10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2013

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.)

1333 Keystone Way, Suite 101, Vista, California 92081

 (Address of principal executive offices, Zip Code)

(760) 591-0089

 (Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   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 May 8, 2013, the Registrant had 19,749,582 shares of its no par value Common Stock outstanding.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1.    Financial Statements
Condensed Balance Sheets as of March 31, 2013 and December 31, 2012	1
Condensed Statements of Operations for the three months ended
March 31, 2013 and March 31, 2012	2
Condensed Statements of Cash Flows for the three months ended
March 31, 2013 and March 31, 2012	3
Notes to the Condensed Financial Statements	4
Item 2.    Management’s Discussion and Analysis of the Financial Condition and Results of Operations	8
Item 3.    Quantitative and Qualitative Disclosures about Market Risk	11
Item 4.    Controls and Procedures	11
PART II - OTHER INFORMATION
Item 1.    Legal Proceedings	12
Item 1A. Risk Factors	12
Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds	12
Item 3.    Defaults Upon Senior Securities	12
Item 5.    Other Information	12
Item 6.    Exhibits	13

PART I

FINANCIAL INFORMATION

ITEM 1.                      FINANCIAL STATEMENTS

OMNITEK ENGINEERING CORP.
Condensed Balance Sheets
ASSETS
	March 31,			December 31,
	2013			2012
	(unaudited)
CURRENT ASSETS
Cash	$	2,561,017		$	3,192,761
Accounts receivable, net		48,597			120,547
Accounts receivable -related party		4,389			26,455
Inventory		1,354,846			1,133,595
Prepaid expense		18,000			7,440
Deposits		369,133			331,760
Short-term investments, net		253,615			-
Total Current Assets		4,609,597			4,812,558
FIXED ASSETS, net		59,610			14,560
OTHER ASSETS
Long-term investments, net		937,883			1,201,671
Intellectual property, net		4,518			5,218
Total Other Assets		942,401			1,206,889
TOTAL ASSETS	$	5,611,608		$	6,034,007
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses	$	95,494		$	317,106
Accrued compensation - related parties		249,947			264,717
Accounts payable - related parties		(2,298	)		-
Customer deposits		212,460			184,109
Total Current Liabilities		555,603			765,932
Total Liabilities		555,603			765,932
STOCKHOLDERS' EQUITY
Common stock, 125,000,000 shares authorized no par value
19,749,582 and 19,749,582 shares issued and outstanding,
respectively		8,196,061			8,196,061
Additional paid-in capital		4,905,519			4,867,169
Accumulated deficit		(8,045,575	)		(7,795,155	)
Total Stockholders' Equity		5,056,005			5,268,075
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,611,608		$	6,034,007
The accompanying notes are an integral part of these condensed financial statements.

Page 1

OMNITEK ENGINEERING CORP.
Condensed Statements of Operations (unaudited)
	For the Three			For the Three
	Months Ended			Months Ended
	March 31,			March 31,
	2013			2012
REVENUES	$	349,329		$	306,369
COST OF GOODS SOLD		204,085			200,612
GROSS MARGIN		145,244			105,757
OPERATING EXPENSES
General and administrative		352,305			237,323
Research and development expense		50,359			28,894
Depreciation and amortization expense		13,270			1,457
Total Operating Expenses		415,934			267,674
LOSS FROM OPERATIONS		(270,690	)		(161,917	)
OTHER INCOME (EXPENSE)
Interest expense		-			(408	)
Interest income		21,070			-
Total Other Income (Expense)		21,070			(408	)
LOSS BEFORE INCOME TAXES		(249,620	)		(162,325	)
INCOME TAX EXPENSE		800			800
NET LOSS	$	(250,420	)	$	(163,125	)
BASIC AND DILUTED LOSS PER SHARE	$	(0.01	)	$	(0.01	)
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES OUTSTANDING		19,749,582			17,196,734
The accompanying notes are an integral part of these condensed financial statements.

Page 2

OMNITEK ENGINEERING CORP.
Condensed Statements of Cash Flows (unaudited)
	For the Three			For the Three
	Months Ended			Months Ended
	March 31,			March 31,
	2013			2012
OPERATING ACTIVITIES
Net loss	$	(250,420	)	$	(163,125	)
Adjustments to reconcile net loss to
net cash used by operating activities:
Amortization and depreciation expense		3,095			1,457
Amortization of premium on long-term investments		6,881			-
Amortization of premium on short-term investments		3,292			-
Options and warrants granted		38,350			15,450
Changes in operating assets and liabilities:
Accounts receivable		71,950			(42,301	)
Accounts receivable–related parties		22,066			16,715
Deposits		(37,373	)		(43,250	)
Prepaid Expense		(10,560	)		837
Inventory		(221,251	)		58,526
Accounts payable and accrued expenses		(221,612	)		72,791
Customer deposits		28,351			32,984
Accounts payable-related parties		(2,298	)		10,764
Accrued compensation-related parties		(14,770	)		(4,110	)
Net Cash Used in Operating Activities		(584,299	)		(43,262	)
INVESTING ACTIVITIES
Purchase of property and equipment		(47,445	)		-
Net Cash Used in Investing Activities		(47,445	)		-
FINANCING ACTIVITIES
Issuance of common stock for cash		-			20,000
Note Payable		-			40,000
Net Cash Provided by Financing Activities		-			60,000
NET DECREASE IN CASH		(631,744	)		16,738
CASH AT BEGINNING OF YEAR		3,192,761			31,196
CASH AT END OF PERIOD	$	2,561,017		$	47,934
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS
CASH PAID FOR:
Interest	$	-		$	408
Income taxes	$	800		$	800
NON CASH FINANCING ACTIVITIES:
	$	-		$	-
The accompanying notes are an integral part of these condensed financial statements.

