Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2022 |
May 11, 2022 |
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| Details | ||
| Registrant CIK | 0001404804 | |
| Fiscal Year End | --12-31 | |
| Document Type | 10-Q | |
| Document Quarterly Report | true | |
| Document Period End Date | Mar. 31, 2022 | |
| Entity File Number | 000-53955 | |
| Entity Registrant Name | OMNITEK ENGINEERING CORP. | |
| Entity Incorporation, State or Country Code | CA | |
| Entity Tax Identification Number | 33-0984450 | |
| Entity Address, Address Line One | 1345 Specialty Dr. #E | |
| Entity Address, City or Town | Vista | |
| Entity Address, State or Province | CA | |
| Entity Address, Postal Zip Code | 92081 | |
| City Area Code | 760 | |
| Local Phone Number | 591-0089 | |
| Entity Current Reporting Status | Yes | |
| Entity Interactive Data Current | Yes | |
| Entity Filer Category | Non-accelerated Filer | |
| Entity Small Business | true | |
| Entity Emerging Growth Company | false | |
| Entity Shell Company | false | |
| Entity Common Stock, Shares Outstanding | 21,948,091 | |
| Amendment Flag | false | |
| Document Fiscal Year Focus | 2022 | |
| Document Fiscal Period Focus | Q1 | |
| Document Transition Report | false |
Condensed Balance Sheets - Parenthetical - $ / shares |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Details | ||
| Common Stock, Shares Authorized | 125,000,000 | 125,000,000 |
| Common Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
| Common Stock, Shares, Issued | 21,948,091 | 21,600,189 |
| Common Stock, Shares, Outstanding | 21,948,091 | 21,600,189 |
Statements of Operations - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
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| Details | ||
| Revenues | $ 258,851 | $ 218,113 |
| COST OF GOODS SOLD | 170,605 | 104,410 |
| INVENTORY RESERVE ADJUSTMENT | 0 | 24,901 |
| Total Cost of Goods Sold | 170,605 | 129,311 |
| GROSS MARGIN | 88,246 | 88,802 |
| OPERATING EXPENSES | ||
| General and administrative | 138,696 | 166,453 |
| Research and development | 16,252 | 16,456 |
| Depreciation and amortization | 752 | 135 |
| Total Operating Expenses | 155,700 | 183,044 |
| LOSS FROM OPERATIONS | (67,454) | (94,242) |
| OTHER INCOME (EXPENSE) | ||
| Interest expense | (5,054) | (6,808) |
| Forgiveness of debt | 0 | 100,655 |
| Total Other Income (Expense) | (5,054) | 93,847 |
| LOSS BEFORE INCOME TAXES | (72,508) | (395) |
| INCOME TAX EXPENSE | 0 | 0 |
| NET LOSS | $ (72,508) | $ (395) |
| BASIC AND DILUTED LOSS PER SHARE | $ (0.00) | $ (0.00) |
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 21,600,189 | 21,600,189 |
NOTE 1 - CONDENSED FINANCIAL STATEMENTS |
3 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Notes | |
| NOTE 1 - CONDENSED FINANCIAL STATEMENTS | NOTE 1 - CONDENSED FINANCIAL STATEMENTS
The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2022 and for all periods presented herein, have been made.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2021 audited financial statements. The results of operations for the periods ended March 31, 2022 and 2021 are not necessarily indicative of the operating results for the full years. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES |
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| NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
In general, revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition.
We recognize revenue on various products and services as follows:
Products - The Company recognizes revenue from the sale of products (e.g., filters and engine components) as performance obligations are satisfied. This type of revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation has been satisfied).
Contracts – Revenues are recognized as performance obligations are satisfied over time (also known as percentage-of-completion method), measured by either achievement of milestones or the ratio of costs incurred up to a given date to estimated total costs for each contract. Contract costs include all direct material, labor, subcontract and other costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, estimated profitability and associated change orders and 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.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
Performance Obligations Satisfied Over Time
Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the periods ended March 31, 2022 and 2021, respectively.
Performance Obligations Satisfied at a Point in Time
Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer. Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 100% and 100% of revenue for the periods ended March 31, 2022 and 2021, 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:
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
Inventory
Inventory is stated at the lower of cost or market. The Company’s inventory consists of finished goods and raw material and is located in Vista, California, consisting of the following:
The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $-0- and $24,901, for the periods ended March 31, 2022 and March 31, 2021, respectively.
Property and Equipment
Property and equipment at March 31, 2022 and December 31, 2021 consisted of the following:
Depreciation expense for the periods ended March 31, 2022 and March 31, 2021 was $752 and $135, respectively.
Basic and Diluted Loss per Share
The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 3,173,889 and 2,998,889 stock options and warrants that would have been included in the fully diluted earnings per share as of March 31, 2022 and March 31, 2021, respectively. However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti dilutive.
Income Taxes
The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized.
Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.
The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of March 31, 2022 and December 31, 2021 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2012.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
Operating Lease Right-of-Use Assets and Liabilities
Operating lease right-of-use asset represents the Company’s right to use an underlying asset for the lease term and operating lease liability represents its obliation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized when the Company takes possession of the leased property (the Commencement Date) based on the present value of lease payments over the lease term. Rent expense on noncancellable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the lease beginning on the Commencement Day.
Liquidity and Going Concern
Historically, the Company has incurred net losses and negative cash flows from operations. As of March 31, 2022, the Company had an accumulated deficit of $21,520,740 and total stockholders’ deficit of $877,638. At March 31, 2022, the Company had current assets of $765,827 including cash of $40,604, and current liabilities of $1,538,730, resulting in negative working capital of $(772,903). For the three months ended March 31, 2022, the Company reported a net loss of $72,508 and net cash used in operating activities of $16,374. Management believes that based on its operating plan, the projected sales for 2022, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. Whether, and when, the Company can attain profitability and positive cash flows from operations is uncertain. The Company is also uncertain whether it can raise additional capital. These uncertainties cast substantial doubt upon the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. Our financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities should we be unable to continue as a going concern.
Recent Accounting Pronouncements
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. |
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NOTE 3 - CONTRACT ASSETS AND LIABILITIES |
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| Notes | |||||||||||||||||||||||||||||||
| NOTE 3 - CONTRACT ASSETS AND LIABILITIES | NOTE 3 – CONTRACT ASSETS AND LIABILITIES
The timing of revenue recognition, billings and cash collections results in billed accounts receivable and costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) on the balance sheet. For Omnitek’s long-term contracts, amounts are generally billed as work progresses in accordance with agreed-upon contractual terms, either at periodic intervals or upon achievement of contractual milestones. Generally, billing occurs subsequent to revenue recognition, resulting in contract assets. However, Omnitek sometimes receives advances or deposits from its customers, before revenue is recognized, resulting in billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities).
The table below reconciles the net excess billings to the amounts included in the balance sheets at those dates:
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NOTE 4 - LEASES |
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| NOTE 4 - LEASES | NOTE 4 – LEASES
The Company’s leases consist of an operating lease for general office space and warehouse facilities. The Company recognizes rent expense for this lease on a straight-line basis over the lease term. Because the lease does not provide an implicit interest rate, the Company uses its incremental borrowing rate based on the information available at the lease Commencement Date in determining the present value of future lease payments.
On June 3, 2021, the Company entered into a lease for the premises located at 1345 Specialty Drive, Vista, CA, containing approximately 11,751 square feet of rentable area. The lease commenced on July 1, 2021 and expires on June 30, 2026. The monthly base rent under the lease is $9,988 per month and monthly operating expenses during the term of the lease, subject to adjustment under the lease, is $1,175 per month.
In agreement with the Company’s former landlord, the Company vacated the previous leasehold effective July 15, 2021. As of March 31, 2022 the outstanding balance of back rent, included in accounts payable, was $23,374.
