CAPSTONE COMPANIES, INC.
For the period ended Mar 31, 2025. Filed May 15, 2025.
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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.
Mar 31, 2025 · Filed May 15, 2025
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What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-15.
0001903596-25-000255
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 158 previous paragraphs and 122 current paragraphs.
70 unchanged; 41 reworded; 11 added; 44 removed; 3 previous and 0 current paragraphs rearranged.
Tables are not compared: 12 previous and 5 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 (11)
Current report
LED Lighting Product Line. Historically, LED lighting products were the Company’s core consumer product business. The Capstone Lighting andHoover Home LED brands, combined, sold millions of LED lighting products, but by 2023 the LED lighting products had matured and ceased to garner sufficient orders to maintain production. The impact of tariffs also adversely impacted the commercial viability of the LED lighting products. The Company switched its business focus to its Connected Surface products as a replacement product line. The first Connected Surface product was the Smart Mirror, but the Company’s Smart Mirror product line did not achieve sustainable sales to allow the continued production and promotion of the Smart Mirror products beyond fiscal year 2023. As a replacement for the Smart Mirror product line, the Company pursued commercialization of the Connected Chef, as a product under the Connected Surfaces initiative, which initiative sought to develop Internet-connected, “smart” consumer products. As of the date of the filing of this Form 10-Q, the Connected Chef licensing arrangement described in the following paragraph has been the only commercialization of the Connected Chef.
Current report
Health, Fitness and Social Activities Business. During 2024, the Company commenced its business development of a business line or software development project focused on year-round health, fitness and social activities (this business line being referred to as “HFS” or “HFS business”). Due to the popularity of sports like pickle ball and flag football, health, fitness and social activities at dedicated facilities are being developed nationwide. Pickle ball has been the fastest growing sport in America since 2021 and its popularity is based in large part in that it can be played by all fitness active demographics groups (e.g. children, adults and elders (since it does not require the skills and athleticism of tennis or other physically demanding sports)) and can be played as a recreational or competitive amateur/collegiate and professional sport. Professional pickle ball is increasingly popular sports entertainment. A typical HFS facility offers sports like indoor and outdoor pickle ball, padel and often another recreational sport or sports (e.g. martial arts, swimming, basketball, racquetball, tennis) with a food-drink-entertainment area. Some HFS facilities add field sports like soccer, lacrosse, and football (traditional and flag) in order to host tournaments, local school competitions, or recreational league play. The HFS facilities typically seek individual, family and group memberships charging periodic fees as well as additional fees for special offerings or events. Special events consist of children summer camps, birthday parties, corporate employee outings, or corporate sponsor events promoting their specific products (e.g. drinks, cooler products, drink ware, sporting equipment, apparel) through branding which may be performed in house by the HFS facility.
Current report
As further progress in the HFS business, on March 13, 2025, the Company entered into a Memorandum of Understanding (“MOU”) with Coppermine whereby the Company will produce a development plan (“Plan”) for an online customer registration and management application (“CRM Application”) for Coppermine’s owned, affiliated or managed HFS business facilities in the State of Maryland (“Facilities”). These Facilities currently lack an integrated, single customer registration and management application. On May 13, 2025, the Company and Coppermine signed an agreement whereby Capstone will make an assessment and, based on that assessment, produce a written plan and proposal (“Proposal”) for the development, testing and installation of an online customer management and registration application (“Application”) for Coppermine’s year-round social, athletic, and fitness programs and events conducted at twenty (20) facilities in the State of Maryland (“Sites”). This Agreement covers only the assessment and production of the Proposal. If the Proposal is accepted by Coppermine, then the two companies would seek to negotiate a written agreement for the actual development, testing, installation and support of the Application. Coppermine will pay a flat Twenty-Four Thousand Dollars and No Cents ($24,000) for the assessment and production of the Proposal, which Proposal is due to be presented to Coppermine by June 22, 2025. If the Company develops the Application, then the Company would explore possible commercialization of the Application through licensing of the Application to other providers of social, athletic, and fitness programs and events in the United States, subject to the terms and conditions of any written agreement for the actual development, testing, installation and support of the Application for Coppermine.
