Tue, May 20, 6:27 PM (29 days ago)
### Summary of Omnitek Engineering Corp. (OTEC) Q1 2025 Financial Performance **Company Overview:** Omnitek Engineering Corp. (OTEC) reported its Q1 2025 financial results, highlighting key performance metrics and financial health indicators. The company operates in the alternative fuels engine industry, focusing on engineering services, filters, and components. **Revenue and Profit Margins:** - **Revenue:** Q1 2025 revenue increased to $359,746, up from $237,077 in Q1 2024, marking a significant 52% increase. - **Gross Margin:** Gross margin improved to $140,968, compared to $83,719 in Q1 2024, reflecting a higher gross margin percentage of 39% versus 35% in the previous year. - **Operating Expenses:** Operating expenses rose to $151,724 from $144,952, an increase of $6,772. - **Net Loss:** The net loss for Q1 2025 was $26,660, an improvement from the $66,458 loss in Q1 2024. **Cash Flow:** - **Operating Activities:** The company experienced a negative cash flow from operations of $109,115 in Q1 2025, compared to $53,499 in Q1 2024. - **Financing Activities:** Financing activities provided $50,500 in cash flow, compared to no cash flow in Q1 2024. - **Cash Position:** Cash at the end of Q1 2025 was $45,830, down from $104,445 at the end of Q1 2024. **Earnings and Share Performance:** - **Earnings per Share:** The basic and diluted loss per share remained at $0.00 for both periods. - **Share Outstanding:** As of May 20, 2025, there were 21,948,091 shares of common stock outstanding. **Financial Health and Future Outlook:** - **Liquidity:** The company has negative working capital of $1,330,481, with current liabilities of $2,185,534 and current assets of $855,053. - **Debt:** The company has a significant accumulated deficit of $22,054,144 and a total stockholders' deficit of $1,373,779. - **Uncertainties:** Management acknowledges uncertainties regarding future profitability and cash flows, highlighting the need for additional capital to support operations and growth. **Management Discussion:** - **Revenue Growth:** The increase in revenue was driven by higher filter sales. - **Operating Expenses:** General and administrative expenses and research and development outlays remained relatively stable. - **Future Operations:** The company plans to continue its research and development efforts, expand its business, and seek additional financing to support its long-term goals. **Trends and Uncertainties:** - **Market Risks:** The company faces risks related to its financial condition, including the need for additional capital and the uncertainty of future profitability. - **Legal Proceedings:** The company is involved in a legal proceeding but believes the allegations are without merit. **Conclusion:** Omnitek Engineering Corp. showed improved revenue and gross margins in Q1 2025 but continues to face significant financial challenges, including negative cash flow and a substantial accumulated deficit. The company's future operations will depend on its ability to secure additional financing and manage its expenses effectively.