Consolidated SEC Viewer Rendering


Document and Entity Information

v3.22.2
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2022
Aug. 12, 2022
Details    
Registrant CIK 0001404804  
Fiscal Year End --12-31  
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 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 Drive, #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 Q2  
Document Transition Report false  

Condensed Balance Sheets

v3.22.2
Condensed Balance Sheets - USD ($)
Jun. 30, 2022
Dec. 31, 2021
CURRENT ASSETS    
Cash $ 6,530 $ 59,674
Accounts receivable, net 21,030 9,555
Accounts receivable - Related Party 1,212 0
Inventories, net 646,293 717,044
Contract assets 0 13,221
Deposits 8,726 4,230
Total Current Assets 683,791 803,724
PROPERTY & EQUIPMENT, net 12,869 14,373
OTHER ASSETS    
Operating lease - Right-of-use asset 533,673 593,697
Long-term deposit 13,514 13,514
Total Other Assets 547,187 607,211
TOTAL ASSETS 1,243,847 1,425,308
CURRENT LIABILITIES    
Accounts payable and accrued expenses 370,307 373,221
Accrued management compensation 632,658 620,735
Accounts payable - related parties 129,101 124,472
Notes payable - related parties, current portion 15,000 15,000
Convertible notes payable - related party 20,000 31,090
Contract liabilities 0 75,000
Customer deposits 231,419 170,870
Operating lease liabilities - current 112,375 106,149
Total Current Liabilities 1,510,860 1,516,537
LONG-TERM LIABILITIES    
Loans payable - SBA, net of current portion 198,674 198,674
Convertible notes payable - related party, net of current portion 18,475 12,826
Operating lease liabilities - long-term 446,317 504,963
Total Long-term Liabilities 663,466 716,463
Total Liabilities 2,174,326 2,233,000
STOCKHOLDERS' DEFICIT    
Common stock, 125,000,000 shares authorized; no par value; 21,948,091 shares, issued and outstanding 8,607,086 8,607,086
Additional paid-in capital 12,046,557 12,033,454
Accumulated deficit (21,584,122) (21,448,232)
Total Stockholders' Deficit (930,479) (807,692)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 1,243,847 $ 1,425,308

Condensed Balance Sheets - Parenthetical

v3.22.2
Condensed Balance Sheets - Parenthetical - $ / shares
Jun. 30, 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 21,948,091
Common Stock, Shares, Outstanding 21,948,091 21,948,091

Statements of Operations

v3.22.2
Statements of Operations - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Details        
Revenues $ 224,438 $ 228,307 $ 483,289 $ 446,420
COST OF GOODS SOLD 135,306 161,572 305,911 290,883
GROSS MARGIN 89,132 66,735 177,378 155,537
OPERATING EXPENSES        
General and administrative 130,326 132,424 269,022 298,877
Research and development 15,383 17,099 31,635 33,555
Depreciation and amortization 752 136 1,504 271
Total Operating Expenses 146,461 149,659 302,161 332,703
LOSS FROM OPERATIONS (57,329) (82,924) (124,783) (177,166)
OTHER INCOME (EXPENSE)        
Other Income 0 67 0 67
Gain on extinguishment of liability 0 0 0 100,655
Interest expense (5,253) (5,524) (10,307) (12,332)
Debt Instrument, Decrease, Forgiveness     0 100,655
Total Other Income (Expense) (5,253) (5,457) (10,307) 88,390
LOSS BEFORE INCOME TAXES (62,582) (88,381) (135,090) (88,776)
INCOME TAX EXPENSE 800 800 800 800
NET LOSS $ (63,382) $ (89,181) $ (135,890) $ (89,576)
BASIC AND DILUTED LOSS PER SHARE $ (0.00) $ (0.00) $ (0.01) $ (0.00)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED 21,948,091 21,600,189 21,948,091 21,600,189

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

v3.22.2
Condensed Statements of Stockholders' Equity (Deficit) (unaudited) - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings
Total
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2020 $ 8,578,210 $ 12,013,298 $ (21,465,641) $ (874,133)
Shares, Outstanding, Beginning Balance at Dec. 31, 2020 21,600,189      
Issuance of Stock Options $ 0 11,283 0 11,283
Net loss 0 0 (395) (395)
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2021 $ 8,578,210 12,024,581 (21,466,036) (863,245)
Shares, Outstanding, Ending Balance at Mar. 31, 2021 21,600,189      
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2020 $ 8,578,210 12,013,298 (21,465,641) (874,133)
Shares, Outstanding, Beginning Balance at Dec. 31, 2020 21,600,189      
Net loss       (89,576)
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2021 $ 8,878,210 12,027,172 (21,555,217) (949,835)
Shares, Outstanding, Ending Balance at Jun. 30, 2021 21,600,189      
Stockholders' Equity Attributable to Parent, Beginning Balance at Mar. 31, 2021 $ 8,578,210 12,024,581 (21,466,036) (863,245)
Shares, Outstanding, Beginning Balance at Mar. 31, 2021 21,600,189      
Issuance of Stock Options $ 0 2,591 0 2,591
Net loss 0 0 (89,181) (89,181)
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2021 $ 8,878,210 12,027,172 (21,555,217) (949,835)
Shares, Outstanding, Ending Balance at Jun. 30, 2021 21,600,189      
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2021 $ 8,607,086 12,033,454 (21,448,232) (807,692)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 21,948,091      
Issuance of Stock Options $ 0 2,562 0 2,562
Net loss 0 0 (72,508) (72,508)
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 31, 2022 $ 8,607,086 12,036,016 (21,520,740) (877,638)
Shares, Outstanding, Ending Balance at Mar. 31, 2022 21,948,091      
Stockholders' Equity Attributable to Parent, Beginning Balance at Dec. 31, 2021 $ 8,607,086 12,033,454 (21,448,232) (807,692)
Shares, Outstanding, Beginning Balance at Dec. 31, 2021 21,948,091      
Net loss       (135,890)
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2022 $ 8,607,086 12,046,557 (21,584,122) (930,479)
Shares, Outstanding, Ending Balance at Jun. 30, 2022 21,948,091      
Stockholders' Equity Attributable to Parent, Beginning Balance at Mar. 31, 2022 $ 8,607,086 12,036,016 (21,520,740) (877,638)
Shares, Outstanding, Beginning Balance at Mar. 31, 2022 21,948,091      
Issuance of Stock Options $ 0 10,541 0 10,541
Net loss 0 0 (63,382) (63,382)
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2022 $ 8,607,086 $ 12,046,557 $ (21,584,122) $ (930,479)
Shares, Outstanding, Ending Balance at Jun. 30, 2022 21,948,091      

