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HENCE SUB-PENNY

Another Q filed, another 3 months gone.

The mirrors were liquidated for which the company netted about 80K. Remember that they raised over $3 million, ostensibly to produce 3000+ mirrors. I figure they might have made 1500ish mirrors. They sold/gave away maybe 100-150ish. The rest of them have apparently gone to Woot for a net 80K.

Debacle. The last hope is the Connected Chef. Supposed to be coming soon in June 2022, then June 2023, then Holiday season 2023. They have no purchase commitments as of August 2024. They've manufactured no inventory (no money).

Debacle. They have no other product to sell, and no money to create new products.

All debt extended to October 2024 and November 1, 2024. Kicking the can down the road. They have no way to pay this debt.

They dumped a bunch of the wardrobe mirrors on Woot this month.

https://tools.woot.com/offers/capstone-touch-screen-smart-mirror-22-5in-x-60-in

$189. At least one buyer wasn't too happy with the 'deal':

https://forums.woot.com/t/capstone-touch-screen-smart-mirror-22-5in-x-60-in/1720850/24

I don't think capstoneconnected.com is coming back...



They probably should delete links to it from their corporate web page, capstonecompaniesinc.com. And delete the link from their twitter page too.

connected-chef.com still works, but there have been zero updates for a whole year. If they have no ability or intent to produce the product, they should take that website offline too.

capstoneconnected.com replaced with generic Coming Soon page

On February 5, 2023, the Company entered into a new Employment Agreement with Stewart Wallach, whereby Mr. Wallach will be paid $301,521 per annum. The initial term of this new agreement began February 5, 2023 and ends February 5, 2025. The parties may extend the employment period of this agreement by mutual consent with approval of the Company’s Board of Directors, but the extension may not exceed two years in length.

Nice pay structure for a -0- company

A frustrated investor. here.

10Q on 5/15 is next.

That's more money out of Wallach's Wallet to get filed. At some point, he has to give up being the bank.

Capstone has debts they can not pay. Capstone has no product to sell, and no capital to create new products.

Capstone has 2 employees, Wallach and Wolf. Both in their 70s.

What's next?

https://www.otcmarkets.com/otcapi/company/financial-report/400233/content

They've filed a OTCQB Certification!

https://www.otcmarkets.com/stock/CAPC/disclosure

Haven't filed their OTCQB Certification yet. It's due within 45 days of the 10K due date. The form probably takes 15 minutes to fill out, after you've filed the 10K. They typically file it in April.

While we wait for Capstone to say something, anything, we can watch for the OTCQB Certification. If their plan is for Chapter 11 or 7, the Certification is moot - it kicks them off OTCQB.

Or Mikey bought them for his kids.

Quite possibly they've sold the mirrors to a liquidator.

https://dealstream.com/financial/public-shells

Several hundreds of thousands, maybe, for a good, clean shell?

question>If are are preformed what is the value of a symbol?

Before they can 'sell' the ticker, they have to shell-ify Capstone

They're close on the Assets side: they wrote off the remaining value of the smart mirrors. They'll have to book a one time gain when they sell the inventory to a liquidator; watch eBay if you want a mirror.

The $43K they spent on molds for the smart cutting board will have to be written off; they still carry that on the books as of 12/31/2023.

The remaining asset would be the Goodwill, an intangible.

On the liabilities side, they have over $3 million as of 12/31/2023. They'll need to use bankruptcy to settle this debt.

Is the value now just the symbol/ticker itself?

It cost major $$$'s to get a listing?

The Beat Goes On

https://www.sec.gov/ix?doc=/Archives/edgar/data/814926/000190359624000189/capc_10k.htm

Capstone Florida SOS moves...



Bye, Capstone Lighting Technologies, we barely knew ye. The lighting products brought in $37 million in 2017, before Capstone turned their attention to the smart home products.

Don't fret too much, they filed annual reports for Capstone Companies (the one that represents CAPC stock) and Capstone Industries (the company that CHDT/CHDO acquired that brought Stewart to CAPC).

There are only 2 guys (Stewart and George) left, so they really didn't need 3 corporations. Is Jonathan Caparco still with the company? What would he still be doing? There haven't been *any* company announcements since last June. Is CAPC really paying the guy to do nothing?

3 weeks until the 10K.

1 through 5 not pretty.
The count down has begun?

Two months later, and nothing has changed.

The Transfer Agent still hasn't been informed about the share structure change, voted on last May, and filed with the SOS at Sunbiz.com in June. Why? I think because it longer serves the purpose of generating new capital, and satisfying old debt.

I believe they intended to satisfy the ~$3 million in debt with preferred shares at a dollar per share (liquidation preference of a dollar a share, plus conversion to common at 66.66 common shares per share). The collapse of the share price under a penny makes the deal less appealing to debt holders. The limited wash trading we saw in January really hasn't changed things. I think we're headed back under a penny without real positive news.

So what now? I see 5 possibilities:

1) Status Quo. Wallach continues to pay the minimal accounts payable as they come due, increasing his debt holding, while external debt holders (Khoury and Fleisig) hold off on demanding payment. I figure this could go on through the end of March, when they file the 2023 10K.
2) Reverse split. Maybe another 10 or 15 to one. That gets the share price up temporarily, making the convertible preferred more attractive (assuming the 66.66 to 1 conversion rate still holds after the Reverse split).
3) Chapter 11 reorganization with a DIP lender (probably Wallach) getting the bulk of the new equity.
4) Chapter 7 liquidation. Not really likely, as no one gets paid (really quite scant tangible assets left to liquidate - debt holders will not get full repayment, and common shares wiped out).
5) Sold to another company? I doubt this. There's nothing really to buy, but a warehouse full of mirrors no one wants, and some plastic molds for the cutting board that will never be built (my opinion, but backed by consumer action).

