Fiscal period values are FY, Q1, Q2, and Q3. 1st, 2nd and 3rd quarter 10-Q or 10-QT statements have value Q1, Q2, and Q3 respectively, with 10-K, 10-KT or other fiscal year statements having FY.
This is focus fiscal year of the document report in CCYY format. For a 2006 annual report, which may also provide financial information from prior periods, fiscal 2006 should be given as the fiscal year focus. Example: 2006.
The end date of the period reflected on the cover page if a periodic report. For all other reports and registration statements containing historical data, it is the date up through which that historical data is presented. If there is no historical data in the report, use the filing date. The format of the date is CCYY-MM-DD.
The type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
Indicate number of shares or other units outstanding of each of registrant's classes of capital or common stock or other ownership interests, if and as stated on cover of related periodic report. Where multiple classes or units exist define each class/interest by adding class of stock items such as Common Class A [Member], Common Class B [Member] or Partnership Interest [Member] onto the Instrument [Domain] of the Entity Listings, Instrument.
Indicate 'Yes' or 'No' whether registrants (1) have filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that registrants were required to file such reports), and (2) have been subject to such filing requirements for the past 90 days. This information should be based on the registrant's current or most recent filing containing the related disclosure.
Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
Indicate whether the registrant is one of the following: Large Accelerated Filer, Accelerated Filer, Non-accelerated Filer. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure.
Boolean flag that is true when the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
Sum of the carrying values as of the balance sheet date of obligations incurred through that date and due within one year (or the operating cycle, if longer), including liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received, taxes, interest, rent and utilities, accrued salaries and bonuses, payroll taxes and fringe benefits.
Amount for accounts payable to related parties. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
Amount, after allowance for credit loss, of right to consideration from customer for product sold and service rendered in normal course of business, classified as current.
Excess of issue price over par or stated value of the entity's capital stock and amounts received from other transactions involving the entity's stock or stockholders. Includes adjustments to additional paid in capital. Some examples of such adjustments include recording the issuance of debt with a beneficial conversion feature and certain tax consequences of equity instruments awarded to employees. Use this element for the aggregate amount of additional paid-in capital associated with common and preferred stock. For additional paid-in capital associated with only common stock, use the element additional paid in capital, common stock. For additional paid-in capital associated with only preferred stock, use the element additional paid in capital, preferred stock.
Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.
Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Excludes cash and cash equivalents within disposal group and discontinued operation.
Monetary value of common stock allocated to investors to buy shares of a new issue of common stock before they are offered to the public. When stock is sold on a subscription basis, the issuer does not initially receive the total proceeds. In general, the issuer does not issue the shares to the investor until it receives the entire proceeds.
Aggregate par or stated value of issued nonredeemable common stock (or common stock redeemable solely at the option of the issuer). This item includes treasury stock repurchased by the entity. Note: elements for number of nonredeemable common shares, par value and other disclosure concepts are in another section within stockholders' equity.
The current portion of money or property received from customers which is either to be returned upon satisfactory contract completion or applied to customer receivables in accordance with the terms of the contract or the understandings.
Carrying amount of liabilities as of the balance sheet date pertaining to amounts received by the insurer or reinsurer from the insured (including a ceding company) under insurance or reinsurance contracts for which insurance risk is not transferred.
Carrying value of amounts transferred to third parties for security purposes that are expected to be returned or applied towards payment within one year or during the operating cycle, if shorter.
Amounts due to recorded owners or owners with a beneficial interest of more than 10 percent of the voting interests or officers of the company. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future.
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.
Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt, classified as current. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.
Carrying value as of the balance sheet date of loans payable (with maturities initially due after one year or beyond the operating cycle if longer), excluding current portion.
Sum of the carrying values as of the balance sheet date of the portions of long-term notes payable due within one year or the operating cycle if longer.
The amount for notes payable (written promise to pay), due to related parties. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.
Total number of common shares of an entity that have been sold or granted to shareholders (includes common shares that were issued, repurchased and remain in the treasury). These shares represent capital invested by the firm's shareholders and owners, and may be all or only a portion of the number of shares authorized. Shares issued include shares outstanding and shares held in the treasury.
The aggregate costs related to goods produced and sold and services rendered by an entity during the reporting period. This excludes costs incurred during the reporting period related to financial services rendered and other revenue generating activities.
The amount of net income or loss for the period per each share in instances when basic and diluted earnings per share are the same amount and reported as a single line item on the face of the financial statements. Basic earnings per share is the amount of net income or loss for the period per each share of common stock or unit outstanding during the reporting period. Diluted earnings per share includes the amount of net income or loss for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.
The aggregate total of expenses of managing and administering the affairs of an entity, including affiliates of the reporting entity, which are not directly or indirectly associated with the manufacture, sale or creation of a product or product line.
Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.
The aggregate amount of income or expense from ancillary business-related activities (that is to say, excluding major activities considered part of the normal operations of the business).
Generally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Includes selling, general and administrative expense.