Current report
The Company is actively seeking alternative sources of liquidity, including but not limited to accessing the capital markets, strategic partnerships, or other alternative financing measures. but has been unable to secure unrelated, long-term funding or secure other sources of liquidity. As stated, Company’s low market price for its common stock and poor financial condition and performance hinder these efforts.
Current report
Besides the license of the Connected Chef kitchen appliance product, the Company is seeking to establish revenue generating operations in the HFS business by internal development of HFS operations or acquiring or being acquired by an existing, operating HFS company. Management is closely monitoring its operations, liquidity, and capital resources and is actively working to minimize the current and future impact of this unprecedented situation.
Current report
The strategic focus of the Company’s business operations in 2025 are the pursuit of the HFS Business and related apparel and logo branding business of the HFS industry, development of a customer registration and management application (“CRM Application”) for the HFS industry, and the third-party licensing of the Connected Chef. The long-term business strategy of the Company is focused on the HFS Business (including the apparel and logo branding business) and development of the CRM application and potential licensing to other HFS businesses, with the third-party licensing of the Connected Chef as a secondary business. The Company has expanded the scope of its HFS business strategy in the first fiscal quarter of 2025 due to perceived opportunities in that segment of the HFS industry. The implementation of the long-term business strategy will depend on having adequate working capital until revenue flow from operations replaces third party funding as the principal means of funding overhead. We have third party funding for basic operational overhead through the third fiscal quarter of 2025. We may be unable to achieve sufficient working capital when and, in the amounts, required to meet operational overhead beyond three fiscal quarters of 2025.
Current report
In terms of any pursuit of the apparel and logo branding business of the HFS industry, the Company is seeking to penetrate an industry that is perceived by the Company as rapidly expanding nationwide with many existing and new companies that have established operations and brand recognition. The HFS industry also has emerging regional or potentially national HFS chains and franchises. The Company may be unable to establish a competitive, sustainable apparel and logo branding business in the face of a rapidly growing industry with competitors who have established operations, greater funding than the Company and established brand recognition. The Company needs to raise sufficient working capital to acquire an existing HFS operation or establish an HFS operation that has offerings that appeal to a broad demographic range of customers. The Company believes that a competitive edge in HFS industry is offerings that appeal to a broad demographic group (children, families and adults) as opposed to offerings that are primarily aimed at appealing to adults seeking pickle ball courts with a sport bar or social activities environment.
Current report
With a third-party licensing consumer product, the Connected Chef, 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 consumer products like the Connected Chef is highly dependent on economic drivers such as consumer spending and discretionary income. Technological changes can also undermine the appeal of devices like the Connected Chef. Consumers can opt to use a smart cell phone, tablet or laptop for Internet access for recipes and kitchen arts instead of using a dedicated device like the Connected Chef. Further, Amazon.com offers the Echo Show 21-inch kitchen hub with built-in Fire TV and Alexa functions. While the Echo Show is not focused on recipes and kitchen arts like the Connected Chef, being more a general smart TV with Internet connection for the kitchen, it is still potentially competitive to the Connected Chef. The purported market appeal of the Connected Chef is that it’s tailored to kitchen use for recipes and kitchen arts and designed to withstand the conditions of a kitchen, which is not the case for smart cell phones, tablets and laptops. The Connected Chef is counting on consumers preferring a dedicated kitchen device rather than using and risking damage to devices primarily designed and used for other functions and uses.
Current report
Due to working capital constraints, the Company’s focus for the Connected Chef is licensing of the promotion, marketing, production and sales/distribution to third parties. A typical arrangement would be a distributor or product company licensing the right to promote, market, distribute and sell the Connected Chef, which would be ordered from a Company’s authorized contract manufacturer. The Company would be merely the licensor and would not be required to fund or handle the promotion, marketing, production, distribution and sale of the product. The Company is exploring such an arrangement with a limited number of prospective distributors.
Current report
In the three months ended March 31, 2025, the Company had no major customers.
Current report
The Company does not have a product line that is generating revenues as of the date of the filing of this Form 10-Q.
Removed paragraphs (44)
Previous 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.
Previous report
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 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.
