Capstone Companies, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Capstone Companies, Inc. has filed its 2023 10-K report detailing financial performance and asset information.</b>

AI Summary

CAPSTONE COMPANIES, INC. (CAPC) filed a Annual Report (10-K) with the SEC on March 29, 2024. Capstone Companies, Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Florida and operates in the Electric Lighting & Wiring Equipment industry (SIC 3640). The filing includes detailed financial data for the fiscal years 2023, 2022, and 2021. Key financial statement items such as Common Stock, Additional Paid-In Capital, and Retained Earnings are reported for these periods. The report also details fixed asset categories including Computer Equipment, Machinery and Equipment, and Furniture and Fixtures.

Why It Matters

For investors and stakeholders tracking CAPSTONE COMPANIES, INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Capstone Companies, Inc.'s financial health and operational status for the fiscal year 2023, enabling investors to assess its performance and future prospects. The detailed breakdown of financial data and asset categories allows stakeholders to understand the company's financial position, including changes in equity and fixed assets over the past three fiscal years.

Risk Assessment

Risk Level: low — CAPSTONE COMPANIES, INC. shows low risk based on this filing. The filing is a standard annual report (10-K) and does not contain immediate red flags, indicating a routine disclosure of financial information.

Analyst Insight

Review the detailed financial statements and footnotes within the 10-K to understand Capstone Companies, Inc.'s revenue, expenses, and asset valuation for fiscal year 2023.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-29 — Filing Date (Date of submission)
• 3640 — SIC Code (Industry classification)
• 000-28831 — SEC File Number (SEC registration number)

Key Players & Entities

• CAPSTONE COMPANIES, INC. (company) — Filer name
• CAPC (company) — Ticker symbol
• 10-K (document) — Filing type
• 2024-03-29 (date) — Filing date
• 2023-12-31 (date) — Fiscal year end
• FL (location) — State of incorporation
• DEERFIELD BEACH (location) — Business address city
• CHDT CORP (company) — Former company name

FAQ

Industry Context

Capstone Companies, Inc. operates within the Electric Lighting & Wiring Equipment sector, a segment of the broader manufacturing industry.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Analyze the balance sheet for changes in assets, liabilities, and equity from FY2022 to FY2023.
2. Examine any disclosures related to fixed assets, including depreciation and additions/disposals.
3. Review the company's industry classification (SIC 3640) and compare its operations to industry peers if possible.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-29: Filing Date — Date Capstone Companies, Inc. submitted its 10-K report to the SEC.

Year-Over-Year Comparison

This is the initial analysis of the 2023 10-K filing; comparison to prior filings will require access to those documents.

Key Financial Figures

• $0.0001 — ection 12(g) of the Act: COMMON STOCK, $0.0001 PAR VALUE Indicate by check mark if t

Filing Documents

• capc_10k.htm (10-K) — 1455KB
• ex4_6.htm (EX-4.6) — 11KB
• ex10_02.htm (EX-10.02) — 0KB
• ex21_1.htm (EX-21.1) — 2KB
• ex31_1.htm (EX-31.1) — 9KB
• ex31_2.htm (EX-31.2) — 9KB
• ex32_1.htm (EX-32.1) — 4KB
• ex32_2.htm (EX-32.2) — 5KB
• capc_1.jpg (GRAPHIC) — 124KB
• capc_3.jpg (GRAPHIC) — 4KB
• capc_5.jpg (GRAPHIC) — 61KB
• capc_7.jpg (GRAPHIC) — 14KB
• ex10_1-001.jpg (GRAPHIC) — 256KB
• image_001.jpg (GRAPHIC) — 2KB
• 0001903596-24-000189.txt (&nbsp;) — 5985KB
• capc-20231231.xsd (EX-101.SCH) — 31KB
• capc-20231231_cal.xml (EX-101.CAL) — 42KB
• capc-20231231_def.xml (EX-101.DEF) — 77KB
• capc-20231231_lab.xml (EX-101.LAB) — 249KB
• capc-20231231_pre.xml (EX-101.PRE) — 190KB
• capc_10k_htm.xml (XML) — 791KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 18 Item 1B. Unresolved Staff Comments 28 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 28 Item 3. Legal Proceedings 29 Item 4. Mine Safety Disclosures (Not Applicable) 29 Part II 29 Item 5. Market for Registrants Common Equity and Related Stockholder Matters 29 Item 6. [RESERVED] 30 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operation 30 Item 7A. Quantitative and Qualitative Disclosures About Market Risk (Not Applicable) 40 Item 8.

Financial Statements and

Financial Statements and Supplementary Data 40 Item 9. Change in and Disagreements with Accountants on Accounting and Financial Disclosure 40 Item 9A.

Controls and Procedures

Controls and Procedures 40 Item 9B. Other Information 42 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 42 Part III 42 Item 10. Directors, Executive Officers and Corporate Governance 42 Item 11.