Amount of expense charged against earnings to allocate the cost of tangible and intangible assets over their remaining economic lives, classified as other.
The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use.
Amount of revenue, fees and commissions earned from transactions between (a) a parent company and its subsidiaries; (b) subsidiaries of a common parent; (c) an entity and trusts for the benefit of employees, for example, but not limited to, pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management; (d) an entity and its principal, owners, management, or members of their immediate families; and (e) affiliates.
Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).
Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income after deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).
Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Excludes cash and cash equivalents within disposal group and discontinued operation.
Amount of increase (decrease) in cash. Cash is the amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Includes effect from exchange rate changes.
The current period expense charged against earnings on long-lived, physical assets not used in production, and which are not intended for resale, to allocate or recognize the cost of such assets over their useful lives; or to record the reduction in book value of an intangible asset over the benefit period of such asset; or to reflect consumption during the period of an asset that is not used in production.
The amount of cash paid during the current period to foreign, federal, state, and local authorities as taxes on income, net of any cash received during the current period as refunds for the overpayment of taxes.
The increase (decrease) during the reporting period in the amounts payable to vendors for goods and services received and the amount of obligations and expenses incurred but not paid.
The increase (decrease) during the reporting period in the obligations due for goods and services provided by the following types of related parties: a parent company and its subsidiaries, subsidiaries of a common parent, an entity and trust for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entities' management, an entity and its principal owners, management, or member of their immediate families, affiliates, or other parties with the ability to exert significant influence.
The increase (decrease) during the reporting period in amount due within one year (or one business cycle) from customers for the credit sale of goods and services.
The increase (decrease) during the reporting period in the amount due to the reporting entity for good and services provided to the following types of related parties: a parent company and its subsidiaries; subsidiaries of a common parent; an entity and trust for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of the entity's management, an entity and its principal owners, management, member of their immediate families, affiliates, or other parties with the ability to exert significant influence.
The increase (decrease) during the period in the amount of customer money held in customer accounts, including security deposits, collateral for a current or future transactions, initial payment of the cost of acquisition or for the right to enter into a contract or agreement.
The increase (decrease) during the reporting period in the obligation created by employee agreements whereby earned compensation will be paid in the future.
The increase (decrease) during the reporting period in moneys or securities given as security including, but not limited to, contract, escrow, or earnest money deposits, retainage (if applicable), deposits with clearing organizations and others, collateral, or margin deposits.
The increase (decrease) during the reporting period in the aggregate value of all inventory held by the reporting entity, associated with underlying transactions that are classified as operating activities.
Amount of cash paid for interest, excluding capitalized interest, classified as operating activity. Includes, but is not limited to, payment to settle zero-coupon bond for accreted interest of debt discount and debt instrument with insignificant coupon interest rate in relation to effective interest rate of borrowing attributable to accreted interest of debt discount.
Amount of loss from reductions in inventory due to subsequent measurement adjustments, including, but not limited to, physical deterioration, obsolescence, or changes in price levels.
Amount of cash inflow (outflow) from financing activities, including discontinued operations. Financing activity cash flows include obtaining resources from owners and providing them with a return on, and a return of, their investment; borrowing money and repaying amounts borrowed, or settling the obligation; and obtaining and paying for other resources obtained from creditors on long-term credit.
Amount of cash inflow (outflow) from investing activities, including discontinued operations. Investing activity cash flows include making and collecting loans and acquiring and disposing of debt or equity instruments and property, plant, and equipment and other productive assets.
Amount of cash inflow (outflow) from operating activities, including discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.
The cash outflow from the repayment of a long-term debt instrument which can be exchanged for a specified amount of another security, typically the entity's common stock, at the option of the issuer or the holder.
Amount of increase in additional paid in capital (APIC) resulting from the issuance of warrants. Includes allocation of proceeds of debt securities issued with detachable stock purchase warrants.
Value of stock issued in lieu of cash for services contributed to the entity. Value of the stock issued includes, but is not limited to, services contributed by vendors and founders.
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.
The accompanying condensed financial statements
have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring
adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2020 and
for all periods presented herein, have been made.
Certain information and footnote disclosures
normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States
of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with
the financial statements and notes thereto included in the Company's December 31, 2019 audited financial statements. The results
of operations for the periods ended September 30, 2020 and 2019 are not necessarily indicative of the operating results for the
full years.
In December 2019, a novel strain of
corona virus disease (“COVID-19”) was first reported in Wuhan, China. Less than four months later, on March 11,
2020, the World Health Organization declared COVID-19 a pandemic. The extent of COVID-19’s impact on the
Company’s operational and financial performance will depend on future developments, including the duration, spread and
intensity of the pandemic, all of which are uncertain and difficult to predict considering the rapidly evolving landscape. As
a result, it is not currently possible to ascertain the overall impact of COVID-19 on the Company’s business. However,
if the pandemic continues to evolve into a severe worldwide health crisis, the disease could have a material adverse effect
on the Company’s business, results of operations, financial condition and cash flows.