Previous report
The Company is actively seeking alternative sources of liquidity, including but not limited to accessing the capital markets, or other alternative financing measures. However, instability in, or tightening of the capital markets, could adversely affect our ability to access the capital markets on terms acceptable to us. An economic recession or a slow recovery could adversely affect our business and liquidity.
Previous report
Director and Chief Executive Officer, Stewart Wallach, has funded working capital since 2022 as the Company navigates these challenges. Total working capital note proceeds received as of the date of this filing are $632,500. The
Previous report
note payable accrues simple interest at a rate of 5 percent per annum, matures November 30, 2024, with the ability for the Company to request a 90-day extension.
Previous report
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 report
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 report
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 report
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 report
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 report
Periodic Strategic Review
Previous report
Like many companies, the Company conducts periodic strategic reviews where the feasibility of significant corporate transactions are considered, including mergers, asset purchases or sales and diversification or change in business lines. The financial condition of the Company has prompted an enhanced consideration and search for a significant corporate transaction, including, without limitation, a possible merger and acquisition transaction or reorganization to sustain operations or to acquire a new business line that can support company operations. The Company lacks the financial resources of larger companies to withstand adverse, significant and sustained changes in business and financial condition. This vulnerability necessitates an ongoing consideration of alternatives to current operations. Due to the decline in financial performance of the Company since 2021, and the Company being in transition from a declining product line and not yet establishing a profitable product line, as well as the Company having its shares of Common Stock quoted on The OTC Markets Group, Inc. QB Venture Market and being a “penny stock”, the Company may be unable to consummate a significant corporate transaction that sustains operations or creates a new viable product line or business line.
Previous report
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 report
In the nine months ended September 30, 2024, the Company had 2 major customers.
Previous report
Competitive Conditions for Consumer Product Line
Previous report
The Company operates in a highly competitive environment, both in the United States and internationally, in the former LED lighting product segment and in the new Connected Surfaces internet of things product segments. The Company competes with large multinationals with global operations as well as numerous other smaller, specialized national or regional competitors who generally focus on narrower markets, products, or particular categories.
Previous report
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 report
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 report
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 report
Raw Materials used for Consumer Products
Previous report
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 report
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 report
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 report
Distribution and Fulfillment
Previous report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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 report
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%.
Previous report
For the nine months ended September 30, 2024, product development expenses were approximately $4,000 as compared to $76,000 in 2023, a reduction of $72,000 or 94%. During 2023, fees were incurred testing and certification of the Connected Chef which were not incurred during 2024.
Previous report
For the nine months ended September 30, 2024, other general and administrative expenses were approximately $92,000 as compared to $261,000 in 2023 for a reduction of $169,000 or 65%. Rent expense, operating overhead and travel costs were reduced as part of the reduction in nonessential expenses during 2024.
Previous report
For the nine months ended September 30, 2024, and 2023, total operating expenses were approximately $497,000 and $1,101,000, respectively, a decrease of approximately $604,000 or 55%.
Previous report
For the nine months ended September 30, 2024 and 2023, the operating loss was approximately $392,000 and $1,204,000, respectively, a decreased loss of $812,000 or 67%.
Previous report
Cash used in investing activities in the nine months ended September 30, 2024, and 2023 was $0 and $43,000, respectively.
Previous report
During 2024 the average exchange rate between the U.S. Dollar and Chinese Yuan have been relatively stable approximately RMB 7.00 to U.S. $1.00.
Showing the first 40 of 44 passages. Open the source sections for the rest.