Statements of Cash Flows

v3.22.2
Statements of Cash Flows - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
OPERATING ACTIVITIES    
Net loss $ (135,890) $ (89,576)
Adjustments to reconcile net loss to net cash used in operating activities    
Depreciation and amortization 1,504 271
Options issued for services 13,103 13,874
Gain on extinguishment of liability 0 (100,655)
Amortization of ROU asset 60,024 0
Write-off of contract asset 13,221 0
Bad Dept Expense 41,000 0
Change in Inventory reserve 18 (88,956)
Changes in operating assets and liabilities    
Accounts receivable 29,525 3,478
Accounts receivable-related parties (1,212) (1,208)
Prepaid expenses 0 (11,164)
Deposits (4,496) (8,088)
Inventory 70,733 146,558
Accounts payable and accrued expenses (2,914) (8,469)
Customer deposits 60,549 (69,571)
Contract liabilities (75,000) 0
Operating lease liability (52,421) 0
Accounts payable-related parties 4,629 7,025
Accrued management compensation 11,923 16,730
Net Cash Used in Operating Activities (47,703) (189,751)
INVESTING ACTIVITIES    
Net Cash Used in Investing Activities 0 0
FINANCING ACTIVITIES    
Payments on note payable 0 (326)
Proceeds from (payments on) note payable-related party (5,441) 50,000
Proceeds from loans payable - SBA 0 100,000
Net Cash (Used in) Provided by Financing Activities (5,441) 149,674
NET CHANGE IN CASH (53,144) (40,077)
CASH AT BEGINNING OF YEAR 59,674 60,729
CASH AT END OF PERIOD 6,530 20,652
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS    
Interest 5,048 8,716
Income taxes $ 800 $ 800

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

v3.22.2
NOTE 1 - CONDENSED FINANCIAL STATEMENTS
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 1 - CONDENSED FINANCIAL STATEMENTS

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

 

The accompanying condensed financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 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 June 30, 2022 and 2021 are not necessarily indicative of the operating results for the full years.


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
6 Months Ended
Jun. 30, 2022
Notes  
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.

 

 

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Performance Obligations

 

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

 

Performance Obligations Satisfied Over Time

 

Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the periods ended June 30, 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 June 30, 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. 

 

 

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Disaggregation of Revenue

 

The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended June 30, 2022 and June 30, 2021:

 

 

 

 

For the three months ended

June 30, 2022

 

 

For the three months ended

June 30, 2021

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

 91,324

-

 91,324

 

$

 101,088

-

 101,088

International

 

 

 133,114

-

 133,114

 

 

 127,220

-

 127,220

 

$

 224,438

-

 224,438

 

$

 228,307

-

 228,307

 

 

 

 

 

 

 

 

 

 

 

Filters

 

$

 78,646

-

 78,646

 

$

 106,051

-

 106,051

Components

 

 

 145,792

-

 145,792

 

 

 122,257

-

 122,257

Engineering Services

 

 

 -

-

 -

 

 

 -

-

 -

 

$

 224,438

-

 224,438

 

$

 228,307

-

 228,307

 

The following table presents Omnitek’s revenues disaggregated by region and product type for the six months ended June 30, 2022 and June 30, 2021:

 

 

 

 

For the six months ended

June 30, 2022

 

 

For the six months ended

June 30, 2021

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

 206,693

-

 206,693

 

$

 233,869

-

 233,869

International

 

 

 276,596

-

 276,596

 

 

 212,551

-

 212,551

 

$

 483,289

-

 483,289

 

$

 446,420

-

 446,420

 

 

 

 

 

 

 

 

 

 

 

Filters

 

$

 226,164

-

 226,164

 

$

 210,407

-

 210,407

Components

 

 

 257,125

-

 257,125

 

 

 227,543

-

 227,543

Engineering Services

 

 

 -

-

 -

 

 

 8,470

-

 8,470

 

$

 483,289

-

 483,289

 

$

 446,420

-

 446,420

 

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:

 

 

June 30,

 

December 31,

Location : Vista, CA

2022

 

2021

Raw materials

$

 831,746 

 

$

846,499

Finished goods

 

 746,300 

 

 

802,280

Allowance for obsolete inventory

 

 (931,753)

 

 

(931,735)

Total

$

 646,293 

 

$

717,044

 

 

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

The Company has established an allowance for obsolete inventory.  Expense for obsolete inventory was $0 and $88,956, for the periods ended June 30, 2022 and June 30, 2021, respectively.

