Capstone Companies Reports 25% Revenue Decline and Net Operating Loss for Fiscal Year Ending December 31, 2024

Capstone Companies, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with total net revenue decreasing by 25% to $143,269, down from $192,176 in the previous year. The company also recorded a net operating loss of $995,815, an improvement from the $1,634,854 loss reported in 2023. The decrease in revenue was attributed primarily to the liquidation of the Smart Mirror inventory and a lack of production for the Connected Chef product, which was not in production due to funding constraints.

In terms of operational changes, Capstone has shifted its focus from direct product sales to a licensing model for its Connected Chef kitchen tablet, which is designed to integrate with Google mobile services. The company is actively pursuing third-party licensing agreements to promote and distribute the Connected Chef, a strategy adopted to mitigate financial risks associated with direct production and marketing. Additionally, the company has ceased production of its Smart Mirror product line due to insufficient sales and has reduced its workforce and overhead costs accordingly.

Capstone's operational metrics indicate a significant reduction in employee headcount, with only five employees reported as of December 31, 2024. The company is also exploring the development of a health, fitness, and social activities business, which it views as a long-term growth opportunity. This new business line is expected to leverage the growing popularity of sports like pickleball and aims to attract a broad demographic. However, the company has yet to secure funding for this initiative, which raises concerns about its ability to sustain operations.

The company’s financial outlook remains uncertain, with a working capital deficit of $144,755 and an accumulated deficit of $11,784,360 as of December 31, 2024. Capstone has indicated that it will require additional working capital to support its operations and the development of its new business lines. The company has secured a working capital promissory note from Coppermine Ventures, LLC, totaling $485,163, which is intended to cover essential corporate expenses through September 2025. However, the company has expressed substantial doubt about its ability to continue as a going concern without further funding or revenue generation from its licensing efforts.