10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

Amendment No. 1

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended:  June 30, 2011

Commission file number: 000-53955

OMNITEK ENGINEERING CORP.

 (Exact name of Registrant as specified in Its Charter)

California		33-0984450
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
	(Address of Principal Executive Offices)
	760-591-0089
	(Registrant's Telephone Number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    

Yes  x      No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.   See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer   o	Accelerated Filer     o
Non-Accelerated Filer     o	Smaller Reporting Company    x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    

Yes  o       No  x

As of August 10, 2011, there were 17,037,812 shares of the issuer's Common Stock, no par value, issued and outstanding.

EXPLANATORY NOTE

The purpose of this Amendment No. 1 to the Quarterly Report of Omnitek Engineering Corp. (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2011, filed with the Securities and Exchange Commission on August 15, 2011 (the “Form 10-Q”), is to furnish Exhibit 101 to the Form 10-Q in accordance with Rule 405 of Regulation S-T.  Exhibit 101 to this report provides the consolidated financial statements and related notes from the Form 10-Q formatted in XBRL (eXtensible Business Reporting Language).

Other than the aforementioned, no other changes have been made to the Form 10-Q.  This Amendment No. 1 to the Form 10-Q speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.

Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

Item 6 - Exhibits

Exhibit
Number	Description of Exhibit
31.01	Certification of Principal Executive Officer Pursuant to Rule 13a-14 *
31.02	Certification of Principal Financial Officer Pursuant to Rule 13a-14*
32.01	CEO and CFO Certification Pursuant to Section 906 of the Sarbanes-Oxley Act*
101	Interactive Data Files - Filed herewith

*            Incorporated by reference to our Form 10-Q filed with the SEC on August 15, 2011

             All exhibits are numbered with the number preceding the decimal indicating the applicable SEC reference number in Item 601 and the number following the decimal indicating the sequence of the particular document.

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Omnitek Engineering Corp.
Dated: September 8, 2011
	By:  Werner Funk
	Its:  President and Secretary
Dated: September 8, 2011	/s/ Richard A. Mathewson
	By: Richard A. Mathewson
	Its:  Chief Financial Officer

Pursuant to the requirement of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:

Dated: September 8, 2011
	By:  Werner Funk, Director
Dated: September 8, 2011	/s/ Janice M. Quigley
	By: Janice M. Quigley, Director

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BALANCE SHEETS (PARENTHETICAL) (USD $)	Jun. 30, 2011	Dec. 31, 2010
Common Stock, par or stated value	$ 0	$ 0
Common Stock, shares authorized	25,000,000	25,000,000
Common Stock, shares issued	17,037,812	15,659,829
Common Stock, shares oustanding	17,037,812	15,659,829

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OMNITEK ENGINEERING CORP. Statements of Operations (unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
REVENUES	$ 374,490	$ 357,013	$ 989,746	$ 774,255
COST OF GOODS SOLD	202,738	203,080	485,368	454,333
GROSS MARGIN	171,752	153,933	504,378	319,922
OPERATING EXPENSES
General and administrative	243,232	215,506	509,089	837,255
Research and development expense	32,481	29,508	59,946	68,220
Depreciation and amortization expense	20,848	22,786	41,241	46,517
Total Operating Expenses	296,561	267,800	610,276	951,992
LOSS FROM OPERATIONS	(124,809)	(113,868)	(105,898)	(632,070)
OTHER INCOME (EXPENSE)
Interest expense		(7,612)		(15,415)
Interest income	1	1,688	1	3,358
Total Other Income (Expense)	1	(5,924)	1	(12,057)
LOSS BEFORE INCOME TAXES	(124,808)	(119,792)	(105,897)	(644,127)
INCOME TAX EXPENSE			800	800
NET LOSS	$ (124,808)	$ (119,792)	$ (106,697)	$ (644,927)
BASIC AND DILUTED LOSS PER SHARE	$ (0.01)	$ (0.01)	$ (0.01)	$ (0.04)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	16,471,747	16,147,675	16,068,031	16,143,382

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Document and Entity Information	3 Months Ended
	Jun. 30, 2011
Document and Entity Information
Entity Registrant Name	Omnitek Engineering Corp.
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Entity Central Index Key	0001404804
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	17,037,812
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2

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Significant Accounting Policies

3 Months Ended

Jun. 30, 2011

Significant Accounting Policies

Significant Accounting Policies [Text Block]

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Recent Accounting Pronouncements

The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position, or statements.

