CAPSTONE COMPANIES INC
For the period ended Sep 30, 2024. Filed Nov 14, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 14, 2024
CAPCStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-13.
0001903596-24-000493
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-14.
0001903596-24-000669
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 180 previous paragraphs and 158 current paragraphs.
80 unchanged; 63 reworded; 15 added; 36 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 12 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (15)
Current report
Risk Factors affecting Efforts to Develop or Acquire a New Business Line
Current report
The appointment of the new management members under the MTA has not occurred as of the date of the filing of this Form 10-Q and there are no assurances that new management members will result in the development of a new business line for the Company or will enhance the ability or capabilities of the Company’s management to develop or acquire a new business line for the Company. The funding under the Note and the financial support of essential corporate overhead expenses of the Company under the MTA, if provided in accordance with the MTA, will allow the Company to continue efforts to develop a new business line. With significant financial support from Company’s Chief Executive Officer, who has been personally funding essential corporate overhead expenses in 2024, ending after October 2024, funding by Coppermine under the Note and MTA is the sole source of working capital funding for the Company as of the date of the filing of this Form 10-Q.
Current report
No assurances can be given that any new management members or funding by Coppermine will in fact result in a new business line for the Company or cover all future operating expenses of the Company. The financial commitment under the MTA extends only through the first fiscal quarter of 2025 and, if Coppermine does not provide additional funding after the first fiscal quarter of 2025, or the Company does not develop revenue generating operations prior to the end of the first fiscal quarter of 2025, then the Company will need to obtain a new source of working capital funding for operating expenses after the first fiscal quarter of 2025 in order to sustain operations and efforts to develop a new business line. The Company does not have an alternative source of working capital funding to funding by Coppermine.
Current report
Even if the Company locates a new business line to develop or acquire, the Company may lack the funding necessary to consummate the development or acquisition of a new business line. Further, the low market price of the Company’s Common Stock, the Company’s status as a penny stock company, the limited liquidity of the market for the Company’s Common Stock, the status of the Company as a company with no active operations as of the date of the filing of this Form 10-Q and the costs of and regulatory requirements for consummating an acquisition with a company with no active operations and the limited working capital funding available to the Company are factors adversely affecting the Company’s ability to develop or acquire a new business line.
Current report
If the Company does develop or acquire a new business line, that new business line may not generate revenues sufficient to sustain Company’s and new business line’s operations, may fail to achieve profitability, or may fail to attract sufficient funding to sustain or grow operations.
Current report
The Company intends to develop or acquire a new business line that is not involved in the production of consumer products that are discretionary purchases for consumers, which was the Company’s prior business line. The shift in focus is due to the low profit margins typically provided by those consumer products; the funding needed for developing, producing, warehousing and marketing those consumer products; the Company’s lack of an effective e-commerce operation and reliance on bulk orders by a limited number of retailers for those consumer products; and vulnerability of those consumer products to changing consumer preferences and retailers’ buying preferences.
Current report
General Risk Factors for Investment in Company’s Common Stock.
Current report
On October 31, 2024, the Company secured a working capital promissory note for $125,914, maturing July 31, 2025 accruing 7% interest per annum. For consideration for the working capital loan, the Company signed a Management Transition Agreement on October 31, 2024. This funding will not be used for promotion or launch of the Connected Chef.
Current report
Periodic Strategic Review
Current report
Sales and Marketing of Consumer Product Line
Current report
Competitive Conditions for Consumer Product Line
Current report
The Company did not engage in research, product development or manufacturing in the fiscal quarter ended September 30, 2024.
Current report
Raw Materials used for Consumer Products
Current report
There were no revenues for the three months ended September 30, 2024, a decrease of $64,000 or 100% from $64,000 in the same period 2023.
Removed paragraphs (36)
Previous report
The Company will require third party funding to cover operating overhead and to resume any future efforts to fund its marketing and product launch campaigns. Any future revenue or growth from a new product line, if any, will be directly impacted by the level of exposure, messaging and distribution capabilities as well as the Company’s ability to fund production, inventory and shipment. Certain members of the Company’s management (“Corporate Insiders and Directors”) have provided short-term funding to support the Company’s basic operational funding needs, but there is no guarantee that this funding will continue or be adequate to fund operations or fund any continued Connected Chef program marketing and any production and inventory if sales are pre-production orders are obtained. Funding would also be required to fund any modifications or enhancements to a new product line to meet consumer demand.
Previous report
As discussed above, if the Connected Surfaces program is not accepted by consumers, then the lack of revenue would have a material adverse effect on our business, financial condition, results of operations and liquidity.
Previous report
Subject to adequate funding and favorable cash flow from Connected Surfaces products, which has not been achieved, the Company is exploring various potential initiatives to execute its traditional organic growth strategy, which is designed to enhance its market presence, expand its customer base and maintain its recognition as an industry leader in new product development, and also alternative business lines and new product lines. Key elements of our traditional organic growth strategy include:
Previous report
Perceived or Essential Strengths
Previous report
The Company does not have a product line in production and generating revenues as of June 30, 2024. Prior to the maturing of the LED product line in 2021-2022, Capstone believes that the following competitive strengths have traditionally served to support its business strategies:
Previous report
In North America, the Company has been recognized for more than a decade as an innovator and highly efficient, low-cost manufacturer in several product niches. Capstone believes that its insight into the needs of retail programming and its proven execution track record with noted retailers globally positions it well for future growth.
Previous report
The Company’s chief executive officer has over three decades and has successfully built and managed other consumer product companies.
Previous report
In the past, the operating management’s experience in hardline product manufacturing has prepared the Company for successful entries into various consumer product markets, especially its experience in using foreign OEMs to provide capabilities not possessed internally by our company.
Previous report
Product Quality*:*With prior product lines, the Company has achieved high quality in product’s design and utility through a combination of sourcing quality components, stringent manufacturing quality control and conducting rigorous third-party testing. To deliver cost-competitive products without compromising quality standards, we leveraged purchasing volume and capitalize on strategic vendor relationships. If the Company can obtain the necessary funding to launch the Connected Chef product line, the Company believes that its traditional operating strengths will continue to benefit a new product line based on past performance. This assumption may prove misplaced when and if the Company achieves sufficient working capital to extensively market and produce the Connected Chef. The Company has no marketing studies to support an assumption about the appeal to consumers of the Connected Chef as a viable product line.
