Company: OMTK
Filing Date: 2025-04-16
Form Type: 10-K/A
Source: 0001096906-25-000528
Chunk: 61

Company: Omnitek Engineering Corp
Filing Date: 2025-04-16
Form: 10-K/A
Chunk 61
---
 values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1 – Quoted prices in active markets for identical assets or liabilities; Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are supported by little or no market activity, therefore requiring an entity to develop its own assumptions about the assumptions that market participants would use in pricing. o. Stock-based Compensation The Company recognizes compensation expense for stock-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a Black-Scholes option pricing model which requires management to make estimates for certain assumptions regarding risk-free interest rate, expected life of options, expected volatility of stock and expected dividend yield of stock. p. Concentration of Risks Customers During the year ended December 31, 2024, four customers accounted for approximately 72% of sales. During the year ended December 31, 2023, eight customers accounted for approximately 91% of sales. Suppliers During the year ended December 31, 2024, two suppliers accounted for 83% of products purchased. During the year ended December 31, 2023, four suppliers accounted for 78% of products purchased. q. Liquidity and Going Concern Historically, the Company has incurred net losses and positive cash flows from operations. As of December 31, 2024, the Company had an accumulated deficit of $ 22,027,484and total stockholders’ deficit of $ 1,347,464. At December 31, 2024, the Company had current assets of $ 881,764including cash of $ 104,445, and current liabilities of $ 2,178,041, resulting in negative working capital of $ 1,296,277. For 2024, the Company reported a net loss of $ 167,137and net cash provided by operating activities of $ 30,077. Management believes that based on its operating Page F-10 OMNITEK ENGINEERING CORP. Notes to Financial Statements December 31, 2024, and 2023 NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) plan, the projected sales for 202