FLORIDA
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0-28331
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84-1047159
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(State of Incorporation or Organization)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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EXHIBIT NUMBER
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EXHIBIT DESCRIPTION
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99.1
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Capstone Companies, Inc. Press Release, dated 15 May 2017, re: financial results for fiscal quarter ended 31 March 2017
|
·
|
Revenue of $6.8 million exceeded guidance of $5.5 million, and more than tripled from
$2.1 million in the prior-year period. |
·
|
Gross profit more than doubled to $1.6 million over the prior-year period.
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CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
March 31,
|
December 31,
|
|||||||
2017
|
2016
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|||||||
(Unaudited)
|
||||||||
Assets:
|
||||||||
Current Assets:
|
||||||||
Cash
|
$
|
1,176,440
|
$
|
1,646,128
|
||||
Accounts receivable, net
|
5,732,730
|
4,449,179
|
||||||
Inventory
|
514,198
|
366,330
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||||||
Prepaid expenses
|
544,381
|
330,020
|
||||||
Total Current Assets
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7,967,749
|
6,791,657
|
||||||
Property and Equipment:
|
||||||||
Computer equipment and software
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19,767
|
19,767
|
||||||
Machinery and equipment
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339,184
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325,750
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||||||
Furniture and fixtures
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5,665
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5,665
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||||||
Less: Accumulated depreciation
|
(267,961
|
)
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(250,465
|
)
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||||
Total Property & Equipment
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96,655
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100,717
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||||||
Other Non-current Assets:
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||||||||
Deposit
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12,193
|
12,193
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||||||
Note receivable
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539,832
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526,887
|
||||||
Goodwill
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1,936,020
|
1,936,020
|
||||||
Total Other Non-current Assets
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2,488,045
|
2,475,100
|
||||||
Total Assets
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$
|
10,552,449
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$
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9,367,474
|
||||
Liabilities and Stockholders' Equity:
|
||||||||
Current Liabilities:
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||||||||
Accounts payable and accrued liabilities
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$
|
3,732,285
|
$
|
2,678,210
|
||||
Income tax payable
|
1,588
|
1,588
|
||||||
Notes and loans payable to related parties
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1,203,468
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1,321,721
|
||||||
Total Current Liabilities
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4,937,341
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4,001,519
|
||||||
Long Term Liabilities:
|
||||||||
Deferred tax liabilities
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344,000
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216,000
|
||||||
Total Long Term Liabilities
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344,000
|
216,000
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||||||
Total Liabilities
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5,281,341
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4,217,519
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||||||
Commitments and Contingencies (Note 6)
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||||||||
Stockholders' Equity:
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||||||||
Preferred Stock, Series A, par value $.001 per share, authorized 6,666,667 shares, issued -0- shares
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-
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-
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||||||
Preferred Stock, Series B-1, par value $.0001 per share, authorized 3,333,333 shares, issued -0- shares
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-
|
-
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||||||
Preferred Stock, Series C, par value $1.00 per share, authorized 67 shares, issued -0- shares
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-
|
-
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||||||
Common Stock, par value $.0001 per share, authorized 56,666,667 shares, issued 47,132,664 shares and 48,132,664 shares
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4,713
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4,813
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||||||
Additional paid-in capital
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7,281,747
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7,411,172
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||||||
Accumulated deficit
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-2,015,352
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-2,266,030
|
||||||
Total Stockholders' Equity
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5,271,108
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5,149,955
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||||||
Total Liabilities and Stockholders' Equity
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$
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10,552,449
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$
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9,367,474
|
||||
The accompanying notes are an integral part of these financial statements.