Previous report
Perceived Weaknesses
Previous report
The Company lacks a product line generating revenues sufficient to sustain operations. The Company’s lack of a product line generating sufficient revenue to support operations and lack of sufficient working capital funding have delayed the extensive marketing, beyond marketing efforts of Management, of its new proposed product line, The Connected Chef. The Company anticipates that it may need to locate third party funding to replace or supplement the funding being provided by the Company’s chief executive officer in order to sustain operations through fiscal year 2024.
Previous report
When the Company had a product line generating sufficient revenues and adequate working capital, the Company did not possess the business, marketing, technical and financial resources of larger or mid-sized competitors or the brand recognition, distribution channels or domestic and international markets of some of the larger competitors. The Company will face that same disadvantage with any new product line or new business line. The declining financial performance of the Company due to discontinuation of the LED lighting product line and failure of the Connected Surface Smart Mirrors to replace the LED lighting product line as a viable revenue source has placed the Company in a seriously weakened financial position, which in turn increases the need for working capital funding from investors or lenders. The Company lacks a credit line for long-term general working capital or growth. The Company lacks the hard assets for affordable, sufficient debt financing and the low market price of its Common Stock makes equity funding difficult in terms of finding suitable investors who will provide adequate, affordable, timely working capital funding.
Previous report
In the past and with any new product line or new business line, the Company’s products will face the risk of new technologies or functionalities shifting consumer demand away from the products produced by the Company. The Company may lack the financial resources or ability to license or acquire new technologies or functionalities in demand by consumers, which failure may undermine the commercial viability of Company’s product line. The financial condition of the Company may also discourage potential purchasers of a new product line.
Previous report
The product launch of the Smart Mirrors did not meet projected revenue goals for 2023 or the first half of 2024 and has since been discontinued with the remaining inventory sold in a liquidation sale during the second quarter of 2024. The Company’s investment in e-commerce marketing did not produce desired sales or market penetration for Connected Surfaces Smart Mirror. These factors coupled with a lack of bulk orders from Big Box retailers left the Company without a viable product line and a revenue generating source sufficient to sustain the Company.
Previous report
Any plan to expand the Company’s product portfolio through Connected Surfaces involves the inherent risk of increased operating and marketing costs without a corresponding increase in operational revenues and profits. Expense categories including prototyping, engineering, advertising, public relations, tradeshows and social media platforms will continue to be incurred for a period before revenues occur.
Previous report
Even with revenue sources sufficient to sustain Company operations and support a new product line, the Company lacks the large internal research and development capability of its larger competitors. Even with sufficient working capital, Capstone operates with a small number of employees whose functions are dedicated to executive management, sales and marketing or administrative support. The limited number of employees may hinder or delay the ability of the Company to identify or respond to consumer preferences or new technology developments in a product line. Hiring may be required with any growth and qualified personnel may not be readily available. We cannot match the compensation packages to prospective employees that many larger competitors may offer, and we lack the funding and other resources to change our operational model and its reliance on contractors for many functions and capabilities, including development, production, shipping, warehousing and distribution of products. The weakened financial condition of the Company further undermines the ability of the Company to add essential personnel for any effort to re-establish a viable product line or new business line.
Previous report
As a smaller reporting company, and with any new product line, we were and are more vulnerable to events like COVID-19 pandemic, production and shipping delays, travel and operational disruptions and restrictions and an accelerated shift to e-commerce from reliance on brick-and-mortar retail sales. We lack the staff, money, internal capabilities and resources and operational experience to significantly or timely respond to significant challenges and adverse changes in business and financial requirements.
Previous report
If production of products is resumed, then Capstone’s international purchases can become more expensive if the U.S. Dollar weakens against the foreign currencies. Should the increased U.S. tariffs imposed on Chinese manufactured goods remain it may increase the cost of electronic components used in our products.
Previous report
While we have established new production capacity in Thailand, there is no final resolution of the U.S. / China trade dispute from which specific components are sourced. Developing a new, efficient OEM relationship in a new country takes time and effort to reach acceptable production efficiencies. We have only a short operational experience with Thai OEM’s and cannot predict long term effectiveness of the relationship. Without working capital funding, we will be unable to fully exploit foreign OEM capabilities or resolve the need for alternative foreign sources of critical components for Connected Surface products.
Previous report
Products and Customers
Previous report
Current product lines under development as of this Form 10-Q report are as follows:
Previous report
The following product lines that are discontinued for manufacturing, but available for sale as of the date of this Form 10-Q report are as follows:
Previous report
The plan to expand the Company’s product portfolio through Connected Surfaces involves the inherent risk of increased operating and marketing costs without a corresponding increase in operational revenues and profits. Expense categories including prototyping, engineering, advertising, public relations, tradeshows and social media platforms will continue to be incurred before shipments and related revenues occur. Promotion of the Connected Surfaces product line was hampered in 2023 by the lack of adequate, long-term funding and declining revenues from product sales and a lack of bulk orders from brick-and-mortar retailers and e-commerce resellers for a discretionary purchase item like the Smart Mirrors.
Previous report
Over the past ten years, the Company has established product distribution relationships with numerous leading international, national and regional retailers, including but not limited to: Amazon, Costco Wholesale, Sam’s Club-Walmart, the Container Store and Firefly Buys. These distribution channels may sell the Company’s products through the internet as well as through retail storefronts and catalogs/mail order. The Company is actively marketing the Connected Chef to appliance manufacturers and distributors, though no letter of intent or deal terms have been executed as of the date of this Form 10-Q filing. The Company believes it has developed the scale, manufacturing efficiencies, and design expertise that serves as the foundation for aggressive pursuit of niche product opportunities in our largest consumer domestic and international markets. The Company may have to pursue a different market segment if it cannot secure adequate orders from these traditional distribution channels. With the growth of e-commerce, the Company lacks an effective e-commerce capability. Reliance on sales to brick-and-mortar retailers may not produce sufficient orders to allow the Company to become profitable or sustain operations, especially if the Company’s product line is deemed by retailers to be not appealing or in demand with consumers. The Company has a very limited product line and lacks different product lines to offer in lieu of unsuccessful, existing product lines to retailers.
