says, "Companies that trade on the OTCBB will require Cash/Cheque. "
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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.
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.
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.
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.
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.
Wait for the Transfer Agent update.
CAPC bought back those shares in years past, but never canceled them. Transfer Agent still sees them as Outstanding.
Odd thing is the Transfer Agent hasn't updated OTCmarkets for September yet.
Other odd thing is company has been silent about their New Smart Cutting board, which was going to be on sale in Retail by August. Report of 8/14 says they haven't built any yet, as of 6/30/2023. Gonna be hard to sell what they haven't manufactured yet.
Other Other odd thing is company hasn't said a word about their brick and mortar sales test for the Smart Mirrors. Anyone catch sight of one in their favorite big box store?
What exactly has the company been selling since the dour 6/30/2023 filing? My guess is very little. Waiting on cash infusion.
If you want one of those mirrors, better act fast.
They're gone from Amazon. Capstoneconnected.com won't allow you to add one to the cart.
Beachcamera.com still seems to allow you to buy one. Your mileage may vary.
Also, that Connected Chef cutting board/tablet was supposed to be for sale by August - Don't see where you can buy one.
Monday's 2Q2023 filing should be interesting.
Amendment to Increase A/S now on Sunbiz.
300,000,000 shares of which 295,000,000 are common and 5,000,000 are preferred. Now we wait to see how they dole those out to cover debt and raise new working capital.
Sunbiz amendment to Increase A/S filed on 6/22/2023
Sunbiz has updated their database for amendments through 6/21/2023 as of today, so it should appear tomorrow, my guess. No real new information, but now Capstone can follow through on re-capitalization. We'll get a better idea on dilution when they finally re-capitalize.
Anything under $5 is a gift...
...to the Bordynuik family and his promoters.
https://www.davincivirtual.com/loc/us/florida/deerfield-beach-virtual-offices/facility-1390
Virtual Office? That's good, right? From 4690 sq. ft. to a Mail box drop?
Given that there are only 3 employees and a couple of hourly contractors left in the company, this is a prudent corporate move.
Remember to thank a penny stock promoter for this one.
PSI at 0.0135. Lol, very over pumped.
Canadian Gold mine play? What were you thinking? At least no one got pushed out of a helicopter.
Remember to thank a penny stock promoter.
https://fcc.report/FCC-ID/2BAQRCAP-1815/
Not sure why they needed a new FCC grantee code; the mirrors were granted under 2A3GY. This is 2BAQR. Manufacturer is SHENZHEN JOYAR SMART MANUFACTURING TECHNOLOGY LIMITED, located in Shenzhen, China.
https://capstoneconnected.com/wp-content/uploads/2022/12/CONNECTED-CHEF-INFO-23.pdf
The Smart Mirror looked cool in January 2019, when it debuted at CES 2019
Three years later, when it finally shipped for sales, no one bought. They got around 100 mirrors into the hands of the public, with roughly half of those given away on the Kelly Clarkson show over 6 months ago. Since then, they've stopped promoting it. They made maybe 5-10 sales in the first quarter? Probably less than that in the quarter ending 6/30.
Smart mirrors have killed the company. Now they're doubling down with smart cutting boards. Only now, they have no money.
But, they have stacks of new shares that can be printed. Wait for the debt for shares deal.
He's going to try to segue from Bitcoin hosting to AI hosting.
It's the hot new thing. Pay no attention to all those failed businesses that came before.
Maybe a tequila mixto infused with AI? Yeah it makes no sense, perfect for Alonzo.
connected-chef.com
But, they'll need a different domain name, after their USPTO trademark request was denied.
Capstone Update Coming Soon pic.twitter.com/XzfLFMD3LL
— Capstone Companies, Inc. (@CAPC_Capstone) June 8, 2022
Increase the authorized shares of capital stock from 60 million to 300 million
Amendment of Article 1 of the Amended and Restated Articles of Incorporation of the Company (“Articles”) to increase the authorized shares of capital stock from 60 million to 300 million, specifically, to increase the authorized shares of Common Stock to 295 million and the authorized shares of serial Preferred Stock to 5 million. The increase in authorized shares of capital stock was deemed necessary by the Company to allow sufficient shares of Common Stock for any future corporate funding or significant corporate transactions requiring issuance of shares of Common Stock. The Company has 48,826,864 of Common Stock issued as of May 8, 2023. With respect to the 60 million shares of authorized capital stock authorized under the existing Articles, there are 56,666,667 shares Common Stock authorized and 3,333,333 shares of Preferred Stock.
Alonzo cranked up the share printing press. Check NV SOS. 370M common A/S, 32M preferred
370 million common shares, 32 million preferred shares
Those are new numbers, aren't they? I guess that explains the uptick in posting here.