Page 3

OMNITEK ENGINEERING CORP.

Condensed Notes to Financial Statements

March 31, 2013

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 March 31, 2013, 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, 2012 audited financial statements.  The results of operations for the periods ended March 31, 2013 and 2012 are not necessarily indicative of the operating results for the full years.

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 Vista, California at March 31, 2013 and San Marcos, California at December 31, 2012 consisted of the following:

	March 31,			December 31,
Location : Vista and San Marcos, CA respectively	2013			2012
Raw materials	$	1,432,710		$	806,700
Finished goods		549,665			684,273
In transit		-			270,151
Allowance for obsolete inventory		(627,529	)		(627,529	)
Total	$	1,354,846		$	1,133,595

The Company has established an allowance for obsolete inventory.  Expense for obsolete inventory was $-0- and $-0-, for the periods ended March 31, 2013 and December 31, 2012, respectively.

Page 4

OMNITEK ENGINEERING CORP.

Condensed Notes to Financial Statements

March 31, 2013

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Property and Equipment

Property and equipment at March 31, 2013 and December 31, 2012 consisted of the following:

	March 31,			December 31,
	2013			2012
Production equipment	$	53,822		$	14,814
Computers/Office equipment		3,717			-
Tooling equipment		10,020			5,300
Less: accumulated depreciation		(7,949	)		(5,554	)
Total	$	59,610		$	14,560

Depreciation expense for the years ended March 31, 2013 and December 31, 2012 was $2,395 and $3,250, respectively.

Basic and Diluted Loss per Share

The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 1,749,582 and 2,169,855 stock options and warrants that would have been included in the fully diluted earnings per share as of March 31, 2013 and December 31, 2012, respectively.  However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti dilutive.

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 March 31, 2013 and December 31, 2012 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 2007.

Page 5

OMNITEK ENGINEERING CORP.

Condensed Notes to Financial Statements

March 31, 2013

NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Held to Maturity Investments

During the three months ended June 30, 2012, the Company purchased various corporate bonds. The Company intends to hold the bonds to maturity. Accordingly, the Company has recorded and is amortizing the premium on the bonds over the remaining life. As of March 31, 2013, the Company has amortized $36,725 of the premium leaving an amortized short-term cost basis remaining of $253,615 and long-term cost basis remaining of $937,883. 

NOTE 3 - RELATED PARTY TRANSACTIONS

Accounts Receivable – Related Parties

The Company holds a non-controlling interest in various distributors in exchange for use of the Company’s name and logo. As of December 31, 2012, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd., a 20% interest in Omnitek Peru S.A.C., and a 5% interest in Omnitek Stationary, Inc.  As of March 31, 2013 and December 31, 2012, the Company was owed $4,389 and $26,455, 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 March 31, 2013 and December 31, 2012, the Company owed related parties for such expenses, goods and services in the amounts of $(2,298) and $-0-, respectively.

Accrued Expenses – Related Parties

During the periods ended March 31, 2013 and December 31, 2012, related parties were due amounts for services performed for the Company.  As of March 31, 2013 and December 31, 2012 the related parties’ payables consisted of the following:

	March 31,		December 31,
	2013		2012
Amounts due to the president	$	182,628	$	197,398
Amounts due to other officers of the company		67,319		67,319
Total	$	249,947	$	264,717

Page 6

OMNITEK ENGINEERING CORP.

Condensed Notes to Financial Statements

March 31, 2013

NOTE 4 - STOCK OPTIONS AND WARRANTS

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 March 31, 2013 the Company has a total of 3,160,000 options issued under the plan. During the three months ended March 31, 2013 the Company issued -0- options and warrants.

During the three months ended March 31, 2013 and 2012, the Company recognized expense of $38,350 and $15,450, respectively, for options and warrants that vested during the periods pursuant to ASC Topic 718.

A summary of the status of the options and warrants outstanding at March 31, 2013 and December 31, 2012 and changes during the periods then ended is presented below:

	March 31,				December 31,
	2013				2012
			Weighted-Average				Weighted-Average
	Shares		Exercise Price		Shares		Exercise Price
Outstanding at beginning of year		6,085,313	$	2.29		2,820,000	$	0.73
Granted		-		-		3,265,313		3.64
Exercised		-		-		-		-
Expired or cancelled		-		-		-		-
Outstanding at end of year		6,085,313		2.29		6,085,313		2.29
Exercisable		5,639,063	$	2.11		5,612,813	$	2.09

Range of Exercise Prices		Number Outstanding		Weighted-Average Remaining Contractual Life	Number Exercisable		Weighted-Average Exercise Price
$	0.01-0.50		200,000	1.53 years		200,000	$	0.38
$	0.51-0.75		1,580,000	1.60 years		1,580,000		0.63
$	0.76-1.00		1,040,000	1.61 years		1,040,000		0.94
$	1.01-2.00		90,000	4.34 years		50,000		1.79
$	2.01-3.00		455,000	6.31 years		48,750		2.57
$	3.01-4.00		2,720,313	4.02 years		2,720,313		3.88
$	0.01-4.00		6,085,313	3.08 years		5,639,063	$	2.27

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.