Previous report
The Company’s products are subject to general economic conditions that impact discretionary consumer spending on non-essential items. Such continued progress depends on a number of assumptions and factors, including ones mentioned in “Risk Factors” below. Critical to growth are economic conditions in the markets that foster greater consumer spending as well as success in the Company’s initiatives to distinguish its brands from competitors by design, quality, and scope of functions and new technology or features. The Company’s ability to fund the pursuit of our goals remains a constant, significant factor and weakness.
Previous report
Tariffs and trade restrictions imposed by the previous U.S. administration provoked trade and tariff retaliation by other countries. A “trade dispute” of this nature or other governmental action related to tariffs or international trade agreements or policies has the potential to adversely impact demand for our products, our costs, customers, suppliers and/or the U.S. economy or certain sectors thereof and, thus, to adversely impact our businesses. As of the date of this report, the current U.S. administration is currently reviewing its position on this issue and there has not been a resolution of the Chinese-American trade dispute.
Previous report
Sales and Marketing
Previous report
Historically, and when we had a product line in production, our sales within the U.S. are primarily made by our in-house sales team and our independent sales agencies. Our independent sales agencies are paid a commission based upon sales made in their respective territories. Our sales agencies are recruited, trained and monitored by us directly. We will utilize an agency as needed to help us provide service to our retail customers as required. The sales agency agreements are generally one (1) year agreements, which automatically renew on an annual basis, unless terminated by either party on 30 days’ prior notice. Our international sales to divisions of U.S. based retailers are made by our in-house sales team.
Previous report
Competitive Conditions
Previous report
Other competitive factors include rapid technological changes, product availability, credit availability, speed of delivery, ability to tailor solutions to customer needs, quality and depth of product lines and training. Smart Mirrors and other Connected Surface products are an emerging industry, and the Company’s product line is innovative and does not require licensing of technologies, as the Connected Surfaces program is developed with open source resources. The Company is also under development of proprietary features that would further establish the Company as a market innovator. As such, applications have been filed. However, the Company may be unable to develop or license emerging new technologies that are dominant and demanded by consumers, retailers, distributors and resellers. Consumer tastes and preferences change and timing the product line with consumer demand is important in establishing a market for the product line.
Previous report
To successfully implement Capstone’s business strategy for products in production, the Company must continually improve its current products and develop new product segments with innovative imbedded technologies to meet consumer’s growing expectations. The Connected Surfaces product development is our most recent effort to achieve those expectations. The continuation of Company’s declining business and financial performance has significantly hindered or undermined efforts to establish a profitable Connected Surface product line capable of sustaining operations. Establishing the Connected Surfaces product line as a viable revenue source was intended to sustain the Company as a consumer product company, but it has not done so as of June 30, 2024. The Company will need adequate funding to establish sustain that business line and sustain corporate operations.
Previous report
Raw Materials
Previous report
Seasonality
Previous report
In general, sales for household products and electronics are seasonally influenced. Certain gift products cause consumers to increase purchases during key holiday winter season of the fourth quarter, which requires increases in retailer inventories during the third quarter. However, we do not have sufficient operational experience with Connected Surfaces to predict the seasonality of Connected Surfaces.
Previous report
Net revenues for the three months ended June 30, 2024, were $137,000, an increase of $111,000 or 417% from $26,000 in the same period 2023.
Previous report
Connected Chef product.
Reworded paragraphs (63)
Previous wording
The challenge facing the Company is acquire a new business line, or to establish a new profitable product line, whether the Connected Chef or another product line, before the cost of marketing and penetrating a new product market company impose unsustainable financial burdens and losses on the Company.
Current wording
The challenge facing the Company is to acquire a new business line, or to establish a new profitable product line, whether the Connected Chef or another product line, before the cost of marketing and penetrating a new product market company impose unsustainable financial burdens and losses on the Company.
Previous wording
The Company’s focus through 2017 was the integration of LEDs into most commonly used consumer lighting products in today’s home. The LED category has matured and is no longer the innovative “must have” consumer product as in previous years, as such, revenues for the LED product line have declined significantly in 2023. The Connected Surfaces is the Company’s effort to establish business in an emerging segment that is intended for future revenue growth. The smart home segment is the umbrella category in which we intend to participate with the Connected Surfaces program. The Connected Surfaces products did not achieve significant sales in 2023 – either online or through efforts to sell in bulk to brick-and-mortar, “big box” retailers and all inventory was expensed as of December 31, 2023.
Current wording
The Company’s focus through 2017 was the integration of LEDs into most commonly used consumer lighting products in today’s home. The LED category has matured and is no longer the innovative “must have” consumer product as in previous years, as such, revenues for the LED product line have declined significantly in 2023. The Connected Surfaces is the Company’s effort to establish business in an emerging segment that is intended for future revenue growth. The Connected Surfaces products did not achieve significant sales in 2023 – either online or through efforts to sell in bulk to brick-and-mortar, “big box” retailers and all inventory was expensed as of December 31, 2023.
Previous wording
The Connected Chef, is 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. The Connected Chef was ready for formal introduction in quarter four of 2023, and the Company has actively marketing the Connected Chef tablet to appliance manufacturers and distributors, but the product has no purchase commitments from retailers as of the date of the filing of this Form 10-Q. Due to the lack of orders and funding, the Connected Chef is not in production. Further, the Company will have to raise funding to fund production costs and inventory acquisitions, which funding may not be available to the Company and has not been obtained as of June 30, 2024.
Current wording
The Connected Chef, is 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. The Connected Chef was ready for formal introduction in quarter four of 2023, and the Company has actively marketing the Connected Chef tablet to appliance manufacturers and distributors, but the product has no purchase commitments from retailers as of the date of the filing of this Form 10-Q. Due to the lack of orders and funding, the Connected Chef is not in production.
Previous wording
For the six months ended June 30, 2024 and 2023, the Company reported a $111,000 or 346% increase in net revenue from $32,000 in 2023 to $143,000 in 2023. The increase in revenue period to period is due to a liquidation sale of the Smart Mirrors for $80,000. The net loss for the six months ended June 30, 2024 and 2023 was $386,000 as compared to $792,000 in 2023. During the six months ended June 30, 2024 and 2023 the Company used in operating activities approximately $109,000 of cash in 2024 and $390,000 in 2023. The decrease in net cash used in operations primarily relates to decrease in right of use operating lease expense for the non-renewal of the office lease, and decreases in inventory, accounts payable balances during 2024 as the company has moved to a remote work environment and decreased overhead costs significantly. See Note 1.
