Capstone Companies Reports 2021 Year-End Performance

DEERFIELD BEACH, Fla.–(BUSINESS WIRE)–Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer, manufacturer and marketer of consumer inspired products that simplify daily living through technology, reported its financial results for the full year 2021.

Gerry McClinton, Capstone’s Chief Financial Officer, commented, “The Product Development team fought through 2 years of pandemic related delays in order to finalize the Smart Mirror portfolio. With inventory now available, Management has refocused on Strategic Development and Financial Management for future growth.”

Stewart Wallach, Capstone’s Chairman and Chief Executive Officer, commented, “Our company experienced firsthand what it is like to be tested at every level in every way during 2021.”

Mr. Wallach added, “Management’s business acumen guided us through a maze of business obstacles that could never have been anticipated.”

Webcast and Teleconference to Review Results and Outlook

Friday, April 1, 2022

10:30 a.m. Eastern Time

Phone: (201) 689-8562

A telephonic replay will be available from 1:30 p.m. ET the day of the call until Friday, April 8, 2022. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13728169. Alternatively, the archive of the webcast will be available on the Company’s website at www.capstonecompaniesinc.com, along with a transcript once available.

About Capstone Companies, Inc.

Capstone Companies, Inc. is a public holding company that engages, through its wholly owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Ltd., in the development, manufacturing and marketing of consumer products to retail channels throughout North America and certain international markets.

Visit our websites; www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com and www.capstoneconnected.com for information on our current product offerings. Contents of referenced URL’s are not incorporated herein.

Forward Looking Statements. This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing Company’s views as of any subsequent date. Such forward-looking statements are based on information available to the Company as of the date of this press release and involve a number of risks and uncertainties, some beyond the Company’s control or ability to foresee, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including, including the impact of Coronavirus/COVID-19 pandemic on the Smart Mirror product line, any difficulty in marketing Company products in its target markets, competition in the market, and impact of evolving technologies in Smart Mirrors on Company’s prospects and products. Additional information that could lead to material changes in Company’s performance is contained in its filings with the Securities and Exchange Commission.

Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise. Any investment in the Company’s common stock, which is a “penny stock,” is highly risky and not suitable for investors who require liquidity and are unable to withstand the loss of their investment. Investors should only rely on public information in our filings with the SEC, especially disclosures of Risk Factors, as a basis for investment decisions about Company common stock. Company’s SEC filings can be accessed through SEC website: www.sec.gov or the corporate website listed below.

FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
	December 31,				December 31,
	2021				2020
Assets:
Current Assets:
Cash	$	1,277,492			$	1,223,770
Accounts receivable, net		1,481				120,064
Inventories		508,920				8,775
Prepaid expenses		500,748				75,622
Income tax refund		284,873				861,318
Total Current Assets		2,573,514				2,289,549
Property and equipment, net		76,928				54,852
Operating lease- right of use asset		98,651				158,504
Deposit		11,148				25,560
Goodwill		1,312,482				1,312,482
Total Assets	$	4,072,723			$	3,840,947
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts payable and accrued liabilities	$	538,551			$	825,690
Operating lease- current portion		70,157				63,307
Total Current Liabilities		608,708				888,997
Long-Term Liabilities:
Operating lease- long-term portion		37,533				107,690
Note payable related party		1,030,340				–
Deferred tax liabilities -long-term		273,954				259,699
Total Long-Term Liabilities		1,341,827				367,389
Total Liabilities		1,950,535				1,256,386
Commitments and Contingencies: ( Note 5 )
Stockholders’ Equity:
Preferred Stock, Series A, par value $.001 per share, authorized 6,666,667 shares, issued -0- shares		–				–
Preferred Stock, Series B-1, par value $.0001 per share, authorized 3,333,333 shares, issued 15,000 shares at December 31, 2021, nil at December 31, 2020 (Liquidation Preference $15,000)		2				–
Preferred Stock, Series C, par value $1.00 per share, authorized 67 shares, issued -0- shares		–				–
Common Stock, par value $.0001 per share, authorized 56,666,667 shares, issued 48,893,031 at December 31, 2021 and 46,296,364 at December 31, 2020		4,892				4,630
Additional paid-in capital		8,554,320				7,053,328
Accumulated deficit		(6,437,026	)			(4,473,397	)
Total Stockholders’ Equity		2,122,188				2,584,561
Total Liabilities and Stockholders’ Equity	$	4,072,723			$	3,840,947
The accompanying notes are an integral part of these consolidated financial statements.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	For the Years Ended
	December 31,
	2021				2020
Revenues, net	$	685,854			$	2,770,358
Cost of sales		(638,644	)			(2,266,592	)
Gross Profit		47,210				503,766
Operating Expenses:
Sales and marketing		28,568				300,420
Compensation		1,276,503				1,515,522
Professional fees		368,229				422,820
Product development		308,823				249,879
Other general and administrative		420,962				477,121
Goodwill impairment charge		–				623,538
Total Operating Expenses		2,403,085				3,589,300
Operating Loss		(2,355,875	)			(3,085,534	)
Other Income (Expense):
Other Income, net		456,275				89,600
Interest Income (Expense)		(48,974	)			179
Total Other Income (Expense)		407,301				89,779
Loss Before Tax Benefit		(1,948,574	)			(2,995,755	)
(Benefit) for Income Tax		15,055				(611,939	)
Net Loss	$	(1,963,629	)		$	(2,383,816	)
Net Loss per Common Share
Basic and Diluted	$	(0.04	)		$	(0.05	)
Weighted Average Shares Outstanding
Basic and Diluted		50,600,298				46,337,198
The accompanying notes are an integral part of these consolidated financial statements