 

Property and Equipment

 

Property and equipment at June 30, 2022 and December 31, 2021 consisted of the following:

 

 

June 30,

 

December 31,

2022

 

2021

Production equipment

$

 68,456 

 

$

 68,456 

Leasehold Improvements

 

 10,627 

 

 

 10,627 

Less: accumulated depreciation

 

 (66,214)

 

 

 (64,710)

Total

$

 12,869 

 

$

 14,373 

 

Depreciation expense for the periods ended June 30, 2022 and June 30, 2021 was $1,504 and $271, 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 3,374,726 and 3,023,889 stock options that would have been included in the fully diluted earnings per share as of June 30, 2022 and June 30, 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 June 30, 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)

 

Liquidity and Going Concern

 

Historically, the Company has incurred net losses and negative cash flows from operations.  As of June 30, 2022, the Company had an accumulated deficit of $21,584,122 and total stockholders’ deficit of $(930,479).  At June 30, 2022, the Company had current assets of $683,791 including cash of $6,530, and current liabilities of $1,510,860, resulting in negative working capital of $(827,069). For the six months ended June 30, 2022, the Company reported a net loss of $135,890 and net cash used in operating activities of $47,703. 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 significant doubt upon the Company’s ability to continue as a going concern for 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.


NOTE 3 - CUSTOMER DEPOSITS

v3.22.2
NOTE 3 - CUSTOMER DEPOSITS
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 3 - CUSTOMER DEPOSITS

NOTE 3 – CUSTOMER DEPOSITS

 

The customers deposit account relates to payments received from customers before product has been shipped. When the product is shipped the Company recognizes the associated revenue by reclassifying the customer deposit to the appropriate revenue account. By contrast, the Contract Liabilities account (see Note 4) relates to long-term contracts where revenue is recognized over the term of the contract. For the periods ended June 30, 2022 and December 31, 2021, the balance due under customer deposits was $231,419 and $170,870, respectively.


NOTE 4 - CONTRACT ASSETS AND LIABILITIES

v3.22.2
NOTE 4 - CONTRACT ASSETS AND LIABILITIES
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 4 - CONTRACT ASSETS AND LIABILITIES

NOTE 4 – 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. During the quarter the Company's sole ongoing long-term contract was cancelled by the customer. In response to the cancellation, the Company wrote-off the contact asset and reclassified the associated net contract liability as a customer deposit, allowing the customer to apply the net deposit to future projects.

 

The table below reconciles the net excess billings to the amounts included in the balance sheets at those dates:

 

 

June 30,

 

December 31,

2022

 

2021

Contract assets

$

 -

 

 

 13,221 

Contract liabilities

$

 -

 

 

 (75,000)

Net amount of contract liabilities in excess of contract assets

$

 -

 

 

 (61,779)


NOTE 5 - OPERATING LEASE

v3.22.2
NOTE 5 - OPERATING LEASE
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 5 - OPERATING LEASE

NOTE 5 – OPERATING LEASE

 

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.  

 

During the quarter ended June 30, 2022, cash paid for amounts included in the measurement of operating lease liabilities was $66,978 and the Company recorded operating lease expenses included in operating expenses of $25,267 and cost of sales of $49,214, for a total of $74,581.

 

Future minimum payments for monthly base rent due under the initial lease term are currently estimated to be as follows:

 

Years ending December 31,

 

2022 (remaining)

$

                     66,978

2023

 

                   141,036

2024

 

                   148,074

2025

 

                   176,268

2026

 

                     88,134

Total lease payments

$

                   620,490

Less: Imputed interest

 

                   (61,798)

Total lease liability

 

                   558,692

Less: current lease liability

 

                 (112,375)

Long-term lease liability

$

                   446,317

 

 

 

Weighted average discount rate:

 

 

Operating leases

 

4.94%


NOTE 6 - RELATED PARTY TRANSACTIONS

v3.22.2
NOTE 6 - RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 6 - RELATED PARTY TRANSACTIONS

NOTE 6 - 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 June 30, 2022 and December 31, 2021, the Company owed board members and a board member’s company for such services in the amounts of $129,101 and $124,472, respectively.

 

Accrued Management Compensation

For the periods ended June 30, 2022 and December 31, 2021, the Company’s president was due $632,658 and $620,735, respectively.


NOTE 7 - NOTES PAYABLE - RELATED PARTY

v3.22.2
NOTE 7 - NOTES PAYABLE - RELATED PARTY
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 7 - NOTES PAYABLE - RELATED PARTY

NOTE 7 – NOTES PAYABLE - RELATED PARTIES

 

Convertible Notes – Related Parties

 

On June 4, 2021 the Company issued a convertible promissory note for $30,000 to its CEO. The note has an annual interest rate of 8% and is unsecured. The note calls for monthly installment payments of $1,050 commencing on July 4, 2021. The unpaid principal amount of the note and all unpaid accrued interest is due and payable on or before June 4, 2023. The note has a conversion feature, wherein, at the maturity date the lender may convert the remaining principal balance and any unpaid accrued interest into shares of the Company’s common stock. The number of shares of common stock to be issued upon such conversion shall be equal to the quotient obtained by dividing (i) the remaining unpaid principal balance and any unpaid accrued interest of this note by (ii) 90% of the average closing price of the common stock of the Company, for the five (5) trading days (between days 15 and 10 days) before the maturity date. Due to this provision, the Company considered whether the embedded conversion option qualifies for derivative accounting under ASC 815-15 “Derivatives and Hedging.” As the note isn’t convertible until maturity, no derivative liability was recognized as of June 30, 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. 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. On June 4, 2022, the Note was extended for an additional period of 3 months until September 4, 2022.  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 June 30, 2022.

