compensation (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: o. Stock-based Compensation (Policies)
 12 Months Ended
Dec. 31, 2023
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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Policies)
 12 Months Ended
Dec. 31, 2023
Policies  
p. Concentration of Risks

p.       Concentration of Risks

 

Customers

 

During the year ended December 31, 2023, eight customers accounted for approximately 91% of sales.

 

During the year ended December 31, 2022, eight customers accounted for approximately 81% of sales.

 

Suppliers

 

During the year ended December 31, 2023, four suppliers accounted for 78% of products purchased.

 

During the year ended December 31, 2022, four suppliers accounted for 82% of products purchased.

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Policies)
 12 Months Ended
Dec. 31, 2023
Policies  
q. Liquidity and Going Concern

q.       Liquidity and Going Concern

 

Historically, the Company has incurred net losses and positive cash flows from operations. As of December 31, 2023, the Company had an accumulated deficit of $21,860,347 and total stockholders’ deficit of $1,185,690. At December 31, 2023, the Company had current assets of $482,521 including cash of $73,703, and current liabilities of $1,579,512, resulting in negative working capital of $1,096,991.  For 2023, the Company reported a net loss of $215,406 and net cash provided by operating activities of $17,211.  Management believes that based on its operating plan, the projected sales for 2024, 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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: r. Recent Accounting Pronouncements (Policies)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: r. Recent Accounting Pronouncements (Policies)
 12 Months Ended
Dec. 31, 2023
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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Disaggregation of Revenue

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

2023

 

 

 

 

2022

 

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

342,146

-

342,146

 

$

376,453

-

376,453

International

 

 

713,168

 

713,168

 

 

694,334

 

694,334

 

 

$

1,055,314

 

1,055,314

 

$

1,070,787

 

1,070,787

 

 

 

 

 

 

 

 

 

 

 

Filters

 

 

528,917

-

528,917

 

 

520,386

-

520,386

Components

 

 

526,397

-

526,397

 

 

549,581

-

549,581

Engineering Services

 

 

-

 

-

 

 

820

 

820

 

 

$

1,055,314

 

1,055,314

 

$

1,070,787

 

1,070,787

NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Tables)

v3.24.1
NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Supplemental Balance Sheet Information Related to Leases

 

Operating leases:

 

 

 

 

 

Operating lease right-of-use-assets

 

 

 

 

345,459

Operating lease liabilities - current

 

 

 

 

131,868

Operating lease liabilities – long-term

 

 

 

 

254,339

Incremental borrowing rate:

 

 

 

 

 

Operating leases

 

 

 

 

4.94%

NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables)

v3.24.1
NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Maturities of Operating Lease Liabilities

As of December 31, 2023, maturities of operating lease liabilities were as follows:

 

Years ending December 31,

 

 

 

2023

 

 

 

 

-

2024

 

 

 

 

148,074

2025

 

 

 

 

176,268

Thereafter

 

 

 

 

88,134

Total lease payments

 

 

 

 

412,476

Less: Imputed interest

 

 

 

 

(26,269)

Total lease liability

 

 

 

 

386,207

Less: current lease liability

 

 

 

 

(131,868)

Long-term lease liability

 

 

 

$

254,339

NOTE 6 - INVENTORIES: Schedule of Inventories (Tables)

v3.24.1
NOTE 6 - INVENTORIES: Schedule of Inventories (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Inventories

Inventories are located in Vista, California and at December 31, 2023, and 2022, consisted of the following:

 

 

December 31,

 

December 31,

 

2023

 

2022

Raw materials

$

799,642 

 

$

836,833 

Finished goods

 

494,074 

 

 

634,275 

Total

$

1,293,716 

 

$

1,471,108 

Allowance for obsolete inventory

 

 

 

 

 

Opening allowance

 

927,755 

 

 

931,735 

Additional allowance created during the Year

 

84,068 

 

 

 

Earlier year allowance write back

 

(88,945)

 

 

(3,980)

Closing allowance

 

922,878 

 

 

927,755 

Total

$

370,838 

 

$

543,353 

NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Tables)

v3.24.1
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Property and Equipment

Property and equipment at December, 2023, and 2022, consisted of the following:

 

 

December 31,

 

December 31,

2023

 

2022

Production equipment

$

68,456  

 

$

68,456  

Leasehold Improvements

 

4,689  

 

 

4,689  

Less: accumulated depreciation

 

(67,478) 

 

 

(65,733) 

Total

$

5,667  

 

$

7,412  

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

v3.24.1
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule of Convertible Notes - Related Parties (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Convertible Notes - Related Parties

 

 

December 31,

2023

 

December 31,

2022

Convertible Notes payable, related parties

 

$

 10,000 

 

 

$

32,827

Less current portion

 

 

(10,000)

 

 

 

(32,827)

Total

 

$

 - 

 

 

 

-

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

v3.24.1
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule Of Notes Payable Related Party table (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule Of Notes Payable Related Party table

 

 

December 31,

2023

 

December 31,

2022

Note payable, related party, current portion

 

$

37,940

 

 

$

15,000

Total

 

$

37,940

 

 

$

15,000

NOTE 9 - DEBT: Schedule of Debt (Tables)

v3.24.1
NOTE 9 - DEBT: Schedule of Debt (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Debt

As of December 31, 2023, and December 31, 2022, Debt consisted of the following:

 

 

December 31,

 

December 31,

2023

 

2022

Loan payable – SBA EIDL

$

199,000

 

$

199,000

Less current portion

 

-

 

 

-

Total

$

199,000

 

$

199,000

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

v3.24.1
NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule Of Related Party Transactions Table

 

 

December 31, 2023

 

December 31, 2022

Amounts due to the president

$

635,158

 

$

635,158

Total

$

635,158

 

$

635,158

NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Tables)

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions

 

 

December 31,

2023

 

December 31,

2022

Expected volatility

206%

 

207%

Expected dividends

0%

 

0%

Expected term

7 Years

 

7 Years

Risk-free interest rate

3.63%

 

2.95%

NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Tables)

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Share-Based Payment Arrangement, Option, Activity

 

 

December 31,

2023

 

December 31,

2022

 

 

 

 

Weighted-Average

 

 

 

 

Weighted-Average

 

Shares

 

 

Exercise Price

 

Shares

 

 

Exercise Price

Outstanding at beginning of year

3,265,556

 

$

0.15

 

3,290,556

 

$

0.19

Granted

150,000

 

 

0.04

 

150,000

 

 

0.05

Exercised

-

 

 

-

 

-

 

 

-

Expired or cancelled

(670,000)

 

 

0.28

 

(175,000)

 

 

0.77

Outstanding at end of year

2,745,556

 

 

0.11

 

3,265,556

 

 

0.15

Exercisable

2,720,556

 

$

0.11

 

3,140,556

 

$

0.15

NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables)

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable

A summary of the status of the options outstanding at December 31, 2023 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01-1.00

 

2,745,556

 

2.04 years

 

2,720,556

 

$0.11

 

A summary of the status of the options outstanding at December 31, 2022 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

$0.01 - 1.00

 

3,265,556

 

2.28 years

 

3,140,556

 

$0.15

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

v3.24.1
NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Components of Income Tax Expense (Benefit)

 

 

 

December 31,

 

December 31,

 

2023

 

2022

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)

v3.24.1
NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets consist of the following components as of December 31, 2023, and 2022:

 

 

 

December 31,

 

December 31,

 

 

2023

 

2022

 

Deferred tax assets:

 

 

 

 

 

Net operating loss carryover

 

$

8,035,407  

 

$

7,839,147  

 

Research and development carry forward

 

 

131,088  

 

 

131,088  

 

Inventory reserve

 

 

221,491  

 

 

222,661  

 

Allowance for doubtful accounts

 

 

3,600  

 

 

3,600  

 

Warranty allowance

 

 

3,068  

 

 

3,068  

 

Accrued compensation

 

 

152,438  

 

 

152,438  

 

Deferred tax liabilities:

 

 

 

 

 

 

 

Depreciation

 

 

(34,482) 

 

 

(34,066) 

 

Valuation allowance

 

 

(8,512,610) 

 

 

(8,317,935) 

 

Net deferred tax asset

 

$

-  

 

$

-  

 