The preparation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
In general,
revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration
to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach
is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine
the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue
allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a
contract to transfer a distinct good or service to the customer, and is the unit of account for revenue recognition.
We
recognize revenue on various products and services as follows:
Products - The Company recognizes revenue
from the sale of products (e.g., filters and engine components) as performance obligations are satisfied. This type of revenue
is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element
and revenue is recognized at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation
has been satisfied).
Contracts – Revenues are
recognized as performance obligations are satisfied over time (also known as percentage-of-completion method), measured by
either achievement of milestones or the ratio of costs incurred up to a given date to estimated total costs for each
contract. Contract costs include all direct material, labor, subcontract and other costs. Provisions for estimated losses on
uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions,
estimated profitability and associated change orders and claims, including those changes arising from contract penalty
provisions and final contract settlements, may result in revisions to costs and income and are recognized in the period in
which the revisions are determined.
Performance Obligations
A
performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account
in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized
as revenue when, or as, the performance obligation is satisfied. The majority
of Omnitek’s contracts
have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable
from other promises in the contracts and, therefore, not distinct.
Performance
Obligations Satisfied Over Time
Revenues
for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion
method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements
that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because
our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work
completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of
control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue
from products and services transferred to customers over time accounted for 0% and 6% of revenue for the periods ended September
30, 2020 and 2019, respectively.
Performance
Obligations Satisfied at a Point in Time
Revenue
from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is
recognized at a single point in time when ownership, risk and rewards transfer. Upon fulfilment of the performance obligation,
the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred
to customers at a point in time accounted for 100% and 94% of revenue for the periods ended September 30, 2020 and 2019, respectively.
Assurance-type
warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related
work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant.
Pre-contract costs are generally not incurred
by the Company
Contract Estimates
Accounting
for long-term contracts involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts,
Omnitek estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete
a contract and recognizes that profit over the life of the contract.
Variable
Consideration
The
transaction price for contracts may include variable consideration, which includes increases to transaction price for approved
and unapproved change orders, claims and incentives, and reductions to transaction price for liquidated damages. Variable consideration
historically has been insignificant.
Disaggregation of Revenue
The following table presents
Omnitek’s revenues disaggregated by region and product type for the three months ended September 30, 2020 and September 30,
2019:
For the three months
ended
September 30,
For the three months
ended
September 30,
2020
2019
Consumer
Long-term
Consumer
Long-term
Segments
Products
Contract
Total
Products
Contract
Total
Domestic
$
117,632
-
117,632
$ 99,423
-
99,423
International
98,235
-
98,235
37,029
-
37,029
$
215,867
-
215,867
$ 136,452
-
136,452
Filters
$
45,561
-
45,561
$ 35,478
-
35,478
Components
170,306
-
170,306
100,974
-
100,974
Engineering Services
-
-
-
-
-
-
$
215,867
-
215,867
$ 136,452
-
136,452
The following table presents Omnitek’s
revenues disaggregated by region and product type for the nine months ended September 30, 2020 and September 30, 2019:
For the nine months ended September 30,
For the nine months ended September 30,
2020
2019
Consumer
Long-term
Consumer
Long-term
Segments
Products
Contract
Total
Products
Contract
Total
Domestic
$
463,971
-
463,971
$
320,349
-
320,349
International
186,800
-
186,800
387,373
44,474
431,847
$
650,771
-
650,771
$
707,722
44,474
752,196
Filters
$
209,593
-
209,593
$
452,728
-
452,728
Components
441,178
-
441,178
254,994
-
254,994
Engineering Services
-
-
-
-
44,474
44,474
$
650,771
-
650,771
$
707,722
44,474
752,196
Inventory
Inventory is stated
at the lower of cost or market. The Company’s inventory consists of finished goods and raw material and is located
in Vista, California, consisting of the following:
September 30,
December 31,
Location : Vista, CA
2020
2019
Raw materials
$
913,795
$
935,834
Finished goods
1,030,045
1,073,623
Work in progress
-
1,800
Allowance for obsolete inventory
(1,038,573)
(988,892)
Total
$
905,267
$
1,022,365
The Company has established an allowance
for obsolete inventory. Expense for obsolete inventory was $49,681 and $26,667, for the periods ended September 30,
2020 and September 30, 2019, respectively.
Property and Equipment
Property and equipment at September 30, 2020
and December 31, 2019 consisted of the following:
September 30,
December 31,
2020
2019
Production equipment
$
64,673
$
64,673
Computers/Office equipment
28,540
28,540
Tooling equipment
12,380
12,380
Leasehold Improvements
42,451
42,451
Less: accumulated depreciation
(146,642)
(146,235)
Total
$
1,402
$
1,809
Depreciation expense for the periods ended
September 30, 2020 and September 30, 2019 was $407 and $431, respectively.
