May 22, 2019
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Capstone Companies Reports First Quarter 2019

DEERFIELD BEACH, Fla. , May 15 /Businesswire/ - Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer, manufacturer and marketer of consumer inspired products that bridge technological innovations with today’s lifestyle reported its financial results for the first quarter 2019.

Stewart Wallach, Capstone’s Chairman and CEO, commented, “2019 is off to a good start as strong retail sell through of new LED products fuel the Company’s backlog.”

Mr. Wallach added, “with our current backlog approximating all of 2018 sales, the Company pushes forward optimistically. The timing for the addition of our new product portfolio couldn’t be better as our core business remains stable and cash flows remain strong.”

Gerry McClinton, Capstone’s CFO, commented further, “our cash management has enabled the Company to make significant investments in our 2019 growth strategies. While sales are growing, and our new product portfolio evolves the Company continues to support these initiatives without incurring debt in the quarter.”

Webcast and Teleconference to Review Results and Outlook

The Company will host a live webcast and conference call on Thursday, May 16, 2019 at 10:30 a.m. Eastern Time. During the call, management will review the financial and operating results and discuss the Company’s corporate strategy and outlook, followed by a question-and-answer session. The conference call can be accessed by dialing (201) 689-8562. The listen-only audio webcast can be monitored at www.capstonecompaniesinc.com.

A telephonic replay will be available from 1:30 p.m. ET the day of the call until Thursday, May 23, 2019. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13686341. 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, Limited, in the development, manufacturing and marketing of consumer product to retail channels throughout North America and international markets.

Visit www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings.

FORWARD-LOOKING STATEMENTS:

This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended. Such statements consist of words like “anticipate,” “expect,” “project,” “continue” and similar words. These statements are based on the Company’s and its subsidiaries’ current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include consumer acceptance of the Company’s products, its ability to deliver new products, the success of its strategy to broaden market channels and the relationships it has with retailers and distributors. Prior success in operations does not necessarily mean success in future operations. The ability of the Company to adequately and affordably fund operations and any growth will be critical to achieving and sustaining any expansion of markets and revenue. The introduction of new products or the expanded availability of products does not mean that the Company will enjoy better financial or business performance. The risks associated with any investment in Capstone Companies, Inc., which is a small business concern and a "penny-stock Company” and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the risks and uncertainties more fully described in the Company’s Annual and Quarterly Reports filed with the Securities and Exchange Commission. Capstone Companies, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. Contents of referenced URLs are not incorporated into this press release.

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

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
       
For the Three Months Ended
March 31,
2019 2018
 
Revenues, net $ 2,978,802 $ 4,060,168
Cost of sales   (2,352,215)   (3,040,897)
Gross Profit   626,587   1,019,271
 
Operating Expenses:
Sales and marketing 191,875 363,061
Compensation 374,848 375,110
Professional fees 157,803 148,887
Product development 85,229 166,566
Other general and administrative   163,711   174,288
Total Operating Expenses   973,466   1,227,912
 
Operating Loss   (346,879)   (208,641)
 
Other Expenses, Net   (10,461)   -
 
Loss Before Tax (Benefit) (357,340) (208,641)
 
(Benefit) for Income Tax   (12,000)   (18,000)
 
Net Loss $ (345,340) $ (190,641)
 
Net Loss per Common Share
Basic   ($0.007)   ($0.004)
Diluted   ($0.007)   ($0.004)
 
Weighted Average Shares Outstanding
Basic   47,033,670   47,046,364
Diluted   47,033,670   47,046,364
 
 
The accompanying notes are an integral part of these condensed consolidated financial statements.
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
     
 
March 31, December 31,
2019 2018
Assets: (Unaudited)
Current Assets:
Cash $ 1,622,844 $ 3,822,359
Accounts receivable, net 2,376,699 64,511
Inventories 17,301 27,497
Prepaid expenses 76,724 243,876
Income tax refundable   220,207   220,207
Total Current Assets   4,313,775   4,378,450
 
Property and Equipment:
Computer equipment and software 51,195 51,195
Machinery and equipment 170,567 170,567
Furniture and fixtures 6,828 6,828
Less: Accumulated depreciation   (163,700)   (152,870)
Total Property & Equipment   64,890   75,720
 
Other Non-current Assets:
Deposit 103,193 102,805
Goodwill   1,936,020   1,936,020
Total Other Non-current Assets   2,039,213   2,038,825
Total Assets $ 6,417,878 $ 6,492,995
 
Liabilities and Stockholders’ Equity:
Current Liabilities:
Accounts payable and accrued liabilities $ 766,276 $ 461,446
Deferred rent incentive 83,827 108,844
Income tax payable   11,694   11,694
Total Current Liabilities   861,797   581,984
 
Long Term Liabilities:
Deferred tax liabilities   -   12,000
Total Long Term Liabilities   -   12,000
Total Liabilities   861,797   593,984
 
Commitments and Contingencies
 
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 47,000,894 shares at March 31, 2019 and 47,046,364 shares at December 31, 2018 4,701 4,704
Additional paid-in capital 7,094,632 7,092,219
Accumulated deficit   (1,543,252)   (1,197,912)
Total Stockholders' Equity   5,556,081   5,899,011
Total Liabilities and Stockholders’ Equity $ 6,417,878 $ 6,492,995
 

The accompanying notes are an integral part of these condensed consolidated financial statements.

CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND MARCH 31, 2018
                                   
 
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, 2018 - - - - - - 47,046,364 $   4,704 $   7,092,219 $   (1,197,912) $   5,899,011
Stock options for compensation - - - - - - - 11,025 11,025
Repurchase of shares (45,470) (3) (8,612) (8,615)
Net (Loss) -       -   -     -   -     -     -         -           -           (345,340)         (345,340)
Balance at March 31, 2019 -     $ -   -   $ -   -   $ -     47,000,894     $   4,701       $   7,094,632       $   (1,543,252)     $  

STORY TAGS: Women, United States, Energy, Alternative Energy, Technology, Luxury, Consumer Electronics, Online Retail, North America, Hardware, Home Goods, Florida, Manufacturing, Earnings, Engineering, Other Manufacturing, Conference Call, Webcast, Retail, Other Retail, Consumer, Family, Men,

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