 

As of June 30, 2022 and December 31, 2021 Convertible Notes – Related Party consisted of the following:

 

 

June 30,

 

December 31,

 

2022

 

2021

Convertible Note payable, related parties

 

$

 38,475 

 

 

 

43,916

Less current portion

 

 

 (20,000)

 

 

 

 (31,090)

Total

 

$

 18,475 

 

 

 

 12,826

 

Notes Payable – Related Parties

 

On January 19, 2017 the Company issued a promissory note for $15,000 to the Company’s president. 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 June 30, 2022, and December 31, 2021 Note Payable – Related Party consisted of the following:

 

 

June 30,

 

December 31,

 

2022

 

2021

Note payable, related party, current portion

 

$

15,000

 

 

$

15,000

Total

 

$

15,000

 

 

$

15,000


NOTE 8 - DEBT

v3.22.2
NOTE 8 - DEBT
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 8 - DEBT

NOTE 8 – 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 November 21, 2022 (i.e., thirty (30) months from the Note date), the company shall make principal and interest payments in the amount of $970 every month, with any unpaid principal and accrued interest due and payable on April 21, 2050. 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 June 30, 2022 and December 31, 2021 Debt consisted of the following:

 

 

June 30,

 

December 31,

2022

 

2021

Loan payable – SBA EIDL

$

198,674

 

$

198,674

Less current portion

 

-

 

 

-

Total

$

198,674

 

$

198,674


NOTE 9 - STOCK OPTIONS

v3.22.2
NOTE 9 - STOCK OPTIONS
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 9 - STOCK OPTIONS

NOTE 9 - STOCK OPTIONS

 

During the six months ended June 30, 2022 and 2021, the Company granted 150,000 and 400,000 options for services, respectively. During the six months ended June 30, 2022 and 2021, the Company recognized expense of $10,541 and $13,874, respectively, for options that vested during the periods pursuant to ASC Topic 718. As of June 30, 2022 total remaining amount of compensation expense to be recognized in future periods is $17,592.

 

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. The 2011 Plan expired on August 2, 2021 and no further options may be issued under the 2011 Plan. As of June 30, 2022 there are 75,000 options issued under the 2011 Plan, all of which will expired, if not exercised, on August 3, 2022.

 

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 June 30, 2022 there are 1,915,556 options currently issued, and 334,444 options available for issuance 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 June 30, 2022, the Company has a total of 1,450,000 options issued, and 3,550,000 options available for issuance under the 2017 Plan.

 

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

 

NOTE 9 - STOCK OPTIONS (Continued)

 

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:

 

June 30, 2022

 

June 30, 2021

Expected volatility

207%

 

201 %

Expected dividends

0%

 

0 %

Expected term

7 Years

 

7 Years

Risk-free interest rate

2.95%

 

1.2 %

 

A summary of the status of the options granted at June 30, 2022 and December 31, 2021 and changes during the periods then ended is presented below:  

 

 

June 30,

 

December 31,

 

2022

 

2021

 

 

 

 

Weighted-Average

 

 

 

 

Weighted-Average

 

Shares

 

 

Exercise Price

 

Shares

 

 

Exercise Price

Outstanding at beginning of year

3,290,556

 

$

0.19

 

2,890,556

 

$

0.20

Granted

150,000

 

 

0.05

 

400,000

 

 

0.11

Exercised

-

 

 

-

 

-

 

 

-

Expired or cancelled

-

 

 

-

 

-

 

 

-

Outstanding at end of period

3,440,556

 

 

0.18

 

3,290,556

 

 

0.19

Exercisable

3,265,556

 

$

0.18

 

3,065,556

 

$

0.19

 

A summary of the status of the options outstanding at June 30, 2022 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

 

 

 

 

 

 

 

 

 

$0.01-0.99

 

3,440,556

 

2.65 years

 

3,265,556

 

0.18


NOTE 10 SUBSEQUENT EVENT

v3.22.2
NOTE 10 SUBSEQUENT EVENT
6 Months Ended
Jun. 30, 2022
Notes  
NOTE 10 SUBSEQUENT EVENT

NOTE 10 -  SUBSEQUENT EVENTS

 

The Company has evaluated all subsequent events through the date these financial statements were issued.


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)
6 Months Ended
Jun. 30, 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)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)
6 Months Ended
Jun. 30, 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.

 

 

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Performance Obligations

 

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

 

Performance Obligations Satisfied Over Time

 

Revenues for Omnitek’s long-term contracts that satisfy the criteria for over time recognition (formerly known as percentage-of-completion method) is recognized as the work progresses. The majority of the revenue is derived from long-term engine development agreements that typically span between 12 to 24 months. Omnitek’s long-term contracts will continue to be recognized over time because our typical contract is for a customized asset with no alternative use and generally the Company has a right to payment for work completed to date. Under the new revenue standard, the cost-to-cost measure of progress continues to best depict the transfer of control of assets to the customer, which occurs as the Company incurs costs. Contract costs include labor and material. Revenue from products and services transferred to customers over time accounted for 0% and 0% of revenue for the periods ended June 30, 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 June 30, 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. 

 

 

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Disaggregation of Revenue

 

The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended June 30, 2022 and June 30, 2021:

 

 

 

 

For the three months ended

June 30, 2022

 

 

For the three months ended

June 30, 2021

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

 91,324

-

 91,324

 

$

 101,088

-

 101,088

International

 

 

 133,114

-

 133,114

 

 

 127,220

-

 127,220

 

$

 224,438

-

 224,438

 

$

 228,307

-

 228,307

 

 

 

 

 

 

 

 

 

 

 

Filters

 

$

 78,646

-

 78,646

 

$

 106,051

-

 106,051

Components

 

 

 145,792

-

 145,792

 

 

 122,257

-

 122,257

Engineering Services

 

 

 -

-

 -

 

 

 -

-

 -

 

$

 224,438

-

 224,438

 

$

 228,307

-

 228,307

 

The following table presents Omnitek’s revenues disaggregated by region and product type for the six months ended June 30, 2022 and June 30, 2021:

 

 

 

 

For the six months ended

June 30, 2022

 

 

For the six months ended

June 30, 2021

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

 206,693

-

 206,693

 

$

 233,869

-

 233,869

International

 

 

 276,596

-

 276,596

 

 

 212,551

-

 212,551

 

$

 483,289

-

 483,289

 

$

 446,420

-

 446,420

 

 

 

 

 

 

 

 

 

 

 

Filters

 

$

 226,164

-

 226,164

 

$

 210,407

-

 210,407

Components

 

 

 257,125

-

 257,125

 

 

 227,543

-

 227,543

Engineering Services

 

 

 -

-

 -

 

 

 8,470

-

 8,470

 

$

 483,289

-

 483,289

 

$

 446,420

-

 446,420


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

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Policies)
6 Months Ended
Jun. 30, 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:

 

 

June 30,

 

December 31,

Location : Vista, CA

2022

 

2021

Raw materials

$

 831,746 

 

$

846,499

Finished goods

 

 746,300 

 

 

802,280

Allowance for obsolete inventory

 

 (931,753)

 

 

(931,735)

Total

$

 646,293 

 

$

717,044

 

 

 

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

The Company has established an allowance for obsolete inventory.  Expense for obsolete inventory was $0 and $88,956, for the periods ended June 30, 2022 and June 30, 2021, respectively.


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

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies)
6 Months Ended
Jun. 30, 2022
Policies  
Property and Equipment

Property and Equipment

 

Property and equipment at June 30, 2022 and December 31, 2021 consisted of the following:

 

 

June 30,

 

December 31,

2022

 

2021

Production equipment

$

 68,456 

 

$

 68,456 

Leasehold Improvements

 

 10,627 

 

 

 10,627 

Less: accumulated depreciation

 

 (66,214)

 

 

 (64,710)

Total

$

 12,869 

 

$

 14,373 

 

Depreciation expense for the periods ended June 30, 2022 and June 30, 2021 was $1,504 and $271, respectively.


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Policies)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Policies)
6 Months Ended
Jun. 30, 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 3,374,726 and 3,023,889 stock options that would have been included in the fully diluted earnings per share as of June 30, 2022 and June 30, 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)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)
6 Months Ended
Jun. 30, 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 June 30, 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: Liquidity and Going Concern (Policies)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Policies)
6 Months Ended
Jun. 30, 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 June 30, 2022, the Company had an accumulated deficit of $21,584,122 and total stockholders’ deficit of $(930,479).  At June 30, 2022, the Company had current assets of $683,791 including cash of $6,530, and current liabilities of $1,510,860, resulting in negative working capital of $(827,069). For the six months ended June 30, 2022, the Company reported a net loss of $135,890 and net cash used in operating activities of $47,703. 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 significant doubt upon the Company’s ability to continue as a going concern for 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)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies)
6 Months Ended
Jun. 30, 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)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Schedule of Disaggregation of Revenue

The following table presents Omnitek’s revenues disaggregated by region and product type for the three months ended June 30, 2022 and June 30, 2021:

 

 

 

 

For the three months ended

June 30, 2022

 

 

For the three months ended

June 30, 2021

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

 91,324

-

 91,324

 

$

 101,088

-

 101,088

International

 

 

 133,114

-

 133,114

 

 

 127,220

-

 127,220

 

$

 224,438

-

 224,438

 

$

 228,307

-

 228,307

 

 

 

 

 

 

 

 

 

 

 

Filters

 

$

 78,646

-

 78,646

 

$

 106,051

-

 106,051

Components

 

 

 145,792

-

 145,792

 

 

 122,257

-

 122,257

Engineering Services

 

 

 -

-

 -

 

 

 -

-

 -

 

$

 224,438

-

 224,438

 

$

 228,307

-

 228,307

 

The following table presents Omnitek’s revenues disaggregated by region and product type for the six months ended June 30, 2022 and June 30, 2021:

 

 

 

 

For the six months ended

June 30, 2022

 

 

For the six months ended

June 30, 2021

 

 

 

Consumer

Long-term

 

 

 

Consumer

Long-term

 

Segments

 

 

Products

Contract

Total

 

 

Products

Contract

Total

Domestic

 

$

 206,693

-

 206,693

 

$

 233,869

-

 233,869

International

 

 

 276,596

-

 276,596

 

 

 212,551

-

 212,551

 

$

 483,289

-

 483,289

 

$

 446,420

-

 446,420

 

 

 

 

 

 

 

 

 

 

 

Filters

 

$

 226,164

-

 226,164

 

$

 210,407

-

 210,407

Components

 

 