Basic and Diluted Loss per Share
The computation of basic earnings per share
of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of
fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 2,857,223
and 2,970,140 stock options that would have been included in the fully diluted earnings per share as of September 30, 2020 and
September 30, 2019, respectively. However, the common stock equivalents were not included in the computation of the
loss per share computation because they are anti dilutive.
Income Taxes
The Company accounts for income taxes in accordance
with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred
tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included
in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount
that is more likely than not to be realized.
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 September
30, 2020 and December 31, 2019 the Company had no accrued interest or penalties related to uncertain tax positions. The Company
files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no
longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2012.
Liquidity and Going Concern
Historically, the Company
has incurred net losses and negative cash flows from operations. As of September 30, 2020, the Company had an accumulated
deficit of $21,329,300 and total stockholders’ deficit of $(739,481). At September 30, 2020, the Company had current
assets of $1,007,140 including cash of $38,542, and current liabilities of $1,520,607, resulting in negative working capital of
$(513,467). For the nine months ended September 30, 2020, the Company reported a net loss of $353,371 and net cash used in
operating activities of $269,694. Management believes that based on its operating plan, the projected sales for 2020, combined
with funds available from its working capital will be sufficient to fund operations for the next twelve months. However,
there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. Whether,
and when, the Company can attain profitability and positive cash flows from operations is uncertain. The Company is also uncertain
whether it can raise additional capital. These uncertainties cast significant doubt upon the Company’s ability to continue
as a going concern. Our financial statements have been prepared on a going concern basis, which assumes the realization of assets
and liquidation of liabilities in the normal course of operations. The financial statements do not include any adjustments relating
to the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities should we be
unable to continue as a going concern.
Recent Accounting Pronouncements
The Company has evaluated recent accounting
pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position,
or statements.
The timing of revenue
recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of
billings on uncompleted contracts (contract assets) on the balance sheet. For Omnitek’s long-term contracts, amounts are
generally billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement
of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However,
Omnitek sometimes receives advances or deposits from its customers, before revenue is recognized, resulting in billings in excess
of costs and estimated earnings on uncompleted contracts (contract liabilities).
The table below reconciles the net excess billings to the amounts
included in the balance sheets at those dates:
September 30,
December 31,
2020
2019
Contract assets
$
13,221
$
13,221
Contract liabilities
(75,000)
(75,000)
Net amount of contract liabilities in excess of contract assets
Effective September
1, 2019, the Company entered into the Fourth Amendment to the Lease for its facility, reducing the size of the leased space to
21,786 square feet and extending the lease term to August 31, 2020, at which time a new lease extension has to be negotiated. The
current lease payment is $14,161 per month, plus common area maintenance expenses (CAM). Under the amended lease, past due rent
is payable at monthly installments of $10,000, until such time as the past due rent has been paid in full. The lease is not subject
to the right-of-use asset rules under ASU 2016-2 because it qualifies for the short-term lease exception under that pronouncement.
As of September 30, 2020 the outstanding balance
was $52,529.The security deposit of $14,000 remained the same.
Per the terms of the Fourth Amendment to the Lease, the lease expired
effective September 1, 2020. The Company is currently negotiating a new lease with the landlord.
The Company
holds a non-controlling interest in various distributors in exchange for use of the Company’s name and logo. As of September
30, 2020, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd. and a 20% interest in Omnitek Peru S.A.C. As
of September 30, 2020 and December 31, 2019, the Company was owed $14,521 and $16,712, respectively, by related parties for the
purchase of products and services.
Accounts Payable – Related Parties
The Company
regularly incurs expenses that are paid to related parties and purchases goods and services from related parties. As of September
30, 2020 and December 31, 2019, the Company owed related parties for such expenses, goods and services in the amounts of $122,025
and $134,077, respectively.
Accrued Management Compensation
For the periods ended September 30, 2020 and
December 31, 2019, the Company’s president and chief financial officer were due amounts for services performed for the Company.
As of September 30,
2020 and December 31, 2019 the accrued management fees consisted of the following:
September 30,
December 31,
2020
2019
Amounts due to the president
$
590,735
$
541,504
Amounts due to the chief financial officer
-
165,326
Total
$
590,735
$
706,830
The chief financial officer resigned on January 7, 2020 (effective
February 7, 2020). Prior amounts due to the chief financial officer were reclassified to accounts payable and accrued liabilities
on the balance sheet at September 30, 2020.
The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.
NOTE 6 – NOTES PAYABLE - RELATED PARTY
TRANSACTIONS
Notes Payable –
Related Party
On September 11, 2019
the Company borrowed $12,000 from a board member. The loan was evidenced by an unsecured promissory note which bears simple interest
at the rate of 8% per annum. The principal amount of the note and all accrued interest was due and payable on or before December
11, 2019. Under the terms of a Promissory Note Extension, the principal amount of the note and all accrued interest is due and
payable on or before the extended maturity date of June 30, 2020. On April 29, 2020 the balance of this note was paid in full.
On May 28, 2019 the Company
issued a Working Capital Promissory Note to the Company’s CEO for loans made to the Company during the calendar year 2019.
