OMTK 10-K & 10-Q changes, risk factors and insider trading

Russia’s military intervention in Ukraine in late February 2022, Ukraine’s widespread resistance, and the NATO led and United States coordinated economic, financial, communications, and other sanctions imposed by other countries have created significant political and economic world uncertainty. There is significant risk of expanded military confrontation between Russia and other countries, possibly including the United States. Current and likely additional international sanctions against Russia may contribute to higher costs, particularly for petroleum-based products. These and related actions, responses, and consequences that cannot now be predicted or controlled may contribute to world-wide economic reversals. In these circumstances, receipt of supplies and products may be interrupted or may be delayed or otherwise negatively impact our operations.

In early October,2024, Hamas launched assaults against Israeli citizens. Israel has responded aggressively with operations inside Gaza against Hamas. The foregoing events have cause substantial regional instability and world-wide political and economic uncertainty. There is significant risk of expanded military confrontation in the region and beyond, possibly including the United States. These and related actions, responses, and consequences cannot be predicted or controlled and may contribute to world-wide economic reversals. In these circumstances, receipt of supplies and products may be interrupted or may be delayed or otherwise negatively impact our operations.

Revenues were $1,019,726$1,449,950 for 20242025 compared with $1,055,314$1,019,726 in 2023,2024, aan decreaseincrease of $35,588,$430,224, or 3.4%. The Company’s revenues remained steady between 2024 and 2023.42%.

Total cost of goods soldwas decreased$897,425 toin 2025 Compared with $561,853 in 2024 from $644,660 in 2023,2024, for aan decreaseincrease of $82,807.$280,625. Gross margin was $457,873$552,525 in 20242025 compared with $410,654$457,873 in 2023.2024. Gross margin as a percentage of sales for 20242025 was 45 percent38% compared with 39 percent45% in 2023.2024.

Our operating expenses for 20242025 were $606,373$638,416 compared with $606,794$606,373 in 2023,2024, aan decreaseincrease of $421,$32,043, or 0.06%.5%. General and administrative expense for 20242025 was $532,721$566,152 compared with $537,473$532,721 in 2023.2024. Major components of general and administrative expenses in 20242025 were insurance expense of $63,971,$69,261 rent expense of $43,038$41,720 and salary and wages of $219,981.$214,825. This compares with insurance expense of $53,056,$63,971 rent expense of $43,298,$43,038, and salary and wages of $225,609$219,981 in 2023.2024. Research and development outlays were $70,323$68,407 in 20242025 compared with $67,576$70,323 in 2023. The increase in general and administrative expense was primarily due to increase in litigation expense.2024.

Our net income in 2025 was $273,639, or $0.01 per share, compared with a net loss in 2024 wasof $167,137, or ($0.01) per share, compared with $215,406, or ($0.01) per share, in 2023.2024. Additionally, operating loss for the year ended December 31, 20242025 was $148,500$85,891 compared with $196,140$148,500 for the year ended December 31, 2023.2024.

We realized positivenegative cash flow from operations of $244,348 for the year ended December 31, 2025, compared with positive cash flow of $30,077 for the year ended December 31, 2024, compared with positive cash flow of $17,211 for the year ended December 31, 2023.2024.

Included in the net lossincome of $167,137$273,639 for the year ended December 31, 2024,2025, are non-cash expenses, which are not a drain on our capital resources. In 2024,2025, these non-cash expenses include the value of options and warrants granted in the amount of $5,363$4,488 and depreciation and amortization of $3,329.$3,857.