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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.
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The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter.
Indicate 'Yes' or 'No' if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Is used on Form Type: 10-K, 10-Q, 8-K, 20-F, 6-K, 10-K/A, 10-Q/A, 20-F/A, 6-K/A, N-CSR, N-Q, N-1A.
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 change in the inventory reserve representing the cumulative difference in cost between the first in, first out and the last in, first out inventory valuation methods, which change has been reflected in the statement of income during the period.
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 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 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.
The change in the inventory reserve representing the cumulative difference in cost between the first in, first out and the last in, first out inventory valuation methods, which change has been reflected in the statement of income during the period.
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 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 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.
Number of shares issued in lieu of cash for services contributed to the entity. Number of shares includes, but is not limited to, shares issued for services contributed by vendors and founders.
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.
Omnitek Engineering, Corp. (“Omnitek”
or “the Company”) was incorporated on October 9, 2001 under the laws of the State of California. Omnitek develops and
sells a proprietary technology to convert diesel engines to an alternative fuel, new natural gas engines, and complementary products.
Omnitek products are available for stationary applications and the global transportation markets, which includes light commercial vehicles,
minibuses, heavy-duty trucks, municipal buses, as well as rail and marine applications. The technology can be applied for compressed natural
gas (“CNG”), liquefied natural gas (“LNG”), or renewable natural gas (“Biogas” or “RNG”),
as well as liquid petroleum gas (“Propane” or “LPG”). Omnitek began operations on October 10, 2001, and was a
spin-off from Nology Engineering, Inc.
NOTE 2 – 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, 2020 and 2019 was $15,000 and $15,000,
respectively. Additionally, bad debt expense for the years ended December 31, 2020 and 2019 was $-0- and $-0-, respectively.
e. Inventories
Inventories are stated at the lower of cost or market,
cost determined on an average cost basis. Market value for raw materials is based on replacement costs. Inventory costs include
material, labor and manufacturing overhead. The Company reviews inventories on hand at least annually and records provisions for
estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The
regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product
expiration.
f. Long-Lived
Assets
The Company assesses the recoverability of its long-lived assets annually
and whenever circumstances would indicate that there may be an impairment. The Company compares the estimated undiscounted
future cash flows to the carrying value of the long-lived assets to determine if an impairment has occurred. In the event that
an impairment has occurred, the Company will recognize the impairment immediately. No impairment expense was
recognized as of December 31, 2020 or 2019.
g. Property and Equipment
Property and equipment are recorded at cost. Depreciation and
amortization are calculated on the straight-line method over the shorter of the lease term or the estimated useful lives of the assets
ranging from three to five years.
h. Revenue Recognition
In general, revenue is recognized when control
of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled
in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract
with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction
price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy
the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer
and is the unit of account for revenue recognition.
We recognize revenue on various products and services
as follows:
Products - The Company recognizes revenue from
the sale of products (e.g., filters and engine components) as performance obligations are satisfied. This type of revenue is primarily
generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized
at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation has been satisfied). Control passes
FOB shipping point.
Contracts – Revenues are recognized as
performance obligations are satisfied over time (also known as percentage-of-completion method), measured by either achievement of milestones
or the ratio of costs incurred up to a given date to estimated total costs for each contract. Contract costs include all direct material,
labor, subcontract and other costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses
are determined. Changes in job performance, job conditions, estimated profitability and associated change orders and claims, including
those changes arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income and
are recognized in the period in which the revisions are determined.
Performance Obligations
A performance obligation is a promise in a contract
to transfer a distinct good or service to a customer and is the unit of account in the new revenue standard. The contract transaction
price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.
The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services
is not separately identifiable from other promises in the contracts and, therefore, not distinct.
Performance Obligations Satisfied Over Time
Revenues for Omnitek’s long-term contracts that
satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses.
