Recent Completion of EURO VI 430 hp 13-Liter Engine Development Expected to Drive Growth
VISTA, Calif., Nov. 13, 2018 (GLOBE NEWSWIRE) -- Omnitek Engineering Corp. (OTCQB: OMTK) today announced results for its third quarter and nine months ended September 30, 2018 – reflecting the development of a 430 hp 13-liter heavy-duty EURO VI natural gas engine for truck and bus applications for a European customer, and its finalization subsequent to the end of the quarter.
For the three months ended September 30, 2018, the company reported a net loss of $143,305, or ($0.01) per share, compared with a net loss of $149,849, or ($0.01) per share, a year earlier. Net revenues for the quarter were $280,567 compared with $276,241 from a year earlier.
Results for the quarter were impacted by non-cash expenses, including the value of options granted in the amount of $5,272, depreciation and amortization of $1,568 and expenses relating to settlement of debt of $32,963. For the three-month period a year earlier, non-cash expenses included the value of options granted of $25,476 and depreciation and amortization of $6,147.
For the nine-month period, the company reported a net loss of $317,938, or ($0.02) per share, compared with a net loss of $550,479, or ($0.03) per share, a year earlier. Net revenues for the nine-months were $1,009,653 compared with $814,210 a year ago.
Results for the nine-month period were impacted by non-cash expenses, including the value of options granted in the amount of $32,458, depreciation and amortization of $7,294 and expenses relating to settlement of debt of $32,963. For the nine-month period a year earlier, non-cash expenses included the value of options granted of $120,209 and depreciation and amortization of $18,594.
Gross margin for the quarter ended September 30, 2018 was 39 percent compared with 43 percent a year earlier. Gross margin for the nine months was 43 percent compared with 44 percent a year earlier -- within the company’s normalized target range of 40 to 50 percent on an annual basis.
“Higher oil prices, air pollution regulations and the price disparity between diesel and natural gas in foreign markets remain important catalysts for our business, and we remain focused on ramping up sales volume -- particularly in Turkey, China, India and Europe. The recent finalized development of a 430 hp 13-Liter EURO VI natural gas engine represents a significant competitive advantage, and we anticipate significant sales for this product line to materialize in 2019. In addition, we anticipate meaningful sales to materialize after our exclusive Chinese distributor receives final government approvals to manufacture natural gas engines in its new manufacturing facility currently being built in Shandong Province, China,” said Werner Funk, president and chief executive officer of Omnitek Engineering Corp.
At September 30, 2018, current liabilities totaled $1,229,580 and current assets totaled $1,507,583, resulting in positive working capital of approximately $278,003 and a current ratio of 1.23.
About Omnitek Engineering Corp.
Omnitek Engineering Corp. develops and sells new natural gas engines, as well as proprietary diesel-to-natural gas conversion systems -- providing global customers with innovative alternative energy and emissions control solutions that are sustainable and affordable. Additional information is available at www.omnitekcorp.com.
Some of the statements contained in this news release discuss future expectations, contain projections of results of operations or financial condition or state other “forward-looking” information. These statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on various factors and is derived using numerous assumptions. Important factors that may cause actual results to differ from projections include, among many others, the ability of the Company to raise sufficient capital to meet operating requirements, completion of R&D and successful commercialization of products/services, patent completion, prosecution and defense against well-capitalized competitors. These are serious risks and there is no assurance that our forward-looking statements will occur or prove to be accurate. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Unless required by law, the Company undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