Current wording
For the nine months ended September 30, 2024 and 2023, the Company reported a $47,000 or 49% increase in net revenue from $96,000 in 2023 to $143,000 in 2024. The increase in revenue period to period is due to a liquidation sale of the Smart Mirrors for $80,000. The net loss for the nine months ended September 30, 2024 and 2023 was $482,000 as compared to $1,215,000 in 2023. During the nine months ended September 30, 2024 and 2023 the Company used in operating activities approximately $125,000 in 2024 and $574,000 in 2023. The decrease in net cash used in operations primarily relates to a decrease in right of use operating lease expense for the non-renewal of the office lease, and decreases in inventory and workforce during 2024 as the company has moved to a remote work environment and decreased overhead costs significantly.
Previous wording
As of June 30, 2024, the Company has negative working capital of approximately $3,656,000 and an accumulated deficit of $11,183,000. The Company’s cash balance decreased by approximately $20,000 from $36,000 as of December 31, 2023 to $16,000 as of June 30, 2024. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Current wording
As of September 30, 2024, the Company has negative working capital of approximately $3,748,000 and an accumulated deficit of $11,279,000. The Company’s cash balance decreased by approximately $35,000 from $37,000 as of December 31, 2023 to $2,000 as of September 30, 2024. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Previous wording
The Company’s looking forward strategy is focused on developing a new Connected Surfaces product, the Connected Chef, that can generate sufficient revenues to sustain the Company’s operations or alternatively, locate a new business line that can accomplish sustainability of operations. These efforts will depend on having adequate working capital from funding to establish a new product line or acquire a new business line and adequate cash flow from product sales or the new business line. We may be unable to achieve sufficient working capital when and, in the amounts, required to meet operational needs and overhead or to pursue or establish a new product lines or a new business line. We have not achieved adequate funding as of the date of the filing of this Form 10-Q report and we may be unable to achieve sufficient working capital when and, in the amounts, required to meet operational needs and overhead. The lack of adequate, timely and affordable funding may undermine the efforts of the Company to establish a revenue stream from the Connected Chef product line or continue operations while seeking to develop or acquire a new business line, and efforts to sustain Company operations.
Current wording
The Company’s looking forward strategy is focused on developing or acquiring a new business line that can generate sufficient revenues to sustain the Company’s operations. These efforts will depend on having adequate working capital from funding to establish a new business line or acquire a new business line and adequate cash flow from product sales or the new business line. We may be unable to achieve sufficient working capital when and, in the amounts, required to meet operational needs and overhead or to pursue or establish a new product lines or a new business line. The funding under the Note and MTA will provide working capital for essential working capital needs but will not be sufficient to fund the development or acquisition of a new business line. Other than the funding under the Note and MTA, the Company has not achieved adequate funding as of the date of the filing of this Form 10-Q report to fund more essential working capital needs and the Company may be unable to achieve sufficient working capital when and, in the amounts, required to meet operational needs and overhead. The lack of adequate, timely and affordable funding may undermine the efforts of the Company to establish a revenue stream from a new business line developed internally or continue operations while seeking to develop or acquire a new business line, and efforts to sustain Company operations.
Previous wording
As a consumer product company, the Company competes in competitive consumer market channels that can be affected by volatility from a number of general business and economic factors such as, consumer confidence and preferences, employment levels, new technologies, credit availability, costs and barriers of producing products from foreign original equipment manufacturers (“OEMs”) and commodity costs. Demand for the Company’s products is highly dependent on economic drivers such as consumer spending and discretionary income. The Company faces competition from numerous competitors in the consumer product industry, foreign and domestic, and some of those competitors have substantially greater market share, brand recognition, distribution and financial and technical resources than the Company. The Company’s strategy has historically been to develop well designed and made products that appeal to a niche market. When the Company is producing and promoting a product line, the Company relied on the production and engineering resources and technical expertise of its contract manufacturers to compensate for a lack of those resources internally. The lack of working capital hinders the ability of the Company to leverage the development, design and production capabilities of OEMs.
Current wording
As a former consumer product company, the Company competed in competitive consumer market channels that could be affected by volatility from a number of general business and economic factors such as, consumer confidence and preferences, employment levels, new technologies, credit availability, costs and barriers of producing products from foreign original equipment manufacturers (“OEMs”) and commodity costs. Demand for the Company’s products was highly dependent on economic drivers such as consumer spending and discretionary income. The Company faced competition from numerous competitors in the consumer product industry, foreign and domestic, and some of those competitors have substantially greater market share, brand recognition, distribution and financial and technical resources than the Company. The Company’s strategy was to develop well designed and made products that appeal to a niche market. When the Company was producing and promoting a product line, the Company relied on the production and engineering resources and technical expertise of its contract manufacturers to compensate for a lack of those resources internally. The lack of working capital hinders the ability of the Company to leverage the development, design and production capabilities of OEMs.
Previous wording
Due to working capital constraints, and results from prior e-commerce marketing efforts, the Company is not investing any significant funds in e-commerce marketing and promotion efforts and is re-evaluating the potential of e-commerce efforts to generate significant revenues. The Company is focusing on direct sales or a licensing agreement with appliance manufacturers and distributors with the Connected Chef product line.
Current wording
Due to working capital constraints, and results from prior e-commerce marketing efforts, the Company is not investing any funds in e-commerce marketing and promotion efforts.
Previous wording
Connected Surfaces. While consistently launching successful lighting programs in years prior to 2022, the Company determined that it needed to develop a new product line with greater profit margin potential than LED Lighting and as a replacement revenue generating source. The Company refocused its development and marketing initiatives and is focused on developing the Connected Surfaces products as its primary business line to replace the LED lighting business, which is no longer being actively promoted by the Company. The discontinuance of the LED lighting product line was due to gross margin reductions as a result of increased tariffs.
Current wording
Reason for Development of Connected Surfaces. While consistently launching successful lighting programs in years prior to 2022, the Company determined that it needed to develop a new product line with greater profit margin potential than LED Lighting and as a replacement revenue generating source. The Company refocused its development and marketing initiatives and is focused on developing the Connected Surfaces products as its primary business line to replace the LED lighting business, which is no longer being actively promoted by the Company. The discontinuance of the LED lighting product line was due to gross margin reductions as a result of increased tariffs.
