Contacts

Company:

Aimee C. Brown

Corporate Secretary

(954) 252-3440, ext. 313

Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer, manufacturer and marketer of consumer inspired products that simplify daily living through technology reported its first quarter 2021 financial results.

Gerry McClinton, Capstone’s Chief Financial Officer, commented, “With equity funding now in place, we can focus on the Smart Mirror rollout, inventory build and social media expansion.”

Stewart Wallach, Capstone’s Chairman and Chief Executive Officer, added, “While financial performance has improved minimally as revenues increased, we will be updating our shareholder community on the progress of the Company’s Smart Mirror program which is its future core business.”

Webcast and Teleconference to Review Results and Outlook

Tuesday, May 18, 2021

10:30 a.m. Eastern Time

Phone: (201) 689-8562

Internet webcast link available at: www.capstonecompaniesinc.com

A telephonic replay will be available from 1:30 p.m. ET the day of the call until Tuesday, May 25, 2021. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13718602. Alternatively, the archive of the webcast will be available on the Company’s website at www.capstonecompaniesinc.com, along with a transcript once available.

About Capstone Companies, Inc.

Capstone Companies, Inc. is a public holding company that engages, through its wholly owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Ltd., in the development, manufacturing and marketing of consumer products to retail channels throughout North America and certain international markets.

Visit our websites; www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com and www.capstoneconnected.com for information on our current product offerings. Contents of referenced URL’s are not incorporated herein.

Forward Looking Statements. This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing Company’s views as of any subsequent date. Such forward-looking statements are based on information available to the Company as of the date of this press release and involve a number of risks and uncertainties, some beyond the Company’s control or ability to foresee, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including, including the impact of Coronavirus/COVID-19 pandemic on the Smart Mirror product line, any difficulty in marketing Company products in its target markets, competition in the market, and impact of evolving technologies in Smart Mirrors on Company’s prospects and products. Additional information that could lead to material changes in Company’s performance is contained in its filings with the Securities and Exchange Commission.

Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise. Any investment in the Company’s common stock, which is a “penny stock,” is highly risky and not suitable for investors who require liquidity and are unable to withstand the loss of their investment. Investors should only rely on public information in our filings with the SEC, especially disclosures of Risk Factors, as a basis for investment decisions about Company common stock. Company’s SEC filings can be accessed through SEC website: www.sec.gov or the corporate website listed below.

FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

December 31,

 

 

 

2021

 

 

2020

 

Assets:

 

(Unaudited)

 

 

 

 

Current Assets:

 

 

 

 

 

 

Cash

 

$

1,461,968

 

 

$

1,223,770

 

Accounts receivable, net

 

 

167,102

 

 

 

120,064

 

Inventories

 

 

8,775

 

 

 

8,775

 

Prepaid expenses

 

 

67,787

 

 

 

75,622

 

Income tax refundable

 

 

285,673

 

 

 

861,318

 

Total Current Assets

 

 

1,991,305

 

 

 

2,289,549

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

52,388

 

 

 

54,852

 

Operating lease – right of use asset

 

 

143,950

 

 

 

158,504

 

Deposit

 

 

25,560

 

 

 

25,560

 

Goodwill

 

 

1,312,482

 

 

 

1,312,482

 

Total Assets

 

$

3,525,685

 

 

$

3,840,947

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

971,366

 

 

$

825,690

 

Operating lease – current portion

 

 

64,967

 

 

 

63,307

 

Total Current Liabilities

 

 

1,036,333

 

 

 

888,997

 

 

 

 

 

 

 

 

 

 

Long-Term Liabilities:

 

 

 

 

 

 

 

 

Operating lease – long-term portion

 

 

90,882

 

 

 

107,690

 

Deferred tax liabilities-long-term

 

 

259,699

 

 

 

259,699

 

Total Long-Term Liabilities

 

 

350,581

 

 

 

367,389

 

Total Liabilities

 

 

1,386,914

 

 

 

1,256,386

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies (Note 5)

 

 

 

 

 

 

 

 

 

Stockholders' Equity:

 

 

 

 

 

 

 

 

Preferred Stock, Series A, par value $.001 per share, authorized 6,666,667 shares, issued -0- shares

 

 

-

 

 

 

-

 

Preferred Stock, Series B-1, par value $.0001 per share, authorized 3,333,333 shares, issued 15,000

shares at March 31, 2021

 

 

2

 

 

 

-

 

Preferred Stock, Series C, par value $1.00 per share, authorized 67 shares, issued -0- shares

 

 

-

 

 

 

-

 

Common Stock, par value $.0001 per share, authorized 56,666,667 shares, `outstanding 46,296,364

shares at March 31, 2021 and 46,296,364 shares at December 31, 2020

 

 

4,630

 

 

 

4,630

 

Additional paid-in capital

 

 

7,106,522

 

 

 

7,053,328

 

Accumulated deficit

 

 

(4,972,383

)

 

 

(4,473,397)

Total Stockholders' Equity

 

 

2,138,771

 

 

 

2,584,561

 

Total Liabilities and Stockholders’ Equity

 

$

3,525,685

 

 

$

3,840,947

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

 

 

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

 

March 31,

 

 

2021

 

 

2020

 

 

 

 

 

 

 

 

Revenues, net

 

$

438,423

 

 

$

148,977

 

Cost of sales

 

 

(309,776

)

 

 

(114,821

)

Gross Profit

 

 

128,647

 

 

34,156

 

 

 

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

 

 

Sales and marketing

 

 

4,180

 

 

 

211,973

 

Compensation

 

 

352,079

 

 

 

376,675

 

Professional fees

 

 

127,224

 

 

 

130,530

 

