Capstone Companies Reports 2020 Year-End Performance

Rhea-AI Summary

Capstone Companies, Inc. (OTC: CAPC) reported significant declines in revenue and earnings for the full year 2020, largely attributed to the COVID-19 pandemic impact. Despite these challenges, the company successfully developed its Connected Surfaces program and plans to introduce the innovative Smart Mirror product. CEO Stewart Wallach highlighted the achievements during a tumultuous year, emphasizing the resilience in finalizing new product developments amid global supply chain disruptions.

Positive

• Successful development of Connected Surfaces program.
• Introduction of innovative Smart Mirror product planned.

Negative

• Significant decline in revenue and earnings due to COVID-19.

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 2020.

Gerry McClinton, Capstone’s Chief Financial Officer, commented, “we experienced an unprecedented decline in our revenues and earnings resulting from the impact of the COVID-19 pandemic. During this time however, the Company finalized the development of its Connected Surfaces program.”

Stewart Wallach, Capstone’s Chairman and Chief Executive Officer, commented, “As we put 2020 behind us, we turn our attention to the positive achievements our Company made while supply chains were shutdown and working conditions were compromised across the globe.”

Wallach added, “we will be discussing the introduction of our Smart Mirror program which is the most innovative and promising product category in our history. Frankly, it’s astonishing that we were able to finalize this program while battling the effects of COVID-19.”

Webcast and Teleconference to Review Results and Outlook
Thursday, April 1, 2021
10:30 a.m. Eastern Time
Phone: (201) 689-8562
Internet webcast link available at: www.capstonecompaniesinc.com.

A telephonic replay will be available from 1:30 p.m. ET the day of the call until Thursday, April 8, 2021. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13716774. 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
CONSOLIDATED STATEMENTS OF OPERATIONS
				For the Years Ended
				December 31,
				2020				2019
Revenues, net				$	2,770,358			$	12,404,445
Cost of sales					(2,266,592	)			(9,972,871	)
Gross Profit					503,766				2,431,574
Operating Expenses:
Sales and marketing					300,420				378,605
Compensation					1,515,522				1,554,286
Professional fees					422,820				435,143
Product development					249,879				348,745
Other general and administrative					477,121				647,696
Goodwill impairment charge					623,538				-
Total Operating Expenses					3,589,300				3,364,475
Operating Loss					(3,085,534	)			(932,901	)
Other Income (Expenses):
Other Income, Net					89,600				29,505
Interest Income (Expense)					179				(3,206	)
Total Other Income, net					89,779				26,299
Loss Before Tax Benefit					(2,995,755	)			(906,602	)
Benefit for Income Tax					(611,939	)			(14,933	)
Net Loss				$	(2,383,816	)		$	(891,669	)
Net Loss per Common Share
Basic and Diluted				($	0.05	)		($	0.02	)
Weighted Average Shares Outstanding
Basic and Diluted					46,337,198				46,863,467
The accompanying notes are an integral part of these consolidated financial statements

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
	December 31,				December 31,
	2020				2019
Assets:
Current Assets:
Cash	$	1,223,770			$	3,131,249
Accounts receivable, net		120,064				13,459
Inventories		8,775				24,818
Prepaid expenses		75,622				182,782
Income tax refundable		861,318				220,207
Total Current Assets		2,289,549				3,572,515
Property and Equipment, net		54,852				65,649
Operating lease- right of use asset		158,504				214,202
Deposit		25,560				46,021
Goodwill		1,312,482				1,936,020
Total Assets		3,840,947				5,834,407
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts payable and accrued liabilities	$	825,690			$	635,593
Operating lease- current portion		63,307				51,174
Total Current Liabilities		888,997				686,767
Long Term Liabilities:
Operating lease- long- term portion		107,690				170,998
Deferred tax liabilities- long-term		259,699				-
Total Long Term Liabilities		367,389				170,998
Total Liabilities		1,256,386				857,765
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 -0- shares		-				-
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 46,296,364 shares at December 31, 2020 and 46,579,747 shares at December 31, 2019		4,630				4,658
Additional paid-in capital		7,053,328				7,061,565
Accumulated deficit		(4,473,397	)			(2,089,581	)
Total Stockholders' Equity		2,584,561				4,976,642
Total Liabilities and Stockholders’ Equity	$	3,840,947			$	5,834,407
The accompanying notes are an integral part of these condensed consolidated financial statements.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
		For the Twelve Months Ended
		December 31,
		2020				2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss		$	(2,383,816	)		$	(891,669	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization			24,297				44,194
Stock based compensation expense			28,068				40,707
Noncash lease expense			55,698				20,248
Goodwill impairment charge			623,538				-
Deferred income tax benefit			-				(12,000	)
Increase in deferred income tax liabilities- long term			259,699				-
Non cash accounts receivable allowance			173,426				-
(Increase) decrease in accounts receivable, net			(106,605	)			51,052
Decrease in inventories			16,043				2,679
Increase in prepaid expenses			107,160				61,094
Decrease in deposits			20,461				56,784
Increase in accounts payable and accrued liabilities			16,671				174,147
Decrease in deferred rent incentive			-				(108,844	)
Decrease in income tax payable			-				(11,694	)
Increase in income tax refundable			(641,111	)			-
Decrease in operating lease liabilities			(51,175	)			(12,278	)
Net cash provided by used in operating activities			(1,857,646	)			(585,580	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment			(13,500	)			(34,123	)
Net cash used in investing activities			(13,500	)			(34,123	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of Shares

FAQ

What were Capstone Companies' financial results for 2020?

Capstone Companies reported a significant decline in revenue and earnings for the full year 2020 due to the COVID-19 pandemic.

What new product is Capstone introducing?

Capstone plans to introduce the Smart Mirror product, which is considered one of its most innovative offerings.

When will Capstone Companies discuss its financial results?

Capstone will hold a webcast and teleconference on April 1, 2021, at 10:30 a.m. Eastern Time.

How did COVID-19 impact Capstone Companies?

The COVID-19 pandemic caused an unprecedented decline in Capstone's revenues and earnings.

What is the ticker symbol for Capstone Companies?

The ticker symbol for Capstone Companies is CAPC.