Previous wording
The Company’s existing product roadmap outlines a plan for an additional product launch at the end of 2024, branded the “Connected Chef”, a kitchen appliance item, which is a purpose-built tablet integrated into a multi-purpose cutting board and designed to safely deliver and access content on mobile and web-based platforms a kitchen utility item. The Company received Google Mobile Service (“GMS”) approval during 2023 which allows the tablet integrated in the Connected Chef to operate the Android Operating System and pre-install Google’s proprietary applications such as Chrome, Drive, Gmail, Playstore, Youtube directly through the Connected Chef tablet (“Google” is a trademark of Google LLC, a subsidiary of Alphabet, Inc., a SEC reporting company). Rather than using and sharing recipes on one’s smartphone in the kitchen, recipes can be looked up directly using the users preferred search engine (like, Chrome). With access to content online with millions of cooking and food related websites and videos as well as tutorials and cooking classes all in one place the Connected chef™ becomes a digital recipe bookshelf. The Connected Chef™ also provides a cleaner and safer appliance in the cooking area. The Connected Chef is designed to become an anchor in the digital kitchen. The design is aimed at tastefully styled and coupled with excellent quality in order to appeal to the discerning eye while maintaining affordability for mainstream use.
Current wording
The Company’s prior product roadmap outlined a plan for the launch at the end of 2024 of the Connected Chef, a kitchen appliance item, which is a purpose-built tablet integrated into a multi-purpose cutting board and designed to safely deliver and access content on mobile and web-based platforms a kitchen utility item. The Company received Google Mobile Service (“GMS”) approval during 2023 which allows the tablet integrated in the Connected Chef to operate the Android Operating System and pre-install Google’s proprietary applications such as Chrome, Drive, Gmail, Playstore, Youtube directly through the Connected Chef tablet (“Google” is a trademark of Google LLC, a subsidiary of Alphabet, Inc., a SEC reporting company). Rather than using and sharing recipes on one’s smartphone in the kitchen, recipes can be looked up directly using the users preferred search engine (like, Chrome). With access to content online with millions of cooking and food related websites and videos as well as tutorials and cooking classes all in one place the Connected chef™ becomes a digital recipe bookshelf. The Connected Chef™ also provides a cleaner and safer appliance in the cooking area. The Connected Chef was designed to become an anchor in the digital kitchen. The design is aimed at tastefully styled and coupled with excellent quality in order to appeal to the discerning eye while maintaining affordability for mainstream use.
Previous wording
The Company believes the Connected Chef program could leverage existing relationships with its traditional retail partners and collectively contribute organic growth for the Company, as well as serving as a basis for partnering with appliance manufacturers and distributors. The ability of the Company to promote any of its Connected Surface products and any new, related “connected” consumer products will depend on securing adequate, affordable and timely funding from lenders and investors. As of the date of the filing of this Form 10-Q report, the Company has not secured that funding and the Connected Chef is not in production and has no pre-production orders. Chief Executive Officer and Director Stewart Wallach has been providing interim financing of basic operations while the Company pursues other financing options for new product development and marketing and sustaining Company operations.
Current wording
The Company believed the Connected Chef program would leverage existing relationships with its traditional retail partners and collectively contribute organic growth for the Company, as well as serving as a basis for partnering with appliance manufacturers and distributors. The ability of the Company to promote any of its Connected Surface products and any new, related “connected” consumer products was dependent on securing adequate, affordable and timely funding from lenders and investors. As of the date of the filing of this Form 10-Q report, the Company has not secured that funding and the Connected Chef is not in production and has no pre-production orders. Efforts to promote and launch the Connected Chef ended in September 2024. The focus of the Company is on a new business line not involving the production and sale of discretionary consumer products. The Company regards the consumer product business line as too capital intensive to be pursued by the Company at this time.
Previous wording
Tariffs. The President Trump administration implemented certain tariffs that directly affected the Company’s competitiveness. While all companies in certain industries are affected equally, the appeal for these products to consumers was negatively impacted when retail prices increased due to higher duty rates. The Company has seen promotional schedules cut back and retailers have requested pricing adjustments that would not be known to them in advance to products being shipped. The Company’s previous business model insulates the Company from paying duties as its retail partners are the importers of record. The obvious unknown is the final impact of tariffs to the landed costs. Accordingly, retailers have demonstrated caution in their promotional planning schedules and will continue to do so until the administration has clarified its position enabling importers to calculate estimated landed costs.
Current wording
Tariffs. The President Trump administration implemented certain tariffs that directly affected the Company’s competitiveness. While all companies in certain industries are affected equally, the appeal for these products to consumers was negatively impacted when retail prices increased due to higher duty rates. The Company has seen promotional schedules cut back and retailers have requested pricing adjustments that would not be known to them in advance to products being shipped. The Company’s previous business model insulates the Company from paying duties as its retail partners are the importers of record. The obvious unknown is the final impact of tariffs to the landed costs. Accordingly, retailers demonstrated caution in their promotional planning schedules.
Previous wording
We use direct sales by our Chief Executive Officer and sales agents to sell our products, which effort includes direct sales aimed to Big Box and home-goods chain retailers. Company’s e-commerce initiatives have not provided significant sales as of the six months ended June 30, 2024.
Current wording
We used direct sales by our Chief Executive Officer and sales agents to sell our consumer products, which effort included direct sales aimed to Big Box and home-goods chain retailers. Company’s e-commerce initiatives did not provide significant sales as of the nine months ended September 30, 2024.
Previous wording
The Company has historically promoted its products to retailers and distributors at North American trade shows, such as the Consumer Electronics Show (“CES”) or the International Hardware Show, but also relied on the retail sales channels to advertise its products directly to the end user consumers through various promotional activities. Subject to adequate working capital, this traditional marketing effort will continue as a complement to the social media and e-commerce effort. Reliance will be on traditional direct sales to retailers and distributors and trade show promotion.
Current wording
The Company has historically promoted its products to retailers and distributors at North American trade shows, such as the Consumer Electronics Show (“CES”) or the International Hardware Show, but also relied on the retail sales channels to advertise its products directly to the end user consumers through various promotional activities.
Previous wording
In the six months ended June 30, 2024, the Company had 2 major customers.
Current wording
In the nine months ended September 30, 2024, the Company had 2 major customers.