 257,125

-

 257,125

 

 

 227,543

-

 227,543

Engineering Services

 

 

 -

-

 -

 

 

 8,470

-

 8,470

 

$

 483,289

-

 483,289

 

$

 446,420

-

 446,420


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Tables)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Schedule Of Inventory Current

 

 

June 30,

 

December 31,

Location : Vista, CA

2022

 

2021

Raw materials

$

 831,746 

 

$

846,499

Finished goods

 

 746,300 

 

 

802,280

Allowance for obsolete inventory

 

 (931,753)

 

 

(931,735)

Total

$

 646,293 

 

$

717,044


NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Tables)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Property Plant And Equipment

 

 

June 30,

 

December 31,

2022

 

2021

Production equipment

$

 68,456 

 

$

 68,456 

Leasehold Improvements

 

 10,627 

 

 

 10,627 

Less: accumulated depreciation

 

 (66,214)

 

 

 (64,710)

Total

$

 12,869 

 

$

 14,373 


NOTE 4 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables)

v3.22.2
NOTE 4 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Long-Term Contract or Program Disclosure

 

 

June 30,

 

December 31,

2022

 

2021

Contract assets

$

 -

 

 

 13,221 

Contract liabilities

$

 -

 

 

 (75,000)

Net amount of contract liabilities in excess of contract assets

$

 -

 

 

 (61,779)


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

v3.22.2
NOTE 5 - OPERATING LEASE: Schedule of Maturities of Operating Lease Liabilities (Tables)
6 Months Ended
Jun. 30, 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:

 

Years ending December 31,

 

2022 (remaining)

$

                     66,978

2023

 

                   141,036

2024

 

                   148,074

2025

 

                   176,268

2026

 

                     88,134

Total lease payments

$

                   620,490

Less: Imputed interest

 

                   (61,798)

Total lease liability

 

                   558,692

Less: current lease liability

 

                 (112,375)

Long-term lease liability

$

                   446,317

 

 

 

Weighted average discount rate:

 

 

Operating leases

 

4.94%


NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables)

v3.22.2
NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Schedule of Convertible Notes - Related Parties

As of June 30, 2022 and December 31, 2021 Convertible Notes – Related Party consisted of the following:

 

 

June 30,

 

December 31,

 

2022

 

2021

Convertible Note payable, related parties

 

$

 38,475 

 

 

 

43,916

Less current portion

 

 

 (20,000)

 

 

 

 (31,090)

Total

 

$

 18,475 

 

 

 

 12,826


NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables)

v3.22.2
NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Schedule Of Notes Payable Related Party table

As of June 30, 2022, and December 31, 2021 Note Payable – Related Party consisted of the following:

 

 

June 30,

 

December 31,

 

2022

 

2021

Note payable, related party, current portion

 

$

15,000

 

 

$

15,000

Total

 

$

15,000

 

 

$

15,000


NOTE 8 - DEBT: Schedule of Debt (Tables)

v3.22.2
NOTE 8 - DEBT: Schedule of Debt (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Schedule of Debt

As of June 30, 2022 and December 31, 2021 Debt consisted of the following:

 

 

June 30,

 

December 31,

2022

 

2021

Loan payable – SBA EIDL

$

198,674

 

$

198,674

Less current portion

 

-

 

 

-

Total

$

198,674

 

$

198,674


NOTE 9 - STOCK OPTIONS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)

v3.22.2
NOTE 9 - STOCK OPTIONS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

 

June 30, 2022

 

June 30, 2021

Expected volatility

207%

 

201 %

Expected dividends

0%

 

0 %

Expected term

7 Years

 

7 Years

Risk-free interest rate

2.95%

 

1.2 %


NOTE 9 - STOCK OPTIONS: Share-based Payment Arrangement, Option, Activity (Tables)

v3.22.2
NOTE 9 - STOCK OPTIONS: Share-based Payment Arrangement, Option, Activity (Tables)
6 Months Ended
Jun. 30, 2022
Tables/Schedules  
Share-based Payment Arrangement, Option, Activity

 

 

June 30,

 

December 31,

 

2022

 

2021

 

 

 

 

Weighted-Average

 

 

 

 

Weighted-Average

 

Shares

 

 

Exercise Price

 

Shares

 

 

Exercise Price

Outstanding at beginning of year

3,290,556

 

$

0.19

 

2,890,556

 

$

0.20

Granted

150,000

 

 

0.05

 

400,000

 

 

0.11

Exercised

-

 

 

-

 

-

 

 

-

Expired or cancelled

-

 

 

-

 

-

 

 

-

Outstanding at end of period

3,440,556

 

 

0.18

 

3,290,556

 

 

0.19

Exercisable

3,265,556

 

$

0.18

 

3,065,556

 

$

0.19


NOTE 9 - STOCK OPTIONS: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables)

v3.22.2
NOTE 9 - STOCK OPTIONS: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables)
6 Months Ended
Jun. 30, 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 outstanding at June 30, 2022 is presented below:

 

Range of Exercise Prices

 

Number Outstanding

 

Weighted-Average Remaining Contractual Life

 

Number Exercisable

 

Weighted-Average Exercise Price

 

 

 

 

 

 

 

 

 

$0.01-0.99

 

3,440,556

 

2.65 years

 

3,265,556

 