|
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS
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||||||||
(Unaudited)
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||||||||
For the Three Months Ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net income (loss)
|
$
|
250,678
|
$
|
(98,929
|
)
|
|||
Adjustments necessary to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization
|
17,495
|
14,061
|
||||||
Accrued interest on note receivable
|
(12,945
|
)
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-
|
|||||
Stock based compensation expense
|
20,475
|
14,250
|
||||||
Provision for deferred income tax
|
128,000
|
-
|
||||||
Accrued sales allowance
|
206,995
|
(94,203
|
)
|
|||||
(Increase) decrease in accounts receivable
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(1,539,687
|
)
|
3,835,576
|
|||||
(Increase) in inventory
|
(147,868
|
)
|
(26,674
|
)
|
||||
(Increase) in prepaid expenses
|
(214,361
|
)
|
(38,057
|
)
|
||||
Increase (decrease) in accounts payable and accrued liabilities
|
1,103,216
|
(1,864,020
|
)
|
|||||
Increase in accrued interest on notes payable
|
(18,253
|
)
|
31,282
|
|||||
Net cash provided by (used in) operating activities
|
-206,255
|
1,773,286
|
||||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchase of property and equipment
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-13,433
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-4,700
|
||||||
Net cash (used in) investing activities
|
(13,433
|
)
|
(4,700
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds from notes payable
|
5,280,373
|
3,643,356
|
||||||
Repayments of notes payable
|
(5,280,373
|
)
|
(5,564,194
|
)
|
||||
Repurchase of shares from Involve, LLC
|
(150,000
|
)
|
-
|
|||||
Proceeds from notes and loans payable to related parties
|
-
|
360,000
|
||||||
Repayments of notes and loans payable to related parties
|
(100,000
|
)
|
(108,847
|
)
|
||||
Net cash (used in) financing activities
|
-250,000
|
-1,669,685
|
||||||
Net (Decrease) Increase in Cash and Cash Equivalents
|
-469,688
|
98,901
|
||||||
Cash and Cash Equivalents at Beginning of Period
|
1,646,128
|
364,714
|
||||||
Cash and Cash Equivalents at End of Period
|
$
|
1,176,440
|
$
|
463,615
|
||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||
Cash paid during the year for:
|
||||||||
Interest
|
$
|
39,983
|
$
|
60,301
|
||||
Income taxes
|
$
|
-
|
$
|
7,500
|
||||
The accompanying notes are an integral part of these financial statements.
|
CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
|
||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||
(Unaudited)
|
||||||||
For the Three Months Ended
|
||||||||
March 31,
|
||||||||
2017
|
2016
|
|||||||
Revenues, net
|
$
|
6,752,196
|
$
|
2,078,214
|
||||
Cost of sales
|
(5,172,729
|
)
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(1,464,658
|
)
|
||||
Gross Profit
|
1,579,467
|
613,556
|
||||||
Operating Expenses:
|
||||||||
Sales and marketing
|
376,756
|
62,977
|
||||||
Compensation
|
359,802
|
308,458
|
||||||
Professional fees
|
204,802
|
104,285
|
||||||
Product development
|
72,025
|
36,274
|
||||||
Other general and administrative
|
178,619
|
142,755
|
||||||
Total Operating Expenses
|
1,192,004
|
654,749
|
||||||
Operating Income (Loss)
|
387,463
|
(41,193
|
)
|
|||||
Other Income (Expense):
|
||||||||
Interest income
|
12,945
|
-
|
||||||
Interest expense
|
(21,730
|
)
|
(57,736
|
)
|
||||
Total Other Income (Expense)
|
(8,785
|
)
|
(57,736
|
)
|
||||
Income (Loss) Before Tax Provision
|
378,678
|
(98,929
|
)
|
|||||
Provision for Income Tax
|
128,000
|
-
|
||||||
Net Income (Loss)
|
$
|
250,678
|
$
|
(98,929
|
)
|
|||
Net Income (Loss) per Common Share
|
||||||||
Basic
|
$
|
0.005
|
$
|
(0.002
|
)
|
|||
Diluted
|
$
|
0.005
|
$
|
(0.002
|
)
|
|||
Weighted Average Shares Outstanding
|
||||||||
Basic
|
47,621,553
|
48,132,664
|
||||||
Diluted
|
47,883,977
|
48,132,664
|
||||||
The accompanying notes are an integral part of these financial statements.
|