Omnitek Engineering Reports 3.4% Revenue Decline but Improved Gross Margin for Fiscal Year 2024

Omnitek Engineering Corp. reported a slight decline in revenue for the fiscal year ending December 31, 2024, with total revenues of $1,019,726, down 3.4% from $1,055,314 in 2023. The company's cost of goods sold also decreased significantly to $561,853 from $644,660, resulting in a gross margin increase to $457,873, or 45% of sales, compared to 39% in the previous year. Despite these improvements in gross margin, Omnitek recorded a net loss of $167,137, a reduction from the $215,406 loss reported in 2023, indicating a narrowing of losses year-over-year.

The company’s operating expenses remained relatively stable, totaling $606,373 in 2024, a slight decrease from $606,794 in 2023. General and administrative expenses accounted for the majority of these costs, with notable expenses including insurance and salaries. Research and development expenditures increased to $70,323 from $67,576, reflecting ongoing investment in product development. Omnitek's accumulated deficit grew to $22,027,484 as of December 31, 2024, highlighting the challenges the company faces in achieving profitability.

Operationally, Omnitek has maintained a focus on its core business of developing technology for converting diesel engines to alternative fuels, including natural gas and hydrogen. The company has successfully converted over 5,000 engines globally since its inception. As of the end of 2024, Omnitek had six full-time employees and continues to seek partnerships to expand its distribution network. The company reported that four customers accounted for approximately 72% of its sales, indicating a concentration risk in its customer base.

Looking ahead, Omnitek's management expressed optimism about future growth, driven by increasing demand for alternative fuel technologies amid rising fuel costs and regulatory pressures to reduce emissions. However, the company also acknowledged the need for additional capital to support its operations and product development, as it has no established bank financing arrangements. The outlook remains cautious, with management emphasizing the importance of securing funding to sustain operations and navigate the challenges posed by market conditions and competition.