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.
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.
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.
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.
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.
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.
Fourth OTCQB disclosure up. Temp CFO added to list of officers/directors. Only change I see.
Public Float math still wrong.
Third OTCQB disclosure, still wrong
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.
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.
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:
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
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?
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.
What does any of this have to do with whether the Company is Insolvent or not?
If Fleisig notified the Company of an Event of Default, and the Company can't cure that default, his whole loan plus interest is due 7 weeks early. If the Company can't pay back the loan and interest, they are Insolvent.
I wonder what Mouhaned Khoury thinks about the chances of getting his loan repaid when it comes due in November. That's another $200K plus Interest.
20 days into the Indiegogo campaign and no sales. Where's the money to cover debts as they come due?
Mirrors gone from Amazon (remember what a Big Deal that was?).
No CFO since 11/30/22.
Still no Annual Report on sunbiz.org (even though Stewart updated his private LLC on Jan. 30th).
Have the directors ever bought any shares on the open market? Or, did they only get shares as debt settlement, or in lieu of Director compensation? Thanks in advance !!
Did you know Stewart bought a whole bunch of shares from the previous CEO for 0.0025 per share (0.0375 per share post reverse split)?
I think it possible that the whole Indiegogo thing was precipitated
by Everett Fleisig notifying the Company of an Event of Default, specifically,
For Free? They're selling them for less than their costs.
Yes, they'll lose money on every 'sale'. They're trying to turn a current asset into quick cash by selling under cost.
They've sold Zero in about 10 days that the campaign has been active.
Should they manage to move all 900 mirrors they have in inventory, they'll raise about $330K after Indiegogo's fees (no, selling stuff on Indiegogo is not Free).
They owe $1.1 million due in April, and another $645K due in November.
This is a company liquidating as they go out of business. It's not a good thing. If the company survives, it'll be because they diluted more shares. It's the only thing they have left to sell, after the mirrors.
Wallach and Postal made no loans under that deal
And got 15,000 Preferred shares (999,900 shares when converted to common) for their trouble.
Three months later, they sold 2.5 million shares for 60 cents per share when the stock price was above 2 dollars.
So, to recap, Wallach and Postal dished out Zero dollars of their own money, got a million shares as thanks, and then diluted 2.5 million shares.
It WAS easy for them to sell shares. Not so much anymore. They'll need to reverse split to make room if they plan on selling more shares to stave off Insolvency.
Directors don't own half the shares. That is a lie.
Indiegogo is supposed to be for start-ups, with a prototype idea, to finance the development and initial build costs. The campaign has been live for 8 days. Zero backer interest so far.
The Capstone smart mirror has been in development for 6 years. It was launched 4 years ago at CES 2019. It has failed in the marketplace. They've given away as many as they've sold.
Even if the Indiegogo campaign sells all 900 mirrors they have in inventory, they can't pay the $1.1 million they owe in April. Let's ignore the $645,000 they owe in November.
Insolvency looms. There is nothing to love here.