Page 7

ITEM 2 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion of our financial condition and results of operations should be read in conjunction with the financial statements and related notes to the financial statements included elsewhere in this periodic report.  Some of the statements under “Management’s Discussion and Analysis,” “Description of Business” and elsewhere herein may include forward-looking statements which reflect our current views with respect to future events and financial performance. These statements include forward-looking statements both with respect to us specifically and the alternative fuels engines industry in general. Statements which include the words “expect,” “intend,” “plan,” “believe,” “project,” “anticipate,” “will,” and similar statements of a future or forward-looking nature identify forward-looking statements for purposes of the federal securities laws or otherwise. The safe harbor provisions of the federal securities laws do not apply to any forward-looking statements contained in this registration statement.

All forward-looking statements address such matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise.

If one or more of these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may vary materially from what we projected. Any forward-looking statements you read herein reflect our current views with respect to future events and are subject to these and other risks, uncertainties and assumptions relating to our written and oral forward-looking statements attributable to us or individuals acting on our behalf and such statements are expressly qualified in their entirety by this paragraph.

A. Results of Operations

For the three months ended March 31, 2013 and 2012

Revenues increased to $349,329 for the three months ended March 31, 2013 from $306,369 for the three months ended March 31, 2012, an increase of $42,960 or 14%.

Our cost of sales increased to $204,085 for the three months ended March 31, 2013 from $200,612 for the three months ended March 31, 2012, an increase of $3,473. Our gross margin was 41.6% for the three months ended March 31, 2013 compared to 34.5% in 2012. This was mainly due to higher margin product being shipped during the three months ended March 31, 2013. We anticipate our gross margin will be between 35% to 40% for the remainder of the year.

Our operating expenses for the three months ended March 31, 2013 were $415,934 compared to $267,674 in 2012, an increase of $148,260 or 55%. General and administrative expense for the three months ended March 31, 2013 was $352,305 as compared to $237,323 for the three months ended March 31, 2013. The increase is primarily due to wages and option expense of $136,338 for the three months ended March 31, 2013 as compared to $78,670, for the three months ended March 31, 2012 and facility relocation expense and increased rent expense amounts of $42,973 for the three months ended March 31, 2013 as compared to $-0-, for the three months ended March 31, 2012.  Major components of general and administrative expenses for the three months ended March 31, 2013 were professional fees of $23,060, rent expense of $52,046, and salary and wages of $97,988. This compares to professional fees of $48,253, rent expense of $33,376 and salaries and wages of $63,220 for the three months ended March 31, 2012.  In the three months ended March 31, 2013 professional fees were lower by approximately $25,193 due to reduction in legal expenses incurred. Research and development outlays were increased to $50,359 for the three months ended March 31, 2013 compared to $28,894 for the three months ended March 31, 2012.

Our net loss for the three months ended March 31, 2013 was $250,420, ($0.01 per share) compared to a net loss of $163,125 ($0.01 per share) for the three months ended March 31, 2012. The increased loss was primarily the result of expenses associated with business relocation and expansion in the three months ended March 31, 2013 compared to the three months ended March 31, 2012.

Page 8

Results for the three months ended March 31, 2013 reflect the impact of non-cash expenses, including the value of options and warrants granted in the amount of $38,350 and depreciation and amortization of $13,270. For the three months period a year earlier, non-cash expenses for the value of options and warrants granted were $15,450 and depreciation and amortization of $1,457.

B. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Cash Requirements

We believe that we will have sufficient cash from operations to meet our operating requirements for the proximate 12 months.

Liquidity and Capital Resources

Overview

For the three months ended March 31, 2013 and 2012

At March 31, 2013, our current liabilities totaled $555,603 and our current assets totaled $4,609,590, resulting in positive working capital of $4,053,994 and a current ratio of 8.30. We believe that through the collection of accounts receivable and the sale of inventory, in the normal course of business, we will meet our obligations on a timely basis and that our liquidity is sufficient for at least the next twelve months.

We have no firm commitments or obligations for capital expenditures.   However, substantial discretionary expenditures will be required to enable us to conduct existing and planned product research, design, development, manufacturing, marketing and distribution of our products and Intellectual Property. We may need to raise additional capital to facilitate growth and support our long-term product development, manufacturing, and marketing programs. The Company has no established bank-financing arrangements and until we have sufficient assets, capital, and inventory or accounts receivable, it is not anticipated that we will secure any bank financing in the near future. Therefore, it is likely that we may need to seek additional financing through subsequent future public or private sales of our securities, including equity securities. We may also seek funding for the development, manufacturing, and marketing of our products through strategic partnerships and other arrangements with corporate partners. There can be no assurance, however, that such collaborative arrangements or additional funds will be available when needed, or on terms acceptable to us, if at all. If adequate funds are not available, we may be required to curtail one or more of our research and development programs.