Previous wording
We have utilized social media platforms and online advertising campaigns to further grow the Company’s online presence. In addition to Facebook, Instagram, Pinterest and LinkedIn, The Company has launched a You Tube channel to host Smart Mirror videos and established a X account. Our Social Media marketing has not resulted in any significant sales of products. We have not been and may not be able to effectively compete in e-commerce and Social Media marketing and sales. The Company has a Social Media presence on the following Social Media platforms, however the Company is not emphasizing Social Media marketing in 2024 due lack of results and lack of funding to pursue active Social Media marketing:
Current wording
When we promoted the Connected Surface Smart Mirrors, we utilized social media platforms and online advertising campaigns to further grow the Company’s online presence. In addition to Facebook, Instagram, Pinterest and LinkedIn, The Company has launched a You Tube channel to host Smart Mirror videos and established a X account. Our Social Media marketing did not result in any significant sales of products. We were not able to effectively compete in e-commerce and Social Media marketing and sales. The Company has a Social Media presence on the following Social Media platforms, however the Company is not emphasizing Social Media marketing in 2024 due lack of results and lack of funding to pursue active Social Media marketing:
Previous wording
For products in development or production, the Company’s research and development operations based in Florida and Thailand design and engineer many of the Company’s products, with collaboration from its third-party manufacturing partners, software developers and Capstone U.S. engineering advisers. The Company outsources the manufacture and assembly of our products to a select group of OEM manufacturers overseas. Our research and development focus typically and in 2023 included efforts to:
Current wording
For the consumer products previously produced by the Company, the Company’s research and development operations were based in Florida and Thailand and the design and engineering of many of the Company’s products, involved the collaboration from its third-party manufacturing partners, software developers and Capstone U.S. engineering advisers. The Company outsourced the manufacture and assembly of our consumer products to a select group of OEM manufacturers overseas. Our research and development focus typically and in 2023 included efforts to:
Previous wording
The Company establishes strict engineering specifications and product testing protocols with the Company’s contract manufacturers and ensure that their factories adhere to all Regional Labor and Social Compliance Laws. These contract manufacturers purchase components that we specify and provide the necessary facilities and labor to manufacture our products. We leverage the strength of the contract manufacturers and allocate the manufacturing of specific products to the contract manufacturer best suited to the task. Quality control and product testing is conducted at the contract manufacturers facility and at their 3 rd party testing laboratories overseas.
Current wording
The Company established strict engineering specifications and product testing protocols with the Company’s contract manufacturers and ensure that their factories adhere to all Regional Labor and Social Compliance Laws. These contract manufacturers purchased components that we specified and provided the necessary facilities and labor to manufacture our products. We leveraged the strength of the contract manufacturers and allocated the manufacturing of specific products to the contract manufacturer best suited to the task. Quality control and product testing was conducted at the contract manufacturers facility and at their 3 rd party testing laboratories overseas.
Previous wording
CAPI uses its proprietary manufacturing expertise by maintaining control over all outsourced production and critical production molds. To ensure the quality and consistency of the Company’s products manufactured overseas, CAPI uses globally recognized certified testing laboratories such as United Laboratories (UL) or Intertek (ETL) to ensure all products are designed and tested to adhere to each country’s individual regulatory standards. The Company also hires quality control inspectors who examine and test products to CAPI’s specification(s) before shipments are released.
Current wording
CAPI used its proprietary manufacturing expertise by maintaining control over all outsourced production and critical production molds. To ensure the quality and consistency of the Company’s products manufactured overseas, CAPI used globally recognized certified testing laboratories such as United Laboratories (UL) or Intertek (ETL) to ensure all products were designed and tested to adhere to each country’s individual regulatory standards. The Company also hired quality control inspectors who examine and test products to CAPI’s specification(s) before shipments are released.
Previous wording
For products being produced, the principal raw materials currently used by CAPI are sourced in Thailand and China, as the Company orders product exclusively through contract manufacturers in the region. These contract manufacturers purchase components based on the Company’s specifications and provide the necessary facilities and labor to manufacture the Company’s products. Capstone allocates the production of specific products to the contract manufacturer the Company believes is more experienced to produce the specific product and whose facility is located in the country that most benefits from the U.S. Tariff regulations. To ensure the consistent quality of Capstone’s products, quality control procedures have been incorporated at each stage of the manufacturing process, ranging from the inspection of raw materials through production and delivery to the customer. These procedures are additional to the manufacturers internal quality control procedures and performed by Quality Assurance personnel.
Current wording
For consumer products previously produced, the principal raw materials currently used by CAPI were sourced in Thailand and China, as the Company orders product exclusively through contract manufacturers in the region. These contract manufacturers purchase components based on the Company’s specifications and provided the necessary facilities and labor to manufacture the Company’s products. Capstone allocated the production of specific products to the contract manufacturer the Company believed is more experienced to produce the specific product and whose facility is located in the country that most benefits from the U.S. Tariff regulations. To ensure the consistent quality of Capstone’s products, quality control procedures were incorporated at each stage of the manufacturing process, ranging from the inspection of raw materials through production and delivery to the customer. These procedures were in addition to the manufacturers internal quality control procedures and performed by Quality Assurance personnel.
Previous wording
Raw materials used in manufacturing include plastic resin, copper, led bulbs, batteries, and corrugated paper. Prices of materials have remained competitive in the last year. The Company believes that adequate supplies of raw materials required for its operations are available at the present time. The Company cannot predict the future availability or prices of such materials. These raw materials are generally available from a number of different sources, and the prices of those raw materials are susceptible to currency fluctuations and price fluctuations due to transportation, government regulations, price controls, economic climate, or other unforeseen circumstances. In the past, the Company has not experienced any significant interruption in availability of raw materials. We believe we have extensive experience in manufacturing and have taken positions to assure supply and to protect margins on anticipated sales volume.
Current wording
Raw materials used in manufacturing include plastic resin, copper, led bulbs, batteries, and corrugated paper. Prices of materials have remained competitive in the last year. The Company believes that adequate supplies of raw materials required for its operations are available at the present time. The Company cannot predict the future availability or prices of such materials. These raw materials are generally available from a number of different sources, and the prices of those raw materials are susceptible to currency fluctuations and price fluctuations due to transportation, government regulations, price controls, economic climate, or other unforeseen circumstances.