The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s
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 5% of revenue for the years ended December 31, 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 95% of revenue
for the years ended December 31, 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:
December 31,
December 31,
2020
2019
Consumer
Long-term
Consumer
Long-term
Segments
Products
Contract
Total
Products
Contract
Total
Domestic
$
606,629
-
606,629
$
450,986
-
450,986
International
269,368
-
269,368
468,949
44,474
513,423
$
875,997
-
875,997
$
919,935
44,474
964,409
Filters
324,961
-
324,961
561,560
-
561,560
Components
551,036
-
551,036
358,375
-
358,375
Engineering Services
-
-
-
-
44,474
44,474
$
875,997
-
875,997
$
919,935
44,474
964,409
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, 2020 and 2019, the Company incurred research and development expenses
of $82,052 and $106,916, respectively.
k. Advertising
The Company follows the policy of charging the costs of advertising to
expense as incurred. During the years ended December 31, 2020 and 2019, the Company expensed $-0- and $-0-, respectively.
l. Provision for Income Taxes
The Company accounts for income taxes in accordance with Accounting Standards
Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at
currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or
tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be
realized. Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements.
Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based
upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine
the amount to recognize in the financial statements.
The Company includes interest and penalties arising from the underpayment
of income taxes in the statements of operations in the provision for income taxes. As of December 31, 2020, the Company had no accrued
interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and
the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax
examinations by tax authorities for years before 2012.
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 2,882,223 and 2,672,223 stock options and warrants that
would have been included in the fully diluted earnings per share as of December 31, 2020 and 2019, respectively. However, 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.
p. Concentration of Risks
Customers
During the year ended December 31, 2020, eight customers accounted for
approximately 80% of sales.
During the year ended December 31, 2019, seven customers accounted for
approximately 74% of sales.
Suppliers
During the year ended December 31, 2020, eight suppliers accounted for
71 % of products purchased.
During the year ended December 31, 2019, five suppliers accounted for 86%
of products purchased.
q. Liquidity and Going Concern
Historically, the Company has incurred net losses
and negative cash flows from operations. As of December 31, 2020, the Company had an accumulated deficit of $21,465,641 and total
stockholders’ deficit of ($874,133). At December 31, 2020, the Company had current assets of $961,226 including cash of $60,729,
and current liabilities of $1,621,456, resulting in negative working capital of $660,230. For 2020, the Company reported a net loss
of $489,712 and net cash used by operating activities of $247,507. Management believes that based on its operating plan, the projected
sales for 2021, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months
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
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.
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.
The timing of revenue recognition,
billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted
contracts (contract assets) on the balance sheet. For Omnitek’s long-term contracts, amounts are generally billed as work progresses
in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Generally,
billing occurs subsequent to revenue recognition, resulting in contract assets. However, Omnitek sometimes receives advances or deposits
from its customers, before revenue is recognized, resulting in billings in excess of costs and estimated earnings on uncompleted contracts
(contract liabilities).
The table below reconciles the
net excess billings to the amounts included in the balance sheets at those dates:
December 31,
December 31,
2020
2019
Contract assets
$
13,221
$
13,221
Contract liabilities
$
(75,000)
$
(75,000)
Net amount of contract liabilities in excess of contract assets
Inventories are located in Vista, California and at
December 31, 2020 and 2019 consisted of the following:
December 31,
December 31,
2020
2019
Raw materials
$
917,567
$
935,834
Finished goods
962,608
1,073,623
Work in progress
-
1,800
Inventory in transit
-
-
Allowance for obsolete inventory
(1,058,309)
(988,892)
Total
$
821,866
$
1,022,365
The Company has established an allowance for obsolete
inventory. Expense for obsolete inventory was $69,417 and $242,846, for the years ended December 31, 2020 and December 31,
2019, respectively.
The entire disclosure for inventory. Includes, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the classes of inventory, and the nature of the cost elements included in inventory.
The entire disclosure 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 Company may require a customer deposit from domestic
and international customers. As of December 31, 2020 and 2019 the Company had customer deposits of $276,381 and $163,681, respectively.
The entire disclosure for deposit liabilities including data and tables. It may include a description of the entity's deposit liabilities, the aggregate amount of time deposits (including certificates of deposit) in denominations of $100,000 or more at the balance sheet date; the aggregate amount of any demand deposits that have been reclassified as loan balances, such as overdrafts, at the balance sheet date; deposits that are received on terms other than those in the normal course of business, the amount of accrued interest on deposit liabilities; securities, mortgage loans or other financial instruments that serve as collateral for deposits; for time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years following the balance sheet date; and the weighted average interest rate for all deposit liabilities held by the entity.