We have historically incurred significant losses, which have resulted in a total accumulated deficit of $8,045,575 at March 31, 2013.

Operating Activities

We have realized a negative cash flow from operations of $584,299 for the three months ended March 31, 2013 compared to a negative cash flow of $43,362 during the three months ended March 31, 2012.

Included in the net loss of $250,420 for the three months ended March 31, 2013 are non-cash expenses, which are not a drain on our capital resources. During the three months ended March 31, 2013, the expenses include the value of options and warrants granted in the amount of $38,350 and depreciation and amortization of $13,270. Excluding these non-cash amounts, our EBITDA for the three months ended March 31, 2013 would have been a loss of $198,800.

Off-Balance Sheet Arrangements

None.

Page 9

Critical Accounting Policiesand Estimates

The Company's financial statements are prepared using the accrual method of accounting. 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. Areas where significant estimates are required include the following:

Trade receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using historical experience applied to an aging of accounts.

Inventory is stated at the lower of cost or market. The Company’s inventory consists of finished goods and raw material. The Company identifies items in its inventory that have not been sold in a timely manner. Accordingly, the Company has established an allowance for the cost of such obsolete inventory.

The Company assesses the recoverability of its long lived assets annually and whenever circumstances would indicate that there may be an impairment. The Company compares the estimated undiscounted future cash flows to the carrying value of the long lived assets to determine if an impairment has occurred. In the event that an impairment has occurred, the Company recognizes the impairment immediately.

The Company accounts for income taxes in accordance with Accounting Standards Codification 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. The Company uses historical experience to determine the likely-hood of realization of deferred tax liabilities and assets.

Revenue Recognition

The Company recognizes revenue from the sale of new natural gas engines and components to convert existing diesel engines to natural gas engines. Revenue is recognized upon shipment of the products, and when collection is reasonably assured.

Accounting for 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 March 31, 2013, the Company had no accrued interest or penalties related to uncertain tax positions.

Page 10

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 2007.

At March 31, 2013, the Company had net operating loss carry forwards of approximately $1,312,703 through 2034. No tax benefit has been reported in the March 31, 2013 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carry forwards may be limited as to use in future years.

Recently Issued 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.

ITEM 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 4.                      CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit to the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission’s rules and forms, and that information is accumulated and communicated to our management, including our principal executive and principal financial officer (whom we refer to in this periodic report as our Certifying Officer), as appropriate to allow timely decisions regarding required disclosure.

Our management evaluated, with the participation of our Certifying Officer, the effectiveness of our disclosure controls and procedures as of March 31, 2013, pursuant to Rule 13a-15(b) under the Securities Exchange Act. Based upon that evaluation, our Certifying Officer concluded that, as of March 31, 2013, our disclosure controls and procedures were effective.

Changes in Internal Controls

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the quarter ended March 31, 2013  that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Page 11

PART II - OTHER INFORMATION

ITEM 1.                      LEGAL PROCEEDINGS

We are not a party to any pending legal proceedings. The Company is not aware of any federal, state or local governmental agency presently contemplating any proceeding against the Company. No director, executive officer or affiliate of the Company or owner of record or beneficially of more than five percent of the Company's common stock is a party adverse to the Company or has a material interest adverse to the Company in any proceeding.

ITEM 1A.                      RISK FACTORS

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

ITEM 2.                      UNREGISTERED SALE OF EQUITY SECURITIES AND USE OF PROCEEDS

None

ITEM 3.                       DEFAULTS UPON SENIOR SECURITIES

None

ITEM 5.                      OTHER INFORMATION

None

Page 12

ITEM 6.                      EXHIBITS

(a)           Documents filed as part of this Report.

1.           Financial Statements.  The condensed unaudited Balance Sheet of Omnitek Engineering Corp. as of March 31, 2013 and the audited balance sheet as of December 31, 2012, the condensed unaudited Statements of Operations for the three month periods ended March 31, 2013 and 2012, and the condensed unaudited Statements of Cash Flows for the three-month periods ended March 31, 2013 and 2012, together with the notes thereto, are included in this Quarterly Report on Form 10-Q.

3.           Exhibits. The following exhibits are either filed as a part hereof or are incorporated by reference. Exhibit numbers correspond to the numbering system in Item 601 of Regulation S-K.

Exhibit
Number	Description of Exhibit
31.1	CEO certification pursuant to Section 302 of  The Sarbanes – Oxley Act of 2002 (1)
31.2	CFO certification pursuant to Section 302 of  The Sarbanes – Oxley Act of 2002 (1)
32.1	CEO and CFO certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (1)
101	The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2013 formatted in Extensible Business Reporting Language (“XBRL”): (i) the balance sheets (unaudited) ; (ii) the statements of operations (unaudited); (iii) the statements of cash flows (unaudited); and, (iv) related notes. (2)

(1) Filed herewith

(2) Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files submitted under Exhibit 101 are not deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liability of that Section. Such exhibit shall not be deemed incorporated into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934.