Product development

 

 

26,892

 

 

 

51,614

 

Other general and administrative

 

 

103,122

 

 

 

144,366

 

Goodwill impairment charge

 

 

-

 

 

 

290,059

 

Total Operating Expenses

 

 

613,497

 

 

 

1,205,217

 

 

 

 

 

 

 

 

 

 

Operating Loss

 

 

(484,850

)

 

 

(1,171,061

)

 

 

 

 

 

 

 

 

 

Other Income (Expense):

 

 

 

 

 

 

 

 

Other income

 

 

10,362

 

 

 

-

Other expense

 

 

(24,498

)

 

 

-

 

Net Other Income (Expense)

 

 

(14,136

)

 

 

-

 

 

 

 

 

 

 

 

 

 

Loss Before Tax Benefit

 

 

(498,986

)

 

 

(1,171,061

)

 

 

 

 

 

 

 

 

 

Benefit for Income Tax

 

 

-

 

 

(573,685

)

 

 

 

 

 

 

 

 

 

Net Loss

 

$

(498,986)

 

$

(597,376)

 

 

 

 

 

 

 

 

 

Net Loss per Common Share

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

(0.01)

 

$

(0.01)

 

 

 

 

 

 

 

 

 

Weighted Average Shares Outstanding

 

 

 

 

 

 

 

 

Basic and Diluted

 

46,296,364

 

 

 

46,463,365

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

 

 

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

 

FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND MARCH 31, 2020

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

Preferred Stock

 

Preferred Stock

 

 

 

Additional

 

 

 

 

 

 

Series A

 

Series B

 

Series C

 

Common Stock

 

Paid-In

 

Accumulated

 

Total

 

 

Shares

 

 

Par Value

 

Shares

 

Par Value

 

Shares

 

Par Value

 

Shares

 

Par Value

 

Capital

 

Deficit

 

Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2020

 

 

-

 

 

$

-

 

 

 

-

 

 

$

-

 

 

 

-

 

 

$

-

 

 

 

46,296,364

 

 

 

$4,630

 

 

 

$7,053,328

 

 

 

$(4,473,397)

 

 

 

$2,584,561

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock options for compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,200

 

 

 

-

 

 

 

4,200

 

Stock issued to Director’s for loan

 

 

-

 

 

 

-

 

 

 

15,000

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

48,994

 

 

 

-

 

 

 

48,996

 

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(498,986

)

 

 

(498,986

)

Balance at March 31, 2021

 

 

-

 

 

$

-

 

 

 

15,000

 

 

$

2

 

 

 

-

 

 

$

-

 

 

 

46,296,364

 

 

 

$4,630

 

 

 

$7,106,522

 

 

 

$(4,972,383)

 

 

 

$2,138,771

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2019

 

 

-

 

 

$

-

 

 

 

-

 

 

$

-

 

 

 

-

 

 

$

-

 

 

 

46,579,747

 

 

$4,658

 

 

$7,061,565

 

 

$(2,089,581)

 

 

$4,967,642

 

Stock options for compensation

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8,925

 

 

 

 

 

 

 

8,925

 

Repurchase of shares

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(283,383

)

 

 

(28

)

 

 

(36,305

)

 

 

-

 

 

 

(36,333

)

Net Loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(597,376

)

 

 

(597,376

)

Balance at March 31, 2020

 

 

-

 

 

$

-

 

 

 

-

 

 

$

-

 

 

 

-

 

 

$

-

 

 

 

46,296,364

 

 

$4,630

 

 

$7,034,185

 

 

$(2,686,957

)

 

$4,351,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

March 31,

 

 

 

2021

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss

 

$

(498,986

)

 

$

(597,376)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

2,464

 

 

 

6,074

 

Stock based compensation expense

 

 

4,200

 

 

 

8,925

 

Non-cash stock issued to Director’s for loan

 

 

24,498

 

 

 

-

 

Non-cash lease expense

 

 

14,554

 

 

 

13,583

 

Goodwill impairment charge

 

 

-

 

 

 

290,059

 

Provision for deferred income tax

 

 

-

 

 

 

172,287

Increase in accounts receivable, net

 

 

(47,038

)

 

 

(56,515)

Decrease in inventories

 

 

-

 

 

 

11,392

 

Decrease in prepaid expenses

 

 

32,333

 

 

 

42,199

 

Decrease in deposits

 

 

-

 

 

 

34,874

Increase in accounts payable and accrued liabilities

 

 

145,676

 

 

 

201,752

 

(Increase) decrease in income tax refundable

 

 

575,645

 

 

(745,972)

 

(Decrease) in operating lease liabilities

 

 

(15,148

)

 

 

(7,807)

 

Net cash provided by (used in) operating activities

 

 

238,198

 

 

(626,525)

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

-

 

 

(15,739)

 

Net cash used in investing activities

 

 

-

 

 

(15,739)

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Repurchase of shares

 

 

-

 

 

 

(36,333)

 

Net cash used in financing activities

 

 

-

 

 

(36,333)

 

 

 

 

 

 

 

 

 

Net Increase (decrease) in Cash

 

 

238,198

 

 

(678,597)

Cash at Beginning of Period

 

 

1,223,770

 

 

 

3,131,249

 

Cash at End of Period

 

$

1,461,968

 

 

$

2,452,652

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

 

 

 

 

 

 

 

 

Cash paid during the period for:

 

 

 

 

 

 

 

 

Interest

 

$

-

 

 

$

-

 

Income taxes

 

$

-

 

 

$

-

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Stocks issued to Directors for prepaid loan fee

 

$

24,498

 

 

$

-

 

The accompanying notes are an integral part of these condensed consolidated financial statements.