Omnitek Engineering Corp. Reports 57% Revenue Decline and Increased Net Loss in Q1 2026

Omnitek Engineering Corp. reported a significant decline in financial performance for the first quarter of 2026, with revenues totaling $155,597, down from $359,746 in the same period of 2025, marking a decrease of approximately 57%. The company's cost of goods sold also decreased to $74,984, resulting in a gross margin of $80,613, which represents a gross margin percentage of 52%, an increase from 39% in the prior year. Despite the improved gross margin percentage, Omnitek recorded a net loss of $68,584 for the quarter, compared to a loss of $26,660 in the first quarter of 2025.

The company's total current assets increased to $849,769 as of March 31, 2026, compared to $663,961 at the end of 2025, primarily driven by an increase in cash and customer deposits. Cash reserves rose to $79,204 from $14,097, while customer deposits surged to $578,819 from $388,301. However, total liabilities also increased to $2,026,897 from $1,823,723, leading to a total stockholders' deficit of $1,137,576, up from $1,069,337 at the end of 2025. This reflects ongoing challenges in achieving profitability, with an accumulated deficit now totaling $21,822,429.

Operationally, Omnitek has seen a decrease in general and administrative expenses, which fell to $112,947 from $132,451 year-over-year. The company continues to focus on its core operations, with research and development expenses slightly reduced to $16,786 from $18,309. The company has maintained its employee headcount at 21,948,091 shares outstanding, with no new options granted during the quarter. The company’s management has indicated that they believe projected sales for 2026, combined with available working capital, will be sufficient to fund operations for the next twelve months, although uncertainties remain regarding future profitability and cash flow.

In terms of strategic developments, Omnitek has entered into a new lease agreement for additional office space, effective July 1, 2026, which will provide approximately 7,222 square feet of rentable area. The lease is set to expire on September 30, 2031, with a monthly base rent of $10,111. This move is part of the company's strategy to enhance its operational capabilities. However, the company has acknowledged that it may need to seek additional financing to support its growth and product development initiatives, as it currently has no established bank-financing arrangements.

Overall, while Omnitek Engineering Corp. has made some progress in managing its expenses and improving gross margins, the significant drop in revenue and ongoing losses highlight the challenges the company faces in the current market environment. The outlook remains cautious, with management emphasizing the need for strategic partnerships and potential capital raises to ensure continued operations and growth.