Page 13

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	Omnitek Engineering Corp.
Dated: May 15, 2013
		By: Werner Funk
		Its: President and Secretary

Dated: May 15, 2013	/s/ Janice M. Quigley
	By: Janice M. Quigley
	Its: Chief Financial Officer

Page 14

EX-31.01

Exhibit 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO RULE 13a-14

I, Werner Funk, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Omnitek Engineering Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have, for the small business issuer and have:

(a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)           Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)         Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)         Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and

5.    I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a)         All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b)         Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Date: May 15, 2013
	By:	Werner Funk
	Its:	President and Secretary

EX-31.02

Exhibit 31.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO RULE 13a-14

I, Janice M. Quigley, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Omnitek Engineering Corp.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have, for the small business issuer and have:

(a)         Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under my supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 (b)         Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)         Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and,

(d)         Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the small business issuer’s  internal control over financial reporting; and,

5.    I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

  (a)         All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and,

 (b)        Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

Date: May 15, 2013	/s/ Janice M. Quigley
	By:	Janice M. Quigley
	Its:	Chief Financial Officer

EX-32.01

Exhibit 32.01

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Omnitek Engineering Corp. (the “Company”) on Form 10-Q for the period ending March 31, 2013 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Werner Funk, Chief Executive Officer and I, Janice M. Quigley, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(1)          The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)          The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

Dated: May 15, 2013
	By: Werner Funk
	Its: President and Secretary

Dated: May 15, 2013	/s/ Janice M. Quigley
	By: Janice M. Quigley
	Its: Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Note 4 - Stock Options and Warrants (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Common Stock, shares issued	19,749,582	19,749,582
Stock Issued During Period, Shares, Employee Stock Purchase Plans	0
Share-based Compensation	$ 38,350	$ 15,450
2006 Long Term Incentive Plan
Shares Held in Employee Stock Option Plan, Allocated	10,000,000
Common Stock, shares issued	3,160,000

XML

Note 4 - Stock Options and Warrants

3 Months Ended

Mar. 31, 2013

Notes

Note 4 - Stock Options and Warrants

NOTE 4 - STOCK OPTIONS AND WARRANTS

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 March 31, 2013 the Company has a total of 3,160,000 options issued under the plan. During the three months ended March 31, 2013 the Company issued -0- options and warrants.

During the three months ended March 31, 2013 and 2012, the Company recognized expense of $38,350 and $15,450, respectively, for options and warrants that vested during the periods pursuant to ASC Topic 718.

A summary of the status of the options and warrants outstanding at March 31, 2013 and December 31, 2012 and changes during the periods then ended is presented below:

	March 31,		December 31,
	2013		2012
		Weighted-Average		Weighted-Average
	Shares	Exercise Price	Shares	Exercise Price
Outstanding at beginning of year	6,085,313	$2.29	2,820,000	$0.73
Granted	-	-	3,265,313	3.64
Exercised	-	-	-	-
Expired or cancelled	-	-	-	-
Outstanding at end of year	6,085,313	2.29	6,085,313	2.29
Exercisable	5,639,063	$2.11	5,612,813	$2.09

Range of Exercise Prices	Number Outstanding	Weighted-Average Remaining Contractual Life	Number Exercisable	Weighted-Average Exercise Price
$0.01-0.50	200,000	1.53 years	200,000	$0.38
$0.51-0.75	1,580,000	1.60 years	1,580,000	0.63
$0.76-1.00	1,040,000	1.61 years	1,040,000	0.94
$1.01-2.00	90,000	4.34 years	50,000	1.79
$2.01-3.00	455,000	6.31 years	48,750	2.57
$3.01-4.00	2,720,313	4.02 years	2,720,313	3.88
$0.01-4.00	6,085,313	3.08 years	5,639,063	$2.27

XML

Note 3 - Related Party Transactions

3 Months Ended

Mar. 31, 2013

Notes

Note 3 - Related Party Transactions

NOTE 3 - RELATED PARTY TRANSACTIONS

Accounts Receivable – Related Parties

The Company holds a non-controlling interest in various distributors in exchange for use of the Company’s name and logo. As of December 31, 2012, the Company owned a 15% interest in Omnitek Engineering Thailand Co. Ltd., a 20% interest in Omnitek Peru S.A.C., and a 5% interest in Omnitek Stationary, Inc.  As of March 31, 2013 and December 31, 2012, the Company was owed $4,389 and $26,455, 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 March 31, 2013 and December 31, 2012, the Company owed related parties for such expenses, goods and services in the amounts of $(2,298) and $-0-, respectively.

Accrued Expenses – Related Parties

During the periods ended March 31, 2013 and December 31, 2012, related parties were due amounts for services performed for the Company.  As of March 31, 2013 and December 31, 2012 the related parties’ payables consisted of the following:

	March 31, 2013	December 31, 2012
Amounts due to the president	$182,628	$197,398
Amounts due to other officers of the company	67,319	67,319
Total	$249,947	$264,717