During the quarter ended March 31, 2022, cash paid for amounts included in the measurement of operating lease liabilities was $33,489 and the Company recorded operating lease expenses included in operating expenses of $37,290.
Future minimum payments for monthly base rent due under the initial lease term are currently estimated to be as follows:
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NOTE 5 - RELATED PARTY TRANSACTIONS |
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| NOTE 5 - RELATED PARTY TRANSACTIONS | NOTE 5 - RELATED PARTY TRANSACTIONS
Accounts Payable – Related Parties The Company regularly incurs expenses that are paid to related parties and purchases goods and services from related parties. As of March 31, 2022 and December 31, 2021, the Company owed a board member’s company for such services in the amounts of $123,320 and $124,472, respectively.
Accrued Management Compensation For the periods ended March 31, 2022 and December 31, 2021, the Company’s president was due amounts for services performed for the Company.
As of March 31, 2022 and December 31, 2021 the accrued management fees consisted of the following:
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NOTE 6 - NOTES PAYABLE - RELATED PARTY |
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| NOTE 6 - NOTES PAYABLE - RELATED PARTY | NOTE 6 – NOTES PAYABLE - RELATED PARTY
Convertible Notes – Related Parties
On June 4, 2021 the Company issued a convertible promissory note for $30,000 to its CEO. The note has an annual interest rate of 8% and is unsecured. The note calls for monthly installment payments of $1,050 commencing on July 4, 2021. The unpaid principal amount of the note and all unpaid accrued interest is due and payable on or before June 4, 2023. The note has a conversion feature, wherein, at the maturity date the lender may convert the remaining principal balance and any unpaid accrued interest into shares of the Company’s common stock. The number of shares of common stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the remaining unpaid principal balance and any unpaid accrued interest of this note by (ii) 90% of the average closing price of the common stock of the Company, for the five (5) trading days (between days 15 and 10 days) before the maturity date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 “Derivatives and Hedging.” As the note isn’t convertible until maturity, no derivative liability was recognized as of March 31, 2022.
On June 4, 2021 the Company issued a convertible promissory note for $20,000 to a board member. The note has an annual interest rate of 8% and is unsecured. The principal amount of the note and all accrued interest is due and payable on or before December 4, 2021. The note has a conversion feature, wherein, at the maturity date the lender may convert the remaining principal balance and any unpaid accrued interest into shares of the Company’s common stock. The number of shares of common stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the remaining unpaid principal balance and any unpaid accrued interest of this note by (ii) 90% of the average closing price of the common stock of the Company, for the five (5) trading days (between days 15 and 10 days) before the maturity date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 “Derivatives and Hedging.” As the note isn’t convertible until maturity, no derivative liability was recognized as of March 31, 2022. On December 14, 2021, the Convertible Promissory Note dated June 4, 2021, in the original principal amount of $20,000, with an original Maturity Date of December 4, 2021, was extended for an additional period of 3 months until March 4, 2022. On March 4, 2022, the Note was extended for an additional period of 3 months until June 4, 2022.
As of March 31, 2022 and December 31, 2021 Convertible Notes – Related Party consisted of the following:
Notes Payable – Related Party
On January 19, 2017 the Company issued a promissory note for $15,000 to a related party. The note has an annual interest rate of 5% and is unsecured. The principal amount of the note and all accrued interest is due and payable on or before January 19, 2023.
