Capstone Companies Reports No Revenue and Increased Losses in Latest 10-Q Filing

Capstone Companies, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenues for the three and six months ended June 30, 2025, a stark decline from $137,818 and $143,268 in the same periods of 2024, respectively. The absence of revenue is attributed to the liquidation of its Smart Mirror product line, which had previously generated sales. The net loss for the six months was $187,612, a decrease from a loss of $386,270 in the prior year, indicating some improvement in operational efficiency despite the lack of revenue.

The company's total assets increased slightly to $848,842 as of June 30, 2025, compared to $838,117 at the end of 2024. However, total liabilities surged to $575,355, up from $377,018, primarily due to an increase in notes payable related to parties, which rose to $373,686 from $180,760. This resulted in a negative working capital of $325,205 and an accumulated deficit of $11,947,212, raising substantial doubt about the company's ability to continue as a going concern.

Strategically, Capstone has shifted its focus towards developing a new business line in the health, fitness, and social activities sector. The company has entered into a licensing agreement for its Connected Chef product, which is a kitchen tablet designed for food preparation. However, as of the filing date, no sales had been generated from this product. The company is also exploring opportunities to develop a customer registration and management application for health and fitness facilities, which could provide a new revenue stream if successfully implemented.

Operationally, Capstone has made efforts to reduce expenses, with total operating expenses decreasing to $177,224 for the six months ended June 30, 2025, down from $431,589 in the previous year. This reduction was achieved through cuts in sales and marketing, compensation, and professional fees. The company’s cash balance improved to $41,777 from $15,850 at the end of 2024, primarily due to financing activities, including a working capital loan from Coppermine Ventures, LLC.

Looking ahead, Capstone's management is actively seeking alternative sources of liquidity and exploring strategic partnerships to stabilize its financial position. The company acknowledges that without securing additional funding or successfully launching new revenue-generating operations, it may face significant challenges in sustaining its business beyond the third fiscal quarter of 2025. The outlook remains uncertain as the company navigates its transition into new business areas while managing existing financial obligations.