Florida | 84-1047159 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
350 Jim Moran Boulevard, Suite 120, Deerfield Beach, Florida 33442 |
(Address of principal executive offices) |
(954) 252-3440 |
( |
Large accelerated filer | Accelerated filer |
Non-accelerated filer (Do not check if a smaller reporting company) | Smaller reporting company x |
PART 1 | FINANCIAL STATEMENTS | 3 |
Item 1. | Financial Statements | 3 |
Item 2. | | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. | Controls and Procedures | 30 |
PART II | Other Information | 30 |
Item 1. | Legal Proceedings | 30 |
Item 1A. | Risk Factors | 30 |
Item 2. | Unregistered Sale of Equity Securities and Use of Proceeds | 31 |
Item 3. | Defaults of Senior Securities | 31 |
Item 4. | Submission of Matters to Vote of Security Holders | |
Item 5. | Other Information | |
Item 6. | Exhibits | 32 |
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
September 30, | December 31, | |||||||
2015 | 2014 | |||||||
Assets: | (Unaudited) | |||||||
Current Assets: | ||||||||
Cash | $ | 258,321 | $ | 313,856 | ||||
Accounts receivable, net | 7,551,247 | 977,597 | ||||||
Advances | - | 14,456 | ||||||
Inventory | 90,649 | 128,984 | ||||||
Prepaid expenses | 729,359 | 358,046 | ||||||
Total Current Assets | 8,629,576 | 1,792,939 | ||||||
Fixed Assets: | ||||||||
Computer equipment and software | 19,767 | 12,272 | ||||||
Machinery and equipment | 350,393 | 299,693 | ||||||
Furniture and fixtures | 5,665 | 5,665 | ||||||
Less: Accumulated depreciation | (272,901 | ) | (223,589 | ) | ||||
Total Fixed Assets | 102,924 | 94,041 | ||||||
Other Non-current Assets: | ||||||||
Deposit | 12,193 | 12,193 | ||||||
Investment (AC Kinetics) | 500,000 | 500,000 | ||||||
Goodwill | 1,936,020 | 1,936,020 | ||||||
Total Other Non-current Assets | 2,448,213 | 2,448,213 | ||||||
Total Assets | $ | 11,180,713 | $ | 4,335,193 | ||||
Liabilities and Stockholders’ Equity: | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 1,812,358 | $ | 644,629 | ||||
Note payable - Sterling Factors | 4,183,663 | 286,945 | ||||||
Notes and loans payable to related parties - current maturities | 3,485,064 | 1,936,679 | ||||||
Total Current Liabilities | 9,481,085 | 2,868,253 | ||||||
Commitments and Contingent Liabilities (Note 5) | ||||||||
Stockholders' Equity: | ||||||||
Preferred Stock, Series A, par value $.001 per share, authorized 100,000,000 shares, issued -0- shares | - | - | ||||||
Preferred Stock, Series B-1, par value $.0001 per share, authorized 50,000,000 shares, issued -0- shares | - | - | ||||||
Preferred Stock, Series C, par value $1.00 per share, authorized 1,000 shares, issued -0- shares at September 30, 2015 and 1,000 shares at December 31, 2014 | - | 1,000 | ||||||
Common Stock, par value $.0001 per share, authorized 850,000,000 shares, issued 721,989,957 shares at September 30, 2015 and 654,010,532 at December 31, 2014 | 72,199 | 65,401 | ||||||
Additional paid-in capital | 7,262,479 | 7,187,058 | ||||||
Accumulated deficit | (5,635,050 | ) | (5,786,519 | ) | ||||
Total Stockholders' Equity | 1,699,628 | 1,466,940 | ||||||
Total Liabilities and Stockholders’ Equity | $ | 11,180,713 | $ | 4,335,193 | ||||
The accompanying notes are an integral part of these financial statements. |
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
March 31, | December 31, | |||||||
2016 | 2015 | |||||||
(Unaudited) | ||||||||
Assets: | ||||||||
Current Assets: | ||||||||
Cash | $ | 463,615 | $ | 364,714 | ||||
Accounts receivable, net | 1,391,497 | 5,077,182 | ||||||
Inventory | 232,384 | 205,708 | ||||||
Prepaid expenses | 604,517 | 566,459 | ||||||
Total Current Assets | 2,692,013 | 6,214,063 | ||||||
Fixed Assets: | ||||||||
Computer equipment and software | 19,767 | 19,767 | ||||||
Machinery and equipment | 385,333 | 380,633 | ||||||
Furniture and fixtures | 5,665 | 5,665 | ||||||
Less: Accumulated depreciation | (309,241 | ) | (295,180 | ) | ||||