Reworded paragraphs (41)
Previous wording
This Form 10-Q Report contains forward-looking statements that are contained principally in the sections describing our business as well as in “Risk Factors, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. All statements other than statements of historical facts contained, or incorporated by reference, in this Form 10-Q Report, including, without limitation, those regarding our business strategy, financial position, results of operations, plans, prospects, actions taken or strategies being considered with respect to our liquidity position, valuation and appraisals of our assets and objectives of management for future operations, our ability to weather the impacts of the any pandemic or similar event, financing opportunities, and future cost mitigation and cash conservation efforts and efforts to reduce operating expenses and capital expenditures are forward-looking statements. These risks and uncertainties include, but are not limited to, the factors described in the section captioned “Risk Factors” in our latest 2023 Annual Report. In some cases, you can identify forward-looking statements by terms such as “anticipates, “believes, “could, “estimates, “expects, “intends, “may, “plans, “potential, “predicts, “projects, “should, “would and similar expressions (including the negative and variants of such words). Forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to various risks and uncertainties. Given these uncertainties, a reader of this Form 10-Q Report should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this Form 10-Q Report are made as of the date of filing this Form 10-Q Report. You should not rely upon forward-looking statements as predictions of future events. The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law. Examples of these risks, uncertainties and other factors include, but are not limited, to the impact of:
Current wording
This Form 10-Q Report contains forward-looking statements that are contained principally in the sections describing our business as well as in “Risk Factors, and in “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. These statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance, or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. All statements other than statements of historical facts contained, or incorporated by reference, in this Form 10-Q Report, including, without limitation, those regarding our business strategy, business development efforts, financial position, results of operations, plans, prospects, actions taken or strategies being considered with respect to our liquidity position, valuation and appraisals of our assets and objectives of management for future operations, our ability to weather the impacts of the any pandemic or similar event, financing opportunities, and future cost mitigation and cash conservation efforts and efforts to reduce operating expenses and capital expenditures are forward-looking statements. These risks and uncertainties include, but are not limited to, the factors described in the section captioned “Risk Factors” in our latest 2024 Annual Report. In some cases, you can identify forward-looking statements by terms such as “anticipates, “believes, “could, “estimates, “expects, “intends, “may, “plans, “potential, “predicts, “projects, “should, “would and similar expressions (including the negative and variants of such words). Forward-looking statements reflect our current views with respect to future events and are based on assumptions and are subject to various risks and uncertainties. Given these uncertainties, a reader of this Form 10-Q Report should not place undue reliance on these forward-looking statements. The forward-looking statements contained in this Form 10-Q Report are made as of the date of filing this Form 10-Q Report. You should not rely upon forward-looking statements as predictions of future events. The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law. Examples of these risks, uncertainties and other factors include, but are not limited, to the impact of:
Previous wording
· Company has no product line or operations generating revenues and has relied on loans or advances from its chief executive officer to sustain basic executive operations, which funding is not assured to fund those operations through fiscal year 2024. If Company cannot find outside funding to develop and promote a new product line or acquire a new business line in fiscal 2025, Company may lack sufficient funds to sustain operations.
Current wording
· Company has no product line or operations generating sufficient revenues to sustain corporate operating overhead and has relied on loans or advances from related parties to sustain basic executive operations, which funding is not assured to fund those operations past the third fiscal quarter of 2025. If Company cannot find outside funding to develop and promote a new product line or acquire a new business line in fiscal 2025, Company may lack sufficient funds to sustain operations in 2026.
Previous wording
· Company needs to find third party funding to fund development, marketing and acquisition of inventory for any new product line, and lacks such funding to market and purchase inventory for the Connected Chef, which is the only product ready for production as of September 30, 2024. Since the Company lacks hard assets, has no revenue generating operations, and significant debts, and as the Common Stock has a low market price and limited liquidity, third party funding may not be available to produce and promote a new product line.
Current wording
· Company needs to find third party funding to fund the development, marketing and acquisition of any new product line. Since the Company lacks hard assets suitable for asset financing, has revenue generating operations that are not currently producing sufficient revenues to sustain operations into 2026, and significant debts, and as the Common Stock has a low market price and limited liquidity, third party funding may not be available to produce and promote a new product line or acquire a new business or to sustain operations into 2026.
Previous wording
· Company may be unable to acquire a new business line or acquire a new business line that is able to fund the overhead necessary to maintain the Company as a public company.
Current wording
· Company may be unable to acquire a new business line or acquire a new business line that is able to fund the overhead necessary to maintain the Company as a public company into 2026.
Previous wording
· The significant debt obligations, while mostly owed to two of the Company’s directors, if not resolved or restructured, may pose a hinderance to developing a profitable new product line or acquisition of a new business line.
Current wording
· The debt obligations, if not resolved or restructured, may pose a hinderance to developing a profitable new product line or acquisition of a new business line, or sustaining operations into 2026.
Previous 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.
