Company: OMTK
Filing Date: 2025-04-16
Form Type: 10-K/A
Source: 0001096906-25-000528
Chunk: 71

Company: Omnitek Engineering Corp
Filing Date: 2025-04-16
Form: 10-K/A
Chunk 71
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 1,287 |     |              |   3,786 |
| Officer’s life ins premium |     |              |     260 |     |              |     260 |
| Depreciation               |     |              |     799 |     |              |     416 |
| Accrued compensation       |     |              |       - |     |              |       - |
| Inventory reserve          |     |              |  20,446 |     |              |  -1,170 |
| Valuation allowance        |     |              |  34,424 |     |              |  97,611 |
| Net operating of carryover |     |              | -16,812 |     |              | -48,406 |
| Income Tax Expense         |     | $            |     800 |     | $            |     800 |

On December 21, 2017, the TCJA was enacted. Among other things, the TCJA reduces the U.S. federal corporate tax rate from 35 percent to 21 percent beginning January 1, 2018, requires companies to pay a one-time transition tax on certain previously unremitted earnings on non-U.S. subsidiaries, creates new taxes on certain foreign sourced earnings and imposes additional limitations on certain deductions, including interest expense and net operating losses arising after 2017. The Company has assessed the impact of the TCJA and is not subject to the one-time

Page F-18 OMNITEK ENGINEERING CORP. Notes to Financial Statements December 31, 2024, and 2023 NOTE 13 – INCOME TAXES (continued) transition tax. The Company remeasured certain deferred tax assets and liabilities based on the rates that they are expected to reverse in the future, which is generally 21 percent under TCJA. The decrease in the Company’s net deferred tax assets was offset by a corresponding decrease in its valuation allowance. At December 31, 2024, the Company had net operating loss carry forwards of approximately $ 8,117,452through 2034. No tax benefit has been reported in the December 31, 2024, financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be