Capstone Companies Files Q3 2024 10-Q

TL;DR

CAPSTONE COMPANIES (CAPC) FILED ITS Q3 10-Q. FINANCIALS AND OPERATIONS DETAILED.

AI Summary

Capstone Companies, Inc. filed its 10-Q for the period ending September 30, 2024. The filing details financial performance and operational updates for the third quarter. Specific financial figures and strategic developments are outlined within the report.

Why It Matters

This filing provides investors and analysts with the latest financial health and operational status of Capstone Companies, Inc., crucial for understanding its current market position and future prospects.

Risk Assessment

Risk Level: medium — The company's financial performance and strategic decisions detailed in the 10-Q carry inherent risks associated with market conditions and business operations.

Key Numbers

• 2024-09-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial information is reported.)
• 2024-11-14 — Filing Date (The date the 10-Q report was officially submitted to the SEC.)

Key Players & Entities

• CAPSTONE COMPANIES, INC. (company) — Filer of the 10-Q report.
• 20240930 (date) — End of the reporting period for the 10-Q.
• 20241114 (date) — Date the 10-Q was filed.
• DEERFIELD BEACH, FL (location) — Business and mailing address of Capstone Companies, Inc.

FAQ

Filing Documents

• capc_10q.htm (10-Q) — 652KB
• ex31_1.htm (EX-31.1) — 10KB
• ex31_2.htm (EX-31.2) — 11KB
• ex32_1.htm (EX-32.1) — 6KB
• ex32_2.htm (EX-32.2) — 6KB
• 0001903596-24-000669.txt ( ) — 3255KB
• capc-20240930.xsd (EX-101.SCH) — 23KB
• capc-20240930_cal.xml (EX-101.CAL) — 33KB
• capc-20240930_def.xml (EX-101.DEF) — 92KB
• capc-20240930_lab.xml (EX-101.LAB) — 189KB
• capc-20240930_pre.xml (EX-101.PRE) — 154KB
• capc_10q_htm.xml (XML) — 439KB

Management's Discussion and Analysis of Financial

Management's Discussion and Analysis of Financial Condition and Results of Operation 21 Item 3.

Quantitative and Qualitative Disclosures about Market

Quantitative and Qualitative Disclosures about Market Risk 33 Item 4.

Controls and Procedures

Controls and Procedures 33 PART II Other Information 34 Item 1.

Legal Proceedings

Legal Proceedings 34 Item 1A.

Risk Factors

Risk Factors 34 Item 2. Unregistered Sale of Equity Securities and Use of Proceeds 35 Item 3. Defaults of Senior Securities 35 Item 4. Mine Safety Disclosures 35 Item 5. Other Information 35 Item 6. Exhibits 35 3 CAPSTONE COMPANIES, INC., AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS September 30, December 31, 2024 2023 Assets: (Unaudited) (audited) Current Assets: Cash $ 1,895 $ 36,466 Prepaid expenses 22,673 22,120 Due from affiliates 9,570 9,570 Total Current Assets 34,138 68,156 Property and equipment, net 32,228 42,970 Goodwill 1,312,482 1,312,482 Total Assets $ 1,378,848 $ 1,423,608 Liabilities and Stockholders' Equity: Current Liabilities: Accounts payable and accrued liabilities $ 1,014,660 $ 804,623 Accounts payable due to related party 47,899 — Notes payable related parties and accrued interest-current 2,105,186 1,946,315 Notes payable unrelated party and accrued interest-current 614,401 594,161 Total Current Liabilities 3,782,146 3,345,099 Long-Term Liabilities: Deferred tax liabilities -long-term 320,329 320,329 Total Long-Term Liabilities 320,329 320,329 Total Liabilities 4,102,475 3,665,428 Commitments and Contingencies: (Note 4) — — Stockholders' Equity: Preferred Stock, Series B-1, par value $ .0001 per share, authorized 5,000,000 shares, issued and outstanding- 15,000 shares at September 30, 2024, and December 31, 2023 (Liquidation Preference $ 15,000 ) 2 2 Preferred Stock, Series C, par value $ 1.00 per share, authorized 67 shares, issued and outstanding - 0 - shares — — Common Stock, par value $ .0001 per share, authorized 295,000,000 shares, issued and outstanding 48,826,864 shares at September 30, 2024 and December 31, 2023. 4,884 4,884 Additional paid-in capital 8,550,510 8,550,510 Accumulated deficit ( 11,279,023 ) ( 10,797,216 ) Total Stockholders' Deficit ( 2,723,627 ) ( 2,241,820 ) Total Liabiliti

Business

Business The Company has generated revenue from developing, marketing and selling consumer products through national and regional retailers. The Company's products are targeted for applications such as home indoor and outdoor lighting as well as Internet-of-Thing devices and will have different functionalities. Capstone operated in the consumer electronic products category in the Unites States and in specific overseas markets. These products were offered either under the Capstone brand or a private brand. The Company does not have a product line that is generating revenues as of the date of the filing of this Form 10-Q. A sales contract occurs when the customer-retailer submits a purchase order to buy a specific product, a specific quantity, at an agreed-fixed price, within a ship window, from a specific location and on agreed payment terms. The selling price in all of our customers' orders has been previously negotiated and agreed to including any applicable discount prior to receiving the customer's purchase order. The 11 With respect to its former consumer products business, the Company recognized lighting product revenue when the Company's performance obligations as per the terms in the customers purchase order have been fully satisfied, specifically, when the specified product and quantity ordered has been manufactured and shipped pursuant to the customers requested ship window, when the sales price as detailed in the purchase order is fixed, when the product title and risk of loss for that order has passed to the customer, and collection of the invoice is reasonably assured. This means that the product ordered and to be shipped has gone through quality assurance inspection, customs and commercial documentation preparation, the goods have been delivered, title transferred to the customer and confirmed by a signed cargo receipt or bill of lading.

View Full Filing

View this 10-Q filing on SEC EDGAR