Company: OMTK
Filing Date: 2025-04-16
Form Type: 10-K/A
Source: 0001096906-25-000528
Chunk: 63

Company: Omnitek Engineering Corp
Filing Date: 2025-04-16
Form: 10-K/A
Chunk 63
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-09 and does not expect the adoption of this guidance will have a material impact on its financial statements and disclosures and the Company is in a loss position and not incurring any tax expenses. 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. For the periods ended December 31, 2024 and December 31, 2023, the balance due under customer deposits was $ 845,272and $ 310,025, respectively. NOTE 4 – CONTRACT ASSETS AND LIABILITIES Contract Balances 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. As of December 31, 2024, the company had no long-term contract liabilities. Page F-11 OMNITEK ENGINEERING CORP. Notes to Financial Statements December 31, 2024, and 2023

NOTE 5 – OPERATING LEASE

The Company’s lease consists 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 #E, 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 $ per month and monthly operating expenses during the term of the lease, subject to adjustment under the lease, are $ per month. On Commencement Date, the Company recognized a ROU asset of $ and a lease liability of $.

During the year ended December 31, 2024, cash paid for amounts included in the measurement of operating lease liabilities was $ and the Company recorded operating lease expenses included in operating expenses of $ and cost of sales of $, for a