As of March 31, 2022, and December 31, 2021 Note Payable – Related Party consisted of the following:
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NOTE 7 - DEBT |
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| NOTE 7 - DEBT | NOTE 7 – DEBT
Loans payable – SBA
Economic Injury Disaster Loan On April 21, 2020, the Company obtained a loan (the “SBA EIDL Loan”) under the recently enacted Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) adminitstered by the U.S. Small Business Administration. The Company received total proceeds of $199,000 from the SBA EIDL loan. The SBA EIDL Loan is evidenced by a Loan Authorization and Agreement, a Secured Promissory Note (the “Note” and Security Agreement. Interest on the unpaid principal balance of the Note shall accrue at the rate of three and 75/100 percent (3.75%) per annum. Pursuant to the terms of the Note, commencing May 21, 2022 (i.e., twenty-four (24) months from the Note date), the Company shall make principal and interest payments in the amount of $970 every month, with any unpaid principal and accrued interest due and payable on April 21, 2050. The obligations under the Loan Authorization and Agreement, and the Note shall be secured pursuant to the Security Agreement and a first position lien and security interest in the Collateral (as defined in the Security Agreement). The collateral in which the security interest is granted includes all tangible and intangible personal property, including, but not limited to: (a) inventory, and (b) equipment. As of March 31, 2022 and December 31, 2021 Debt consisted of the following:
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NOTE 8 - STOCK OPTIONS AND WARRANTS |
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| NOTE 8 - STOCK OPTIONS AND WARRANTS | NOTE 8 - STOCK OPTIONS AND WARRANTS
During the three months ended March 31, 2022 and 2021, the Company granted -0- and 400,000 options for services, respectively. During the three months ended March 31, 2022 and 2021, the Company recognized expense of $2,562 and $11,283, respectively, for options that vested during the periods pursuant to ASC Topic 718. As of March 31, 2022 total remaining amount of compensation expense to be recognized in future periods is $20,182.
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 March 31, 2022 the Company has a total of 75,000 options issued under the 2011 Plan. On September 11, 2015 the Board of Directors adopted the Omnitek Engineering Corp. 2015 Long Term Incentive Plan (the “2015 Plan”), under which 2,500,000 shares of the Company’s Common Stock were reserved for issuance of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion. As of March 31, 2022 the Company has a total of 1,915,556 options issued under the 2015 Plan. In October 2017, the Company’s shareholders approved its 2017 Long-Term Incentive Plan (the “2017 Plan”). Under the 2017 plan, the Company may issue up to 5,000,000 shares of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion. As of March 31, 2022, the Company has a total of 1,300,000 options issued under the 2017 Plan. During the three months ended March 31, 2022 and 2021 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
NOTE 8 - STOCK OPTIONS AND WARRANTS (Continued)
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:
A summary of the status of the options and warrants granted at March 31, 2022 and December 31, 2021 and changes during the periods then ended is presented below:
A summary of the status of the options and warrants outstanding at March 31, 2022 is presented below:
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NOTE 9 SUBSEQUENT EVENT |
3 Months Ended |
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Mar. 31, 2022 | |
| Notes | |
| NOTE 9 SUBSEQUENT EVENT | NOTE 9 SUBSEQUENT EVENT
On April 18, 2022, in consideration for their services as independent directors, the Company granted to each of Messrs. Gary S. Maier and John M. Palumbo, a Non-Qualified Stock Option pursuant to the 2017 Long-Term Incentive Plan to purchase 50,000 shares of common stock at an exercise price of $0.0531, representing 100% of the closing price of the common stock of the Corporation as of such date. Said Options shall vest and be exercisable immediately and shall be exercisable for a period of seven years from the date of grant.
Also on April 18, 2022, the Company granted to Werner Funk, President and CEO, a Non-qualified Stock Option pursuant to the 2017 Long-Term Incentive Plan, to purchase 50,000 shares of common stock at any exercise price of $0.05841, representing 110% of the closing price of the common stock of the Corporation as of such date. Said Options shall vest and be exercisable immediately and shall be exercisable for a period of seven years from the date of grant.
The securities were issued pursuant to an exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933. The individual receiving the options is 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. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies) |
3 Months Ended |
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Mar. 31, 2022 | |
| Policies | |
| Use of Estimates | Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Policies | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue Recognition | Revenue Recognition
In general, revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition.