0.18


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

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Details)
3 Months Ended
Jun. 30, 2022
Jun. 30, 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)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Geographic Distribution, Domestic        
Products $ 91,324 $ 101,088 $ 206,693 $ 233,869
Contract 0 0 0 0
Revenues 91,324 101,088 206,693 233,869
Geographic Distribution, Foreign        
Products 133,114 127,220 276,596 212,551
Contract 0 0 0 0
Revenues 133,114 127,220 276,596 212,551
Filters        
Products 78,646 106,051 226,164 210,407
Contract 0 0 0 0
Revenues 78,646 106,051 226,164 210,407
Components        
Products 145,792 122,257 257,125 227,543
Contract 0 0 0 0
Revenues 145,792 122,257 257,125 227,543
Engineering Services        
Products 0 0 0 8,470
Contract 0 0 0 0
Revenues 0 0 0 8,470
Products 224,438 228,307 483,289 446,420
Contract 0 0 0 0
Revenues $ 224,438 $ 228,307 $ 483,289 $ 446,420

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Details)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Details    
Raw materials $ 831,746 $ 846,499
Finished goods 746,300 802,280
Allowance for obsolete inventory (931,753) (931,735)
Total $ 646,293 $ 717,044

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

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Details) - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Details    
Inventory Write-down $ 0 $ 88,956

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Details)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Details) - USD ($)
Jun. 30, 2022
Dec. 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 12,869 14,373
Less: accumulated depreciation $ (66,214) $ (64,710)

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details) - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Details    
Depreciation $ 1,504 $ 271

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Details)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Details) - shares
3 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Details    
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 3,374,726 3,023,889

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Details)

v3.22.2
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Details) - USD ($)
3 Months Ended 6 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Mar. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Details                
Accumulated deficit $ 21,584,122       $ 21,584,122   $ 21,448,232  
Total Stockholders' Deficit (930,479) $ (877,638) $ (949,835) $ (863,245) (930,479) $ (949,835) (807,692) $ (874,133)
Total Current Assets 683,791       683,791   803,724  
Cash 6,530       6,530   59,674  
Total Current Liabilities 1,510,860       1,510,860   $ 1,516,537  
Working Capital (827,069)       (827,069)      
Net loss $ 63,382 $ 72,508 $ 89,181 $ 395 135,890 89,576    
Net Cash Used in Operating Activities         $ 47,703 $ 189,751    

NOTE 3 - CUSTOMER DEPOSITS (Details)

v3.22.2
NOTE 3 - CUSTOMER DEPOSITS (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Details    
Customer deposits $ 231,419 $ 170,870

NOTE 4 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details)

v3.22.2
NOTE 4 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Details    
Contract assets $ 0 $ 13,221
Contract liabilities 0 (75,000)
Net amount of contract liabilities in excess of contract assets $ 0 $ (61,779)

NOTE 5 - OPERATING LEASE (Details)

v3.22.2
NOTE 5 - OPERATING LEASE (Details)
6 Months Ended
Jun. 30, 2022
USD ($)
Details  
Monthly Base Rent $ 9,988
Monthly Operating Expense $ 1,175

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

v3.22.2
NOTE 5 - OPERATING LEASE: Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Details    
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year $ 66,978  
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 620,490  
Operating Lease, Imputed interest (61,798)  
Operating Lease, Liability 558,692  
Operating lease liabilities - current (112,375) $ (106,149)
Operating lease liabilities - long-term $ 446,317 $ 504,963
Operating Lease, Weighted Average Discount Rate, Percent 4.94%  

NOTE 6 - RELATED PARTY TRANSACTIONS (Details)

v3.22.2
NOTE 6 - RELATED PARTY TRANSACTIONS (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Details    
Accounts payable - related parties $ 129,101 $ 124,472
Accrued management compensation $ 632,658 $ 620,735

NOTE 7 - NOTES PAYABLE - RELATED PARTY (Details)

v3.22.2
NOTE 7 - NOTES PAYABLE - RELATED PARTY (Details) - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2022
Dec. 31, 2021
Convertible Note payable, related parties $ 38,475 $ 38,475 $ 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 7 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details)

v3.22.2
NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Details    
Convertible Note payable, related parties $ 38,475 $ 43,916
Convertible notes payable - related party (20,000) (31,090)
Convertible notes payable - related party, net of current portion $ 18,475 $ 12,826

NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details)

v3.22.2
NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details) - USD ($)
Jun. 30, 2022
Dec. 31, 2021
Details    
Notes payable - related parties, current portion $ 15,000 $ 15,000
Notes Payable, Related Parties $ 15,000 $ 15,000

NOTE 8 - DEBT (Details)

v3.22.2
NOTE 8 - DEBT (Details) - USD ($)
6 Months Ended 26 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Proceeds from loans payable - SBA $ 0 $ 100,000  
SBA EIDL Loan      
Proceeds from loans payable - SBA     $ 199,000
Debt Instrument, Interest Rate, Effective Percentage 3.75%   3.75%
Interest Expense, Debt     $ 970
Debt Instrument, Maturity Date     Apr. 21, 2050

NOTE 8 - DEBT: Schedule of Debt (Details)

v3.22.2
NOTE 8 - DEBT: Schedule of Debt (Details) - USD ($)
Jun. 30, 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 9 - STOCK OPTIONS (Details)

v3.22.2
NOTE 9 - STOCK OPTIONS (Details) - USD ($)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Oct. 01, 2017
Aug. 03, 2011
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 150,000 400,000        
Stock or Unit Option Plan Expense $ 10,541 $ 13,874        
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount $ 17,592          
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 3,440,556   3,290,556 2,890,556    
Employee Stock Option            
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 150,000 400,000        
Employee Stock Option | 2011 Long Term Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized           1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 75,000          
Employee Stock Option | 2015 Long Term Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized 2,500,000          
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 1,915,556          
Employee Stock Option | 2017 Long Term Incentive Plan            
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized         5,000,000  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 1,450,000          