(Financial Tables Follow)
| OMNITEK ENGINEERING CORP. | ||||||||||||||||||
| Condensed Statements of Operations (unaudited) | ||||||||||||||||||
| For the Three | For the Three | For the Nine | For the Nine | |||||||||||||||
| Months Ended | Months Ended | Months Ended | Months Ended | |||||||||||||||
| September 30 | September 30 | September 30 | September 30 | |||||||||||||||
| 2018 | 2017 | 2018 | 2017 | |||||||||||||||
| REVENUES | $ | 280,567 | $ | 276,241 | $ | 1,009,653 | $ | 814,210 | ||||||||||
| COST OF GOODS SOLD | 170,108 | 158,358 | 575,088 | 456,765 | ||||||||||||||
| GROSS MARGIN | 110,459 | 117,883 | 434,565 | 357,445 | ||||||||||||||
| OPERATING EXPENSES | ||||||||||||||||||
| General and administrative | 184,374 | 240,477 | 618,680 | 789,618 | ||||||||||||||
| Research and development expense | 29,315 | 18,978 | 81,885 | 92,667 | ||||||||||||||
| Depreciation and amortization expense | 1,568 | 6,147 | 7,294 | 18,594 | ||||||||||||||
| Total Operating Expenses | 215,257 | 265,602 | 707,859 | 900,879 | ||||||||||||||
| LOSS FROM OPERATIONS | (104,798 | ) | (147,719 | ) | (273,294 | ) | (543,434 | ) | ||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||||
| Other income | - | - | 950 | - | ||||||||||||||
| Loss on settlement of debt | (32,963 | ) | - | (32,963 | ) | - | ||||||||||||
| Interest expense | (5,544 | ) | (2,130 | ) | (11,831 | ) | (6,245 | ) | ||||||||||
| Total Other Income (Expense) | (38,507 | ) | (2,130 | ) | (43,844 | ) | (6,245 | ) | ||||||||||
| LOSS BEFORE INCOME TAXES | (143,305 | ) | (149,849 | ) | (317,138 | ) | (549,679 | ) | ||||||||||
| INCOME TAX EXPENSE | - | - | 800 | 800 | ||||||||||||||
| NET LOSS | $ | (143,305 | ) | $ | (149,849 | ) | $ | (317,938 | ) | $ | (550,479 | ) | ||||||
| BASIC AND DILUTED LOSS PER SHARE | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||||
| WEIGHTED AVERAGE NUMBER | ||||||||||||||||||
| OF COMMON SHARES OUTSTANDING BASIC AND DILUTED | 20,411,316 | 20,281,082 | 20,324,970 | 20,281,082 | ||||||||||||||
| OMNITEK ENGINEERING CORP. | |||||||||
| Condensed Balance Sheet | |||||||||
| ASSETS | |||||||||
| September 30, | December 31, | ||||||||
| 2018 | 2017 | ||||||||
| (unaudited) | |||||||||
| CURRENT ASSETS | |||||||||
| Cash | $ | 5,498 | $ | 23,279 | |||||
| Accounts receivable, net | 15,293 | 7,984 | |||||||
| Accounts receivable - related parties | 6,313 | 3,440 | |||||||
| Inventory, net | 1,451,896 | 1,554,656 | |||||||
| Deposits | 28,583 | 17,385 | |||||||
| Total Current Assets | 1,507,583 | 1,606,744 | |||||||
| FIXED ASSETS, net | 2,672 | 7,253 | |||||||
| OTHER ASSETS | |||||||||
| Other noncurrent assets | 14,280 | 14,280 | |||||||
| Total Other Assets | 14,280 | 14,280 | |||||||
| TOTAL ASSETS | $ | 1,524,535 | $ | 1,628,277 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| CURRENT LIABILITIES | |||||||||
| Accounts payable and accrued expenses | $ | 373,379 | $ | 358,032 | |||||
| Accrued management compensation | 512,103 | 406,841 | |||||||
| Accounts payable – related parties | 142,819 | 114,321 | |||||||
| Notes payable – related parties | 15,000 | 15,000 | |||||||
| Convertible notes payable – related parties | - | 15,000 | |||||||
| Convertible notes payable – current portion | 45,000 | - | |||||||
| Billings in excess of costs and estimated earnings | - | 30,000 | |||||||
| Customer deposits | 141,279 | 212,410 | |||||||
| Total Current Liabilities | 1,229,580 | 1,151,604 | |||||||
| LONG-TERM LIABILITIES | |||||||||
| Convertible notes payable, net of current portion | 55,000 | - | |||||||
| Total Liabilities | 1,284,580 | 1,151,604 | |||||||
| STOCKHOLDERS' EQUITY | |||||||||
| Common stock, 125,000,000 shares authorized | |||||||||
| no par value 20,420,402 and 20,281,082 shares | |||||||||
| issued and outstanding, respectively | 8,427,210 | 8,411,411 | |||||||
| Additional paid-in capital | 11,917,784 | 11,852,363 | |||||||
| Accumulated deficit | (20,105,039 | ) | (19,787,101 | ) | |||||
| Total Stockholders' Equity | 239,955 | 476,673 | |||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,524,535 | $ | 1,628,277 | |||||
CONTACT:
Gary S. Maier
Maier & Company, Inc.
(310) 471-1288