Business Description

Development of Business Omnitek Engineering, Corp., a California corporation, began operations on October 10, 2001, and was a spin-off from Nology Engineering, Inc., a manufacturer in the automotive aftermarket parts industry and the developer/manufacturer of the patented “HotWires” spark plug wires. Our business is located at 1345 Specialty Dr. #E, Vista, California, 92081, which consists of approximately 11,751 square feet of industrial space. Omnitek has never filed for bankruptcy and has never been subject to receivership or similar proceedings. Business of Issuer Omnitek develops and sells proprietary technology to convert diesel engines to an alternative fuel, new alternative fuel engines and complementary products. Omnitek products are available for stationary applications and the global transportation markets -- including light commercial vehicles, buses, heavy-duty trucks, as well as rail and marine applications. The technology can be applied for compressed natural gas (“CNG”), liquefied natural gas (“LNG”), renewable natural gas (“Biogas” or “RNG”), or Hydrogen (“H2”), as well as liquid petroleum gas (“Propane” or LPG”). Omnitek’s technology enables the conversion of most diesel engines to operate on alternative fuels at a cost lower than that required to purchase a new alternative fuel engine. Engine conversions in the United States are subject to U.S. Environmental Protection Agency (“EPA”) or California Air Resources Board (“CARB”) approvals. Engine conversions in certain foreign countries may require additional or different approvals. With fuel cost being the primary market driver, the Company anticipates the majority of its business will be generated in markets where diesel fuel is more expensive than gaseous fuels for the foreseeable future. Additionally, it is expected that the 200-nation “Paris Agreement on Climate Change” and other local regulations designed to lower air pollution, will further increase demand for Omnitek’s technology. Omnitek is able to also deliver complete new natural gas engines when local emission standards, or other conditions, require the use of new engines. Principal Products or Services. Omnitek’s current product line includes: · A kit for converting diesel engines to run on an alternative fuel; · New complete natural gas engines; · A high-pressure natural gas coalescing filter; and · Natural gas engine components. Conversion Kits - Omnitek offers a solution to convert most diesel engines to operate on an alternative fuel, including CNG, LNG, RNG, H2 or LPG. This product is packaged in kit form and is offered in two basic variations. One is designed to work on engines equipped with a turbocharger and the other is designed to work on engines without a turbocharger. Diesel engines have a service life of up to 20 years and require regular engine overhauls. A diesel engine conversion is not unlike an engine overhaul. Therefore, the Company’s engine conversion system enables a fleet to “overhaul/convert” its diesel engines into an alternative fuel during a regularly scheduled engine overhaul, thereby reducing overall operating costs and emissions. Diesel-to-natural gas engine conversions offer fleet operators the opportunity to secure their investment and capitalize on the long service life of diesel engines. Page 5 At this time the Company has received US, EPA approval for the Navistar DT466E and DT530E engine models, and a Certificate of Conformity for the Mack E7, Detroit Diesel Series 60 and Caterpillar 3406E/C15 engine models, as well as EURO VI certification from the European Union for the OT13 heavy-duty 13-liter natural gas engine. In addition to the Conversion Kits, Omnitek sells individual replacement parts for the conversion kits and a high-pressure natural gas coalescent filter. The key to the success of Omnitek’s technology is performance and reliability, which is achieved using the Company’s patented fuel-mixing device and an electronic control unit (ECU) which senses engine parameters in real time and instantly adjusts to deliver the correct amount of fuel and the correct ignition timing. Omnitek does not perform installations of the conversion kits directly, but rather trains dealers and sub-dealers around the world to perform the engine conversions using the Omnitek technology.…