Previous wording
Section 1502 of Title XV of theDodd-Frank Wall Street Reform and Consumer Protection Act requires SEC-reporting companies to disclose annually whether any conflict minerals are necessary to the functionality or production of a product. Based on our inquiries to our manufacturers, we do not believe as of the date of such inquiries that any conflict minerals are used in making our products. As of the date of the filing of this Form 10-Q, the Company has no products in production.
Current wording
Section 1502 of Title XV of theDodd-Frank Wall Street Reform and Consumer Protection Act requires SEC-reporting companies to disclose annually whether any conflict minerals are necessary to the functionality or production of a product. As of the date of the filing of this Form 10-Q, the Company has no products in production.
Previous wording
Since January 2015, the Company has outsourced its U.S. domestic warehousing and distribution needs to a third-party warehousing facility situated in Anaheim, California. The warehouse operator provides full inventory storage, packaging and logistics services including direct to store and direct to consumer shipping capabilities that electronically interface to our existing operations software. The warehouse operator provides full ERP (Enterprise Resource Planning), Inventory Control and Warehouse Management Systems.
Current wording
Since January 2015, the Company has outsourced its U.S. domestic warehousing and distribution needs to a third-party warehousing facility situated in Anaheim, California. The warehouse operator provided full inventory storage, packaging and logistics services including direct to store and direct to consumer shipping capabilities that electronically interface to our existing operations software. The warehouse operator provides full ERP (Enterprise Resource Planning), Inventory Control and Warehouse Management Systems.
Previous wording
For the e-commerce and direct to consumer marketplace, the Company has developed a new website with full shopping cart capabilities. The Company has negotiated contracts for secured credit card processing capability, state sales tax compliance services and order fulfillment and logistics services, at a very competitive rate. These efforts did not result in any significant product sales in first two fiscal quarters of fiscal year 2024.
Current wording
For the e-commerce and direct to consumer marketplace, the Company developed a new website with full shopping cart capabilities. The Company had negotiated contracts for secured credit card processing capability, state sales tax compliance services and order fulfillment and logistics services, at a very competitive rate. These efforts did not result in any significant product sales during 2024.
Previous wording
The efficient operation of our business is dependent on our information technology systems. We rely on those systems to manage our daily operations, communicate with our customers and maintain our financial and accounting records. In the normal course of business, we receive information regarding customers, associates, and vendors. Since we do not collect significant amounts of valuable personal data or sensitive business data from others, our internal computer systems are under a light to moderate level of risk from hackers or other individuals with malicious intent to gain unauthorized access to our computer systems. Cyberattacks are growing in number and sophistication and are an ongoing threat to business computer systems, which are used to operate the business on a day to day basis. Our computer systems could be vulnerable to security breaches, computer viruses, or other events. The failure of our information technology systems, our inability to successfully maintain our information or any compromise of the integrity or security of the data we generate from our systems or an event resulting in the unauthorized disclosure of confidential information or degradation of services provided by critical business systems, whether by us directly or our third-party service providers, could adversely affect our business operations, sales, reputation with current and potential customers, associates or vendors, results of operations, product development and make us unable or limit our ability to respond to customers’ demands.
Current wording
The efficient operation of our corporate activities is dependent on our information technology systems. We rely on those systems to manage our daily operations, and maintain our financial and accounting records. When the Company was making and selling consumer products, and in the normal course of business, we received information regarding customers, associates, and vendors. Since we do not collect significant amounts of valuable personal data or sensitive business data from others, our internal computer systems are under a light to moderate level of risk from hackers or other individuals with malicious intent to gain unauthorized access to our computer systems. Cyberattacks are growing in number and sophistication and are an ongoing threat to business computer systems, which are used to operate the business on a day to day basis. Our computer systems could be vulnerable to security breaches, computer viruses, or other events. The failure of our information technology systems, our inability to successfully maintain our information or any compromise of the integrity or security of the data we generate from our systems or an event resulting in the unauthorized disclosure of confidential information or degradation of services provided by critical business systems, whether by us directly or our third-party service providers, could adversely affect our business operations, sales, reputation with current and potential customers, associates or vendors, results of operations, product development and make us unable or limit our ability to respond to customers’ demands.
Previous wording
We believe that there have been no significant changes to our critical accounting policies during the six months ended June 30, 2024, as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2023 Annual Report.
Current wording
We believe that there have been no significant changes to our critical accounting policies during the nine months ended September 30, 2024, as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2023 Annual Report.
Previous wording
Revenue is derived from sales of our Connected Surfaces Smart Mirrors. Previous to 2024, the Company derived revenue from consumer home LED lighting for both indoor and outdoor applications while the Smart Mirrors were sold directly to consumers via e-commerce efforts. We recognize revenue upon shipment of the order to the customer when all performance obligations have been completed and title has transferred to the customer and in accordance with the respective sale’s contractual arrangements. Each contract on acceptance will have a fixed unit price. Our sales are to the U.S. market which in 2024 represented 100% of revenues and we expect to the U.S Market to continue to be the major source of revenue for the Company. Net revenue also includes the cost of instant rebate coupons, promotional coupons, and product support allowances provided to retailers to promote certain products. All of our revenue is denominated in U.S. dollars.
Current wording
Revenue was derived from sales of our Connected Surfaces Smart Mirrors. Before 2024, the Company derived revenue from consumer home LED lighting for both indoor and outdoor applications while the Smart Mirrors were sold directly to consumers via e-commerce efforts. We recognized revenue upon shipment of the order to the customer when all performance obligations have been completed and title had transferred to the customer and in accordance with the respective sale’s contractual arrangements. Each contract on acceptance had a fixed unit price. Our sales were to the U.S. market which in 2024 represented 100% of revenues and we expected to the U.S Market to be the major source of revenue for the Company. Net revenue also includes the cost of instant rebate coupons, promotional coupons, and product support allowances provided to retailers to promote certain products. All of our revenue is denominated in U.S. dollars.
Previous wording
Our cost of goods sold consists primarily of purchased products from contract manufacturers and when applicable associated duties and inbound freight. In addition, our cost of goods sold also includes reserves for potential warranty claims and freight allowances. On December 31, 2023, we expensed for obsolescence all remaining Smart Mirror inventory one hand. As a result, the $86,289 of revenues derived from the e-commerce sales and the liquidation sale of the remaining inventory of Smart Mirrors for the six months ending June 30, 2024 did not have cost of goods sold associated with them.