Total Fixed Assets | 101,524 | 110,885 | ||||||
Other Non-current Assets: | ||||||||
Deposit | 12,193 | 12,193 | ||||||
Investment (AC Kinetics) | 500,000 | 500,000 | ||||||
Goodwill | 1,936,020 | 1,936,020 | ||||||
Total Other Non-current Assets | 2,448,213 | 2,448,213 | ||||||
Total Assets | $ | 5,241,750 | $ | 8,773,161 | ||||
Liabilities and Stockholders' Equity: | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 363,452 | $ | 2,164,283 | ||||
Income tax payable | - | 7,500 | ||||||
Note payable - Sterling National | 354,697 | 2,275,534 | ||||||
Notes and loans payable to related parties - current maturities | 2,346,469 | 2,064,034 | ||||||
Total Current Liabilities | 3,064,618 | 6,511,351 | ||||||
Commitments and Contingent Liabilities (Note 5) | ||||||||
Stockholders' Equity: | ||||||||
Preferred Stock, Series A, par value $.001 per share, authorized 100,000,000 shares, issued -0- shares | - | - | ||||||
Preferred Stock, Series B-1, par value $.0001 per share, authorized 50,000,000 shares, issued -0- shares | - | - | ||||||
Preferred Stock, Series C, par value $1.00 per share, authorized 1,000 shares, issued -0- shares at March 31, 2016 and at December 31, 2015 | - | - | ||||||
Common Stock, par value $.0001 per share, authorized 850,000,000 shares, issued 721,989,957 shares at March 31, 2016 and at December 31, 2015 | 72,199 | 72,199 | ||||||
Additional paid-in capital | 7,290,980 | 7,276,729 | ||||||
Accumulated deficit | (5,186,047 | ) | (5,087,118 | ) | ||||
Total Stockholders' Equity | 2,177,132 | 2,261,810 | ||||||
Total Liabilities and Stockholders' Equity | $ | 5,241,750 | $ | 8,773,161 | ||||
The accompanying notes are an integral part of these financial statements. |
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES | CAPSTONE COMPANIES, INC. AND SUBSIDIARIES | CAPSTONE COMPANIES, INC. AND SUBSIDIARIES | ||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | CONSOLIDATED STATEMENTS OF OPERATIONS | CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||||||
For the Three Months Ended | For the Nine Months Ended | For the Three Months Ended | ||||||||||||||||||||||
September 30, | September 30, | March 31, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2016 | 2015 | |||||||||||||||||||
Revenues, net | $ | 7,747,450 | $ | 7,738,884 | $ | 8,750,951 | $ | 13,008,632 | $ | 2,078,214 | $ | 713,517 | ||||||||||||
Cost of sales | (5,767,306 | ) | (6,621,599 | ) | (6,410,197 | ) | (10,231,965 | ) | (1,464,658 | ) | (406,167 | ) | ||||||||||||
Gross Profit | 1,980,144 | 1,117,285 | 2,340,754 | 2,776,667 | 613,556 | 307,350 | ||||||||||||||||||
Operating Expenses: | ||||||||||||||||||||||||
Sales and marketing | 16,716 | 81,083 | 185,229 | 455,082 | 62,977 | 36,672 | ||||||||||||||||||
Compensation | 313,953 | 375,807 | 1,007,341 | 1,045,937 | 308,458 | 361,108 | ||||||||||||||||||
Professional fees | 56,947 | 38,656 | 202,511 | 144,681 | 104,285 | 96,173 | ||||||||||||||||||
Product development | 74,747 | 95,410 | 181,157 | 312,341 | 36,274 | 45,658 | ||||||||||||||||||
Other general and administrative | 158,796 | 168,260 | 407,114 | 455,243 | 142,755 | 121,355 | ||||||||||||||||||
Total Operating Expenses | 621,159 | 759,216 | 1,983,352 | 2,413,284 | 654,749 | 660,966 | ||||||||||||||||||
Net Operating Income | 1,358,985 | 358,069 | 357,402 | 363,383 | ||||||||||||||||||||
Net Operating (Loss) | (41,193 | ) | (353,616 | ) | ||||||||||||||||||||
Other Income (Expense): | ||||||||||||||||||||||||
Interest expense | (111,654 | ) | (69,448 | ) | (205,933 | ) | (223,018 | ) | (57,736 | ) | (37,156 | ) | ||||||||||||
Total Other Income (Expense) | (111,654 | ) | (69,448 | ) | (205,933 | ) | (223,018 | ) | (57,736 | ) | (37,156 | ) | ||||||||||||
Income Before Tax Provision | 1,247,331 | 288,621 | 151,469 | 140,365 | ||||||||||||||||||||
(Loss) Before Tax Provision | (98,929 | ) | (390,772 | ) | ||||||||||||||||||||
