CAPSTONE COMPANIES, INC.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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.
Jun 30, 2025 · Filed Aug 14, 2025
CAPCStored price and day change unavailable
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious 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 OperationCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001903596-25-000408
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 122 previous paragraphs and 130 current paragraphs.
80 unchanged; 38 reworded; 10 added; 3 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 5 previous and 7 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 (10)
Current report
The Company lacks sufficient operating history for its licensing arrangement for the Connected Chef to determine or predict the impact of U.S. Government’s 2025 policies and actions in respect of tariffs.Under the licensing arrangement, both the licensor and proposed OEM are located outside of the U.S.
Current report
Gross profit for the three months ended June 30, 2025, and 2024, was $0 and $99,799 respectively as the Company did not have a revenue generating product line as of the period ended June 30, 2025. Gross Profit as a percent of revenue was 0% in the three months ended June 30, 2025 as compared to 70% in the same period of 2024.
Current report
Gross profit for the six months ended June 30, 2025, and 2024, was approximately $0 and $105,249, respectively, a decrease of $105,249 from the previous year, as the Company did not have a revenue generating product line as of the period ended June 30, 2025. Gross Profit as a percent of revenue was 0% in the six months ended June 30, 2025 as compared to 73% in the same period of 2024.
Current report
For the six months ended June 30, 2025, and 2024, compensation expenses were $0 and $153,400 respectively. The company ceased salary deferrals effective June 30, 2024.
Current report
For the six months ended June 30, 2025, and 2024, professional fees were approximately $120,900 and $194,400 respectively, a decrease of $73,500 or 61%. The Company was cognizant to reduce expenses as a result of not having a revenue generating product line as of the period ended June 30, 2025.
Current report
For the six months ended June 30, 2025, product development expenses were $125 as compared to $1,903 in 2024.
Current report
For the six months ended June 30, 2025, other general and administrative expenses were approximately $56,200 as compared to $64,400 in 2024 for a reduction of $8,000 of 15%. The Company was cognizant to reduce expenses as a result of not having a revenue generating product line as of the period ended June 30, 2025.
Current report
For the six months ended June 30, 2025 and 2024, total operating expenses were approximately $177,200 and $431,600, respectively, a decrease of approximately $254,400 or 144%.
Current report
For the six months ended June 30, 2025, and 2024, the operating loss was approximately $177,200 and $326,300, respectively, a decrease in loss of approximately $149,100 or 84%. Company was cognizant to reduce expenses as a result of not having a revenue generating product line as of the period ended June 30, 2025.
Current report
For the six months ended June 30, 2025, and 2024, other income (expense) was ($10,400), net as compared to ($59,000) for 2024.
Removed paragraphs (3)
Previous report
LINKEDIN 4: https://www.linkedin.com/company/6251882
Previous report
4 LinkedIn is a registered trademark of LinkedIn Corporation.
Previous report
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.
Reworded paragraphs (38)
Previous 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.
Current wording
· Company needs to find third party funding to fund the development, marketing and acquisition of any new product line or business. Since the Company lacks hard assets suitable for asset financing, has revenue generating operations that are not currently producing sufficient or any revenues to sustain operations into 2026, and has 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
· 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.
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. The Company is uncertain about whether it could restructure or resolve its debt obligations, whether in connection with business development or otherwise.
Previous 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.
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. 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. Additional funding from Coppermine is uncertain and there is no assurances of any additional funding from Coppermine or any other funding sources.
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 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.
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 and is uncertain about whether it can obtain any alternative funding.
Previous wording
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 wording
Even if the Company locates a new business or business line to develop or acquire, the Company may lack the funding necessary to consummate the development or acquisition of a new business line or to sustain that business line. Further, the low market price and liquidity of the Company’s Common Stock, the Company’s status as a ‘penny stock company’ under SEC rules, the status of the Company as a company without operations producing sustain, sufficient or any revenues to fund overhead as of the date of the filing of this Form 10-Q, and the costs of and regulatory requirements for consummating an acquisition with another company or for a new business 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. The Company requires adequate, affordable and timely funding to acquire and operate a new business line or business with revenue-generating operations and such funding may not be available to the Company.
