Company: OMTK
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001096906-25-000867
Chunk: 27

Company: Omnitek Engineering Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 7
Chunk 27
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 in negative working capital of $1,330,481.  

We have no firm commitments or obligations for capital expenditures.  However, substantial discretionary expenditures may be required to enable us to conduct existing and planned product research, design, development, manufacturing, marketing and distribution of our products. We may need to raise additional capital to facilitate growth and support our long-term product development, manufacturing, and marketing programs. The Company has no established bank-financing arrangements. Therefore, it is possible that we may need to seek additional financing through subsequent future public or private sales of our securities, including equity securities. We may also seek funding for the development, manufacturing, and marketing of our products through strategic partnerships and other arrangements with corporate partners. There can be no assurance, however, that such collaborative arrangements or additional funds will be available when needed, or on terms acceptable to us, if at all. If adequate funds are not available, we may be required to curtail one or more of our research and development programs.

We have historically incurred significant losses, which have resulted in a total accumulated deficit of $22,054,144 at March 31, 2025. 

Operating Activities

We realized a negative cash flow from operations of $109,115 for the three months ended March 31, 2025 compared with a negative cash flow of $53,499 during the three months ended March 31, 2024.

Included in the operating loss of $26,660 for the three months ended March 31, 2025, are non-cash expenses, which are not a drain on our capital resources.  During the period, these non-cash expenses include the value of options and warrants granted in the amount of $345 and depreciation and amortization of $964. Additionally, the operating loss included general and administrative expenses of $132,451 and research and development expenses of $18,309.

Financing Activities

We realized $50,500 cash flow from financing activities for the three months ended March 31, 2025, compared to $0.00 cash flow for the three months ended March 31, 2024. 

Off-Balance Sheet Arrangements

None. 

Critical Accounting Policies and Estimates

Accounting Method and Use of Estimates

The Company's financial statements are prepared using the accrual method of accounting. 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