Omnitek Engineering Corp. reported its financial results for the three and nine-month periods ending September 30, 2024, showing notable changes in revenue and profitability compared to the previous fiscal year. For the three-month period, total revenues increased to $277,365, up from $235,379 in the same period of 2023, primarily driven by a rise in export sales. Domestic revenues rose to $90,324, while international revenues reached $187,041. The gross margin for this quarter was 44%, slightly up from 43% a year earlier.

In the nine-month period, total revenues also saw an increase, reaching $781,412 compared to $712,303 in 2023, marking a 10% growth attributed to enhanced export sales. However, the gross margin decreased to 40% from 42% in the prior year, largely due to changes in product mix. The cost of sales for the nine months rose to $465,602, an increase of $51,884 from the previous year.

Despite the revenue growth, Omnitek reported a net loss of $32,841 for the third quarter of 2024, a slight improvement from a net loss of $34,717 in the same quarter of 2023. For the nine-month period, the net loss was $207,655, compared to a loss of $171,474 in the prior year. The company’s accumulated deficit as of September 30, 2024, stood at $22,068,002.

The company’s financial position showed total current assets of $733,846, up from $482,521 at the end of 2023, while total assets increased to $1,003,359 from $847,161. However, total liabilities also rose to $2,391,694 from $2,032,851, resulting in a total stockholders' deficit of $(1,388,335), compared to $(1,185,690) at the end of 2023.

Customer deposits significantly increased to $742,346 from $310,025, indicating a positive trend in customer engagement. Operating expenses for the nine-month period were $507,839, up from $470,358, with general and administrative expenses rising to $451,716 from $417,848.

The company continues to face challenges, including a negative working capital of $1,329,328 and a cash position of $41,072 as of September 30, 2024, down from $73,703 at the end of 2023. Additionally, Omnitek's disclosure controls and procedures were deemed ineffective due to a material weakness in internal control over financial reporting. The company is also involved in a legal matter related to overcharging allegations, which it intends to vigorously contest.