We recognize revenue on various products and services as follows:
Products - The Company recognizes revenue from the sale of products (e.g., filters and engine components) as performance obligations are satisfied. This type of revenue is primarily generated from the sale of finished product to customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation has been satisfied).
Contracts – Revenues are recognized as performance obligations are satisfied over time (also known as percentage-of-completion method), measured by either achievement of milestones or the ratio of costs incurred up to a given date to estimated total costs for each contract. Contract costs include all direct material, labor, subcontract and other costs. Provisions for estimated losses on uncompleted contracts are made in the period in which such losses are determined. Changes in job performance, job conditions, estimated profitability and associated change orders and 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.
NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (Continued)
Performance Obligations Satisfied Over Time
Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the periods ended March 31, 2022 and 2021, respectively.
Performance Obligations Satisfied at a Point in Time
Revenue from product sales is recognized at a point in time. These sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risk and rewards transfer. Upon fulfilment of the performance obligation, the customer is provided an invoice demonstrating transfer of control to the customer. Revenue from goods and services transferred to customers at a point in time accounted for 100% and 100% of revenue for the periods ended March 31, 2022 and 2021, 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:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||
| Policies | |||||||||||||||||||||||||||||||
| e. Inventory | Inventory
Inventory is stated at the lower of cost or market. The Company’s inventory consists of finished goods and raw material and is located in Vista, California, consisting of the following:
The Company has established an allowance for obsolete inventory. Expense for obsolete inventory was $-0- and $24,901, for the periods ended March 31, 2022 and March 31, 2021, respectively. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Policies | |||||||||||||||||||||||||||||||||||||
| Property and Equipment | Property and Equipment
Property and equipment at March 31, 2022 and December 31, 2021 consisted of the following:
Depreciation expense for the periods ended March 31, 2022 and March 31, 2021 was $752 and $135, respectively. |
||||||||||||||||||||||||||||||||||||
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Policies | |
| Basic and Diluted Loss per Share | Basic and Diluted Loss per Share
The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 3,173,889 and 2,998,889 stock options and warrants that would have been included in the fully diluted earnings per share as of March 31, 2022 and March 31, 2021, respectively. However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti dilutive. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Policies | |
| Income Taxes | Income Taxes
The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized.
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 March 31, 2022 and December 31, 2021 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2012.
|
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Operating Lease Right-of-Use Assets and Liabilities (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Policies | |
| Operating Lease Right-of-Use Assets and Liabilities | Operating Lease Right-of-Use Assets and Liabilities
Operating lease right-of-use asset represents the Company’s right to use an underlying asset for the lease term and operating lease liability represents its obliation to make lease payments arising from the lease. Operating lease right-of-use assets and liabilities are recognized when the Company takes possession of the leased property (the Commencement Date) based on the present value of lease payments over the lease term. Rent expense on noncancellable leases containing known future scheduled rent increases is recorded on a straight-line basis over the term of the lease beginning on the Commencement Day. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Policies | |
| Liquidity and Going Concern | Liquidity and Going Concern