The note has an annual interest rate of 5%, is unsecured and had an original maturity date of December 31, 2019. During 2019 the
Company’s CEO made cumulative loans to the Company of $15,000. Under the terms of a Promissory Note Extension, the principal
amount of the note and all accrued interest is due and payable on or before the extended maturity date of December 31, 2020. On
April 29, 2020 the balance of this note was paid in full.
On January 19, 2017 the
Company issued a promissory note for $15,000 to the Company’s CEO. The note has an annual interest rate of 5% and is unsecured.
The principal amount of the note and all accrued interest is due and payable on or before January 19, 2021. As of September 30,
2020 and December 31, 2019 Notes Payable – Related Party consisted of the following:
September 30,
December 31,
2020
2019
Note payable, related party, current portion
$
15,000
$
27,000
Notes payable, related party, net of current portion
The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.
On December 11, 2019,
a convertible notes payable matured with an outstanding principal balance of $40,000. The Lender elected to convert $25,000 of
the outstanding principal to restricted common stock. Under the terms of the Allonge to Senior Secured Convertible Promissory Note
and Agreement, the remaining principal balance of $15,000 is due and payable with an extended maturity date of May 11, 2020. On
April 27, 2020 the balance of this note was paid in full. As of September 30, 2020, and December 31, 2019 Note Payable consisted
of the following:
September 30,
December 31,
2020
2019
Note payable
$
-
$
15,000
Total
$
-
$
15,000
Loans payable – SBA
Economic Injury Disaster Loan
On April 21, 2020, the Company obtained a loan
(the “SBA EIDL Loan”) under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”)
adminitstered by the U.S. Small Business Administration. The Company received total proceeds of $199,000 from the SBA EIDL loan.
The SBA EIDL Loan is evidenced by a Loan Authorization
and Agreement, a Secured Promissory Note (the “Note” and Security Agreement. Interest on the unpaid principal balance
of the Note shall accrue at the rate of three and 75/100 percent (3.75%) per annum. Pursuant to the terms of the Note, commencing
May 21, 2021 (i.e., twelve (12) months from the Note date), the Company shall make principal and interest payments in the amount
of $970 every month, with any unpaid principal and accrued interest due and payable on April 21, 2050. The obligations under the
Loan Authorization and Agreement, and the Note shall be secured pursuant to the Security Agreement and a first position lien and
security interest in the Collateral (as defined in the Security Agreement). The collateral in which the security interest is granted
includes all tangible and intangible personal property, including, but not limited to: (a) inventory, and (b) equipment.
Payroll Protection Program
On May 28, 2020, the Company received funds
pursuant to a Paycheck Protection Program loan (the “SBA PPP Loan”) from Riverview Bank, under recently enacted CARES
Act administered by U.S. Small Business Administration. The Company received total proceeds of $100,000 from the SBA PPP Loan.
In accordance with the requirements of the CARES Act, the Company will use proceeds from the SBA PPP Loan primarily for payroll
costs. The SBA PPP Loan is scheduled to mature on May 22, 2022 and has a 1.00% interest rate and is subject to the terms and conditions
applicable to loans adminstered by the SBA under the CARES Act. If certain conditions are met, as provided for under section 1106
of the CARES Act, as amended by the PPP Flexibility Act the loan may be forgiven in its entirety.
As of September 30, 2020,
and December 31, 2019 Debt consisted of the following:
During the nine months ended September 30,
2020 and 2019, the Company granted 150,000 and 450,000 options for services, respectively. During the nine months ended September
30, 2020 and 2019, the Company recognized expense of $13,767 and $42,059, respectively, for options and warrants that vested during
the periods pursuant to ASC Topic 718. Total remaining amount of compensation expense to be recognized in future periods is $1,946.
On August 3,
2011 the Board of Directors adopted the Omnitek Engineering Corp. 2011 Long-term Incentive Plan (the “2011 Plan”),
under which 1,000,000 shares of Company’s Common Stock were reserved for issuance of both Incentive Stock Options to employees
only and and Non-Qualified Stock Options to employees and consultants at its discretion. As of September 30, 2020 the Company has
a total of 125,000 options issued under the 2011 Plan. On September 11, 2015 the Board of Directors adopted the Omnitek Engineering
Corp. 2015 Long Term Incentive Plan (the “2015 Plan”), under which 2,500,000 shares of the Company’s Common Stock
were reserved for issuance of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants
at its discretion. As of September 30, 2020 the Company has a total of 1,915,556 options issued under the 2015 Plan. In
October 2017, the Company’s shareholders approved its 2017 Long-Term Incentive Plan (the “2017 Plan”). Under
the 2017 plan, the Company may issue up to 5,000,000 shares of both Incentive Stock Options to employees only and Non-Qualified
Stock Options to employees and consultants at its discretion. As of September 30, 2020, the Company has a total of 816,667 options
issued under the 2017 Plan. During the nine months ended September 30, 2020 and 2019 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:
September 30, 2020
September 30, 2019
Expected volatility
159%
142%
Expected dividends
0%
0%
Expected term
7 Years
7 Years
Risk-free interest rate
0.60%
2.01%
A summary of the status of the options and
warrants granted at September 30, 2020 and December 31, 2019 and changes during the periods then ended is presented below:
September 30,
December 31,
2020
2019
Weighted-Average
Weighted-Average
Shares
Exercise Price
Shares
Exercise Price
Outstanding at beginning of year
2,940,556
$ 0.25
2,965,556
$ 0.63
Granted
150,000
0.06
450,000
0.08
Exercised
-
-
-
-
Expired or cancelled
(50,000)
1.13
(475,000)
2.49
Outstanding at end of period
3,040,556
0.22
2,940,556
0.25
Exercisable
2,857,223
$ 0.20
2,672,223
$ 0.23
A summary of the status of the options and warrants outstanding
at September 30, 2020 is presented below:
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.
