Capstone Companies Reports 2018 Year-End Performance
Summary
DEERFIELD BEACH, Fla.--( BUSINESS WIRE )--Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer, manufacturer and marketer of consumer inspired products that bridge technological innovations with today’s lifestyle reported its financial results for the full year 2018. During the call, management will review the financial and operating results and discuss the Company’s corporate strategy and outlook, followed by a question-and-answer session. This news release contains "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995, as amended.Such statements consist of words like “anticipate,” “expect,” “project,” “continue” and similar words.These statements are based on the Company’s and its subsidiaries’ current expectations and involve risks and uncertainties, which may cause results to differ materially from those set forth in the forward-looking statements.Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include consumer acceptance of the Company’s products, its ability to deliver new products, the success of its strategy to broaden market channels and the relationships it has with retailers and distributors.Prior success in operations does not necessarily mean success in future operations.The ability of the Company to adequately and affordably fund operations and any growth will be critical to achieving and sustaining any expansion of markets and revenue.The introduction of new products or the expanded availability of products does not mean that the Company will enjoy better financial or business performance. The risks associated with any investment in Capstone Companies, Inc., which is a small business concern and a "penny-stock Company” and, as such, a highly risky investment suitable for only those who can afford to lose such investment, should be evaluated together with the risks and uncertainties more fully described in the Company’s Annual and Quarterly Reports filed with the Securities and Exchange Commission.Capstone Companies, Inc. undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.Contents of referenced URLs are not incorporated into this press release. Depreciation and amortization 45,510 80,940 Accrued interest on note receivable - 26,887 Stock based compensation expense 86,666 95,469 Provision (Benefit) for deferred income tax (239,000 ) 35,000 Increase (decrease) in accrued sales allowance 170,833 (1,006,731 ) Decrease in accounts receivable, net 4,132,377 1,090,898 Decrease in inventories 113,137 225,696 Increase (decrease) in prepaid expenses (4,726 ) 90,869 (Increase) in deposits (89,189 ) (1,423 ) (Decrease) increase in accounts payable and accrued liabilities (2,272,070 ) 55,306 Increase in deferred rent incentive 108,844 - (Decrease) increase in income tax payable (613,088 ) 623,194 (Increase) in income tax refundable (220,207 ) - (Decrease) increase in accrued interest on notes payable - 56,554 Net cash provided by operating activities 208,029 3,451,835 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property and equipment (53,866 ) (47,587 ) Net cash (used in) investing activities (53,866 ) (47,587 ) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from notes payable - 30,559,312 Repayments of notes payable - (30,559,312 ) Repurchase of shares from Involve, LLC - (250,000 ) Warrants issued - 7,500 Repayments of notes and loans payable to related parties - (1,139,680 ) Net cash (used in) financing activities - (1,382,180 ) Net Increase in Cash 154,163 2,022,068 Cash at Beginning of Period 3,668,196 1,646,128 Cash at End of Period $ 3,822,359 $ 3,668,196 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid during the period for: Interest $ - $ 418,925 Income taxes $ 865,000 $ 371,500 Non-cash financing and investing activities: Shares issued in satisfaction of loan payable to related party $ - $ 240,900 Note Receivable used to repurchase shares from Involve L.L.C.