Historically, the Company has incurred net losses and negative cash flows from operations. As of March 31, 2022, the Company had an accumulated deficit of $21,520,740 and total stockholders’ deficit of $877,638. At March 31, 2022, the Company had current assets of $765,827 including cash of $40,604, and current liabilities of $1,538,730, resulting in negative working capital of $(772,903). For the three months ended March 31, 2022, the Company reported a net loss of $72,508 and net cash used in operating activities of $16,374. Management believes that based on its operating plan, the projected sales for 2022, combined with funds available from its working capital will be sufficient to fund operations for the next twelve months. However, there can be no assurance that operations and operating cash flows will continue at the current levels or improve in the near future. Whether, and when, the Company can attain profitability and positive cash flows from operations is uncertain. The Company is also uncertain whether it can raise additional capital. These uncertainties cast substantial doubt upon the Company’s ability to continue as a going concern for a period of one year from the issuance of these financial statements. Our financial statements have been prepared on a going concern basis, which assumes the realization of assets and liquidation of liabilities in the normal course of operations. The financial statements do not include any adjustments relating to the recoverability or classification of recorded asset amounts or the amounts or classification of liabilities should we be unable to continue as a going concern. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies) |
3 Months Ended |
|---|---|
Mar. 31, 2022 | |
| Policies | |
| Recent Accounting Pronouncements | Recent Accounting Pronouncements
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements. |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Disaggregation of Revenue | The following table presents Omnitek’s revenues disaggregated by region and product type:
|
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NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||
| Schedule Of Inventory Current |
|
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||
| Property Plant And Equipment |
|
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NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||
| Long-Term Contract or Program Disclosure |
|
||||||||||||||||||||||||||||||
NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||
| Schedule of Maturities of Operating Lease Liabilities | Future minimum payments for monthly base rent due under the initial lease term are currently estimated to be as follows:
|
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NOTE 5 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||
| Schedule Of Related Party Transactions Table |
|
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NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||
| Schedule of Convertible Notes - Related Parties | As of March 31, 2022 and December 31, 2021 Convertible Notes – Related Party consisted of the following:
|
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NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||
| Schedule Of Notes Payable Related Party table | As of March 31, 2022, and December 31, 2021 Note Payable – Related Party consisted of the following:
|
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NOTE 7 - DEBT: Schedule of Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||
| Schedule of Debt | As of March 31, 2022 and December 31, 2021 Debt consisted of the following:
|
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NOTE 8 - STOCK OPTIONS AND WARRANTS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) |
3 Months Ended | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||
| Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions |
|
NOTE 8 - STOCK OPTIONS AND WARRANTS: Share-based Payment Arrangement, Option, Activity (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-based Payment Arrangement, Option, Activity |
|
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NOTE 8 - STOCK OPTIONS AND WARRANTS: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||
| Tables/Schedules | |||||||||||||||||||||||||||||||
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable | A summary of the status of the options and warrants outstanding at March 31, 2022 is presented below:
|
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Details) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
| Transferred over Time | ||
| Concentration Risk, Percentage | 0.00% | 0.00% |
| Transferred at Point in Time | ||