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 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, 2021.
As of December 31, 2020 and December 31, 2019 Note
Payable – Related Party consisted of the following:
December 31,
December 31,
2020
2019
Note payable, related party, current portion
$
15,000
$
27,000
Note payable, related party, net of current portion
On December 11, 2019, a convertible note 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 December 31, 2020, and December 31, 2019 Note Payable consisted of the following:
December 31,
December 31,
2020
2019
Notes 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 December 31, 2020 and December 31, 2019 Debt
consisted of the following:
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.
As of December 31, 2020 and 2019, the Company had
outstanding purchase commitments for inventory totaling $151,411 and $152,583, respectively. Of these amounts, the Company had made prepayments
of $38,610 as of December 31, 2020 and $18,645 as of December 31, 2019 and had commitments for future cash outlays for inventory totaling
$112,801 and $133,938, respectively.
Effective September 1, 2019 the Company entered into
the Fourth Amendment to the Lease for its facility, reducing the size of the leased space to 21,786 square feet and extending the lease
term to August 31, 2020, at which time the lease expired. As of December 31, 2020, no new lease extension has been 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 December 31, 2020 the outstanding balance was
$52,529 and the security deposit of $14,280 remained the same.
The entire disclosure for significant arrangements with third parties, which includes operating lease arrangements and arrangements in which the entity has agreed to expend funds to procure goods or services, or has agreed to commit resources to supply goods or services, and operating lease arrangements. Descriptions may include identification of the specific goods and services, period of time covered, minimum quantities and amounts, and cancellation rights.
The Company holds a non-controlling interest in various
distributors in exchange for use of the Company’s name and logo. As of December 31, 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 December 31, 2020 and December 31, 2019, the
Company was owed $17,345 and $16,712, respectively, by related parties for the purchase of products and services.
Accrued Management Expenses
During the periods ended December 31, 2020 and December
31, 2019, the Company’s president and former chief financial officer were due amounts for services performed for the Company. As
of December 31, 2020 and December 31, 2019 the accrued management fees consisted of the following:
December 31,
December 31,
2020
2019
Amounts due to the president
$
595,158
$
541,504
Amounts due to the chief financial officer
-
165,326
Total
$
595,158
$
706,830
Richard Miller, the former chief financial officer,
resigned on January 7, 2020 (effective February 7, 2020). Prior amounts due to the former chief financial officer were reclassified to
accounts payable and accrued liabilities on the balance sheet at December 31, 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.
On
September 6, 2019 the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with a purchaser wherein
the purchaser agreed to buy an aggregate of 3,579,014 restricted shares of common stock of the Company at a price of $0.1788 per share
for an aggregate purchase price of $640,000. Subject to the default and penalty provisions in the Purchase Agreement, the sale and purchase
of the restricted shares and payment of the purchase price shall be made in 20 tranches as follows: (a) $75,000 payable on or before September
30, 2019 (tranche 1), (b) the balance of the purchase price paid in 18 monthly tranches, at a minimum of $10,000 per month with a total
quarterly payment of no less than $90,000, and (c) a final payment of $25,000 on or before April 1, 2021(tranche 20). In accordance with
these terms, purchaser paid $75,000 on September 30, 2019 and was issued 419,463 restricted shares of the Company’s restricted common
stock. Between October 1, 2019 and December 31, 2019 the purchaser made cumulative payments of $20,000 towards the $90,000 required under
the agreement and was therefore in default under the terms of the agreement. In accordance with a provision in the agreement the Company
elected to waive the default but assess a $0.03 per share penalty for all future installment payments, increasing the purchase price to
$.2033 per share. The $20,000 paid by the purchaser as of December 31, 2019 has been classified as Common Stock Subscribed on the balance
sheet. The purchaser made additional deposits totaling $31,000 in January and February 2020. Pursuant to the terms of the agreement, on
July 14, 2020 the Company issued 260,324 restricted shares of common stock in exchange for the cumulative deposits of $51,000 made by
the purchaser. The agreement was terminated effective July 14, 2020 due to non-performance by the purchaser.