In general,
revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration
to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach
is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine
the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue
allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a
contract to transfer a distinct good or service to the customer, and is the unit of account for revenue recognition.
We
recognize revenue on various products and services as follows:
Products - The Company recognizes revenue
from the sale of products (e.g., filters and engine components) as performance obligations are satisfied. This type of revenue
is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element
and revenue is recognized at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation
has been satisfied).
Contracts – Revenues are
recognized as performance obligations are satisfied over time (also known as percentage-of-completion method), measured by
either achievement of milestones or the ratio of costs incurred up to a given date to estimated total costs for each
contract. Contract costs include all direct material, labor, subcontract and other costs. Provisions for estimated losses on
uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions,
estimated profitability and associated change orders and claims, including those changes arising from contract penalty
provisions and final contract settlements, may result in revisions to costs and income and are recognized in the period in
which the revisions are determined.
Performance Obligations
A
performance obligation is a promise in a contract to transfer a distinct good or service to a customer, and is the unit of account
in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized
as revenue when, or as, the performance obligation is satisfied. The majority
of Omnitek’s contracts
have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable
from other promises in the contracts and, therefore, not distinct.
Performance
Obligations Satisfied Over Time
Revenues
for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion
method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements
that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because
our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work
completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of
control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue
from products and services transferred to customers over time accounted for 0% and 6% of revenue for the periods ended September
30, 2020 and 2019, respectively.
Performance
Obligations Satisfied at a Point in Time
Revenue
from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is
recognized at a single point in time when ownership, risk and rewards transfer. Upon fulfilment of the performance obligation,
the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred
to customers at a point in time accounted for 100% and 94% of revenue for the periods ended September 30, 2020 and 2019, respectively.
Assurance-type
warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related
work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant.
Pre-contract costs are generally not incurred
by the Company
Contract Estimates
Accounting
for long-term contracts involves the use of various techniques to estimate total contract revenue and costs. For long-term contracts,
Omnitek estimates the profit on a contract as the difference between the total estimated revenue and expected costs to complete
a contract and recognizes that profit over the life of the contract.
Variable
Consideration
The
transaction price for contracts may include variable consideration, which includes increases to transaction price for approved
and unapproved change orders, claims and incentives, and reductions to transaction price for liquidated damages. Variable consideration
historically has been insignificant.
Disaggregation of Revenue
The following table presents
Omnitek’s revenues disaggregated by region and product type for the three months ended September 30, 2020 and September 30,
2019:
For the three months
ended
September 30,
For the three months
ended
September 30,
2020
2019
Consumer
Long-term
Consumer
Long-term
Segments
Products
Contract
Total
Products
Contract
Total
Domestic
$
117,632
-
117,632
$ 99,423
-
99,423
International
98,235
-
98,235
37,029
-
37,029
$
215,867
-
215,867
$ 136,452
-
136,452
Filters
$
45,561
-
45,561
$ 35,478
-
35,478
Components
170,306
-
170,306
100,974
-
100,974
Engineering Services
-
-
-
-
-
-
$
215,867
-
215,867
$ 136,452
-
136,452
The following table presents Omnitek’s
revenues disaggregated by region and product type for the nine months ended September 30, 2020 and September 30, 2019:
Inventory is stated
at the lower of cost or market. The Company’s inventory consists of finished goods and raw material and is located
in Vista, California, consisting of the following:
September 30,
December 31,
Location : Vista, CA
2020
2019
Raw materials
$
913,795
$
935,834
Finished goods
1,030,045
1,073,623
Work in progress
-
1,800
Allowance for obsolete inventory
(1,038,573)
(988,892)
Total
$
905,267
$
1,022,365
The Company has established an allowance
for obsolete inventory. Expense for obsolete inventory was $49,681 and $26,667, for the periods ended September 30,
2020 and September 30, 2019, respectively.
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 2,857,223and
2,970,140 stock options that would have been included in the fully diluted earnings per share as of September 30, 2020 and September
30, 2019, respectively. However, the common stock equivalents were not included in the computation of the loss per share
computation because they are anti dilutive.
