Tue, Apr 15, 9:25 PM (33 days ago)
**Omnitek Engineering Corp. (OTCQB: OMTK)** **Financial Performance:** - **Revenue:** $1,019,726 (2024) vs. $1,055,314 (2023), a decrease of $35,588, or 3.4%. - **Net Income:** Loss of $167,137 (2024) vs. loss of $215,406 (2023). - **Operating Expenses:** $606,373 (2024) vs. $606,794 (2023). - **Gross Margin:** $457,873 (2024) vs. $410,654 (2023), with a margin of 45% (2024) vs. 39% (2023). - **Earnings per Share:** ($0.01) for both 2024 and 2023. **Strategic Overview:** - Omnitek develops and sells technology to convert diesel engines to alternative fuels and new alternative fuel engines. - Products include conversion kits, new natural gas engines, and related components. - Key markets: stationary applications, light commercial vehicles, buses, heavy-duty trucks, rail, and marine. - Technology applicable for CNG, LNG, RNG, H2, and LPG. **Future Outlook:** - Focus on markets where diesel is more expensive than gaseous fuels. - Expect increased demand due to the Paris Agreement on Climate Change and local regulations. - Plans to expand distribution network and enter new markets. **Risk Factors:** - Dependence on a few major customers and suppliers. - Technological obsolescence and competition. - Economic downturns and market fluctuations. - Legal and regulatory risks, including pending litigation. - Cybersecurity risks and data breaches. - Dependence on key personnel and management. **Financial Condition:** - **Current Liabilities:** $2,178,041 (2024) vs. $1,579,512 (2023). - **Current Assets:** $881,764 (2024) vs. $482,521 (2023). - **Negative Working Capital:** $1,296,277 (2024). - **Accumulated Deficit:** $22,027,484 (2024). - **Cash Flow:** Positive cash flow from operations of $30,077 (2024). **Market Position Changes:** - Trading on OTCQB under the symbol "OMTK." - Stock price volatility and limited market liquidity. - No dividends paid; future dividends subject to board discretion. **Management and Governance:** - CEO: Werner Funk. - Board: Werner Funk, Gary S. Maier, John M. Palumbo. - Audit Committee: John M. Palumbo (Chair). - Code of Ethics in place. **Key Financial Metrics:** - **Revenue:** $1,019,726 (2024). - **Net Loss:** $167,137 (2024). - **Gross Margin:** 45% (2024). - **Operating Expenses:** $606,373 (2024). - **Earnings per Share:** ($0.01) (2024). **Summary:** Omnitek Engineering Corp. faces financial challenges with consistent losses and negative working capital. The company's strategic focus on alternative fuel technologies and expansion into new markets is crucial for future growth. However, risks related to market conditions, competition, and regulatory environment pose significant threats. Management's efforts to address these challenges and improve financial performance will be critical for the company's long-term success.