Inventory

Inventory is stated at the lower of cost or market.  The Company’s inventory consists of finished goods and raw material and is located in San Marcos, California at June 30, 2011 and December 31, 2010 consisted of the following:

	June 30,			December 31,
Location:	2011			2010
San Marcos, CA
Raw materials	$	1,057,823		$	1,021,762
Finished goods		647,018			642,360
Peru (finished goods)		18,454			18,454
Allowance for obsolete inventory		(627,529	)		(627,529	)
	$	1,095,766		$	1,055,047

The Company has established an allowance for obsolete inventory.  Expense for obsolete inventory was $-0- and $171,331 for the six months ended June 30, 2011 and the year ended December 31, 2010 respectively.

Income Taxes

The Company accounts for income taxes in accordance with Accounting Standards Codification Topic 740, Income Taxes ("Topic 740"), which requires the recognition of deferred tax liabilities and assets at currently enacted tax rates for the expected future tax consequences of events that have been included in the financial statements or tax returns. A valuation allowance is recognized to reduce the net deferred tax asset to an amount that is more likely than not to be realized.

Topic 740 provides guidance on the accounting for uncertainty in income taxes recognized in a company's financial statements. Topic 740 requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.

At the adoption date of November 1, 2007, the Company had no unrecognized tax benefit which would affect the effective tax rate if recognized. The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes. As of June 30, 2011 and December 31, 2010 the Company had no accrued interest or penalties related to uncertain tax positions. The Company files an income tax return in the U.S. federal jurisdiction and the state of California. With few exceptions, the Company is no longer subject to U.S. federal, state, and local, or non-U.S. income tax examinations by tax authorities for years before 2006.

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OMNITEK ENGINEERING CORP. Statements of Cash Flows (unaudited) (USD $)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
OPERATING ACTIVITIES
Net loss	$ (106,697)	$ (644,927)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization and depreciation expense	41,241	46,517
Options and warrants granted	126,534	410,752
Contributed interest		10,791
Changes in operating assets and liabilities:
Accounts receivable	8,684	(83,574)
Accounts receivable-related parties	(18,357)	63,491
Deposits	7,569	32,317
Inventory	(40,719)	(10,633)
Accounts payable and accrued expenses	(76,006)	86,792
Customer deposits	(58,004)	63,983
Accrued expenses-related parties	(27,500)	10,549
Net Cash Used in Operating Activities	(143,255)	(13,942)
INVESTING ACTIVITIES
Purchase of intellectual property		(750)
Purchase of property and equipment	(15,472)
Net Cash Used in Investing Activities	(15,472)	(750)
FINANCING ACTIVITIES
Issuance of common stock for cash	150,000
Exercise of warrants for cash	87,500
Repayment of note payable		(49,494)
Net Cash Provided by Financing Activities	237,500	(49,494)
NET INCREASE (DECREASE) IN CASH	78,773	(64,186)
CASH AT BEGINNING OF PERIOD	34,944	78,991
CASH AT END OF PERIOD	113,717	14,805
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS
Cash paid for Interest		2,260
Cash paid for income taxes	800	800
NON CASH FINANCING ACTIVITIES:
Common stock issued for debt		$ 7,500

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Related Party Transactions

3 Months Ended

Jun. 30, 2011

Related Party Transactions

Related Party Transactions Disclosure [Text Block]

NOTE 3 - RELATED PARTY TRANSACTIONS

Accounts Receivable – Related Parties

During the years ended December 31, 2007 through 2009, the Company acquired a minority interest in various distributors in exchange for use of the Company’s name and Logo. As of June 30, 2011, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd., and a 20% interest in Omnitek Peru S.A.C.  As of June 30, 2011 and December 31, 2010, the Company was owed $18,357 and $-0-, respectively, by related parties for the purchase of products.

Accounts Payable – Related Parties

The Company regularly incurs expenses that are paid for by related parties and purchases goods and services from related parties. As of June 30, 2011 and December 31, 2010, the Company owed related parties for such expenses, goods and services in the amounts of $3,078 and $4,068, respectively.

Accrued Expenses – Related Parties

As of June 30, 2011 and December 31, 2010, related parties were owed $368,388 and $395,888, respectively, for services performed for the Company.

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Stock Options

3 Months Ended

Jun. 30, 2011

Stock Options

Stock Options

NOTE 4 - STOCK OPTIONS

During the six months ended June 30, 2011 and 2010, the Company recognized expense of $126,534 and $410,752, respectively, for options that vested during the periods pursuant to ASC Topic 718.

In April 2007, the Company’s shareholders approved its 2006 Long-Term Incentive Plan (“the Plan”).   Under the plan, the Company may issue up to 10,000,000 shares of both Incentive Stock Options to employees only and Non-Qualified Stock Options to employees and consultants at its discretion.  As of June 30, 2011 the Company has a total of 2,620,000 options issued under the plan.  No options were issued under the plan during the periods ended June 30, 2011 and December 31, 2010.