Provision for Income Tax | - | (2,129 | ) | - | (6,387 | ) | - | - | ||||||||||||||||
Net Income | $ | 1,247,331 | $ | 286,492 | $ | 151,469 | $ | 133,978 | ||||||||||||||||
Net (Loss) | $ | (98,929 | ) | $ | (390,772 | ) | ||||||||||||||||||
Net Income per Common Share | ||||||||||||||||||||||||
Net Loss per Common Share | ||||||||||||||||||||||||
Basic | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||
Diluted | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||||||
Weighted Average Shares Outstanding | Weighted Average Shares Outstanding | Weighted Average Shares Outstanding | ||||||||||||||||||||||
Basic | 721,989,957 | 654,010,532 | 690,863,847 | 655,046,444 | 721,989,957 | 654,010,532 | ||||||||||||||||||
Diluted | 721,989,957 | 809,072,109 | 690,863,847 | 809,758,922 | 721,989,957 | 654,010,532 | ||||||||||||||||||
The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. | The accompanying notes are an integral part of these financial statements. |
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended | ||||||||
March 31, | ||||||||
2016 | 2015 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net (Loss) | $ | (98,929 | ) | $ | (390,772 | ) | ||
Adjustments necessary to reconcile net (loss) to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 14,061 | 12,687 | ||||||
Stock based compensation expense | 14,250 | 29,433 | ||||||
Accrued sales allowance | (94,203 | ) | (181,978 | ) | ||||
(Increase) decrease in accounts receivable | 3,835,576 | 747,014 | ||||||
(Increase) decrease in inventory | (26,674 | ) | (57,470 | ) | ||||
(Increase) decrease in prepaid expenses | (38,057 | ) | (12,083 | ) | ||||
(Increase) decrease in other assets | - | 14,456 | ||||||
Increase (decrease) in accounts payable and accrued liabilities | (1,864,020 | ) | 82,314 | |||||
Increase (decrease) in accrued interest on notes payable | 31,282 | 34,692 | ||||||
Net cash provided by operating activities | 1,773,286 | 278,293 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of property and equipment | (4,700 | ) | (2,284 | ) | ||||
Net cash (used in) investing activities | (4,700 | ) | (2,284 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from notes payable | 3,643,356 | 607,276 | ||||||
Repayments of notes payable | (5,564,194 | ) | (1,249,273 | ) | ||||
Proceeds from notes and loans payable to related parties | 360,000 | 200,000 | ||||||
Repayments of notes and loans payable to related parties | (108,847 | ) | - | |||||
Net cash (used in) financing activities | (1,669,685 | ) | (441,997 | ) | ||||
Net Increase (Decrease) in Cash and Cash Equivalents | 98,901 | (165,988 | ) | |||||
Cash and Cash Equivalents at Beginning of Period | 364,714 | 313,856 | ||||||
Cash and Cash Equivalents at End of Period | $ | 463,615 | $ | 147,868 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 60,301 | $ | 2,464 | ||||
Income taxes | $ | 7,500 | $ | - | ||||
The accompanying notes are an integral part of these financial statements. |
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
For the Nine Months Ended | ||||||||
September 30, | ||||||||
2015 | 2014 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Income | $ | 151,469 | $ | 133,978 | ||||
Adjustments necessary to reconcile net income to net cash (used in) operating activities: | ||||||||
Stock cancellation | - | (28,876 | ) | |||||
Depreciation and amortization | 49,311 | 60,566 | ||||||
Compensation expense from stock options | 81,219 | 43,500 | ||||||
Accrued sales allowance | (196,978 | ) | 517,269 | |||||
(Increase) decrease in accounts receivable | (6,376,672 | ) | (1,189,147 | ) | ||||
(Increase) decrease in inventory | 38,337 | 84,915 | ||||||
(Increase) decrease in prepaid expenses | (371,317 | ) | 680,306 | |||||
(Increase) decrease in other assets | 14,456 | (12,193 | ) | |||||
Increase (decrease) in accounts payable and accrued liabilities | 1,167,729 | 968,744 | ||||||