Current wording
The challenge facing the Company is to acquire a new business line, or to establish a new profitable product line, whether the licensing of 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 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 wording
There are no assurances that the 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 New 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 in 2025. Funding from Coppermine under the New 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.
Previous wording
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 wording
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 for fourth fiscal quarter of 2025 or into 2026. The financial commitment under the New Note extends only through the third fiscal quarter of 2025 and, if Coppermine does not provide additional funding after the third fiscal quarter of 2025, or the Company does not develop revenue generating operations producing sufficient working capital prior to the end of the third fiscal quarter of 2025, then the Company will need to obtain a new source of working capital funding for operating expenses after the third fiscal quarter of 2025 in order to sustain operations and efforts to develop a new business line, unless the Connected Chef licensing arrangement or software development for Coppermine generates sufficient working capital in the second half of fiscal 2025. The Company does not have an alternative source of working capital funding to funding by Coppermine as of the date of the filing of this Form 10-Q.
Previous wording
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 wording
As an ongoing strategic plan, 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.
Previous wording
The above examples are not exhaustive and new risks emerge from time to time. Such forward-looking statements are based on our current beliefs, assumptions, expectations, estimates and projections regarding our present and future business strategies and the environment in which we expect to operate in the future. These forward-looking statements speak only as of the date made. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations with regard thereto or any change of events, conditions, or circumstances on which any such statement was based, except as required by law.
Current wording
The above risk factors are not exhaustive and new risks may emerge from time to time. Such forward-looking statements are based on our current beliefs, assumptions, expectations, estimates and projections regarding our present and future business strategies and the environment in which we expect to operate in the future. These forward-looking statements speak only as of the date made. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement to reflect any change in our expectations with regard thereto or any change of events, conditions, or circumstances on which any such statement was based, except as required by law.
Previous wording
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 inspired products that simplify daily living through technology. Over the past decade, the Company’s various product lines have been distributed globally including consumer markets in Australia, Japan, Korea, North America, South America, and the United Kingdom. The primary operating subsidiary is Capstone Industries, Inc. (“CAPI”), a Florida corporation located at the principal executive offices of the Company. Capstone International Hong Kong, Ltd., or “CIHK”, was established to expand the Company’s product development, engineering, and factory resource capabilities. With the 2021 shift of manufacturing to Thailand from China, the CIHK operation was dormant.
Current wording
Capstone Companies, Inc. (“Company” or “CAPC”) is organized under the laws of the State of Florida. The Company has been a designer, manufacturer and marketer of consumer inspired products that simplify daily living through technology, including the Connected Chef. Since 2024, the Company has adopted a new strategic focus to develop a HFS Business or a business related to HFS Business (defined below inHealth, Fitness and Social Activities Business). Outside of the licensing of the Connected Chef, the Company is not engaged in the consumer product business as of the date of filing of this Form 10-Q. Over the past decade, the Company’s various product lines have been distributed globally including consumer markets in Australia, Japan, Korea, North America, South America, and the United Kingdom. The primary operating subsidiary was Capstone Industries, Inc. (“CAPI”), a Florida corporation located at the principal executive offices of the Company. Capstone International Hong Kong, Ltd., or “CIHK”, was established to expand the Company’s product development, engineering, and factory resource capabilities. With the 2021 shift of manufacturing to Thailand from China, the CIHK operation was dormant. As of the first fiscal quarter of 2025, the Company’s business operations are conducted by the Company and not CAPI.
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.
Current wording
Connected Chef Product Line. During 2023, the Company developed the Connected Chef (“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. The ability of the Company to promote any new, related “connected” consumer products was dependent on securing adequate, affordable and timely funding from lenders and investors, which the Company was unsuccessful in obtaining over the last few years. On March 21, 2025, the Company executed a License Agreement with a company (“Licensee”) based in the United Kingdom. The Licensee received a limited, exclusive, non-transferable, worldwide license to promote, market, sell, distribute, produce and manufacture Connected Chef. Under the License, the Company would receive a license fee of $15 for each Connected Chef sold and received by a buyer. Promotion, marketing and sale of the Connected Chef is subject to finalizing production arrangements with the contract manufacturer of the Connected Chef. The term of the License is 5 years plus one (1) year, post-termination extension to permit sell off of any inventory. As of the date of this Form 10-Q filing, there have been no sales of the Connected Chef and no license revenue generated for the
Previous 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.
