Omnitek Engineering Corp. is a California-based company specializing in technology that converts diesel engines to alternative fuels, promoting sustainability in transportation.

# Omnitek Engineering Corp. - Company Overview

## Business Description
Omnitek Engineering Corp. is a California-based company that specializes in developing and selling proprietary technology for converting diesel engines to alternative fuels. Founded in 2001 and based in Vista, California, Omnitek's technology targets various applications in the transportation and stationary markets, focusing on:

- **Alternative Fuels**: The company enables diesel engines to run on fuels such as:
  - Compressed Natural Gas (CNG)
  - Liquefied Natural Gas (LNG)
  - Renewable Natural Gas (Biogas or RNG)
  - Hydrogen (H2)
  - Liquid Petroleum Gas (Propane or LPG)
  
- **Conversion Kits**: Omnitek offers conversion kits designed for both turbocharged and non-turbocharged diesel engines. This solution allows fleet operators to optimize their existing assets and reduce fuel costs by converting to alternative fuels.

- **Complete Engines and Components**: In addition to conversion kits, the company provides new natural gas engines and components tailored for various applications, including light commercial vehicles, buses, heavy-duty trucks, rail, and marine.

- **Performance and Compliance**: The company's technology is tailored for performance and reliability, utilizing patented devices and electronic control units that sense real-time engine parameters. The products are compliant with U.S. Environmental Protection Agency (EPA) and California Air Resources Board (CARB) regulations, and the company has received necessary certifications for multiple engine models.

## Customer Base
- **Global Reach**: Omnitek has converted over **5,000** engines worldwide, collaborating with **distributors**, **fleet operators**, and **engine conversion companies**.

- **Concentration of Sales**: In the fiscal year ended December 31, 2024, **four customers** accounted for **approximately 72%** of Omnitek's total sales, indicating a concentration risk in its customer base.

## Financial Performance
- **Revenue**: For the fiscal year ended December 31, 2024, Omnitek generated **$1,019,726** in revenue, which represented a **3.4% decrease** from $1,055,314 in 2023. The company reported a robust gross margin of **45%** for 2024 compared to **39%** in the previous year.

- **Income**: Omnitek posted a net loss of **$167,137** for 2024, which is an improvement over the **$215,406** loss in 2023. The loss per share remained consistent at **($0.01)** for both years.

## Employee Count
- **Staffing**: As of the date of the report, Omnitek has a total of **six full-time employees**. The company maintains a positive working relationship with its employees, none of whom are represented by any collective bargaining organizations.

## Challenges and Considerations
- The company faces several risks, including dependence on a limited number of major customers and suppliers, potential regulatory challenges, and the volatility of fuel prices which can affect demand for its conversion technologies.
- With workings requiring regulatory approvals and certifications, Omnitek operates in a complex environment affecting growth and operational margins.

In summary, Omnitek Engineering Corp. operates in a niche market focusing on diesel engine conversions to alternative fuels while facing challenges related to customer and supplier dependency, regulatory compliance, and financial sustainability.

Omnitek Engineering Corp. is a California-based company specializing in diesel engine conversion technologies to alternative fuels, including compressed natural gas and hydrogen.

# Omnitek Engineering Corp. Summary

## Overview
Omnitek Engineering Corp. is a California-based company that develops and sells proprietary technology focusing on converting diesel engines to alternative fuels, including compressed natural gas (CNG), liquefied natural gas (LNG), renewable natural gas (biogas or RNG), hydrogen (H2), and propane (LPG). The company serves various markets, including transportation (light commercial vehicles, minibuses, heavy-duty trucks, municipal buses, rail, and marine applications) and stationary applications.

### Key Business Activities
- Development and sale of conversion kits for diesel engines to alternative fuels.
- Manufacture of new natural gas engines that comply with environmental regulations.
- Provision of applicable engine components and filters.

## Financials
- **Revenue**: For the fiscal year ending December 31, 2023, Omnitek reported revenue of **$1,055,314**, down from **$1,070,787** in 2022.
- **Cost of Goods Sold (COGS)**: The COGS for 2023 was **$644,660**, leading to a gross margin of **$410,654** (39% gross margin percentage).
- **Net Loss**: The company recorded a net loss of **$215,406** in 2023, compared to a net loss of **$196,709** in 2022.

## Customers and Market Focus
As of December 31, 2023:
- Omnitek has **eight major customers** accounting for approximately **91% of its revenue**. This concentration indicates a dependency on a small number of customers for the majority of sales.
- Overall, the company has successfully converted over **5,000 diesel engines** to operate on natural gas since its inception.

## Employees
- The company currently employs **six full-time employees**. Omnitek maintains a collaborative operational model, utilizing independent consultants and contractors to support various functions.

## Market Environment
- Omnitek operates in a market significantly influenced by regulatory pressures aimed at reducing air pollution and greenhouse gas emissions. It is expected that the Paris Agreement and local regulations will continue to bolster the demand for its alternative fuel technologies.

## Research and Development
- In 2023, Omnitek invested **$67,576** in research and development, consistent with **$66,444** in 2022, indicating a commitment to innovation and product development within the alternative fuel sector.

## Summary
Omnitek Engineering Corp. is positioned in the growing field of alternative fuel technologies, specifically targeting the diesel engine conversion market. While facing challenges such as dependency on a limited customer base and operating losses, the company remains focused on compliance with environmental regulations and expanding its technological offerings.

Omnitek Engineering Corp

10-K / April 16, 2025

10-K / April 16, 2024

10-K / April 16, 2025

Omnitek Engineering Corp. - Company Overview

Business Description

Customer Base

Financial Performance

Employee Count

Challenges and Considerations