Increase (decrease) in accrued interest on notes payable | 148,385 | 151,842 | ||||||
Net cash provided by (used in) operating activities | (5,294,061 | ) | 1,410,904 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchase of property and equipment | (58,194 | ) | (44,728 | ) | ||||
Net cash (used in) investing activities | (58,194 | ) | (44,728 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from notes payable | 5,791,914 | 11,686,401 | ||||||
Repayments of notes payable | (1,895,194 | ) | (11,833,452 | ) | ||||
Proceeds from notes and loans payable to related parties | 2,500,000 | 950,000 | ||||||
Repayments of notes and loans payable to related parties | (1,100,000 | ) | (2,287,982 | ) | ||||
Net cash provided by (used in) financing activities | 5,296,720 | (1,485,033 | ) | |||||
Net (Decrease) in Cash and Cash Equivalents | (55,535 | ) | (118,857 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 313,856 | 436,592 | ||||||
Cash and Cash Equivalents at End of Period | $ | 258,321 | $ | 317,735 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 57,549 | $ | 314,158 | ||||
Non-cash financing activities: | ||||||||
Conversion of Series C Preferred Stock to Common Stock | $ | 1,000 | $ | - | ||||
The accompanying notes are an integral part of these financial statements. |
Computer equipment | 3 - 7 years |
Computer software | 3 - 7 years |
Machinery and equipment | 3 - 7 years |
Furniture and fixtures | 3 - 7 years |
· | Level one — Quoted market prices in active markets for identical assets or liabilities; |
· | Level two — Inputs other than level one inputs that are either directly or indirectly observable; and |
· | Level three — Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. |
Year Ended December, 31, | US | HK | Total |
2015 | $89,150 | $48,000 | $137,150 |
2016 | 90,710 | 6,000 | 96,710 |
2017 | 7,559 | - | 7,559 |
Total lease obligation | $187,419 | $54,000 | $241,419 |
Year Ended December, 31, | US | HK | Total | |||||||||
2016 | $ | 66,870 | $ | 37,274 | $ | 104,144 | ||||||
2017 | 7,559 | $ | 20,322 | 27,881 | ||||||||
Total future lease obligation | $ | 74,429 | $ | 57,596 | $ | 132,025 |
Weighted | Weighted | ||||||||||||||||||||||
Weighted | Average | Weighted | Average | ||||||||||||||||||||
Average | Remaining | Aggregate | Average | Remaining | Aggregate | ||||||||||||||||||
Exercise | Contractual | Intrinsic | Exercise | Contractual | Intrinsic | ||||||||||||||||||
Shares | Price | Term (Years) | Value | Shares | Price | Term (Years) | Value | ||||||||||||||||
Outstanding, December 31, 2013 | 74,383,333 | $ 0.029 | 3.28 | $ - | |||||||||||||||||||
Granted | 3,150,000 | 0.029 | - | - | |||||||||||||||||||
Exercised | - | - | - | - | |||||||||||||||||||
Outstanding, December 31 , 2014 | 77,533,333 | $ 0.029 | 2.36 | $ - | |||||||||||||||||||
Outstanding, January 1, 2015 | 77,533,333 | $ | 0.029 | 2.36 | $ | - | |||||||||||||||||
Granted | 6,300,000 | 0.029 | - | - | 6,300,000 | 0.029 | - | - | |||||||||||||||
Exercised | - | - | - | - | - | - | - | - | |||||||||||||||
Forfeited/expired | (4,750,000) | 0.029 | - | - | (4,750,000 | ) | 0.029 | - | - | ||||||||||||||
Outstanding, September 30, 2015 | 79,083,333 | $ 0.029 | 1.98 | $ - | |||||||||||||||||||
Outstanding, December 31, 2015 | 79,083,333 | $ | 0.029 | 1.73 | $ | - | |||||||||||||||||
Granted | - | 0.029 | - | - | |||||||||||||||||||
Exercised | - | - | - | - | |||||||||||||||||||
Forfeited/expired | - | 0.029 | - | - | |||||||||||||||||||
Outstanding, March 31, 2016 | 79,083,333 | $ | 0.029 | 1.48 | $ | - | |||||||||||||||||
Vested/exercisable at December, 31, 2014 | 77,533,333 | $ 0.029 | 2.36 | $ - | |||||||||||||||||||
Vested/exercisable at September 30, 2015 | 75,933,333 | $ 0.029 | 1.85 | $ - | |||||||||||||||||||
Vested/exercisable at December, 31, 2015 | 75,933,333 | $ | 0.029 | 1.60 | $ | - | |||||||||||||||||
Vested/exercisable at March, 31, 2016 | 75,933,333 | $ | 0.029 | 1.35 | $ | - |