XML

Condensed Balance Sheets (USD $)	Mar. 31, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash	$ 2,561,017	$ 3,192,761
Accounts receivable, net	48,597	120,547
Accounts receivable -related party	4,389	26,455
Inventory	1,354,846	1,133,595
Prepaid expense	18,000	7,440
Deposits	369,133	331,760
Short-term investments, net	253,615
Total Current Assets	4,609,597	4,812,558
FIXED ASSETS, net	59,610	14,560
OTHER ASSETS
Long-term investments, net	937,883	1,201,671
Intellectual property, net	4,518	5,218
Total Other Assets	942,401	1,206,889
TOTAL ASSETS	5,611,608	6,034,007
CURRENT LIABILITIES
Accounts payable and accrued expenses	95,494	317,106
Accrued compensation - related parties	249,947	264,717
Accounts payable - related parties	(2,298)
Customer deposits	212,460	184,109
Total Current Liabilities	555,603	765,932
Total Liabilities	555,603	765,932
STOCKHOLDERS' EQUITY
Common stock, 125,000,000 shares authorized no par value 19,749,582 and 19,749,582 shares issued and outstanding, respectively	8,196,061	8,196,061
Additional paid-in capital	4,905,519	4,867,169
Accumulated deficit	(8,045,575)	(7,795,155)
Total Stockholders' Equity	5,056,005	5,268,075
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 5,611,608	$ 6,034,007

XML

Note 1 - Condensed Financial Statements

3 Months Ended

Mar. 31, 2013

Notes

Note 1 - 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 March 31, 2013, 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, 2012 audited financial statements.  The results of operations for the periods ended March 31, 2013 and 2012 are not necessarily indicative of the operating results for the full years.

XML

Note 2 - Significant Accounting Policies: Held To Maturity Investments (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Investment premium amortization	$ 36,725
Short-Term Cost Basis
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	253,615
Long-Term Cost Basis
Held-to-maturity Securities, Amortized Cost before Other than Temporary Impairment	$ 937,883

XML

Note 3 - Related Party Transactions: Schedule of Related Party Transactions (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Details
Amounts due to the president	$ 182,628	$ 197,398
Amounts due to other officers of the company	67,319	67,319
Accrued compensation - related parties	$ 249,947	$ 264,717

XML

Note 2 - Significant Accounting Policies

3 Months Ended

Mar. 31, 2013

Notes

Note 2 - Significant Accounting Policies

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 Vista, California at March 31, 2013 and San Marcos, California at December 31, 2012 consisted of the following:

	March 31,	December 31,
Location : Vista and San Marcos, CA respectively	2013	2012
Raw materials	$1,432,710	$806,700
Finished goods	549,665	684,273
In transit	-	270,151
Allowance for obsolete inventory	(627,529)	(627,529)
Total	$1,354,846	$1,133,595

The Company has established an allowance for obsolete inventory.  Expense for obsolete inventory was $-0- and $-0-, for the periods ended March 31, 2013 and December 31, 2012, respectively.

Property and Equipment

Property and equipment at March 31, 2013 and December 31, 2012 consisted of the following:

	March 31,	December 31,
	2013	2012
Production equipment	$53,822	$14,814
Computers/Office equipment	3,717	-
Tooling equipment	10,020	5,300
Less: accumulated depreciation	(7,949)	(5,554)
Total	$59,610	$14,560

Depreciation expense for the years ended March 31, 2013 and December 31, 2012 was $2,395 and $3,250, respectively.

Basic and Diluted Loss per Share

The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 1,749,582 and 2,169,855 stock options and warrants that would have been included in the fully diluted earnings per share as of March 31, 2013 and December 31, 2012, respectively.  However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti dilutive.

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 March 31, 2013 and December 31, 2012 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 2007.

Held to Maturity Investments

During the three months ended June 30, 2012, the Company purchased various corporate bonds. The Company intends to hold the bonds to maturity. Accordingly, the Company has recorded and is amortizing the premium on the bonds over the remaining life. As of March 31, 2013, the Company has amortized $36,725 of the premium leaving an amortized short-term cost basis remaining of $253,615 and long-term cost basis remaining of $937,883.

XML

Condensed Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Statement of Financial Position
Common Stock, par or stated value	$ 0	$ 0
Common Stock, shares authorized	125,000,000	125,000,000
Common Stock, shares issued	19,749,582	19,749,582
Common Stock, shares oustanding	19,749,582	19,749,582

XML

Note 2 - Significant Accounting Policies: Inventory: Schedule of Inventory, Current (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Details
Inventory, Raw Materials, Gross	$ 1,432,710	$ 806,700
Inventory, Finished Goods, Gross	549,665	684,273
Other Inventory, in Transit, Gross		270,151
Inventory Valuation Reserves	(627,529)	(627,529)
Inventory	$ 1,354,846	$ 1,133,595

XML

Document and Entity Information	3 Months Ended
	Mar. 31, 2013	May 08, 2013
Document and Entity Information
Entity Registrant Name	OMNITEK ENGINEERING CORP.
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Entity Central Index Key	0001404804
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		19,749,582
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	2013
Document Fiscal Period Focus	Q1

XML

Note 2 - Significant Accounting Policies: Inventory (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Details
Inventory Write-down	$ 0	$ 0

XML

Condensed Statements of Operations (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income Statement
REVENUES	$ 349,329	$ 306,369
COST OF GOODS SOLD	204,085	200,612
GROSS MARGIN	145,244	105,757
OPERATING EXPENSES
General and administrative	352,305	237,323
Research and development expense	50,359	28,894
Depreciation and amortization expense	13,270	1,457
Total Operating Expenses	415,934	267,674
LOSS FROM OPERATIONS	(270,690)	(161,917)
OTHER INCOME (EXPENSE)
Interest expense		(408)
Interest income	21,070
Total Other Income (Expense)	21,070	(408)
LOSS BEFORE INCOME TAXES	(249,620)	(162,325)
INCOME TAX EXPENSE	800	800
NET LOSS	$ (250,420)	$ (163,125)
BASIC AND DILUTED LOSS PER SHARE	$ (0.01)	$ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	19,749,582	17,196,734