 

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

v3.24.1
NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Tables)
 12 Months Ended
Dec. 31, 2023
Tables/Schedules  
Schedule of Effective Income Tax Rate Reconciliation

 

  

 

December 31,

 

December 31,

 

 

2023

 

 

2022

Book income (loss)   

 

$

(51,697) 

 

$

(47,210) 

Meals and entertainment   

 

 

-  

 

 

-  

State tax deduction

 

 

-  

 

 

-  

Deferred rent

 

 

-  

 

 

-  

Stock/Options for services

 

 

3,786  

 

 

4,402  

Officer’s life ins premium

 

 

260  

 

 

797  

Depreciation

 

 

416  

 

 

590  

Accrued compensation

 

 

-  

 

 

3,462  

Inventory reserve

 

 

(1,170) 

 

 

(955) 

Valuation allowance

 

 

97,611  

 

 

78,629  

Net operating of carryover

 

 

(48,406) 

 

 

(38,915) 

Income Tax Expense

 

$

800  

 

$

800  

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Details)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Details    
Accounts Receivable, Allowance for Credit Loss $ 0 $ 0
Bad Debt Expense $ 0 $ 0

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

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Geographic Distribution, Domestic    
Products $ 342,146 $ 376,453
Contract 0 0
Revenues 342,146 376,453
Geographic Distribution, Foreign    
Products 713,168 694,334
Revenues 713,168 694,334
Filters    
Products 528,917 520,386
Contract 0 0
Revenues 528,917 520,386
Components    
Products 526,397 549,581
Contract 0 0
Revenues 526,397 549,581
Engineering Services    
Products 0 820
Revenues 0 820
Products 1,055,314 1,070,787
Revenues $ 1,055,314 $ 1,070,787

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Details)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Research and development $ 67,576 $ 66,444

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Details)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Advertising Expense $ 0 $ 0

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Details)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Details) - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 2,720,556 3,207,222

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Details)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Concentration Risk, Customer eight customers accounted for approximately 91% of sales eight customers accounted for approximately 81% of sales
Concentration Risk, Supplier four suppliers accounted for 78% of products purchased four suppliers accounted for 82% of products purchased

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Details)

v3.24.1
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Details      
Accumulated deficit $ 21,860,347 $ 21,644,941  
Total Stockholders' Deficit 1,185,690 986,060 $ 807,692
Total Current Assets 482,521 619,821  
Cash 73,703 56,379  
Total Current Liabilities 1,579,512 1,513,942  
Working Capital 1,096,991    
Net income (loss) 215,406 196,709  
Net Cash Provided by (Used in) Operating Activities $ 17,211 $ 9,239  

NOTE 3 - CUSTOMER DEPOSITS (Details)

v3.24.1
NOTE 3 - CUSTOMER DEPOSITS (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Details    
Customer deposits $ 310,025 $ 231,418

NOTE 5 - OPERATING LEASES (Details)

v3.24.1
NOTE 5 - OPERATING LEASES (Details)
 12 Months Ended
Dec. 31, 2023
USD ($)
Details  
Monthly base rent $ 9,988
Monthly Operating Lease Expense 1,175
Adoption of ASC 842 - ROU Asset 653,701
Adoption of ASC 842 - ROU Liability 652,350
Cash Paid for Operating Lease Liabilities 118,756
Operating Lease, Expense 43,298
Cost of Sales $ 105,864

NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Details)

v3.24.1
NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Details)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Details    
Operating lease - right-of-use asset $ 345,459 $ 472,342
Operating lease liabilities - current 131,868 118,756
Operating lease liabilities - long-term $ 254,339 $ 386,207
Operating leases Incremental Borrowing Rate 0.0494  

NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Details)

v3.24.1
NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Details    
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year $ 0  
Lessee, Operating Lease, Liability, to be Paid, Year Two 148,074  
Lessee, Operating Lease, Liability, to be Paid, Year Three 176,268  
Lessee, Operating Lease, Liability, to be Paid, Thereafter 88,134  
Lessee, Operating Lease, Liability, to be Paid 412,476  
Operating Lease, Imputed interest (26,269)  
Operating Lease, Liability 386,207  
Operating lease liabilities - current (131,868) $ (118,756)
Operating lease liabilities - long-term $ 254,339 $ 386,207