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 September
30, 2020 and December 31, 2019 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.
Historically, the Company has incurred
net losses and negative cash flows from operations. As of September 30, 2020, the Company had an accumulated deficit of
$21,329,300 and total stockholders’ deficitof $(739,481). At September 30, 2020, the Company had current assets
of $1,007,140 including cash of $38,542, and current liabilities of $1,520,607, resulting in negative working capital of
$(513,467). For the nine months ended September 30, 2020, the Company reported a net loss of $353,371 and net cash use
din operating activities of $269,694. Management believes that based on its operating plan, the projected sales for
2020, combined with funds available from its working capital will be sufficient to fund operations for the next twelve
months. However, there can be no assurance that operations and operating cash flows will continue at the current levels
or improve in the near future. Whether, and when, the Company can attain profitability and positive cash flows from
operations is uncertain. The Company is also uncertain whether it can raise additional capital. These uncertainties cast
significant doubt upon the Company’s ability to continue as a going concern. 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.
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.
Disclosure of accounting policy for computing basic and diluted earnings or loss per share for each class of common stock and participating security. Addresses all significant policy factors, including any antidilutive items that have been excluded from the computation and takes into account stock dividends, splits and reverse splits that occur after the balance sheet date of the latest reporting period but before the issuance of the financial statements.
Disclosure of accounting policy for income taxes, which may include its accounting policies for recognizing and measuring deferred tax assets and liabilities and related valuation allowances, recognizing investment tax credits, operating loss carryforwards, tax credit carryforwards, and other carryforwards, methodologies for determining its effective income tax rate and the characterization of interest and penalties in the financial statements.
Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.
Disclosure of accounting policy pertaining to new accounting pronouncements that may impact the entity's financial reporting. Includes, but is not limited to, quantification of the expected or actual impact.
Disclosure of accounting policy for long-lived, physical asset used in normal conduct of business and not intended for resale. Includes, but is not limited to, work of art, historical treasure, and similar asset classified as collections.
The entire disclosure when substantial doubt is raised about the ability to continue as a going concern. Includes, but is not limited to, principal conditions or events that raised substantial doubt about the ability to continue as a going concern, management's evaluation of the significance of those conditions or events in relation to the ability to meet its obligations, and management's plans that alleviated or are intended to mitigate the conditions or events that raise substantial doubt about the ability to continue as a going concern.
Disclosure of accounting policy for the use of estimates in the preparation of financial statements in conformity with generally accepted accounting principles.
The following table presents
Omnitek’s revenues disaggregated by region and product type for the three months ended September 30, 2020 and September 30,
2019:
For the three months
ended
September 30,
For the three months
ended
September 30,
2020
2019
Consumer
Long-term
Consumer
Long-term
Segments
Products
Contract
Total
Products
Contract
Total
Domestic
$
117,632
-
117,632
$ 99,423
-
99,423
International
98,235
-
98,235
37,029
-
37,029
$
215,867
-
215,867
$ 136,452
-
136,452
Filters
$
45,561
-
45,561
$ 35,478
-
35,478
Components
170,306
-
170,306
100,974
-
100,974
Engineering Services
-
-
-
-
-
-
$
215,867
-
215,867
$ 136,452
-
136,452
The following table presents Omnitek’s
revenues disaggregated by region and product type for the nine months ended September 30, 2020 and September 30, 2019:
Tabular disclosure of physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, balances by class of assets, depreciation and depletion expense and method used, including composite depreciation, and accumulated deprecation.
Tabular disclosure of the carrying amount as of the balance sheet date of merchandise, goods, commodities, or supplies held for future sale or to be used in manufacturing, servicing or production process.
Tabular disclosure of related party transactions. Examples of related party transactions include, but are not limited to, transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners and (d) affiliates.
Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.
Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation.
A summary of the status of the options and
warrants granted at September 30, 2020 and December 31, 2019 and changes during the periods then ended is presented below:
Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value.
Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions.
Tabular disclosure of number, weighted-average exercise price or conversion ratio, aggregate intrinsic value, and weighted-average remaining contractual term for outstanding and exercisable options that are fully vested and expected to vest. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur.
For an entity that discloses a concentration risk in relation to quantitative amount, which serves as the "benchmark" (or denominator) in the equation, this concept represents the concentration percentage derived from the division.
Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).
Amount of loss from reductions in inventory due to subsequent measurement adjustments, including, but not limited to, physical deterioration, obsolescence, or changes in price levels.
Amount before valuation and LIFO reserves of merchandise or goods in the production process expected to be completed within one year or operating cycle, if longer.
Amount of accumulated depreciation, depletion and amortization for physical assets used in the normal conduct of business to produce goods and services.
Amount before accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.
Amount after accumulated depreciation, depletion and amortization of physical assets used in the normal conduct of business to produce goods and services and not intended for resale. Examples include, but are not limited to, land, buildings, machinery and equipment, office equipment, and furniture and fixtures.