Additionally,
subject to the payment by the purchaser of the additional sum of $25,000 by September 30, 2019, the Company shall grant to the purchaser,
an option to purchase an additional 3,579,014 restricted shares of common stock for an additional $640,000. The $25,000 option purchase
price is consideration for the option and shall be non-refundable and shall not be applied to the purchase of any restricted shares. The
purchaser may exercise the option within six months of the initial (tranche 1) payment (i.e., September 30, 2019) by paying the initial
option tranche exercise payment of $75,000. If the purchaser has not exercised and paid the initial option exercise payment of $75,000
by March 31, 2020 the option to purchase the option shares shall expire and be terminated. The purchaser made a timely payment of $25,000
on September 30, 2019 to purchase the option but did not make the initial option tranche exercise payment of $75,000 by March 31, 2020.
Therefore, the option to purchase the option shares has expired.
On
December 31, 2019 the Company issued 500,000 shares of its restricted common stock in consideration of a capital contribution via the
conversion of $25,000 of unpaid principal owing under that certain Convertible Note dated June 11, 2018.
Options and Warrants
During the years ended December 31, 2020 and 2019,
the Company granted 150,000 and 450,000 options for services, respectively. During the years ended December 31, 2020 and 2019,
respectively, the Company recognized expense of $15,456 and $49,786 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 $257. No future compensation expense has
been calculated for 150,000 options that were granted in 2015 due to the low probability that any of these options will vest before maturity.
These options expired on October 1, 2020.
On August 3, 2011 the Board of Directors adopted
the Omnitek Engineering Corp. 2011 Long-term Incentive Plan (the “2011 Plan”), under which 1,000,000 shares of
Company’s Common Stock were reserved for issuance of both Incentive Stock Options to employees only and Non-Qualified Stock
Options to employees and consultants at its discretion. As of December 31, 2020, the Company has a total of 75,000 options issued
under the plan. On September 11, 2015 the Board of Directors adopted the Omnitek Engineering Corp. 2015 Long Term Incentive Plan
(the “2015 Plan”), under which 2,500,000 shares of the Company’s Common Stock were reserved for issuance of both
Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion. As of
December 31, 2020, the Company has a total of 1,915,556 options issued under the plan. In October 2017, the Company’s
shareholders approved its 2017 Long-Term Incentive Plan (the “2017 Plan”). Under the 2017 plan, the Company may issue up
to 5,000,000 shares of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants
at its discretion. As of December 31, 2020, the Company has a total of 891,667 options issued under the plan. During the year ended
December 31, 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:
December 31,
2020
December 31,
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 granted at
December 31, 2020 and December 31, 2019 and changes during the years then ended is presented below:
December 31,
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
(200,000)
0.87
(475,000)
2.49
Outstanding at end of year
2,890,556
0.20
2,940,556
0.25
Exercisable
2,882,223
$
0.20
2,672,223
$
0.23
A summary of the status of the options outstanding
at December 31, 2020 is presented below:
Range of Exercise Prices
Number Outstanding
Weighted-Average Remaining Contractual Life
Number Exercisable
Weighted-Average Exercise Price
$0.01-1.00
2,890,556
3.51 years
2,882,223
$0.20
A summary of the status of the options and warrants
outstanding at December 31, 2019 is presented below:
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
The provision for income taxes for the year ended
December 31, 2020 and 2019 consists of the following:
December 31,
December 31,
Federal
2020
2019
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, 2020 and 2019:
December 31,
December 31,
Deferred tax assets:
2020
2019
Net operating loss carryover
$
7,367,497
6,821,469
Research and development carry forward
131,088
131,088
Inventory reserve
253,994
237,334
Allowance for doubtful accounts
3,600
3,600
Warranty allowance
3,068
3,068
Accrued compensation
142,838
169,639
Deferred tax liabilities:
Depreciation
(39,927)
(47,001)
Valuation allowance
(7,862,158)
(7,319,197)
Net deferred tax asset
$
-
-
The income tax provision differs from the amount
of income tax determined by applying the estimated U.S. federal and state income tax rate of 24% as of December 31, 2020 and December
31, 2019 to pretax income from continuing operations for the year ended December 31, 2020 and 2019 due to the following:
December 31,
December 31,
2020
2019
Book loss
$
(117,532)
(172,902)
Meals and entertainment
-
16
State tax deduction
-
-
Deferred rent
-
-
Stock/Options for services
3,709
11,949
Officer’s life ins premium
1,181
1,181
Depreciation
(8,265)
(8,784)
Accrued compensation
(26,801)
48,174
Inventory reserve
16,660
58,283
Valuation allowance
262,894
124,964
Net operating loss carryover
(131,046)
(62,081)
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, 2020, the Company had net operating
loss carry forwards of approximately $7,367,497 through 2034. No tax benefit has been reported in the December 31, 2020 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.