| Concentration Risk, Percentage | 100.00% | 100.00% |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Details) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
| Geographic Distribution, Domestic | ||
| Consumer Products | $ 115,368 | $ 132,782 |
| Long-term Contract | 0 | 0 |
| Revenues | 115,368 | 132,782 |
| Geographic Distribution, Foreign | ||
| Consumer Products | 143,483 | 85,331 |
| Long-term Contract | 0 | 0 |
| Revenues | 143,483 | 85,331 |
| Filters | ||
| Consumer Products | 147,518 | 104,356 |
| Long-term Contract | 0 | 0 |
| Revenues | 147,518 | 104,356 |
| Components | ||
| Consumer Products | 111,333 | 105,287 |
| Long-term Contract | 0 | 0 |
| Revenues | 111,333 | 105,287 |
| Engineering Services | ||
| Consumer Products | 0 | 8,470 |
| Long-term Contract | 0 | 0 |
| Revenues | 0 | 8,470 |
| Consumer Products | 258,851 | 218,113 |
| Long-term Contract | 0 | 0 |
| Revenues | $ 258,851 | $ 218,113 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Details | ||
| Raw materials | $ 857,257 | $ 846,499 |
| Finished goods | 752,717 | 802,280 |
| Allowance for obsolete inventory | (931,735) | (931,735) |
| Total | $ 678,239 | $ 717,044 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Details) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
| Details | ||
| INVENTORY RESERVE ADJUSTMENT | $ 0 | $ 24,901 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Details) - USD ($) |
Mar. 31, 2022 |
Mar. 31, 2021 |
|---|---|---|
| Production Equipment | ||
| Property Plant And Equipment Gross | $ 68,456 | $ 68,456 |
| Land and Land Improvements | ||
| Property Plant And Equipment Gross | 10,627 | 10,627 |
| Property Plant And Equipment Gross | 13,621 | 14,373 |
| Less: accumulated depreciation | $ (65,462) | $ (64,710) |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details) - USD ($) |
3 Months Ended | |
|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
| Details | ||
| Depreciation | $ 752 | $ 135 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Details) - shares |
3 Months Ended | |
|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
| Details | ||
| Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,173,889 | 2,998,889 |
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Details) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
|
| Details | |||
| Accumulated deficit | $ 21,520,740 | $ 21,448,232 | |
| Total Stockholders' Deficit | 877,638 | 807,692 | |
| Total Current Assets | 765,827 | 803,724 | |
| Cash | 40,604 | 59,674 | |
| Total Current Liabilities | 1,538,730 | $ 1,516,537 | |
| Working Capital | (772,903) | ||
| Net loss | 72,508 | $ 395 | |
| Net Cash Used in Operating Activities | $ 16,374 | $ 100,839 | |
NOTE 3 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Details | ||
| Contract assets | $ 13,221 | $ 13,221 |
| Contract liabilities | (75,000) | (75,000) |
| Net amount of contract liabilities in excess of Contract assets | $ (61,779) | $ (61,779) |
NOTE 4 - LEASES (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Accounts payable and accrued expenses | $ 396,486 | $ 373,221 |
| Back Rent | ||
| Accounts payable and accrued expenses | $ 23,374 |
NOTE 4 - LEASES: Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Details | ||
| Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | $ 100,467 | |
| Lessee, Operating Lease, Liability, to be Paid, Year Two | 141,036 | |
| Lessee, Operating Lease, Liability, to be Paid, Year Three | 148,074 | |
| Lessee, Operating Lease, Liability, to be Paid, Year Four | 176,268 | |
| Lessee, Operating Lease, Liability, to be Paid, Thereafter | 88,134 | |
| Lessee, Operating Lease, Liability, to be Paid | 653,979 | |
| Operating Lease, Imputed interest | (68,915) | |
| Operating Lease, Liability | 585,064 | |
| Operating lease liabilities - current | (109,242) | $ (106,149) |
| Operating lease liabilities - long-term | $ 475,822 | $ 504,963 |
| Operating Lease, Weighted Average Discount Rate, Percent | 4.94% |
NOTE 5 - RELATED PARTY TRANSACTIONS (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Details | ||
| Accounts payable - related parties | $ 123,320 | $ 124,472 |
NOTE 5 - RELATED PARTY TRANSACTIONS: Schedule Of Related Party Transactions Table (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
Mar. 31, 2021 |
|---|---|---|---|
| President | |||
| Accrued management compensation | $ 628,812 | $ 620,735 | |
| Accrued management compensation | $ 628,812 | $ 620,735 | $ 620,735 |
NOTE 6 - NOTES PAYABLE - RELATED PARTY (Details) - USD ($) |
3 Months Ended | ||