Executive Compensation

Executive Compensation 49 Item 12.

Security Ownership of Certain

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 54 Item 13. Certain Relationships and Related Transactions, and Director Independence 56 Item 14. Principal Accounting Fees and Services 57 Part IV 58 Item 15. Exhibits, Financial Statement Schedules 58 Item 16. Form 10-K Summary 60 3 DEFINITIONS: As used in this Annual Report on Form 10-K, the following terms have the stated meaning or meanings: (1) "Capstone International Hong Kong Ltd" or "CIHK" is a wholly owned subsidiary of Capstone Companies, Inc. and a Hong Kong registered Company. (2) "Capstone Industries, Inc., a Florida corporation and a wholly owned subsidiary of CAPC, may also be referred to as "CAPI" or "Capstone". (3) "Capstone Companies, Inc.," a Florida corporation, may also be referred to as "we," "us" "our," "Company," or "CAPC". Unless the context indicates otherwise, "Company" includes in its meaning all of Capstone Companies, Inc. Subsidiaries. (4) "China" means People's Republic of China. (5) References to "33 Act" or "Securities Act" means the Securities Act of 1933, as amended. (6) References to "34 Act" or "Exchange Act" means the Securities Exchange Act of 1934, as amended. (7) "SEC" or "Commission" means the U.S. Securities and Exchange Commission. (9) "Subsidiaries" means Capstone Industries, Inc. ("CAPI"), Capstone International H.K Ltd., ("CIHK"). (10) Any reference to fiscal year in this Annual Report on Form 10-K means our fiscal year, ending December 31 st . (11) "LED" or "LED's" means a light-emitting diode component(s) which can be assembled into light bulbs or can be used in lighting fixtures. (12) "OEM" means "original equipment manufacturer." (13) "Connected Surfaces" or "Connected Products" means smart home devices with embedded sensors that provide communication and data transfer between the Connected Surface and internet-enabled systems of the Company or associated third

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS This Form 10-K report contains "forward-looking regarding the intent, belief and current expectations of the Company, its directors or its officers, with respect to: Company's future business and financial prospects and ability to sustain operations; the development and commercialization of new products; the Company's policies regarding investments, dispositions, financings, conflicts of interest and other matters; and trends affecting the Company's financial condition or results of operations. Forward looking statements include words like "expect," "anticipate," "hope," "project," "may," "should," "could," or similar words or variants thereof. Any forward-looking statement is not a guarantee of future performance and involves several risks and uncertainties. Actual results may differ materially from those results implied in the forward-looking statement as a result of various factors, some factors being beyond the Company's control or ability to foresee. Among the factors that could cause plans, actions and results to differ materially from current expectations are, without limitation: disruption from natural or human causes, including severe weather, accidents, fires, earthquakes, terrorist acts and epidemic or pandemic diseases, such as the COVID-19 pandemic. The accompanying information contained in this Form 10-K report, including the "Management's Discussion and Analysis of Results of Operations and Financial Condition" and "Risk Factors" identifies other important factors that could cause such differences. With respect to any forward-looking statement that includes a statement of its underlying assumptions or bases, the Company cautions that, while it believes such assumptions or bases to be reasonable and has formed them in good faith, assumed facts or bases almost always vary from actual results, and th

Business

Item 1. Business Overview Capstone Companies, Inc. ("Company" or "CAPC") is a public holding company organized under the laws of the State of Florida. The Company is a designer, manufacturer and marketer of consumer products that are designed to simplify daily living through technology. As of the date of the filing of this Form 10-K report, the Company does not have a current product that is being actively produced or is in production. The Company's former product line, LED consumer lighting products, matured in 2022 and is no longer in production. The Company's efforts to develop Connected Surface consumer products, specifically a Smart Mirror for residential use, as a new product line did not succeed in attracting sufficient revenues to be a sustainable product line. The inability of the Smart Mirrors to become a viable revenue source was due, in part, to delays in production and launch due to COVID 19 pandemic, changes in consumer preferences in the smart mirror market in the U.S., unwillingness of brick-and-mortar retailers that purchased the LED products in bulk to purchase the Smart Mirrors, and established competition in the smart mirror market from companies with greater brand recognition and marketing resources than the Company. The e-commerce initiatives of the Company did not spur significant sales of the Smart Mirror products and all inventory was written off as expensed as of December 31, 2023. During 2023, the Company developed a Connected Surface Chef kitchen utility tablet, the "Connected Chef". The Connected Chef, a purpose-built kitchen tablet with an accessory platform to accommodate food prep accessories such as a cutting board. The Connected Chef has Google mobile service allowing for pre-installation of specific Google applications including Playstore, voice assistant and YouTube to name those highly recognized. The Connected Chef was ready for formal introduction in quarter four of 2023, and Management is actively marketing the Connected

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View this 10-K filing on SEC EDGAR