The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.
On January 19, 2021 the Company and Werner Funk, President
and CEO, agreed to a one-year extension of the $15,000 related party note payable due to Mr. Funk. The extended due date is January 19,
2022.
On January 30, 2021 the Company received notification
from Riverview Bank that the Small Business Administration (“SBA”) had forgiven 100% of the Company’s PPP loan (dated
5/22/20), pursuant to the SBA’s acceptance of the Company’s loan forgiveness application.
On March 21, 2021 the Company received funds pursuant
to the Paycheck Protection Program loan (the “PPP loan”) from LIBERTY CP2, SPV, LP, under the recently enacted Coronavirus
Aid, Relief, and Economic Security Act (“CARES Act”) administered by the SBA. The Company received total proceeds of $100,000
from the PPP loan. Pursuant to the terms of the note, the first payment shall be determined based on the deferment period and time required
to process any application for forgiveness. The Note shall be due on March 1, 2026, or as determined by the Small Business Administration
and Department of the Treasury.
On March 10, 2021 the Company entered into an Employment
Agreement with Werner Funk, the President and CEO of the Company. The term of the Employment Agreement shall be for a period of three
(3) years, with a Base Salary of $150,000 per year with such salary reviewed on an annual basis by the Board of Directors. In conjunction
with and pursuant to the Mr. Funk’s Employment, the Company granted to Werner Funk, the President and Chief Executive Officer, a
stock option to purchase 300,000 shares of common stock, at an exercise price of $0.1155 representing 110% of the closing price of the
Company’s common stock as of March 10, 2021. Such Options shall be exercisable for a period of seven years. The Option
shall vest and be exercisable at the rate of 1/36 per month. No underwriters were used. The securities were issued pursuant to an exemption
from registration provided by Section 4(a)(2) of the Securities Act of 1933. As the founder, a Director and the CEO of the Company Mr.
Funk was intimately acquainted with the Company’s business plan and proposed activities at the time of issuance and possessed information
on the Company necessary to make an informed investment decision.
On March 10, 2021, the
Company granted to each of John M. Palumbo and Gary S. Maier, the two independent directors, a non-qualified stock option to purchase
50,000 shares of the Company’s common stock at an exercise price of $0.1050 per share representing 100% of the closing price of
the Company’s common stock as of March 10, 2021. Such Options shall be exercisable for a period of seven years. The Option
shall vest and be exercisable immediately. No underwriters were used. The securities were
issued pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933. The individuals receiving
the options were intimately acquainted with the Company’s business plan and proposed activities at the time of issuance and possessed
information on the Company necessary to make an informed investment decision.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
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.
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.
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, 2020 and 2019
was $15,000 and $15,000, respectively. Additionally, bad debt expense for the years ended December 31, 2020 and 2019 was $-0- and $-0-,
respectively.
Inventories are stated at the lower of cost or market,
cost determined on an average cost basis. Market value for raw materials is based on replacement costs. Inventory costs include
material, labor and manufacturing overhead. The Company reviews inventories on hand at least annually and records provisions for
estimated excess, slow moving and obsolete inventory, as well as inventory with a carrying value in excess of net realizable value. The
regular and systematic inventory valuation reviews include a current assessment of future product demand, historical experience and product
expiration.