NOTE 9 - STOCK OPTIONS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)

v3.22.2
NOTE 9 - STOCK OPTIONS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Details    
Expected volatility 207.00% 201.00%
Expected dividends 0.00% 0.00%
Expected term 7 years 7 years
Risk-free interest rate 2.95% 1.20%

NOTE 9 - STOCK OPTIONS: Share-based Payment Arrangement, Option, Activity (Details)

v3.22.2
NOTE 9 - STOCK OPTIONS: Share-based Payment Arrangement, Option, Activity (Details) - $ / shares
6 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Details        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 3,440,556   3,290,556 2,890,556
Outstanding, Weighted Average Exercise Price $ 0.18   $ 0.19 $ 0.20
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures 150,000 400,000    
Granted, Weighted Average Exercise Price $ 0.05 $ 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 3,440,556      
Exercisable 3,265,556 3,065,556    
Exercisable, Weighted Average Exercise Price $ 0.18 $ 0.19    

NOTE 9 - STOCK OPTIONS: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details)

v3.22.2
NOTE 9 - STOCK OPTIONS: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details)
6 Months Ended
Jun. 30, 2022
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares 3,440,556
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term 2 years 7 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | shares 3,265,556
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price $ 0.18
Minimum  
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit 0.01
Maximum  
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit $ 0.99

Element Counts

Number of Extension Elements: 194
Number of Contexts: 87
Number of Segments: 21
Number of Units: 4

Content Summary

Documents

000010 - Document - Document and Entity Information

Statements

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

Notes to Financials (level 1)

000070 - Disclosure - NOTE 1 - CONDENSED FINANCIAL STATEMENTS

000080 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

000090 - Disclosure - NOTE 3 - CUSTOMER DEPOSITS

000100 - Disclosure - NOTE 4 - CONTRACT ASSETS AND LIABILITIES

000110 - Disclosure - NOTE 5 - OPERATING LEASE

000120 - Disclosure - NOTE 6 - RELATED PARTY TRANSACTIONS

000130 - Disclosure - NOTE 7 - NOTES PAYABLE - RELATED PARTY

000140 - Disclosure - NOTE 8 - DEBT

000150 - Disclosure - NOTE 9 - STOCK OPTIONS

000160 - Disclosure - NOTE 10 SUBSEQUENT EVENT

Policies (level 2)

000170 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Use of Estimates (Policies)

000180 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Policies)

000190 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Policies)

000200 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Policies)

000210 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Policies)

000220 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Income Taxes (Policies)

000230 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Policies)

000240 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Recent Accounting Pronouncements (Policies)

Tables/Schedules (level 3)

000250 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Tables)

000260 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Tables)

000270 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Tables)

000280 - Disclosure - NOTE 4 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Tables)

000290 - Disclosure - NOTE 5 - OPERATING LEASE: Schedule of Maturities of Operating Lease Liabilities (Tables)

000300 - Disclosure - NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Tables)

000310 - Disclosure - NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Tables)

000320 - Disclosure - NOTE 8 - DEBT: Schedule of Debt (Tables)

000330 - Disclosure - NOTE 9 - STOCK OPTIONS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)

000340 - Disclosure - NOTE 9 - STOCK OPTIONS: Share-based Payment Arrangement, Option, Activity (Tables)

000350 - Disclosure - NOTE 9 - STOCK OPTIONS: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Tables)

Details (level 4)

000360 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition (Details)

000370 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Revenue Recognition: Schedule of Disaggregation of Revenue (Details)

000380 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory: Schedule Of Inventory Current (Details)

000390 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: e. Inventory (Details)

000400 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment: Property Plant And Equipment (Details)

000410 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Property and Equipment (Details)

000420 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Basic and Diluted Loss per Share (Details)

000430 - Disclosure - NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES: Liquidity and Going Concern (Details)

000440 - Disclosure - NOTE 3 - CUSTOMER DEPOSITS (Details)

000450 - Disclosure - NOTE 4 - CONTRACT ASSETS AND LIABILITIES: Long-Term Contract or Program Disclosure (Details)

000460 - Disclosure - NOTE 5 - OPERATING LEASE (Details)

000470 - Disclosure - NOTE 5 - OPERATING LEASE: Schedule of Maturities of Operating Lease Liabilities (Details)

000480 - Disclosure - NOTE 6 - RELATED PARTY TRANSACTIONS (Details)

000490 - Disclosure - NOTE 7 - NOTES PAYABLE - RELATED PARTY (Details)

000500 - Disclosure - NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule of Convertible Notes - Related Parties (Details)

000510 - Disclosure - NOTE 7 - NOTES PAYABLE - RELATED PARTY: Schedule Of Notes Payable Related Party table (Details)

000520 - Disclosure - NOTE 8 - DEBT (Details)

000530 - Disclosure - NOTE 8 - DEBT: Schedule of Debt (Details)

000540 - Disclosure - NOTE 9 - STOCK OPTIONS (Details)

000550 - Disclosure - NOTE 9 - STOCK OPTIONS: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details)

000560 - Disclosure - NOTE 9 - STOCK OPTIONS: Share-based Payment Arrangement, Option, Activity (Details)

000570 - Disclosure - NOTE 9 - STOCK OPTIONS: Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable (Details)


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