Company: OMTK
Filing Date: 2025-05-20
Form Type: 10-Q
Source: 0001096906-25-000867
Chunk: 5

Company: Omnitek Engineering Corp
Filing Date: 2025-05-20
Form: 10-Q
Item: Item 1
Chunk 5
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 customers. Those sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks and rewards transfer (i.e., the performance obligation has been satisfied). Control passes FOB shipping point.
 
Performance Obligations
 
A performance obligation is a promise in a contract to transfer a distinct good or service to a customer and is the unit of account in the new revenue standard. The contract transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. The majority of Omnitek’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct.
 
Assurance-type warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant.

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OMNITEK ENGINEERING CORP.Notes to Financial StatementsMarch 31, 2025(unaudited)

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
Assurance-type warranties are the only warranties provided by the Company and, as such, Omnitek does not recognize revenue on warranty-related work. Omnitek generally provides a one-year warranty for products that it sells. Warranty claims historically have been insignificant. 
 
Disaggregation of Revenue
 
The following table presents Omnitek’s revenues disaggregated by region and product type: