Capstone Companies Inc (CAPC)

[flptrnkng]

I don’t think you really understand the direction of the company. First off, they are debt free pretty much. No toxic convertible debt, and they are transitioning to a new Smart Mirror product line. Who cares what revenues were u see the previous business model? We know they had 40 million revs at one point and are now moving away from that to a more profitable venture. GLTA

I understand the company direction quite well, thank you. They just took on $750K debt, no not a big deal, but they did it because they had NO OTHER lending options because of their financial situation (check it out, because it's a fact and it's not really good).

The $750k from the CEO and one of the board members will result in about 10 million shares eventually getting issued. Not a really toxic number of shares, but still about a 20% dilution at a cost of about 7.5 cents per share.

They had $36.7M in revenue at one point (2017). That dropped to $12.8M in 2018. $12.4M in 2019. And 2020 will come in between $2M and $2.5M, my estimate.

I stand by my claim that the mirror product is a dud. It's two years late, and it's two year old tech that CAPC has no way to support. How many employees does CAPC have? Like 10? And half of those are management, right?

The 'brains' of the mirror is a Mediatek 8167A quad core 1.5GHz processor, in an 8 inch tablet form factor from appearance. It's running Android 9 Pie, which has rapidly diminishing market share, as Android 10 took over at the start of 2020. These kind of tablets retail for $75. The wifi chip on the device is 2.4GHz 802.11n. No 5GHz, no 802.11ac. Streaming media will be limited by this network connection. Standard def video will work. Hi def video will buffer, in my experience.

The aging Android 9 Pie is an issue that will have to be addressed by the company. Will they be providing updates to 10.0 or 11.0? Have you ever gotten a cheap Android phone that stops receiving updates (security and otherwise)?

Oh, about that $750K new loan. It's for overhead purposes for 2021. The CEO and the VP are due about $500K of that in salary and deferred salary this year. So, I can't get too 'rah-rah' about the CEO and board member putting up the money. Getting 10 million shares at 7.5 cents for putting up money that's mostly going back into your pocket: Brilliant!