Company: OMTK
Filing Date: 2025-11-18
Form Type: 10-Q
Source: 0001096906-25-001885
Chunk: 8

Company: Omnitek Engineering Corp
Filing Date: 2025-11-18
Form: 10-Q
Item: Item 8
Chunk 8
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 estimates and assumptions related to deferred income tax asset valuation allowances, inventory valuation allowances, allowance for doubtful receivables and valuations of equity-based payments.
 
Revenue Recognition 
 
In general, revenue is recognized when control of the promised goods is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled in exchange for the goods or services. In order to achieve that core principle, a five-step approach is applied: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue allocated to each performance obligation when we satisfy the performance obligation. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account for revenue recognition. 

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