NOTE 6 - INVENTORIES: Schedule of Inventories (Details)

v3.24.1
NOTE 6 - INVENTORIES: Schedule of Inventories (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Details    
Raw materials $ 799,642  
Finished goods 494,074  
Inventory, Gross 1,293,716  
Opening Allowance 927,755  
Additional allowance created during the Year 84,068  
Earlier year allowance write back (88,945)  
Closing Allowance 922,878  
Inventory Net $ 370,838 $ 543,353

NOTE 6 - INVENTORIES (Details)

v3.24.1
NOTE 6 - INVENTORIES (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Inventory Write-down $ 4,877 $ 3,980

NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Details)

v3.24.1
NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
PROPERTY & EQUIPMENT, net $ 5,667 $ 7,412
Less: accumulated depreciation (67,478) (65,733)
Production Equipment    
PROPERTY & EQUIPMENT, net 68,456 68,456
Leasehold Improvements    
PROPERTY & EQUIPMENT, net $ 4,689 $ 4,689

NOTE 7 - PROPERTY AND EQUIPMENT (Details)

v3.24.1
NOTE 7 - PROPERTY AND EQUIPMENT (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Depreciation and amortization $ 1,745 $ 2,500

NOTE 8 - NOTES PAYABLE - RELATED PARTIES (Details)

v3.24.1
NOTE 8 - NOTES PAYABLE - RELATED PARTIES (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Convertible Notes payable, related parties $ 10,000 $ 10,000 $ 32,827
Debt Instrument, Interest Rate During Period   5.00%  
Debt Conversion, Original Debt, Amount   $ 15,000  
Chief Executive Officer      
Convertible Notes payable, related parties $ 30,000 30,000  
Debt Instrument, Interest Rate During Period 8.00%    
Board Member      
Convertible Notes payable, related parties $ 20,000 $ 20,000  
Debt Instrument, Interest Rate During Period 8.00%    

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

v3.24.1
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule of Convertible Notes - Related Parties (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Details    
Convertible Notes payable, related parties $ 10,000 $ 32,827
Convertible notes payable - related party (10,000) (32,827)
Convertible Notes Payable, Noncurrent $ 0 $ 0

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

v3.24.1
NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule Of Notes Payable Related Party table (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Details    
Notes payable - related parties $ 37,940 $ 15,000
Notes Payable, Related Parties $ 37,940 $ 15,000

NOTE 9 - DEBT (Details)

v3.24.1
NOTE 9 - DEBT (Details) - SBA EIDL Loan
 44 Months Ended
Dec. 31, 2023
USD ($)
Proceeds from Loans $ 199,000
Debt Instrument, Interest Rate, Effective Percentage 3.75%
Interest Expense, Debt $ 970
Debt Instrument, Maturity Date Apr. 21, 2050

NOTE 9 - DEBT: Schedule of Debt (Details)

v3.24.1
NOTE 9 - DEBT: Schedule of Debt (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
SBA EIDL Loan    
Loans Payable $ 199,000 $ 199,000
Loans Payable, Current 0 0
Loans Payable, Noncurrent $ 199,000 $ 199,000

NOTE 10 - COMMITMENTS AND CONTINGENCIES (Details)

v3.24.1
NOTE 10 - COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Details    
Purchase Commitment, Remaining Minimum Amount Committed $ 195,606 $ 188,946
Prepayment of Purchase Commitments for Inventory 23,113 7,657
Commitments for Future Cash Outlays for Inventory $ 172,493 $ 181,289

NOTE 11 - RELATED PARTY TRANSACTIONS (Details)

v3.24.1
NOTE 11 - RELATED PARTY TRANSACTIONS (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Accounts payable - related parties $ 131,285 $ 127,192
Accounts receivable - related parties 1,304 $ 2,252
Two Board Members for Services    
Accounts payable - related parties 129,950  
Board Member's Company    
Accounts payable - related parties $ 1,335  

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

v3.24.1
NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
President    
Accrued management compensation $ 635,158 $ 635,158
Accrued management compensation $ 635,158 $ 635,158

NOTE 12 - STOCKHOLDERS' EQUITY (Details)

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY (Details) - USD ($)
 12 Months Ended
Apr. 14, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
Oct. 01, 2017
Aug. 03, 2011
Options to purchase Common Stock at an exercise price of $0.286 per share expired 570,000          
Options to purchase Common Stock at an exercise price of $0.26 per share expired 150,000          
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures   150,000 150,000      
Stock or Unit Option Plan Expense   $ 15,776 $ 18,341      
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount   $ 1,963        
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number   2,745,556 3,265,556 3,290,556    
Common Stock, Shares, Issued   21,948,091 21,948,091      
2017 Long Term Incentive Plan            
Common Stock, Shares, Issued   1,600,000        
Employee Stock Option            
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures   150,000 150,000      
Employee Stock Option | 2011 Long Term Incentive Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized           2,500,000
Employee Stock Option | 2015 Long Term Incentive Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number   1,145,556        
Employee Stock Option | 2017 Long Term Incentive Plan            
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Authorized         5,000,000  

NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details)

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Expected volatility 206.00% 207.00%
Expected dividends 0.00% 0.00%
Expected term 7 years 7 years
Risk-free interest rate 3.63% 2.95%

NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Details)

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2020
Details      
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number 2,745,556 3,265,556 3,290,556
Outstanding, Weighted Average Exercise Price $ 0.11 $ 0.15 $ 0.19
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Net of Forfeitures 150,000 150,000  
Granted, Weighted Average Exercise Price $ 0.04 $ 0.05  
Exercised 0 0  
Exercised, Weighted Average Exercise Price $ 0 $ 0  
Expired or cancelled (670,000) (175,000)  
Expired or cancelled, Weighted Average Exercise Price $ 0.28 $ 0.77  
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Number, Ending Balance 2,745,556 3,265,556  
Exercisable 2,720,556 3,140,556  
Exercisable, Weighted Average Exercise Price $ 0.11 $ 0.15  

NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details)

v3.24.1
NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details) - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number 2,745,556 3,265,556
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term 2 years 14 days 2 years 3 months 11 days
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number 2,720,556 3,140,556
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price $ 0.11 $ 0.15
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)

v3.24.1
NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
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)

v3.24.1
NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets    
Net operating loss carryover $ 8,035,407 $ 7,839,147
Research and development carry forward 131,088 131,088
Inventory reserve 221,491 222,661
Allowance for doubtful accounts 3,600 3,600
Warranty allowance 3,068 3,068
Accrued compensation 152,438 152,438
Deferred tax liabilities    
Depreciation (34,482) (34,066)
Valuation allowance (8,512,610) (8,317,935)
Net deferred tax asset $ 0 $ 0

NOTE 13 - INCOME TAXES (Details)

v3.24.1
NOTE 13 - INCOME TAXES (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 24.00% 24.00%
Operating Loss Carryforwards $ 8,035,407  

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

v3.24.1
NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Details    
Book income (loss) $ (51,697) $ (47,210)
Meals and entertainment 0 0
State tax deduction 0 0
Deferred rent 0 0
Stock/Options for services 3,786 4,402
Officer's life ins premium 260 797
Depreciation 416 590
Accrued compensation 0 3,462
Inventory reserve (1,170) (955)
Valuation allowance 97,611 78,629
Net operating of carryover (48,406) (38,915)
Income Tax Expense $ 800 $ 800

Element Counts

Number of Extension Elements: 255
Number of Contexts: 59
Number of Segments: 22
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 - Statements of Stockholders' Deficit

000060 - Statement - Statements of Cash Flows

Notes to Financials (level 1)

000070 - Disclosure - NOTE 1 - ORGANIZATION AND BUSINESS ACTIVITY

000080 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

000090 - Disclosure - NOTE 3 - CUSTOMER DEPOSITS

000100 - Disclosure - NOTE 4 - CONTRACT ASSETS AND LIABILITIES

000110 - Disclosure - NOTE 5 - OPERATING LEASES

000120 - Disclosure - NOTE 6 - INVENTORIES

000130 - Disclosure - NOTE 7 - PROPERTY AND EQUIPMENT

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

000150 - Disclosure - NOTE 9 - DEBT

000160 - Disclosure - NOTE 10 - COMMITMENTS AND CONTINGENCIES

000170 - Disclosure - NOTE 11 - RELATED PARTY TRANSACTIONS

000180 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY

000190 - Disclosure - NOTE 13 - INCOME TAXES

000200 - Disclosure - NOTE 14 - CONTINGENT LIABILITY

000210 - Disclosure - NOTE 15 - SUBSEQUENT EVENT

Policies (level 2)

