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 | |||||||