The Company assesses the recoverability of its
long-lived assets annually and whenever circumstances would indicate that there may be an impairment. The Company
compares the estimated undiscounted future cash flows to the carrying value of the long-lived assets to determine if an impairment
has occurred. In the event that an impairment has occurred, the Company will recognize the impairment immediately. No
impairment expense was recognized as of December 31, 2020 or 2019.
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.
In general, revenue is recognized when control
of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled
in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract
with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction
price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy
the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer
and is the unit of account for revenue recognition.
We recognize revenue on various products and services
as follows:
Products - The Company recognizes revenue from
the sale of products (e.g., filters and engine components) as performance obligations are satisfied. This type of revenue is primarily
generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized
at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation has been satisfied). Control passes
FOB shipping point.
Contracts – Revenues are recognized as
performance obligations are satisfied over time (also known as percentage-of-completion method), measured by either achievement of milestones
or the ratio of costs incurred up to a given date to estimated total costs for each contract. Contract costs include all direct material,
labor, subcontract and other costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses
are determined. Changes in job performance, job conditions, estimated profitability and associated change orders and claims, including
those changes arising from contract penalty provisions and final contract settlements, may result in revisions to costs and income and
are recognized in the period in which the revisions are determined.
Performance Obligations
A performance obligation is a promise in a contract
to transfer a distinct good or service to a customer and is the unit of account in the new revenue standard. The contract transaction
price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied.
The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services
is not separately identifiable from other promises in the contracts and, therefore, not distinct.
Performance Obligations Satisfied Over Time
Revenues for Omnitek’s long-term
contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the
work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to
24 months. Omnitek’s
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 5% of revenue for the years ended December 31, 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 95% of revenue
for the years ended December 31, 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:
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.
The Company expenses the costs of researching and
developing its products during the period incurred. During the years ended December 31, 2020 and 2019, the Company incurred research and
development expenses of $82,052 and $106,916, respectively.
The Company follows the policy of charging the costs
of advertising to expense as incurred. During the years ended December 31, 2020 and 2019, the Company expensed $-0- and $-0-, respectively.
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, 2020, the
Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal
jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or
non-U.S. income tax examinations by tax authorities for years before 2012.
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 2,882,223 and 2,672,223 stock options
and warrants that would have been included in the fully diluted earnings per share as of December 31, 2020 and 2019, respectively. However,
the common stock equivalents were not included in the loss per share computation because they are anti-dilutive.
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.
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.
Historically, the Company has incurred net losses
and negative cash flows from operations. As of December 31, 2020, the Company had an accumulated deficit of $21,465,641 and total
stockholders’ deficit of ($874,133). At December 31, 2020, the Company had current assets of $961,226 including cash of $60,729,
and current liabilities of $1,621,456, resulting in negative working capital of $660,230. For 2020, the Company reported a net loss
of $489,712 and net cash used by operating activities of $247,507. Management believes that based on its operating plan, the projected
sales for 2021, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months
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
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 basis of accounting, or basis of presentation, used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS).
Disclosure of accounting policy for cash and cash equivalents, including the policy for determining which items are treated as cash equivalents. Other information that may be disclosed includes (1) the nature of any restrictions on the entity's use of its cash and cash equivalents, (2) whether the entity's cash and cash equivalents are insured or expose the entity to credit risk, (3) the classification of any negative balance accounts (overdrafts), and (4) the carrying basis of cash equivalents (for example, at cost) and whether the carrying amount of cash equivalents approximates fair value.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
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 fair value measurements of financial and non-financial assets, liabilities and instruments classified in shareholders' equity. Disclosures include, but are not limited to, how an entity that manages a group of financial assets and liabilities on the basis of its net exposure measures the fair value of those assets and liabilities.
Disclosure of accounting policy for recognizing and measuring the impairment of long-lived assets. An entity also may disclose its accounting policy for long-lived assets to be sold. This policy excludes goodwill and intangible assets.
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.
Disclosure of accounting policy for costs it has 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.
Disclosure of accounting policy for award under share-based payment arrangement. Includes, but is not limited to, methodology and assumption used in measuring cost.
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.
