Omnitek Engineering Corp. Reports 52% Revenue Increase in Q1 2025 Despite Net Loss

Omnitek Engineering Corp. reported a significant increase in revenue for the first quarter of 2025, with total revenues reaching $359,746, up from $237,077 in the same period last year, marking an increase of approximately 52%. The company's gross margin also improved, rising to $140,968, which represents a gross margin percentage of 39%, compared to 35% in the prior year. Despite the increase in revenue, Omnitek recorded a net loss of $26,660 for the quarter, a notable reduction from the net loss of $66,458 reported in the first quarter of 2024.

The company's financial position showed a decrease in total assets, which fell to $1,054,462 as of March 31, 2025, down from $1,116,455 at the end of 2024. Current assets also declined slightly to $855,053, while current liabilities remained relatively stable at $2,185,534, resulting in a negative working capital of $1,330,481. The accumulated deficit increased to $22,054,144, reflecting ongoing challenges in achieving profitability. Omnitek's total stockholders' deficit widened to $1,373,779 from $1,347,464 at the end of the previous fiscal year.

Operationally, Omnitek has seen a rise in filter sales, which contributed to the revenue growth. The company reported an increase in accounts receivable from related parties, which rose to $9,024 from $3,088, indicating a growing engagement with its partners. However, the company also faced challenges, as it reported a negative cash flow from operations of $109,115 for the quarter, compared to a negative cash flow of $53,499 in the same period last year. This cash flow situation underscores the ongoing need for effective cash management and potential capital raising efforts.

In terms of strategic developments, Omnitek has not announced any significant acquisitions or product launches during this reporting period. However, the company continues to explore opportunities for growth and may seek additional financing through public or private sales of securities to support its operations and product development initiatives. The management expressed optimism about projected sales for 2025, although they acknowledged uncertainties regarding the ability to achieve profitability and positive cash flows in the near future.

Looking ahead, Omnitek's management believes that the current operating plan, combined with available working capital, will be sufficient to fund operations for the next twelve months. However, they cautioned that there can be no assurance that operations will continue at current levels or improve, highlighting the inherent risks and uncertainties in the business environment. The company remains focused on navigating these challenges while striving for growth in its market presence and product offerings.