Thu, Nov 14, 8:19 PM (62 days ago)
Capstone Companies, Inc. (CAPC) reported significant financial challenges for the quarter ending September 30, 2024. The company generated no revenue in Q3 2024, a stark decline from $63,771 in Q3 2023, largely due to ceasing sales of its Smart Mirrors. For the nine months ended September 30, 2024, revenues rose by 49% to $143,268, primarily from a liquidation sale of Smart Mirrors. Operating expenses decreased from $1,101,000 in 2023 to $497,000 in 2024, reflecting cost-cutting measures amid ongoing losses. The net loss for the nine months was $481,807, down from $1,215,000 in 2023. The company reported negative working capital of approximately $3,748,000 and an accumulated deficit of $11,279,000, raising substantial doubts about its ability to continue as a going concern. To address liquidity issues, Capstone secured a $125,914 promissory note on October 31, 2024, to cover essential working capital needs. However, without additional funding, the company's ability to sustain operations or develop new product lines remains uncertain, particularly as it transitions from consumer products to potential new business ventures.