A summary of the status of the options and warrants granted at June 30, 2011 and December 31, 2010 and changes during the periods then ended is presented below:

	2011					2010
	Shares			Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Outstanding at beginning of period		5,870,000		$	0.52		5,170,000	$	0.57
Granted		-			-		700,000		0.13
Exercised		(1,077,983	)		0.12		-		-
Expired or canceled		(1,872,017	)		1.21		-		-
Outstanding at end of period		2,920,000			0.72		5,870,000		0.52
Exercisable		2,400,000		$	0.66		4,750,000	$	0.48

A summary of the status of the options and warrants outstanding at June 30, 2011 is presented below:

Range of Exercise Prices			Weighted-Average Remaining Contractual Life		Weighted-Average Exercise Price
		Number Outstanding		Number Exercisable
$	0.01-0.50	300,000	2.29 years	300,000	$	0.41
0.51-0.75		1,580,000	1.38 years	1,580,000	0.63
0.76-1.00		1,040,000	1.36 years	520,000	0.94
$	0.01-1.00	2,920,000	1.47 years	2,400,000	$	0.72

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Subsequent Events

3 Months Ended

Jun. 30, 2011

Subsequent Events

Subsequent Events [Text Block]

NOTE 5 - SUBSEQUENT EVENTS

In accordance with ASC 855-10, Company management reviewed all material events through the date of this report.  There are no material subsequent events to report.

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OMNITEK ENGINEERING CORP. Statements of Stockholders' Equity (USD $)	Total	Common Stock Shares	Common Stock Amount	Additional Paid-In Capital	Accumulated Deficit	Total Stockholders' Equity
Stockholders' Equity at Dec. 31, 2009			$ 2,330,476	$ 3,366,794	$ (4,826,705)	$ 870,565
Shares Issued at Dec. 31, 2009		16,127,675
Common stock issued in payment of debt		94,654	18,698			18,698
Common stock forfeited		(600,000)
Common stock cancelled as collateral for note payable		(100,000)
Common stock issued for services		137,500	25,625			25,625
Compensation expense recognized on options and warrants				637,813		637,813
Net loss for the year ended December 31, 2010					(1,155,442)	(1,155,442)
Stockholders' Equity at Dec. 31, 2010	397,259		2,374,799	4,004,607	(5,982,147)	397,259
Shares Issued at Dec. 31, 2010		15,659,829
Value of options and warrants issued for services (unaudited)				126,534		126,534
Common stock issued for cash (unaudited)		300,000	150,000			150,000
Exercise of warrants for cash (unaudited)		700,000	87,500			87,500
Exercise of warrants for services (unaudited)		377,983
Net loss for the year ended December 31, 2010	(106,697)				(106,697)	(106,697)
Stockholders' Equity at Jun. 30, 2011	$ 654,596		$ 2,612,299	$ 4,131,141	$ (6,088,844)	$ 654,596
Shares Issued at Jun. 30, 2011		17,037,812

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Condensed Financial Statements

3 Months Ended

Jun. 30, 2011

Condensed Financial Statements

Condensed Financial Statements

NOTE 1 - CONDENSED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2011, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2010 audited financial statements.  The results of operations for the periods ended June 30, 2011 and 2010 are not necessarily indicative of the operating results for the full years.

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OMNITEK ENGINEERING CORP. Balance Sheets (USD $)	Jun. 30, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash	$ 113,717	$ 34,944
Accounts receivable, net of allowance of $10,000	19,433	28,117
Accounts receivable -related party	18,357
Inventory	1,095,766	1,055,047
Deposits	65,843	73,412
Total Current Assets	1,313,116	1,191,520
FIXED ASSETS, net	14,842
OTHER ASSETS
Intellectual property, net	35,907	76,518
Total Other Assets	35,907	76,518
TOTAL ASSETS	1,363,865	1,268,038
CURRENT LIABILITIES
Accounts payable and accrued expenses	61,920	136,936
Accrued expenses - related parties	368,388	395,888
Accounts payable - related parties	3,078	4,068
Customer deposits	275,883	333,887
Total Current Liabilities	709,269	870,779
Total Liabilities	709,269	870,779
STOCKHOLDERS' EQUITY
Common stock, 25,000,000 shares authorized no par value 17,037,812 and 15,659,829 shares issued and outstanding, respectively	2,612,299	2,374,799
Additional paid-in capital	4,131,141	4,004,607
Accumulated deficit	(6,088,844)	(5,982,147)
Total Stockholders' Equity	654,596	397,259
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,363,865	$ 1,268,038