Current wording
With respect to the Connected Surface product line, our cost of goods sold consisted primarily of purchased products from contract manufacturers and when applicable associated duties and inbound freight. In addition, our cost of goods sold also includes reserves for potential warranty claims and freight allowances. On December 31, 2023, we expensed for obsolescence all remaining Smart Mirror inventory one hand. As a result, the $86,289 of revenues derived from the e-commerce sales and the liquidation sale of the remaining inventory of Smart Mirrors for the nine months ending September 30, 2024 did not have cost of goods sold associated with them.
Previous wording
Our gross profit has and will continue to be affected by a variety of factors, including average sales price for our products, product mix, promotional allowances, our ability to reduce product costs and fluctuations in the cost of our purchased components.
Current wording
Our gross profit was affected by a variety of factors, including average sales price for our products, product mix, promotional allowances, our ability to reduce product costs and fluctuations in the cost of our purchased components.
Previous wording
Our business operations and financial performance for the six months ended June 30, 2024, reflected slow e-commerce sales for the Smart Mirror with all of the inventory sold in a liquidation event during the second quarter. Executive management are actively pursuing appliance manufacturers and distributors for the new Connected Chef product, but the product has no purchase commitments from retailers as of the date of this Form 10-Q. Further, the Company will have to raise funding to fund production costs, which funding may not be available to the Company.
Current wording
Our business operations and financial performance for the nine months ended September 30, 2024, reflected slow e-commerce sales for the Smart Mirror with all of the inventory sold in a liquidation event during the second quarter.
Previous wording
Net revenues for the six months ended June 30, 2024, were $143,000, an increase of $111,000 or 346% from $32,000 in the same period 2023.
Current wording
Net revenues for the nine months ended September 30, 2024, were $143,000, an increase of $47,000 or 49% from $96,000 in the same period 2023.
Previous wording
Gross profit (loss) for the three months ended June 30, 2024, and 2023, was approximately $100,000 and ($7,000), respectively, an increase of $107,000 from the previous year. Gross Profit as a percent of revenue was 73% in the six months ended June 30, 2024 as compared to (26%) in the same period of 2023, due to the Smart Mirror inventory expensed as of December 31, 2023.
Current wording
Gross profit (loss) for the three months ended September 30, 2024, and 2023, was approximately $0 and ($99,000), respectively, an decrease of $99,000 from the previous year. Gross Profit as a percent of revenue was 0% in the three months ended September 30, 2024 as compared to (154%) in the same period of 2023, due to the Smart Mirror inventory reserve of $60,000 recorded as of September 30, 2023.
Previous wording
Gross profit (loss) for the six months ended June 30, 2024, and 2023, was approximately $105,000 and ($4,000), respectively, an increase of $109,000 from the previous year. Gross Profit as a percent of revenue was 73% in the six months ended June 30, 2024 as compared to (13%) in the same period of 2023, due to the Smart Mirror inventory expensed as of December 31, 2023.
Current wording
Gross profit (loss) for the nine months ended September 30, 2024, and 2023, was approximately $105,000 and ($103,000), respectively, an increase of $208,000 from the previous year. Gross Profit as a percent of revenue was 73% in the nine months ended September 30, 2024 as compared to (107%) in the same period of 2023, due to the Smart Mirror inventory valuation adjustment recorded as of September 30, 2023 to reflect the proper carrying value of the Smart Mirrors at lower than cost or net realizable value.
Previous wording
The Company made concerted efforts to reduce operating expenses in the first half of 2024 in accordance with the liquidation of the Smart Mirror inventory, as denoted further. Last year’s poor performance of e-commerce sales for the Smart Mirror proved to Executive Management that e-commerce was not the ideal market for the Smart Mirror product. Focus of sales and marketing efforts are with appliance manufacturers and distributors for the new
Current wording
The Company made concerted efforts to reduce operating expenses during 2024 in accordance with the liquidation of the Smart Mirror inventory, as denoted further.
Previous wording
For the three months ended June 30, 2024, and 2023, sales and marketing expenses were approximately $8,000 and $38,000, respectively, a decrease of $30,000 or 79%.
Current wording
For the three months ended September 30, 2024, and 2023, sales and marketing expenses were approximately $0 and $10,000, respectively, a decrease of $10,000 or 100%.
Previous wording
For the six months ended June 30, 2024, and 2023, sales and marketing expenses were approximately $17,000 and $56,000, respectively, a decrease of $39,000 or 69%. The Company made concerted efforts to reduce operating expenses in accordance with the low Smart Mirror e-commerce sales.
Current wording
For the nine months ended September 30, 2024, and 2023, sales and marketing expenses were approximately $17,000 and $66,000, respectively, a decrease of $49,000 or 74%. The Company made concerted efforts to reduce marketing expenses in accordance with the low Smart Mirror sales.
Previous wording
For the three months ended June 30, 2024, and 2023, compensation expenses were approximately $71,000 and $123,000 respectively, a decrease of $52,000 or 43%.
Current wording
For the three months ended September 30, 2024, and 2023, compensation expenses were approximately $0 and $116,000 respectively, a decrease of $116,000 or 100%.
Previous wording
For the six months ended June 30, 2024, and 2023, compensation expenses were approximately $153,000 and $261,000 respectively, a decrease of $108,000 or 41%. The Company has reduced workforce to essential employees as it works to launch the Connected Chef.
Current wording
For the nine months ended September 30, 2024, and 2023, compensation expenses were approximately $153,000 and $377,000 respectively, a decrease of $224,000 or 59%. The Company has reduced workforce to essential employees and executives suspended salary accrual as of July 1, 2024.
Previous wording
For the three months ended June 30, 2024, and 2023, professional fees were approximately $77,000 and $85,000 respectively, a decrease of $8,000 or 10%.
Current wording
For the three months ended September 30, 2024, and 2023, professional fees were approximately $36,000 and $93,000 respectively, a decrease of $57,000 or 61%.
Previous wording
For the six months ended June 30, 2024, and 2023, professional fees were approximately $194,000 and $228,000 respectively, a decrease of $34,000 or 15%.
Current wording
For the nine months ended September 30, 2024, and 2023, professional fees were approximately $230,000 and $321,000 respectively, a decrease of $91,000 or 28%.
Showing the first 40 of 63 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
This product is not in production and has no pre-production orders as of June 30, 2024.