Exercise Price | Options Outstanding | Remaining Contractual Life in Years | Average Exercise Price | Number of Options Currently Exercisable |
$.029 | 54,983,333 | 1.58 | $.029 | 54,983,333 |
$.029 | 2,500,000 | 2.58 | $.029 | 2,500,000 |
$.029 | 700,000 | 3.58 | $.029 | 700,000 |
$.029 | 1,000,000 | 2.08 | $.029 | 1,000,000 |
$.029 | 150,000 | 2.33 | $.029 | 150,000 |
$.029 | 850,000 | 3.67 | $.029 | 850,000 |
$.029 | 300,000 | 4.75 | $.029 | 300,000 |
$.029 | 4,500,000 | .75 | $.029 | 4,500,000 |
$.029 | 150,000 | 5.75 | $.029 | 150,000 |
$.029 | 4,500,000 | 1.83 | $.029 | 4,500,000 |
$.029 | 3,000,000 | 3.25 | $.029 | 3,000,000 |
$.029 | 150,000 | 8.25 | $.029 | 150,000 |
$.029 | 3,000,000 | 4.25 | $.029 | 3,000,000 |
$.029 | 150,000 | 9.25 | $.029 | 150,000 |
$.029 | 3,000,000 | 4.83 | $.029 | - |
$.029 | 150,000 | 9.83 | $.029 | - |
Exercise Price | Options Outstanding | Remaining Contractual Life in Years | Average Exercise Price | Number of Options Currently Exercisable | ||||||||||||||
$ | .029 | 54,983,333 | 1.08 | $ | .029 | 54,983,333 | ||||||||||||
$ | .029 | 2,500,000 | 2.08 | $ | .029 | 2,500,000 | ||||||||||||
$ | .029 | 700,000 | 3.08 | $ | .029 | 700,000 | ||||||||||||
$ | .029 | 1,000,000 | 1.58 | $ | .029 | 1,000,000 | ||||||||||||
$ | .029 | 150,000 | 1.83 | $ | .029 | 150,000 | ||||||||||||
$ | .029 | 850,000 | 3.17 | $ | .029 | 850,000 | ||||||||||||
$ | .029 | 300,000 | 4.17 | $ | .029 | 300,000 | ||||||||||||
$ | .029 | 4,500,000 | 0.25 | $ | .029 | 4,500,000 | ||||||||||||
$ | .029 | 150,000 | 5.25 | $ | .029 | 150,000 | ||||||||||||
$ | .029 | 4,500,000 | 1.33 | $ | .029 | 4,500,000 | ||||||||||||
$ | .029 | 3,000,000 | 2.75 | $ | .029 | 3,000,000 | ||||||||||||
$ | .029 | 150,000 | 7.75 | $ | .029 | 150,000 | ||||||||||||
$ | .029 | 3,000,000 | 3.75 | $ | .029 | 3,000,000 | ||||||||||||
$ | .029 | 150,000 | 8.75 | $ | .029 | 150,000 | ||||||||||||
$ | .029 | 3,000,000 | 4.33 | $ | .029 | - | ||||||||||||
$ | .029 | 150,000 | 9.33 | $ | .029 | - |
2015 | 2014 | |
AC Kinetics Series A Convertible Preferred Stock | $500,000 | $500,000 |
2016 | 2015 | |||||||
AC Kinetics Series A Convertible Preferred Stock | $ | 500,000 | $ | 500,000 |
· | our expectations regarding growth and changes in the consumer product markets in which we sell our products and in the consumer specialty lighting |
· | our expectation regarding increasing demand for our products and changes in consumer tastes; |
· | our belief that we will be able to effectively compete with our competitors and increase or maintain our market share as well as our prospects in new geographical markets and in any new ventures or product lines; |
· | our expectations with respect to increased revenue growth and our ability to achieve profitability resulting from increases in our production volumes or changes or expansion of our product lines; |
· | our ability to obtain affordable funding when required; and |
· | our future business development, results of operations and financial condition, including any efforts to penetrate new markets in the world or to launch new product lines. |
* Our ability to develop and effectively update and market our products; |
* Our ability to procure and maintain on commercially reasonable terms relationships with third parties from whom we acquire product inventory; |
* Our ability to identify and pursue channels through which we will be able to market our products; |
* Our ability to manage our costs and maintain low overhead as well as access affordable funding on a timely basis; and |
19 * Our sales are currently dependent on our ability to attract retail customers on cost-effective terms to brick and mortar retail locations or to on-line retailer Amazon.com. Studies like The Neilson Company's August 2014 "E-Commerce: Evolution or Revolution in the Fast Moving Consumer Goods World," document that e-commerce is increasingly important in consumer goods industry. With the growing importance of e-commerce and Web-based or online |