XML

Note 2 - Significant Accounting Policies: Inventory: Schedule of Inventory, Current (Tables)

3 Months Ended

Mar. 31, 2013

Tables/Schedules

Schedule of Inventory, Current

	March 31,	December 31,
Location : Vista and San Marcos, CA respectively	2013	2012
Raw materials	$1,432,710	$806,700
Finished goods	549,665	684,273
In transit	-	270,151
Allowance for obsolete inventory	(627,529)	(627,529)
Total	$1,354,846	$1,133,595

XML

Note 2 - Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

Policies

Use of Estimates

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

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

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 Vista, California at March 31, 2013 and San Marcos, California at December 31, 2012 consisted of the following:

	March 31,	December 31,
Location : Vista and San Marcos, CA respectively	2013	2012
Raw materials	$1,432,710	$806,700
Finished goods	549,665	684,273
In transit	-	270,151
Allowance for obsolete inventory	(627,529)	(627,529)
Total	$1,354,846	$1,133,595

The Company has established an allowance for obsolete inventory.  Expense for obsolete inventory was $-0- and $-0-, for the periods ended March 31, 2013 and December 31, 2012, respectively.

Property and Equipment

Property and Equipment

Property and equipment at March 31, 2013 and December 31, 2012 consisted of the following:

	March 31,	December 31,
	2013	2012
Production equipment	$53,822	$14,814
Computers/Office equipment	3,717	-
Tooling equipment	10,020	5,300
Less: accumulated depreciation	(7,949)	(5,554)
Total	$59,610	$14,560

Depreciation expense for the years ended March 31, 2013 and December 31, 2012 was $2,395 and $3,250, respectively.

Basic and Diluted Loss Per Share

Basic and Diluted Loss per Share

The computation of basic earnings per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings per share includes common stock equivalents outstanding at the balance sheet date. The Company had 1,749,582 and 2,169,855 stock options and warrants that would have been included in the fully diluted earnings per share as of March 31, 2013 and December 31, 2012, respectively.  However, the common stock equivalents were not included in the computation of the loss per share computation because they are anti dilutive.

Income Taxes

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 March 31, 2013 and December 31, 2012 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 2007.

Held To Maturity Investments

Held to Maturity Investments

During the three months ended June 30, 2012, the Company purchased various corporate bonds. The Company intends to hold the bonds to maturity. Accordingly, the Company has recorded and is amortizing the premium on the bonds over the remaining life. As of March 31, 2013, the Company has amortized $36,725 of the premium leaving an amortized short-term cost basis remaining of $253,615 and long-term cost basis remaining of $937,883.

XML

Note 3 - Related Party Transactions (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Accounts receivable -related party	$ 4,389	$ 26,455
Accounts Payable, Related Parties, Current	$ (2,298)	$ 0
Omnitek Engineering Thailand Co Ltd
Noncontrolling Interest, Ownership Percentage by Parent		15.00%
Omnitek Peru SAC
Noncontrolling Interest, Ownership Percentage by Parent		20.00%
Omnitek Stationary, Inc.
Noncontrolling Interest, Ownership Percentage by Parent		5.00%

XML

Note 2 - Significant Accounting Policies: Property and Equipment: Property, Plant and Equipment (Details) (USD $)	Mar. 31, 2013	Dec. 31, 2012
Property, Plant, and Equipment, Owned, Accumulated Depreciation	$ (7,949)	$ (5,554)
FIXED ASSETS, net	59,610	14,560
Other Machinery and Equipment
Property, Plant and Equipment, Other, Gross	53,822	14,814
Computer Equipment
Property, Plant and Equipment, Other, Gross	3,717
Tools, Dies and Molds
Property, Plant and Equipment, Other, Gross	$ 10,020	$ 5,300

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Note 4 - Stock Options and Warrants: Schedule of Stockholders Equity (Tables)

3 Months Ended

Mar. 31, 2013

Tables/Schedules

Schedule of Stockholders Equity

	March 31,		December 31,
	2013		2012
		Weighted-Average		Weighted-Average
	Shares	Exercise Price	Shares	Exercise Price
Outstanding at beginning of year	6,085,313	$2.29	2,820,000	$0.73
Granted	-	-	3,265,313	3.64
Exercised	-	-	-	-
Expired or cancelled	-	-	-	-
Outstanding at end of year	6,085,313	2.29	6,085,313	2.29
Exercisable	5,639,063	$2.11	5,612,813	$2.09

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Note 2 - Significant Accounting Policies: Property and Equipment: Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2013

Tables/Schedules

Property, Plant and Equipment

	March 31,	December 31,
	2013	2012
Production equipment	$53,822	$14,814
Computers/Office equipment	3,717	-
Tooling equipment	10,020	5,300
Less: accumulated depreciation	(7,949)	(5,554)
Total	$59,610	$14,560

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Note 3 - Related Party Transactions: Schedule of Related Party Transactions (Tables)