000220 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: a. Accounting Methods (Policies)

000230 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: b. Use of Estimates in Preparing Financial Statements (Policies)

000240 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: c. Cash and Cash Equivalents (Policies)

000250 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Policies)

000260 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: e. Inventories (Policies)

000270 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: f. Long-Lived Assets (Policies)

000280 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: g. Property and Equipment (Policies)

000290 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition (Policies)

000300 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: i. Cost of Goods Sold (Policies)

000310 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Policies)

000320 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Policies)

000330 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: l. Provision for Income Taxes (Policies)

000340 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Policies)

000350 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: n. Fair Value Measurements (Policies)

000360 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: o. Stock-based Compensation (Policies)

000370 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Policies)

000380 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Policies)

000390 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: r. Recent Accounting Pronouncements (Policies)

Tables/Schedules (level 3)

000400 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: h. Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)

000410 - Disclosure - NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Tables)

000420 - Disclosure - NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables)

000430 - Disclosure - NOTE 6 - INVENTORIES: Schedule of Inventories (Tables)

000440 - Disclosure - NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Tables)

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

000460 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTIES: 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 Share-Based Payment Award, Stock Options, Valuation Assumptions (Tables)

000500 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Tables)

000510 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (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 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: d. Accounts Receivable (Details)

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

000570 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: j. Research and Development (Details)

000580 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: k. Advertising (Details)

000590 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: m. Basic and Diluted Loss Per Share (Details)

000600 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: p. Concentration of Risks (Details)

000610 - Disclosure - NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: q. Liquidity and Going Concern (Details)

000620 - Disclosure - NOTE 3 - CUSTOMER DEPOSITS (Details)

000630 - Disclosure - NOTE 5 - OPERATING LEASES (Details)

000640 - Disclosure - NOTE 5 - OPERATING LEASES: Schedule of Supplemental Balance Sheet Information Related to Leases (Details)

000650 - Disclosure - NOTE 5 - OPERATING LEASES: Schedule of Maturities of Operating Lease Liabilities (Details)

000660 - Disclosure - NOTE 6 - INVENTORIES: Schedule of Inventories (Details)

000670 - Disclosure - NOTE 6 - INVENTORIES (Details)

000680 - Disclosure - NOTE 7 - PROPERTY AND EQUIPMENT: Schedule of Property and Equipment (Details)

000690 - Disclosure - NOTE 7 - PROPERTY AND EQUIPMENT (Details)

000700 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTIES (Details)

000710 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule of Convertible Notes - Related Parties (Details)

000720 - Disclosure - NOTE 8 - NOTES PAYABLE - RELATED PARTIES: Schedule Of Notes Payable Related Party table (Details)

000730 - Disclosure - NOTE 9 - DEBT (Details)

000740 - Disclosure - NOTE 9 - DEBT: Schedule of Debt (Details)

000750 - Disclosure - NOTE 10 - COMMITMENTS AND CONTINGENCIES (Details)

000760 - Disclosure - NOTE 11 - RELATED PARTY TRANSACTIONS (Details)

000770 - Disclosure - NOTE 11 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details)

000780 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY (Details)

000790 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions (Details)

000800 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Payment Arrangement, Option, Activity (Details)

000810 - Disclosure - NOTE 12 - STOCKHOLDERS' EQUITY: Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details)

000820 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Components of Income Tax Expense (Benefit) (Details)

000830 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Deferred Tax Assets and Liabilities (Details)

000840 - Disclosure - NOTE 13 - INCOME TAXES (Details)

000850 - Disclosure - NOTE 13 - INCOME TAXES: Schedule of Effective Income Tax Rate Reconciliation (Details)

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