August 6, 2018 - 8:00 AM EDT
Print Email Article Font Down Font Up Charts

Omnitek Engineering Reports Second Quarter and Six-Month Results

Revenues Up Sharply for Quarter and Six Months

VISTA, Calif., Aug. 06, 2018 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB: OMTK) today reported results for its second quarter and six months ended June 30, 2018 – reflecting increased sales and a sharply reduced net loss for both periods.

Net revenues for the second quarter climbed 50 percent to $369,555 from $246,314 a year earlier. For the same period, net loss decreased to $76,543, or $0.00 per share, from a net loss of $191,589, or $0.01 per share, a year earlier.

Net loss for the quarter included a non-cash inventory reserve adjustment of $25,000 for slow-moving inventory. Results for the quarter were also impacted by non-cash expenses, including the value of options and warrants granted in the amount of $5,215 and depreciation and amortization of $1,745. For the three-month period a year earlier, non-cash expenses included the value of options and warrants granted of $25,200 and depreciation and amortization of $6,224.

Net revenues for the six-month period increased 36 percent to $729,085 from $537,968 a year ago. For the same period, net loss decreased to $174,633, or $0.01 per share, from a net loss of $400,630, or $0.02 per share, a year earlier.

Net loss for the six-month period included a non-cash inventory reserve adjustment $50,000 for slow-moving inventory. Results for the six months were also impacted by non-cash expenses, including the value of options and warrants granted in the amount of $27,186 and depreciation and amortization of $5,726. For the six-month period a year earlier, non-cash expenses included the value of options and warrants granted of $94,733 and depreciation and amortization of $12,448.

Gross margin as a percentage of revenues was 46 percent for the quarter ended June 30, 2018 compared with 42 percent a year earlier, reflecting product mix. Gross margin as a percentage of revenues for the six months ended June 30, 2018 was 44 percent compared with 45 percent a year earlier.

“Results for the quarter reflect continued momentum for engine conversions and the benefit of increasing demand for company’s proprietary natural gas filters. Higher oil prices, air pollution regulations and the price disparity between diesel and natural gas in foreign markets remain important catalysts for our business; and, we continue to expect a transformative year for the company as sales gain further momentum, particularly in China, Turkey and India,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.

Funk noted the level of inquires and quote activity from other potential international customers continues to be encouraging, with expectations for continued momentum in the second half. 

At June 30, 2018, current liabilities totaled $1,162,637 and current assets totaled $1,543,343, resulting in positive working capital of $380,706 and a current ratio of 1.33 to 1.

About Omnitek Engineering Corp.

Omnitek Engineering Corp. develops and sells proprietary diesel-to-natural gas conversion systems and complementary products, including new natural gas engines that utilize the company’s technology -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable.

Some of the statements contained in this news release discuss future expectations, contain projections of results of operations or financial condition or state other "forward-looking" information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements, completion of R&D and successful commercialization of products/services, patent completion, prosecution and defense against well-capitalized competitors. These are serious risks and there is no assurance that our forward-looking statements will occur or prove to be accurate. Words such as "anticipates," "expects," "intends," "plans," "believes," "seeks," "estimates," and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

(Financial Tables Follow)

OMNITEK ENGINEERING CORP.
Condensed Statements of Operations (unaudited)
       
    For the Three For the Three For the Six For the Six
    Months Ended Months Ended Months Ended Months Ended
    June 30 June 30 June 30 June 30
    2018 2017 2018 2017
           
REVENUES $369,555  $246,314  $729,085  $537,968 
COST OF GOODS SOLD  200,488   145,794   404,980   298,407 
GROSS MARGIN  169,067   100,520   324,105   239,561 
               
OPERATING EXPENSES            
               
 General and administrative  213,776   249,017   434,306   549,139 
 Research and development  25,767   33,805   52,569   73,689 
 Depreciation and amortization  1,745   6,224   5,726   12,448 
               
  Total Operating Expenses  241,288   289,046   492,601   635,276 
               
LOSS FROM OPERATIONS  (72,221)  (188,526)  (168,496)  (395,715)
               
OTHER INCOME (EXPENSE)            
              
 Other income  -   -   950   - 
 Interest expense  (3,522)  (2,263)  (6,287)  (4,115)
               
  Total Other Income (Expense)  (3,522)  (2,263)  (5,337)  (4,115)
               
LOSS BEFORE INCOME TAXES  (75,743)  (190,789)  (173,833)  (399,830)
INCOME TAX EXPENSE  800   800   800   800 
               
NET LOSS $(76,543) $(191,589) $(174,633) $(400,630)
               
BASIC AND DILUTED LOSS PER SHARE $(0.00) $(0.01) $(0.01) $(0.02)
               
WEIGHTED AVERAGE NUMBER            
  OF COMMON SHARES OUTSTANDING BASIC AND DILUTED 20,281,082   20,281,082   20,281,082   20,281,082 
               
               


OMNITEK ENGINEERING CORP.
 Condensed Balance Sheet 
ASSETS
 
   June 30, December 31,
   2018 2017
   (unaudited)  
CURRENT ASSETS      
 Cash$41,182  $23,279 
 Accounts receivable, net 30,722   7,984 
 Accounts receivable - related parties 5,771   3,440 
 Inventory, net 1,443,217   1,554,656 
 Deposits 22,451   17,385 
        
  Total Current Assets 1,543,343   1,606,744 
FIXED ASSETS, net 4,240   7,253 
        
OTHER ASSETS       
 Other noncurrent assets 14,280   14,280 
        
  Total Other Assets 14,280   14,280 
        
  TOTAL ASSETS$1,561,863  $1,628,277 
        
LIABILITIES AND STOCKHOLDERS' EQUITY  
CURRENT LIABILITIES      
 Accounts payable and accrued expenses$350,255  $358,032 
 Accrued management compensation 465,738   406,841 
 Accounts payable - related parties 134,617   114,321 
 Billings in excess of costs and estimated earnings -   30,000 
 Notes payable – related parties 15,000   15,000 
 Convertible notes payable – related parties 15,000   15,000 
 Convertible notes payable, current portion 30,000   - 
 Customer deposits 152,027   212,410 
        
  Total Current Liabilities 1,162,637   1,151,604 
       
LONG-TERM LIABILITIES      
 Convertible notes payable$70,000  $- 
        
  Total Long-term liabilities 70,000   - 
        
  TOTAL LIABILITIES 1,232,637   1,151,604 
        
 STOCKHOLDERS' EQUITY     
 Common stock, 125,000,000 shares authorized no par value     
   20,281,082 shares issued and outstanding 8,411,411   8,411,411 
 Additional paid-in capital 11,879,549   11,852,363 
 Accumulated deficit (19,961,734)  (19,787,101)
        
  Total Stockholders' Equity 329,226   476,673 
        
  TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$1,561,863  $1,628,277 
        
CONTACT:

Gary S. Maier
Maier & Company, Inc.
(310) 471-1288

Source: GlobeNewswire (August 6, 2018 - 8:00 AM EDT)

News by QuoteMedia
www.quotemedia.com

Legal Notice