|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2022 |
Dec. 31, 2021 |
|
| Convertible Note payable, related parties | $ 41,220 | $ 41,220 | $ 43,916 |
| Debt Instrument, Interest Rate During Period | 5.00% | ||
| Debt Conversion, Original Debt, Amount | $ 15,000 | ||
| Chief Executive Officer | |||
| Convertible Note payable, related parties | $ 30,000 | 30,000 | |
| Debt Instrument, Interest Rate During Period | 8.00% | ||
| Board Member | |||
| Convertible Note payable, related parties | $ 20,000 | $ 20,000 | |
| Debt Instrument, Interest Rate During Period | 8.00% |
NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Details | ||
| Convertible Note payable, related parties | $ 41,220 | $ 43,916 |
| Convertible notes payable - related party | (20,000) | (31,090) |
| Convertible notes payable - related party, net of current portion | $ 21,220 | $ 12,826 |
NOTE 6 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Details | ||
| Notes payable - related parties, current portion | $ 15,000 | $ 15,000 |
| Notes Payable, Related Parties | $ 15,000 | $ 15,000 |
NOTE 7 - DEBT (Details) - SBA EIDL Loan |
23 Months Ended |
|---|---|
|
Mar. 31, 2022
USD ($)
| |
| Proceeds from Loans | $ 199,000 |
| Debt Instrument, Interest Rate, Effective Percentage | 3.75% |
| Interest Expense, Debt | $ 970 |
| Debt Instrument, Maturity Date | Apr. 21, 2050 |
NOTE 7 - DEBT: Schedule of Debt (Details) - USD ($) |
Mar. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| SBA EIDL Loan | ||
| Loans Payable | $ 198,674 | $ 198,674 |
| Loans Payable, Current | 0 | 0 |
| Loans Payable, Noncurrent | $ 198,674 | $ 198,674 |
NOTE 8 - STOCK OPTIONS AND WARRANTS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) |
3 Months Ended |
|---|---|
Mar. 31, 2021 | |
| Details | |
| Expected volatility | 201.00% |
| Expected dividends | 0.00% |
| Expected term | 7 years |
| Risk-free interest rate | 1.20% |
NOTE 8 - STOCK OPTIONS AND WARRANTS: Share-based Payment Arrangement, Option, Activity (Details) - $ / shares |
3 Months Ended | |||
|---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Dec. 31, 2021 |
Dec. 31, 2019 |
|
| Details | ||||
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 3,290,556 | 3,290,556 | 2,890,556 | |
| Outstanding, Weighted Average Exercise Price | $ 0.19 | $ 0.19 | $ 0.20 | |
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0 | 400,000 | ||
| Granted, Weighted Average Exercise Price | $ 0 | $ 0.11 | ||
| Exercised | 0 | 0 | ||
| Exercised, Weighted Average Exercise Price | $ 0 | $ 0 | ||
| Expired or cancelled | 0 | 0 | ||
| Expired or cancelled, Weighted Average Exercise Price | $ 0 | $ 0 | ||
| Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | 3,290,556 | |||
| Exercisable | 3,173,889 | 3,065,556 | ||
| Exercisable, Weighted Average Exercise Price | $ 0.19 | $ 0.19 | ||
000010 - Document - Document and Entity Information
000020 - Statement - Condensed Balance Sheets
000030 - Statement - Condensed Balance Sheets - Parenthetical
000040 - Statement - Statements of Operations
000050 - Statement - Condensed Statements of Stockholders' Equity (Deficit) (unaudited)
000060 - Statement - Statements of Cash Flows
000070 - Disclosure - NOTE 1 - CONDENSED FINANCIAL STATEMENTS
000080 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
000090 - Disclosure - NOTE 3 - CONTRACT ASSETS AND LIABILITIES
000100 - Disclosure - NOTE 4 - LEASES
000110 - Disclosure - NOTE 5 - RELATED PARTY TRANSACTIONS
000120 - Disclosure - NOTE 6 - NOTES PAYABLE - RELATED PARTY
000130 - Disclosure - NOTE 7 - DEBT
000140 - Disclosure - NOTE 8 - STOCK OPTIONS AND WARRANTS
000150 - Disclosure - NOTE 9 SUBSEQUENT EVENT
000160 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)
000170 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)
000180 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Policies)
000190 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies)
000210 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)
000330 - Disclosure - NOTE 7 - DEBT: Schedule of Debt (Tables)
000370 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Details)
000400 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Details)
000420 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details)
000460 - Disclosure - NOTE 4 - LEASES (Details)
000480 - Disclosure - NOTE 5 - RELATED PARTY TRANSACTIONS (Details)
000500 - Disclosure - NOTE 6 - NOTES PAYABLE - RELATED PARTY (Details)
000530 - Disclosure - NOTE 7 - DEBT (Details)
000540 - Disclosure - NOTE 7 - DEBT: Schedule of Debt (Details)
000550 - Disclosure - NOTE 8 - STOCK OPTIONS AND WARRANTS (Details)