Previous wording
The Company is a “penny stock” company under Commission rules and the public stock market price for our common stock is impacted by the lack of significant institutional investor and primary market maker support. Investment in our common stock is highly risky and should only be considered by investors who can afford to lose their investment and do not require on demand liquidity. Potential investors should carefully consider risk factors in our SEC filings. The Company’s common stock lacks the primary market maker and institutional investor support to protect the public market from being unpredictable and volatile. Investors may not have liquidity or desired liquidity in our common stock as an investment. With the lack of any revenues and active business line, any investment in the Company’s common stock would be highly risky.
Current wording
The Company is a “penny stock” company under Commission rules and the public stock market price for our common stock is impacted by the lack of significant institutional investor and any primary market maker support. Investment in our common stock is highly risky and should only be considered by investors who can afford to lose their investment and do not require on demand liquidity. Potential investors should carefully consider risk factors in our SEC filings. The Company’s common stock lacks the primary market maker and institutional investor support to protect the public market from being unpredictable and volatile. Investors may not have liquidity or desired liquidity in our common stock as an investment. With the lack of any revenues and revenue generating operations, and doubt as a going concern, any investment in the Company’s common stock is highly risky.
Previous wording
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 wording
As part of business development efforts for the proposed 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. 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. As of the date of this Form 10-Q filing, there is no written agreement for the development, testing and support of the application.
Previous 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.
Current wording
For the six months ended June 30, 2025 and 2024, the Company reported a $143,268 decrease in net revenue from $143,268 in 2024 to $0 in 2025. The decrease in revenue is due to a liquidation sale of the Smart Mirrors for $80,000 during the second quarter of 2024 while the Company does not currently have an operating product line. The net loss for the six months ended June 30, 2025 was $187,612 as compared to $386,270 in 2024. During the six months ended June 30, 2025 and 2024 the Company used cash in operating activities of approximately $156,600 in 2025 and $109,800 in 2024. The increase in net cash used in operations primarily relates to a decrease in accounts payable and accrued expenses as a result of the New Note working capital funding received in the fourth quarter of 2024 with installments received through June 30, 2025.
Previous 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.
Current wording
As of June 30, 2025, the Company has negative working capital of $325,205 and an accumulated deficit of $11,947,212. The Company’s cash balance increased by approximately $26,000 from $16,000 as of December 31, 2024 to $42,000 as of June 30, 2025. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
Previous wording
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 wording
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 half 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.
Previous wording
In the three months ended March 31, 2025, the Company had no major customers.
Current wording
In the six months ended June 30, 2025, the Company had no major customers.
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. 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:
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. The Company’s Social Media accounts are:
Previous wording
X 5 https://x.com/CAPC_Capstone
Current wording
X 4 : https://x.com/CAPC_Capstone
Previous wording
YOUTUBE 6 https://www.youtube.com/channel/UCMX5W8PV0Q59qoAdMxKcAig
Current wording
YOUTUBE55 : https://www.youtube.com/channel/UCMX5W8PV0Q59qoAdMxKcAig
Previous wording
5 X is a registered trademark of X Corp.
Current wording
4 X is a registered trademark of X Corp.
Previous wording
6 YouTube is a registered trademark of YouTube Corporation.
Current wording
5 YouTube is a registered trademark of YouTube Corporation.
Previous wording
The Company did not engage in research, product development or manufacturing in the fiscal quarter ended March 31, 2025.
Current wording
The Company did not engage in research, product development or manufacturing during the period ended June 30, 2025.
Previous 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.
Current wording
We believe that there have been no significant changes to our critical accounting policies during the six months ended June 30, 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 $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.
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.
Previous 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.
Current wording
There were no revenues for the six months ended June 30, 2025, a 100% from $143,268 in the same period 2024, as the Company did not have an operating product line during the six month period ended June 30, 2025.
Previous 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.
Current wording
The Company made concerted efforts to reduce operating expenses during 2025 as the Company did not have a revenue generating product line during the six month period ended June 30, 2025.