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 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 short-term debt arrangements (having initial terms of repayment within one year or the normal operating cycle, if longer) including: (1) description of the short-term debt arrangement; (2) identification of the lender or type of lender; (3) repayment terms; (4) weighted average interest rate; (5) carrying amount of funds borrowed under the specified short-term debt arrangement as of the balance sheet date; (6) description of the refinancing of a short-term obligation when that obligation is excluded from current liabilities in the balance sheet; and (7) amount of a short-term obligation that has been excluded from current liabilities in the balance sheet because of a refinancing of the obligation.
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 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 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 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 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.
Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.
Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets.
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, 2020 and December
31, 2019 to pretax income from continuing operations for the year ended December 31, 2020 and 2019 due to the following:
Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.
Amount of write-down of assets recognized in the income statement. Includes, but is not limited to, losses from tangible assets, intangible assets and goodwill.
Useful life of long lived, physical assets used in the normal conduct of business and not intended for resale, in 'PnYnMnDTnHnMnS' format, for example, 'P1Y5M13D' represents the reported fact of one year, five months, and thirteen days. Examples include, but not limited to, land, buildings, machinery and equipment, office equipment, furniture and fixtures, and computer equipment.
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).
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.
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 charged to advertising expense for the period, which are expenses incurred with the objective of increasing revenue for a specified brand, product or product line.
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.
Description of risks that arise due to the volume of business transacted with a particular customer. At a minimum, the description informs financial statement users of the general nature of the risk, but excludes "Information about Major Customers" that may be disclosed elsewhere (for instance, segment disclosures).
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.
Description of risks that arise due to the volume of business transacted with a particular supplier or reliance placed on that supplier. At a minimum, the description informs financial statement users of the general nature of the risk.
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. Also includes short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. 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.
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.
Gross amount of merchandise or supplies to which the entity holds the title but does not hold physical possession because the goods are currently being transported.
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.
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 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 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).
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 value of the financial instrument(s) that the original debt is being converted into 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.
Identification of the lender and information about a contractual promise to repay a short-term or long-term obligation, which includes borrowings under lines of credit, notes payable, commercial paper, bonds payable, debentures, and other contractual obligations for payment. This may include rationale for entering into the arrangement, significant terms of the arrangement, which may include amount, repayment terms, priority, collateral required, debt covenants, borrowing capacity, call features, participation rights, conversion provisions, sinking-fund requirements, voting rights, basis for conversion if convertible and remarketing provisions. The description may be provided for individual debt instruments, rational groupings of debt instruments, or by debt in total.
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.
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.
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.
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 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.
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.
Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences from in-process research and development costs expensed in connection with a business combination.
Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.
Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences from the allowance for doubtful accounts.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to the change net operating loss carryovers.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to increase (decrease) in the valuation allowance for deferred tax assets.
The amount of income tax expense or benefit for the period computed by applying the domestic federal statutory tax rates to pretax income from continuing operations.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to nondeductible depreciation.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to nondeductible lease expense.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to nondeductible life insurance expense.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to nondeductible meals and entertainment expense.
Amount of reported income tax expense (benefit) in excess of (less than) expected income tax expense (benefit) computed by applying domestic federal statutory income tax rate to pretax income (loss) from continuing operation, attributable to nondeductible expense for award under share-based payment arrangement. Includes, but is not limited to, expense determined to be nondeductible upon grant or after for award under share-based payment arrangement.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to other adjustments.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to tax exempt income, equity in earnings (loss) of an unconsolidated subsidiary, minority noncontrolling interest income (loss), tax holiday, disposition of a business, disposition of an asset, repatriation of foreign earnings, repatriation of foreign earnings jobs creation act of 2004, increase (decrease) in enacted tax rate, prior year income taxes, increase (decrease) in deferred tax asset valuation allowance, and other adjustments.
Amount of the difference between reported income tax expense (benefit) and expected income tax expense (benefit) computed by applying the domestic federal statutory income tax rates to pretax income (loss) from continuing operations attributable to state and local income tax expense (benefit).
Expiration, mandatory redemption, or due date, in CCYY-MM-DD format, of the financial instrument issued in exchange for the original debt being converted in a noncash or part noncash transaction.