· | Designed to make everyday tasks or usage simpler and more enjoyable for consumers; |
· | While continuing to focus on increased profit margins, the products must be affordable to win at the point of sale and deliver increased revenues for retail partners; |
· | The products must represent significant value when compared with items produced or marketed by competitive consumer product companies; and |
· | Wherever feasible, the products must be unique to the market whether this be accomplished though design techniques, added functionality or some proprietary innovation. |
Payments Due by Period | ||||||||||||||||||||||||||||||||||||||||
Total | 2015 | 2016 | 2017 | After 2018 | Payments Due by Period | |||||||||||||||||||||||||||||||||||
Total | 2016 | 2017 | 2018 | After 2019 | ||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||
Accounts Payable and accrued expense | $ | 1,812 | $ | 1,812 | $ | - | $ | - | $ | - | $ | 363 | $ | 363 | $ | - | $ | - | $ | - | ||||||||||||||||||||
Notes Payable Sterling Factors | 4,184 | 4,184 | - | - | - | 355 | 355 | - | - | - | ||||||||||||||||||||||||||||||
Notes and loans payable to related parties-current maturities | 3,485 | 1,453 | 2,032 | - | - | 2,346 | 2,346 | - | - | - | ||||||||||||||||||||||||||||||
Operating Leases | 139 | 35 | 96 | 8 | - | 132 | 104 | 28 | - | - | ||||||||||||||||||||||||||||||
Interest on Short-Term Debt | 121 | 74 | 47 | - | - | 105 | 105 | - | - | - | ||||||||||||||||||||||||||||||
Total Contractual Obligations | $ | 9,741 | $ | 7,558 | $ | 2,175 | $ | 8 | $ | - | $ | 3,301 | $ | 3,273 | $ | 28 | $ | - | $ | - |
For the Three Months Ended | ||||||||
(In thousands) | March 31, 2016 | March 31, 2015 | ||||||
Net cash provided by (used in): | ||||||||
Operating Activities | $ | 1,773 | $ | 278 | ||||
Investing Activities | $ | (5 | ) | $ | (2 | ) | ||
Financing Activities | $ | (1,670 | ) | $ | (442 | ) |
For the Nine Months Ended | ||||||||
(In thousands) | September 30, 2015 | September 30, 2014 | ||||||
Net cash provided by (used in): | ||||||||
Operating Activities | $ | (5,294 | ) | $ | 1,411 | |||
Investing Activities | $ | (58 | ) | $ | (45 | ) | ||
Financing Activities | $ | 5,297 | $ | (1,485 | ) |
· | The possibility of expropriation, confiscatory taxation or price controls; |
· | Adverse changes in local investment or exchange control regulations; |
· | Political or economic instability, government nationalization of business or industries, government corruption, and civil unrest; |
· | Legal and regulatory constraints; |
· | Tariffs and other trade barriers, including trade disputes between the U.S. and China; and |
· | Difficulty in enforcing contractual and intellectual property rights. |
EXHIBIT # | EXHIBIT TITLE |
31.1 | Certifications of Principal Executive Officer filed pursuant to Section 302 of the Sarbanes Oxley Act of 2002 ^ |
31.2 | Certifications of Principal Financial Officer filed pursuant to Section 302 of the Sarbanes Oxley Act of 2002 ^ |
32.1 | Certification of Principal Executive Officer furnished pursuant to 18 U.S.C. Section 1350, ^ |
32.2 | Certification of Principal Financial Officer furnished pursuant to 18 U.S.C. Section 1350, ^ |
101 | Interactive data files pursuant to Rule 405 of Regulation S-T. Filed with this Report on Form 10-Q for Capstone Companies, Inc. Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Section 11 or Section 12 of the Securities Act of 1933, as amended, or for purposes of Section 18 of the Exchange Act, and otherwise are not subject to liability under those sections. |
/s/ Stewart Wallach | ||
Stewart Wallach | Chief Executive Officer | |
Principal Executive Officer | ||
/s/James G. McClinton | ||
James G. McClinton | Chief Financial Officer and | |
Principal Operation Executive | Chief Operating Officer |