Previous 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.
Current wording
For the six months ended June 30, 2025, and 2024, sales and marketing expenses were $0 and $17,403, respectively, a decrease of $17,400 or 100%, as the Company did not have a revenue generating product line as of the period ended June 30, 2025.
Previous 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%.
Current wording
For the three months ended June 30, 2025, and 2024, compensation expenses were $0 and $70,460, respectively.
Previous 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%.
Current wording
For the three months ended June 30, 2025, and 2024, professional fees were approximately $43,000 and $77,000 respectively, a decrease of $35,000 or 45%.
Previous wording
For the three months ended March 31, 2025, product development expenses were approximately $125 as compared to $0 in 2024.
Current wording
For the three months ended June 30, 2025, product development expenses were $0 as compared to $1,903 in 2024.
Previous 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.
Current wording
For the three months ended June 30, 2025, other general and administrative expenses were approximately $28,000 as compared to $36,000 in 2024 for a reduction of $8,000 or 36%.
Previous 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%.
Current wording
For the three months ended June 30, 2025, and 2024, total operating expenses were approximately $70,000 and $193,000, respectively, a decrease of approximately $123,000 or 46%.
Previous 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%.
Current wording
For the three months ended June 30, 2025 and 2024, the operating loss was approximately $70,000 and $93,000, respectively, a decreased in loss of $23,000 or 25%.
Previous wording
For the three months ended March 31, 2025, other income (expense) was ($4,000), net as compared to ($29,000) for 2024.
Current wording
For the three months ended June 30, 2025, and 2024, other income (expense) was ($6,000), net as compared to ($30,000) for 2024.
Previous 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%.
Current wording
For the three months ended June 30, 2025 the net loss was approximately $77,000 compared to a net loss of $123,000 in the same period 2024, a decreased loss of $47,000 or 38%.
Previous wording
There were no material changes to contractual obligations for the three months ended March 31, 2025.
Current wording
There were no material changes to contractual obligations for the six months ended June 30, 2025.
Previous 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.
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 June 30, 2025, and December 31, 2024, was approximately $42,000 and $16,000 respectively, an increase of approximately $26,000.
Previous 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:
Current wording
As of June 30, 2025, the Company’s working capital deficit was approximately $325,000. Current assets were approximately $54,000 and current liabilities were approximately $379,000 and include:
Previous 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.
Current wording
Cash used in operating activities in the nine months ended June 30, 2025, and 2024 was approximately $156,600 and $109,800, respectively, a decrease of $46,800 compared to last year.
Previous wording
Cash provided by financing activities for the nine months ended March 31, 2025 and 2024, was approximately $111,000 and $90,000, respectively.
Current wording
Cash provided by financing activities for the six months ended June 30, 2025 and 2024, was approximately $182,500 and $90,000, respectively.
Previous 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.
Current wording
As of June 30, 2025, and December 31, 2024, the Company had outstanding notes payable $374,000 and $181,000 which includes accrued interest of $12,000 and $2,000, respectively.
Previous wording
Interest Rate Risk: The Company does not have significant interest rate risk during the three-month period ended March 31, 2025. All outstanding loans have been disclosed including the agreed interest rates.
Current wording
Interest Rate Risk: The Company does not have significant interest rate risk during the six-month period ended June 30, 2025. All outstanding loans have been disclosed including the agreed interest rates.
Previous wording
Credit Risk: The Company has not experienced significant credit risk. The e-commerce business requires customer credit approval prior to shipment and the payment is received by the Company between 5 and 20 days after shipment depending on which ordering platform is used by the consumer. To date we have not experienced any credit risk issues, but we will closely monitor the process to assess that this trend continues.
Current wording
Credit Risk: The Company has not experienced significant credit risk.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
For the three months ended June 30, 2025, and 2024, sales and marketing expenses were $0 and $7,812 respectively.
Current report — wording carried from elsewhere
For the six months ended June 30, 2025, and 2024, the net loss was approximately $187,600 compared to a net loss of $386,300 in the same period 2024, a decreased loss of $198,700 or 106%.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
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.