Same old Alonzo, Different Day.
Fourth OTCQB disclosure up. Temp CFO added to list of officers/directors. Only change I see.
https://www.otcmarkets.com/otcapi/company/financial-report/366812/content
Public Float math still wrong.
Third OTCQB disclosure, still wrong
https://www.otcmarkets.com/otcapi/company/financial-report/365944/content
Math does not check out for 'Public Float'. Fourth time's the Charm? Or, is this close enough for CAPC and OTCQB?
Still listing all their debt as Convertible.
Well, they updated the OTCQB disclosure; it's still riddled with errors.
https://www.otcmarkets.com/otcapi/company/financial-report/364966/content
Can't find good CFO help these days, I guess.
That OTCQB disclosure will need to be amended and refiled; several obvious errors
The new CFO has also listed all the debt as convertible, with out disclosing details. This is most likely an error, but if it's not, the way forward includes converting the debt into shares. This would severely dilute current shareholders - the most obvious debt to share swap would be for Preferred B-1 shares.
Management Effectiveness
In Nov. 2017, Stewart talked about a new product (he was holding the prototype as he talked), the Connected Surfaces product, which became the Capstone Connected mirrors. At the time, he was announcing record sales and profits from the LED lighting business. CAPC was rich with assets. CAPC was a growth stock. It was decided to move away from the LED lighting business, and focus on the new Smart Mirror products. Here's how that went over the next 5 years:
A closer look at the time period of 3Q2021-4Q2022, by quarter, roughly the time the Smart Mirror products have been available:
Capstone Companies sunbiz.org annual report just posted
Still using 431 Fairway Dr. Suite 200 as the address.
I have no idea why the 1/4/2023 filing was delayed until today.
Surprise! sunbiz.org was updated on 1/4/23 for Capstone Industries.
McClinton was deleted as an officer, and Stewart still claims to be using 431 Fairway Dr. Suite 200 as an address.
Not sure why the office has been advertised for lease since 11/14/2022. Maybe someone could do a drive-by and see who exactly is in that office.
Still no update for Capstone Companies, Inc. That's the one with the 49M CAPC shares outstanding.
Before he breaks out the abacus,
he should break out his checkbook, spend $150, and file the annual report for Capstone Companies at sunbiz.org
https://search.sunbiz.org/Inquiry/CorporationSearch/SearchResults/OfficerRegisteredAgentName/wallach%20stewart/Page1
He did it already for Group Nexus LLC, his private company, back on Jan. 30th.
He also needs to do it for Capstone Lighting Technologies LLC and Capstone Industries Inc., unless he wants those subsidiaries to fade away.
Failure to file by May 1st incurs a $400 late fee, and failing to file by the 3rd Friday in September sends the corporation into Administrative Dissolution.
There are a bit less than 2,000 Home Depot stores in the US
CAPC raised a bit over $3 million to build mirrors and keep the lights on at HQ ($1.5 million in April 2021, $1 million in October 2021, and $600,000 in May 2022).
They ultimately put about 1500 mirrors into their US warehouse.
Can you see how the Brick&Mortar approach would not work for the mirrors? They didn't even have enough stock for one display unit per store, just for Home Depot. Now add in Costco stores.
Can I ask why you did not buy Capstone's mirrors for your bath and wardrobe?
Indiegogo Campaign seems to be gone
3 weeks, and they sold zero mirrors. Now what? A 50% discount wasn't enough to entice sales.
Short selling back on CAPC
After back to back (Jan. 15th, Jan 30th) Short Interest = Zero for CAPC, the shorts are back in force.
Short interest as of Feb. 15th: 200 shares.
Oh, the huge manatee!
Postal, and Postal only put up $50K on Oct. 13, 2022
That didn't even allow them to keep their offices. That $50K is long gone, my guess. Probably covered the expenses for the Kelly Clarkson show give-away, and maybe the early termination of their lease at 431 Fairway Dr. Suite 200.
If it goes Chapter 11, I figure the DIP lender will have to cough up at least $3 million to keep the company from liquidation.
$50K shows confidence? I don't think so. They need millions in new financing.
My guess is they knew it was a Stock Promotion, and selling any of their personal shares would have brought unwanted SEC attention.
Still, the Company did cash in on the promotion by selling 2.5 million shares at 60 cents. That $1.5 million was about a year's worth of cash burn.
If it comes down to Insolvency, do you think it will be an Involuntary or Voluntary petition for Bankruptcy? Chapter 7 liquidation, or Chapter 11 reorganization?
I guess: Voluntary Chapter 11, with a DIP lender getting the bulk of the new equity.