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Capstone Companies Inc (CAPC+30.38%). has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The company reported a net loss of $962,384 for the year, compared to a net loss of $1,696,439 in the previous year. The decrease in net loss is attributed to reduced operating expenses and the liquidation of Smart Mirror inventory.
Total net revenue for the year was $143,269, a decrease from $192,176 in the prior year. The revenue decline is primarily due to decreased sales of Smart Mirror products and LED lighting.
Capstone's gross profit for 2024 was $105,250, compared to a gross loss of $265,640 in 2023. The improvement in gross profit is largely due to the write-off of Smart Mirror inventory in 2023.
Operating expenses for 2024 were $1,101,065, down from $1,369,214 in 2023. This reduction was achieved through cost-cutting measures, including a decrease in compensation and professional fees.
The company recorded a goodwill impairment of $539,317 in 2024, reflecting a reassessment of the fair value of its reporting unit.
Capstone Companies Inc. continues to face liquidity challenges, with a working capital deficit of $144,755 as of December 31, 2024. The company is actively seeking additional capital to sustain operations.
In 2024, Capstone focused on developing its Connected Chef product line, a kitchen utility tablet. However, production has not commenced due to funding constraints.
The company is exploring the development of a health, fitness, and social activities business as a long-term strategy. This includes a Memorandum of Understanding with Coppermine Ventures to develop a customer registration and management application.
Capstone's management acknowledges the substantial doubt about the company's ability to continue as a going concern without securing additional funding or achieving revenue growth from new business lines.
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 annual 10-K report dated March 17, 2025. To report an error, please email earnings@qz.com.