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Capstone Companies, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports net revenues of $143,000 for the nine months ended September 30, 2024, an increase from $96,000 in the same period of the previous year. The increase is attributed to a liquidation sale of Smart Mirrors.
The company incurred a net loss of $481,807 for the nine months ended September 30, 2024, compared to a net loss of $1,215,375 in the previous year. The decrease in loss is due to reductions in operating expenses.
Operating expenses for the nine months ended September 30, 2024, were $497,112, down from $1,101,029 in the previous year. This reduction is attributed to decreased marketing expenses and workforce costs.
Cash used in operating activities was $124,571 for the nine months ended September 30, 2024, compared to $573,611 in the previous year. The decrease is due to reduced operating expenses and a shift to a remote work environment.
Capstone Companies has negative working capital of $3,748,008 and an accumulated deficit of $11,279,023 as of September 30, 2024. The company acknowledges substantial doubt about its ability to continue as a going concern.
The company signed an Unsecured Promissory Note with Coppermine Ventures, LLC for $125,914 on October 31, 2024, to fund essential working capital needs. The note accrues interest at 7% and is due on July 31, 2025.
A Management Transition Agreement was signed with Coppermine Ventures, LLC, which includes provisions for new board appointments and funding of essential working capital needs through March 31, 2025.
Capstone Companies is exploring the development or acquisition of a new business line, with a focus on generating sustainable revenues. The company is also considering strategic transactions to improve its financial condition.
The company has not yet achieved sufficient funding to develop or acquire a new business line. The lack of adequate funding may impact the company's ability to sustain operations and establish a new revenue stream.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Capstone Companies Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.