Current wording
For the three months ended March 31, 2025 and 2024, the Company reported a $5,450 decrease in net revenue from $5,450 in 2024 to $0 in 2025. The increase in revenue period to period is due to a liquidation sale of the Smart Mirrors for $80,000 during the second quarter of 2024 and the Company does not currently have an operating product line. The net loss for the three months ended March 31, 2025 and 2024 was $111,079 as compared to $262,260 in 2024. During the three months ended March 31, 2025 and 2024 the Company used cash in operating activities of approximately $99,000 in 2025 and $125,000 in 2024. The decrease in net cash used in operations primarily relates to a decrease in accounts payable and accrued expenses related to the cessation of deferred wages and consulting fees of the former CEO and sales personnel as of December 31, 2024.
Previous 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.
Current wording
As of March 31, 2025, the Company has negative working capital of $252,253 and an accumulated deficit of $11,870,679. The Company’s cash balance decreased by approximately $12,000 from $16,000 as of December 31, 2024 to $28,000 as of March 31, 2025. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Previous 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.
Current wording
As is true for any consumer product company, 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 been to develop well designed and well-made products that appeal to a niche market. The Company also relies 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
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.
Current wording
As a consumer product company in fiscal years prior to 2025, we used direct sales by our former 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. There were no sales during the first quarter of 2025.
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.
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. With the License, promotion of the Connected Chef will be conducted by the licensee.
Previous 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:
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. As of the filing of this Form 10-Q, the Company has not used Social Media marketing for its business development initiatives. Company’s Social Media accounts are:
Previous wording
We believe that the Company is in compliance with environmental protection regulations and will not have a material impact on our financial position and results of operations.
Current wording
We believe that the Company is in compliance with environmental protection laws and regulations and that these laws and regulations will not have a material impact on our financial position and results of operations.
Previous 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.
Current wording
We believe that there have been no significant changes to our critical accounting policies during the three months ended March 31, 2025, as compared to those we disclosed in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in our 2024 Annual Report.
Previous 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.
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 $5,450 of revenues derived from the e-commerce sales and the liquidation sale of the remaining inventory of Smart Mirrors for the three months ending March 31, 2024 did not have cost of goods sold associated with them.
Previous wording
Operating expenses include sales and marketing expenses, consisting of sales representative’s commissions, advertising expense and costs related to employee’s compensation. In addition, operating expense include charges relating to product development, office and warehousing, accounting, legal, insurance and stock-based compensation.
Current wording
Operating expenses include sales and marketing expenses, advertising expense and costs related to employee’s compensation. In addition, operating expense include charges relating to product development, office and warehousing, accounting, legal, and insurance.
Previous wording
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.
Current wording
There were no revenues for the three months ended March 31, 2025, a decrease of $5,552 from $5,552 in the same period 2024, as the Company did not have an operating product line during the first quarter of 2025.
Previous 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.
Current wording
Gross profit (loss) for the three months ended March 31, 2025, and 2024, was approximately $0 and $5,450, respectively, a decrease of $5,450 from the previous year.
Previous 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.
Current wording
The Company made concerted efforts to reduce operating expenses during 2025 as the Company does not have a revenue generating product line as of the first quarter of 2025.
Previous 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%.
Current wording
For the three months ended March 31, 2025, and 2024, sales and marketing expenses were approximately $0 and $9,000, respectively, a decrease of $9,000 or 100%, as the Company does not have a revenue generating product line as of the first quarter of 2025.
Previous 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%.
Current wording
For the three months ended March 31, 2025, and 2024, compensation expenses were approximately $0 and $83,000 respectively, a decrease of $83,000 or 100%.
Previous 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%.
Current wording
For the three months ended March 31, 2025, and 2024, professional fees were approximately $78,000 and $117,000 respectively, a decrease of $38,000 or 33%.
Previous wording
For the three months ended September 30, 2024, product development expenses were approximately $2,000 as compared to $25,000 in 2023, a reduction of $23,000 or 92%.
