Capstone Companies, Inc.

What they do

Capstone Companies, Inc. (CAPC) is a Florida corporation whose traditional LED lighting business has matured and whose most recent product, the Connected Chef kitchen tablet, was never successfully commercialized. The company reported total net revenue of $0 for fiscal year 2025, stating it 'not having an operating product line.' It has no internally funded operations and relies on related-party loans or advances to sustain basic executive operations. In March 2026 it made a $250,000 unsecured working capital loan to eBliss Global, Inc., an early-stage e-bike developer, as part of a 90-day 'no shop' arrangement.

Revenue drivers

• Connected Chef (kitchen tablet) — Purpose-built kitchen tablet with Google mobile service and accessories; licensed worldwide in March 2025 for a $15 fee per unit sold, but the license was terminated in the first week of November 2025 after the prospective Chinese OEM declined to produce it. The company received no license revenue in 2025.
• Connected Surfaces / Smart Mirror — The company's prior connected-surface product effort; in 2025 it preserved cash while seeking a third party to license, produce and market the Connected Surface product. No revenue is reported from this line.
• Legacy LED lighting — The former traditional business line in LED lighting products, described as having matured; annual revenue declined from $2.8M in 2020 to $143,269 in 2024 and $0 in 2025.
• eBliss Note interest — A $250,000 unsecured promissory note to eBliss Global at 7% simple annual interest, principal and interest due March 4, 2027; the loan was made to supply working capital and as partial consideration for the no-shop provision.

Recent performance

Total net revenue for the year ended December 31, 2025 decreased 100% to $0 from $143,269 in 2024, which management attributed to the company not having an operating product line. The net operating loss was $1,070,894 in 2025 compared with $995,815 in 2024, and annual net income was -$920,168 in 2025 versus -$962,384 in 2024. Operating cash flow was -$282,959 in 2025, the smallest annual use of cash in the reported series, down from -$289,548 in 2024. At June 30, 2026, total assets were $204,527, total liabilities were $840,789, shareholders' equity was -$636,262, and cash and equivalents were $194,596. Diluted EPS was -$0.02 in both 2025 and 2024.

Strategy

Management states its focus is to acquire or start a new business line, having failed in its efforts to develop or acquire one as of the latest filings. Following the March 2026 eBliss Note, the company's business development efforts during the 90-day no-shop period are focused on exploring transactions with eBliss in the e-bike industry. The no-shop grants eBliss exclusivity for the first 60 days; if no letter of intent or definitive agreement is signed in that window, the company may entertain superior third-party proposals. The company also states it will consider opportunities in other industries in fiscal 2025 and 2026, and that it may reconsider licensing the Connected Chef. It has preserved cash while investing to support the relaunch of the Connected Surfaces program.

Risks

• Going concern uncertainty — The 10-Q states the company's financial condition raises substantial doubt about its ability to continue as a going concern.
• No revenue or operating product line — 2025 revenue was $0 because the company had no operating product line, and the Connected Chef license was terminated in November 2025 with no license revenue received.
• Funding dependence — The company has relied on loans or advances from related parties for basic executive operations and states such funding is not assured past the third fiscal quarter of 2026.
• Debt obligations and negative equity — At June 30, 2026, liabilities of $840,789 exceeded assets of $204,527, leaving negative shareholder equity of $636,262, and the company says it is uncertain whether it can restructure or resolve its debt.

Outlook

Management states that if the company cannot find outside funding to develop and promote a new product line or acquire a new business line in fiscal 2026, it may lack sufficient funds to sustain operations beyond 2026. It further states the company may be unable to develop or acquire a new business line able to fund public-company overhead into 2027. The stated near-term priority is exploring a mutually beneficial relationship or transaction with eBliss in the e-bike industry during the no-shop period. Management notes there is no legally binding agreement with eBliss as of the 10-K filing date and that the effort to develop or acquire a new business line should not be construed as an indication of the likelihood of success.