So, what's it going to be? Maybe we'll know in another 2 months.

Looks like the web site error has been fixed.

Carry on!

capstoneconnected.com

Fatal Error
I wonder who is maintaining the CAPC websites these days. Seems to be a ?temporary? glitch on capstoneconnected.com

Gonna be hard to move those mirrors if people can't get to the website.

https://capstoneconnected.com/

What's the Hold-up on changing the share structure.

In May, CAPC voted to increase the A/S to 300M shares. It was filed with Florida SOS as a Corporate Amendment in June. It's now December, and CAPC still hasn't told its Transfer Agent about the change.



They can't move forward without recapitalization. They can't do that until they tell the Transfer Agent about the change. No one will lend them money. At some point Wallach is going to be tapped out on funds. At some point, Fleisig and Khoury are going to want their loans repaid. CAPC can't keep pushing out due dates indefinitely.

Of course, CAPC doesn't really have to file anything until end of March 2024, so, buckle in for a long cold CAPC winter.

End Of Year Sale! Everything Must Go!! Act Before Midnight!!!



Could raise some cash, but this is a liquidation of an asset at below (already written down) costs.

Company Performance updated for 3Q2023

Yes. It looks like death of the a company.
You have been the very few sceptics who tried to warn investors. Well done.
Where's Mikey?...He likes it. Was that a commercial?

Updated Profile on OTCMarkets

Now they just have to file 3Q10Q, and find a product that someone wants to buy.

Smart cutting board isn't cutting it. Mirrors dead and gone. Deep in debt. My guess is they've pushed out repayment yet again.

We'll find out for sure on 11/14.

OTCQB companies need to verify their Company Profile every 6 months

as a part of being on the OTCQB. CAPC last updated their profile in April. An update was due in October. Capstone hasn't done that, and OTCQB has removed the Verified Company Profile badge for CAPC.

Is Capstone just being lazy, or have they decided being on the OTCQB isn't worth the $15K annual fee?

Lazy, or out of cash, and no new funders can be found?

Oh, god, so you're trying that again?

How many Preferred B-1 shares are going to debt repayment? Each one represents 66.66 common shares that can be sold into the market.

3 Million debt to cover == 200 million common shares that eventually will be sold into retail. I don't think Wallach or Postal would be quick to convert, but you can be darn sure Fleisig and Khoury will want to monetize their debt repayment.

So, what are they owed? Fleisig is owed $340K plus 5% interest over two years. Debt comes due in April 2024. He's also owed $200K plus 5% interest over 18 months due November 1, 2023. Khoury is owed $200K plus 5% interest over 18 months due November 1, 2023. It adds up to about $800K. 800,000 Preferred B-1 shares convert into 53.4M common shares. Yeah, over a doubling of the O/S.

Would Fleisig and Khoury actually want Preferred Shares that convert at 66.66 common shares per dollar (1.5 cents per share)? Only if the price remains above 1.5 cents during the conversion and dumping.

Enter the stock promoters. They have another job to do.

Meanwhile, how does any of this raise the millions they need Today to build stupid smart cutting boards for retail sale by 3rd quarter (already 3 weeks past)?

I'll say again, the cutting board tablet idea is dumber than the smart mirror idea, and will sell about as well to consumers. Which is to say, hardly at all.

It’s nice knowing company directors are putting up their own money and never sold a single share

Thanks Mike - !!!

The Connected Chef is expected to be ready for formal introduction in quarter three of 2023, but the product has no purchase commitments from retailers as of second fiscal quarter of 2023. Further, the Company will have to raise funding to fund production costs, which funding may not be available to the Company.

https://www.sec.gov/ix?doc=/Archives/edgar/data/814926/000190359623000620/capc_10q.htm

How about this time around, we ignore the stock promoters, and focus on what the company has said and what the company has filed?

We're 3 weeks into the 4th quarter. No new financing has been announced (a material event for a company facing Insolvency). Further, the company owed Wallach $503.5K due Sept. 27, 2023, and $430K to Fleisig and Khoury due Nov. 1, 2023. Instead of having money to build the cutting board, they're deep in debt currently due.

Add to the top of this, the cutting board tablet is a dumber idea than the smart mirror was.

I think the cutting board will be a big hit. The mirror was overpriced, the cutting board is much more affordable and could be in many homes very soon !

Any Particular Reason Mike - ???

The Story so Far ...



In 3 weeks, they'll provide 3Q2023 results, and that can be added to the graph. I figure they're about -$3 million net tangible assets by now.

Wallach himself was due repayment of $500K as of last month. E. Fleisig and M. Khoury are due $400K plus interest as of 11/01/2023.

That money does not exist for repayment. So, who is going to pony up new cash? They need $4 million or so minimum to keep the CAPC story going.

Wallach is old and ready for retirement. Will he risk his retirement on this new Smart Cutting Board, after the complete failure of the Smart Mirror?

I wouldn't.

Have a great feeling here … $CAPC

In longs as casual me right direction hopefully they care more about there bumpiness business well high dollar values as well shareholders holding?

https://www.connected-chef.com/pre-register

Go get in line! Only $279! Act Before Midnight, so you don't forget!

Available for Holiday Season... doesn't specify which holiday, though.

OS + 816,167

As mentioned, the Transfer Agent has a different idea as to the OS for CAPC.