The amount of expense recognized in the current period that reflects the allocation of the cost of tangible assets over the assets' useful lives. Includes production and non-production related depreciation.
Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.
Amount accrued for interest on an underpayment of income taxes and penalties related to a tax position claimed or expected to be claimed in the tax return.
Working capital represents operating liquidity available to a business. Along with fixed assets such as plant and equipment, working capital is considered a part of operating capital. Net working capital is calculated as current assets minus current liabilities.
Sum of the carrying amounts as of the balance sheet date of all assets that are expected to be realized in cash, sold, or consumed within one year (or the normal operating cycle, if longer). Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.
Amount of currency on hand as well as demand deposits with banks or financial institutions. Includes other kinds of accounts that have the general characteristics of demand deposits. Excludes cash and cash equivalents within disposal group and discontinued operation.
Total obligations incurred as part of normal operations that are expected to be paid during the following twelve months or within one business cycle, if longer.
Amount of cash inflow (outflow) from operating activities, including discontinued operations. Operating activity cash flows include transactions, adjustments, and changes in value not defined as investing or financing activities.
Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.
Carrying amount of liabilities as of the balance sheet date pertaining to amounts received by the insurer or reinsurer from the insured (including a ceding company) under insurance or reinsurance contracts for which insurance risk is not transferred.
Minimum amount of other commitment not otherwise specified in the taxonomy. Excludes commitments explicitly modeled in the taxonomy, including but not limited to, long-term and short-term purchase commitments, recorded and unrecorded purchase obligations, supply commitments, registration payment arrangements, leases, debt, product warranties, guarantees, environmental remediation obligations, and pensions.
The amount of an asset, typically cash, provided to a counterparty to provide certain assurance of performance by the entity pursuant to the terms of a written or oral agreement, such as a lease.
Amount for accounts payable to related parties. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
Amounts due to recorded owners or owners with a beneficial interest of more than 10 percent of the voting interests or officers of the company. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
The amount of the original debt being converted in a noncash (or part noncash) transaction. "Part noncash" refers to that portion of the transaction not resulting in cash receipts or cash payments in the period.
The cash inflow from a long-term borrowing made from related parties where one party can exercise control or significant influence over another party; including affiliates, owners or officers and their immediate families, pension trusts, and so forth. Alternate caption: Proceeds from Advances from Affiliates.
The amount for notes payable (written promise to pay), due to related parties. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).
Sum of the carrying values as of the balance sheet date of the portions of long-term notes payable due within one year or the operating cycle if longer.
Including the current and noncurrent portions, aggregate carrying amount of all types of notes payable, as of the balance sheet date, with initial maturities beyond one year or beyond the normal operating cycle, if longer.
Sum of the carrying values as of the balance sheet date of the portions of long-term notes payable due within one year or the operating cycle if longer.
Including the current and noncurrent portions, aggregate carrying value as of the balance sheet date of loans payable (with maturities initially due after one year or beyond the operating cycle if longer).
Carrying value as of the balance sheet date of loans payable (with maturities initially due after one year or beyond the operating cycle if longer), excluding current portion.
The estimated dividend rate (a percentage of the share price) to be paid (expected dividends) to holders of the underlying shares over the option's term.
The estimated measure of the percentage by which a share price is expected to fluctuate during a period. Volatility also may be defined as a probability-weighted measure of the dispersion of returns about the mean. The volatility of a share price is the standard deviation of the continuously compounded rates of return on the share over a specified period. That is the same as the standard deviation of the differences in the natural logarithms of the stock prices plus dividends, if any, over the period.
Expected term of award under share-based payment arrangement, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents reported fact of one year, five months, and thirteen days.
The number of shares into which fully or partially vested stock options outstanding as of the balance sheet date can be currently converted under the option plan.
The weighted-average price as of the balance sheet date at which grantees can acquire the shares reserved for issuance on vested portions of options outstanding and currently exercisable under the stock option plan.
The number of shares under options that were cancelled during the reporting period as a result of occurrence of a terminating event specified in contractual agreements pertaining to the stock option plan.
Number of fully vested and expected to vest exercisable options that may be converted into shares under option plan. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur.
Number of fully vested and expected to vest options outstanding that can be converted into shares under option plan. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur.
Weighted-average exercise price, at which grantee can acquire shares reserved for issuance, for fully vested and expected to vest options outstanding. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur.
The floor of a customized range of exercise prices for purposes of disclosing shares potentially issuable under outstanding stock option awards on all stock option plans and other required information pertaining to awards in the customized range.
The ceiling of a customized range of exercise prices for purposes of disclosing shares potentially issuable under outstanding stock option awards on all stock option plans and other required information pertaining to awards in the customized range.
Weighted average remaining contractual term for fully vested and expected to vest options outstanding, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents reported fact of one year, five months, and thirteen days. Includes, but is not limited to, unvested options for which requisite service period has not been rendered but that are expected to vest based on achievement of performance condition, if forfeitures are recognized when they occur.