Current wording
For the three months ended March 31, 2025, product development expenses were approximately $125 as compared to $0 in 2024.
Previous wording
For the three months ended September 30, 2024, other general and administrative expenses were approximately $27,000 as compared to $52,000 in 2023 for a reduction of $25,000 or 48%.
Current wording
For the three months ended March 31, 2025, other general and administrative expenses were approximately $28,000 as compared to $29,000 in 2024.
Previous wording
For the three months ended September 30, 2024, and 2023, total operating expenses were approximately $66,000 and $296,000, respectively, a decrease of approximately $231,000 or 78%.
Current wording
For the three months ended March 31, 2025, and 2024, total operating expenses were approximately $107,000 and $238,000, respectively, a decrease of approximately $132,000 or 55%.
Previous wording
For the three months ended September 30, 2024 and 2023, the operating loss was approximately $66,000 and $296,000, respectively, a decreased loss of $230,000 or 78%.
Current wording
For the three months ended March 31, 2025, and 2024, the operating loss was approximately $107,000 and $233,000, respectively, a decreased loss of $126,000 or 54%.
Previous wording
For the nine months ended September 30, 2024, and 2023, other income (expense) was ($89,000), net as compared to ($10,000) for 2023.
Current wording
For the three months ended March 31, 2025, other income (expense) was ($4,000), net as compared to ($29,000) for 2024.
Previous wording
For the three months ended September 30, 2024 the net loss was approximately $96,000 compared to a net loss of $424,000 in the same period 2023, a decreased loss of $328,000 or 77%.
Current wording
For the three months ended March 31, 2025, the net loss was approximately $111,000 compared to a net loss of $262,000 in the same period 2024, a decreased loss of $151,000 or 58%.
Previous wording
There were no material changes to contractual obligations for the nine months ended September 30, 2024.
Current wording
There were no material changes to contractual obligations for the three months ended March 31, 2025.
Previous wording
Cash flow from operations are primarily dependent on our net income adjusted for non-cash expenses and the timing of collections of receivables, level of inventory and payments to suppliers. Cash as of September 30, 2024, and December 31, 2023, was approximately $2,000 and $37,000 respectively, a decrease of approximately $35,000.
Current wording
Cash flow from operations are primarily dependent on our net income adjusted for non-cash expenses and the timing of payments to suppliers. Cash as of March 31, 2025, and December 31, 2024, was approximately $28,000 and $16,000 respectively, an increase of approximately $12,000.
Previous wording
As of September 30, 2024, the Company’s working capital deficit was approximately $3,748,000. Current assets were approximately $34,000 and current liabilities were approximately $3,782,000 and include:
Current wording
As of March 31, 2025, the Company’s working capital deficit was approximately $252,000. Current assets were approximately $4534,000 and current liabilities were approximately $297,000 and include:
Previous wording
Cash used in operating activities in the nine months ended September 30, 2024, and 2023 was approximately $125,000 and $574,000, respectively, a decrease of $449,000 compared to last year.
Current wording
Cash used in operating activities in the nine months ended March 31, 2025, and 2024 was approximately $99,000 and $125,000, respectively, a decrease of $26,000 compared to last year.
Previous wording
Cash provided by financing activities for the nine months ended September 30, 2024 and 2023, was approximately $90,000 and $584,000, respectively.
Current wording
Cash provided by financing activities for the nine months ended March 31, 2025 and 2024, was approximately $111,000 and $90,000, respectively.
Previous wording
As of September 30, 2024, and December 31, 2023, the Company had outstanding notes payable $2,720,000 and $2,540,000 which includes accrued interest of $277,000 and $188,000, respectively.
Current wording
As of March 31, 2025, and December 31, 2024, the Company had outstanding notes payable $296,000 and $181,000 which includes accrued interest of $6,000 and $2,000, respectively.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
For the three months ended September 30, 2024, and 2023, other income (expense) was $0.
Previous report — wording carried elsewhere
For the nine months ended September 30, 2024 the net loss was approximately $481,000 compared to a net loss of $1,215,000 in the same period 2023, a decreased loss of $734,000 or 60%.
Previous report — wording carried elsewhere
Cash Flows used in Investing Activities