3 Months Ended

Mar. 31, 2013

Tables/Schedules

Schedule of Related Party Transactions

	March 31, 2013	December 31, 2012
Amounts due to the president	$182,628	$197,398
Amounts due to other officers of the company	67,319	67,319
Total	$249,947	$264,717

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Note 4 - Stock Options and Warrants: Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Tables)

3 Months Ended

Mar. 31, 2013

Tables/Schedules

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range

Range of Exercise Prices	Number Outstanding	Weighted-Average Remaining Contractual Life	Number Exercisable	Weighted-Average Exercise Price
$0.01-0.50	200,000	1.53 years	200,000	$0.38
$0.51-0.75	1,580,000	1.60 years	1,580,000	0.63
$0.76-1.00	1,040,000	1.61 years	1,040,000	0.94
$1.01-2.00	90,000	4.34 years	50,000	1.79
$2.01-3.00	455,000	6.31 years	48,750	2.57
$3.01-4.00	2,720,313	4.02 years	2,720,313	3.88
$0.01-4.00	6,085,313	3.08 years	5,639,063	$2.27

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Note 2 - Significant Accounting Policies: Basic and Diluted Loss Per Share (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Details
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,749,582	2,169,855

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Note 4 - Stock Options and Warrants: Schedule of Stockholders Equity (Details) (USD $)	12 Months Ended
	Dec. 31, 2012	Mar. 31, 2013	Dec. 31, 2011
Details
Options, Outstanding	2,820,000	6,085,313
Options, Outstanding, Weighted Average Exercise Price	$ 0.73	$ 2.29
Options, Grants in Period	3,265,313
Options, Granted, Weighted Average Exercise Price	$ 3.64
Options, Outstanding	6,085,313	6,085,313
Options, Outstanding, Weighted Average Exercise Price	$ 2.29	$ 2.29
Options, Exercisable	5,639,063		5,612,813
Options, Exercisable, Weighted Average Exercise Price	$ 2.11		$ 2.09

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Condensed Statements of Cash Flows (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
OPERATING ACTIVITIES
Net loss	$ (250,420)	$ (163,125)
Adjustments to reconcile net loss to net cash used by operating activities:
Amortization and depreciation expense	3,095	1,457
Amortization of premium on long-term investments	6,881
Amortization of premium on short-term investments	3,292
Options and warrants granted	38,350	15,450
Changes in operating assets and liabilities:
Accounts receivable	71,950	(42,301)
Accounts receivable-related parties	22,066	16,715
Deposits	(37,373)	(43,250)
Prepaid Expense	(10,560)	837
Inventory	(221,251)	58,526
Accounts payable and accrued expenses	(221,612)	72,791
Customer deposits	28,351	32,984
Accounts payable-related parties	(2,298)	10,764
Accrued compensation-related parties	(14,770)	(4,110)
Net Cash Used in Operating Activities	(584,299)	(43,262)
INVESTING ACTIVITIES
Purchase of property and equipment	(47,445)
Net Cash Used in Investing Activities	(47,445)
FINANCING ACTIVITIES
Issuance of common stock for cash		20,000
Note Payable		40,000
Net Cash Provided by Financing Activities		60,000
NET DECREASE IN CASH	(631,744)	16,738
CASH AT BEGINNING OF YEAR	3,192,761	31,196
CASH AT END OF PERIOD	2,561,017	47,934
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS
CASH PAID FOR: Interest		408
CASH PAID FOR: Income taxes	$ 800	$ 800

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Note 5 - Subsequent Events

3 Months Ended

Mar. 31, 2013

Notes

Note 5 - Subsequent Events

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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Note 4 - Stock Options and Warrants: Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
$0.01 - 0.50
Number Outstanding	200,000
Weighted-Average Remaining Contractual Life	1 year 6 months 11 days
Number Exercisable	200,000
Weighted-Average Exercise Price	$ 0.38
$0.51 - 0.75
Number Outstanding	1,580,000
Weighted-Average Remaining Contractual Life	1 year 7 months 6 days
Number Exercisable	1,580,000
Weighted-Average Exercise Price	$ 0.63
$0.76 - 1.00
Number Outstanding	1,040,000
Weighted-Average Remaining Contractual Life	1 year 7 months 10 days
Number Exercisable	1,040,000
Weighted-Average Exercise Price	$ 0.94
$1.01 - 2.00
Number Outstanding	90,000
Weighted-Average Remaining Contractual Life	4 years 4 months 2 days
Number Exercisable	50,000
Weighted-Average Exercise Price	$ 1.79
$2.01 - 3.00
Number Outstanding	455,000
Weighted-Average Remaining Contractual Life	6 years 3 months 22 days
Number Exercisable	48,750
Weighted-Average Exercise Price	$ 2.57
$3.01 - 4.00
Number Outstanding	2,720,313
Weighted-Average Remaining Contractual Life	4 years 7 days
Number Exercisable	2,720,313
Weighted-Average Exercise Price	$ 3.88
$0.01 - 4.00
Number Outstanding	6,085,313
Weighted-Average Remaining Contractual Life	3 years 29 days
Number Exercisable	5,639,063
Weighted-Average Exercise Price	$ 2.27

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Note 2 - Significant Accounting Policies: Property and Equipment (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Details
Depreciation	$ 2,395	$ 3,250