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
YEARS ENDED DECEMBER 31, 2021 AND 2020
	Preferred Stock					Preferred Stock					Preferred Stock												Additional
	Series A					Series B					Series C					Common Stock							Paid-In				Accumulated				Total
	Shares		Par Value			Shares		Par Value			Shares		Par Value			Shares			Par Value				Capital				Deficit				Equity
Balance at December 31, 2019	–		$	–		–		$	–		–		$	–		46,579,747			$	4,658			$	7,061,565			$	(2,089,581	)		$	4,976,642
Stock options for compensation	–			–		–			–		–			–		–				–				28,068				–				28,068
Repurchase of shares	–			–		–			–		–			–		(283,383	)			(28	)			(36,305	)			–				(36,333	)
Net Loss	–			–		–			–		–			–		–				–				–				(2,383,816	)			(2,383,816	)
Balance at December 31, 2020	–		$	–		–		$	–		–		$	–		46,296,364			$	4,630			$	7,053,328			$	(4,473,397	)		$	2,584,561
Balance at December 31, 2020	–		$	–		–		$	–		–		$	–		46,296,364			$	4,630			$	7,053,328			$	(4,473,397	)		$	2,584,561
Stock options for compensation	–			–		–			–		–			–		–				–				15,619				–				15,619
Stock issued to Directors for loan						15,000			2															48,994								48,996
Common stock for cash, net of fees						–			–							2,596,667				262				1,436,379								1,436,641
Net Loss	–			–		–			–		–			–		–				–				–				(1,963,629	)			(1,963,629	)
Balance at December 31, 2021	–		$	–		15,000		$	2		–		$	–		48,893,031			$	4,892			$	8,554,320			$	(6,437,026	)		$	2,122,188
The accompanying notes are an integral part of these consolidated financial statements

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
	For the Twelve Months Ended
	December 31,
	2021				2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(1,963,629	)		$	(2,383,816	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		9,852				24,297
Stock based compensation expense		15,619				28,068
Noncash lease expense		59,853				55,698
Goodwill impairment charge		–				623,538
Stock issued to Director’s for loan		48,996				–
Increase in deferred income tax liabilities-long term		14,255				259,699
Noncash accounts receivable allowance		–				173,426
(Increase) decrease in accounts receivable, net		118,583				(106,605	)
(Increase) decrease in inventories		(500,145	)			16,043
(Increase) decrease in prepaid expenses		(425,126	)			107,160
Decrease in deposits		14,412				20,461
(Decrease) increase in accounts payable and accrued liabilities		(287,139	)			16,671
(Increase) decrease in income tax refund		576,445				(641,111	)
Decrease in operating lease liabilities		(63,307	)			(51,175	)
Net cash used in operating activities		(2,381,331	)			(1,857,646	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(31,928	)			(13,500	)
Net cash used in investing activities		(31,928	)			(13,500	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock, net of costs		1,436,641				–
Note payable- related party		1,030,340				–
Repurchase of shares		–				(36,333	)
Net cash provided (used) in financing activities		2,466,981				(36,333	)
Net Increase (Decrease) in Cash		53,722				(1,907,479	)
Cash at Beginning of Year		1,223,770				3,131,249
Cash at End of Period	$	1,277,492			$	1,223,770
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Stocks issued to directors for loan fee	$	48,996			$	–
Interest accrued note payable related party	$	10,340			$	–
The accompanying notes are an integral part of these consolidated financial statements.

 

Contacts

Aimee C. Brown

Corporate Secretary of Company

(954) 252-3440, ext. 313