Tue, May 14, 8:48 PM (253 days ago)
Capstone Companies, Inc.'s Form 10-Q for the quarter ended March 31, 2024, reveals a challenging financial situation. The company reported a net revenue of $5,450, a slight decrease from $5,552 in the same period last year. Operating expenses were significantly reduced to $238,000 from $447,000, yet the company still incurred an operating loss of $233,000, down from $444,000 in the prior year. The net loss for the quarter was $262,000 compared to $467,000 in Q1 2023. The balance sheet shows a decrease in total assets to $1.39 million from $1.42 million at the end of 2023. Current liabilities increased to $3.58 million, leading to a working capital deficit of $3.54 million. Cash reserves dwindled to $1,693 from $36,466, raising substantial doubt about the company's ability to continue as a going concern. Capstone's strategic focus is on developing the Connected Chef product but faces significant uncertainties, including the need for additional funding and the risk of not achieving sufficient sales. The company is actively seeking alternative liquidity sources and considering strategic options, including potential mergers or acquisitions.