Capstone Companies Reports Third Quarter 2021 Performance
Capstone Companies, Inc. (OTC: CAPC) (“Capstone” or the “Company”), a designer, manufacturer and marketer of consumer inspired products that simplify daily living through technology reported its third quarter 2021 financial results on Monday, November 15, 2021. As a direct result of ongoing delays of certification and testing, the Company’s planned product launch for Q3 2021 was delayed and no revenues were generated in the third quarter accordingly.
The Company’s plan to produce an estimated 3,000 mirrors in 2021 remains intact. The remarkable increase in costs and limited availability of transport as widely reported in daily news coverage will impact the stateside availability dates for the second production run of 2,000 mirrors. The cost mitigation plan implemented in 2020 and the $1.5 million private equity placement in April 2021 has enabled the Company to sustain operations during these unprecedented times.
Stewart Wallach, Capstone’s Chairman & Chief Executive Officer, commented, “While the outbreaks of COVID have minimally effected the workforce in China and Thai factories in Q3, the certifications and testing, specifically FCC EMC, remain pending precluding the Company from shipping mirrors in Q3 as anticipated."
He added, "Management continues to exhaust every effort in addressing the delays which frankly are inexplicable. We have confirmed (as per my October 11th PR) that the FCC EMC product testing was completed and that the certification is forthcoming. We are aggressively following up daily to bring this matter to a close. In the thirty-five years that your management team has been creating and bringing new consumer products to market, we have never experienced anything like this before.”
Wallach further commented, “On a positive note, to avoid any further delays, we have pre-paid an estimated $700 thousand for components and production for the first 1,000 mirrors are scheduled at the factory pending the publication of the FCC certification. We are standing ready for initial product release. The insiders and directors remain resolute, and have continued to support the Company with an additional $1 million in inventory funding made available on October 18th. In addition to the funding, the largest insider shareholders have not sold any shares. I realize the shareholder community is anxious as communications have been limited since mid-October and accordingly, I will be scheduling a webcast prior to Thanksgiving to share material updates on the Smart Mirror program.”
About Capstone Companies, Inc.
Capstone Companies, Inc. is a public holding company that engages, through its wholly owned subsidiaries, Capstone Industries, Inc., Capstone Lighting Technologies, LLC, and Capstone International HK, Ltd., in the development, manufacturing and marketing of consumer products to retail channels throughout North America and certain international markets.
Visit our websites; www.capstonecompaniesinc.com for more information about the Company and www.capstoneconnected.com for information on our current product offerings. Contents of referenced URL’s are not incorporated herein.
Forward Looking Statements. This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding strategy, future operations, and plans, including assumptions underlying such statements, are forward-looking statements, and should not be relied upon as representing Company’s views as of any subsequent date. Such forward-looking statements are based on information available to the Company as of the date of this press release and involve a number of risks and uncertainties, some beyond the Company’s control or ability to foresee, that could cause actual results to differ materially from those anticipated by these forward-looking statements, including, including the impact of Coronavirus/COVID-19 pandemic on the Smart Mirror product line, any difficulty in marketing Company products in its target markets, competition in the market, and impact of evolving technologies in Smart Mirrors on Company’s prospects and products. Additional information that could lead to material changes in Company’s performance is contained in its filings with the Securities and Exchange Commission.
Company is under no obligation to, and expressly disclaims any responsibility to, update or alter forward-looking statements contained in this release, whether as a result of current information, future events or otherwise. Any investment in the Company’s common stock, which is a “penny stock,” is highly risky and not suitable for investors who require liquidity and are unable to withstand the loss of their investment. Investors should only rely on public information in our filings with the SEC, especially disclosures of Risk Factors, as a basis for investment decisions about Company common stock. Company’s SEC filings can be accessed through SEC website: www.sec.gov or the corporate website listed below.
FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.
|
CAPSTONE COMPANIES, INC., AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
||||
|
|
|
2021 |
|
2020 |
||||
|
Assets: |
|
|
|
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
|
|
|
Cash |
|
$ |
932,599 |
|
|
$ |
1,223,770 |
|
|
Accounts receivable, net |
|
|
43,970 |
|
|
|
120,064 |
|
|
Inventories |
|
|
25,441 |
|
|
|
8,775 |
|
|
Prepaid expenses |
|
|
748,566 |
|
|
|
75,622 |
|
|
Income tax refund |
|
|
285,673 |
|
|
|
861,318 |
|
|
Total Current Assets |
|
|
2,036,249 |
|
|
|
2,289,549 |
|
|
|
|
|
|
|
|
|
|
|
|
Property and Equipment, net |
|
|
116,388 |
|
|
|
54,852 |
|
|
Operating lease - right of use asset |
|
|
114,032 |
|
|
|
158,504 |
|
|
Deposit |
|
|
11,148 |
|
|
|
25,560 |
|
|
Goodwill |
|
|
1,312,482 |
|
|
|
1,312,482 |
|
|
Total Assets |
|
$ |
3,590,299 |
|
|
$ |
3,840,947 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
818,250 |
|
|
$ |
825,690 |
|
|
Operating lease - current portion |
|
|
68,392 |
|
|
|
63,307 |
|
|
Total Current Liabilities |
|
|
886,642 |
|
|
|
888,997 |
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Liabilities: |
|
|
|
|
|
|
|
|
|
Operating lease - long-term portion |
|
|
55,814 |
|
|
|
107,690 |
|
|
Deferred tax liabilities-long-term |
|
|
259,699 |
|
|
|
259,699 |
|
|
Total Long-Term Liabilities |
|
|
315,513 |
|
|
|
367,389 |
|
|
Total Liabilities |
|
|
1,202,155 |
|
|
|
1,256,386 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and Contingencies ( Note 5 ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
Preferred Stock, Series A, par value $.001 per share, authorized 6,666,667 shares, issued -0- shares |
|
|
— |
|
|
|
— |
|
|
Preferred Stock, Series B-1, par value $.0001 per share, authorized 3,333,333 shares, issued -15,000- shares at September 30, 2021, nil at December 31, 2020, (Liquidation Preference $15,000) |
|
|
2 |
|
|
|
— |
|
|
Preferred Stock, Series C, par value $1.00 per share, authorized 67 shares, issued -0- shares |
|
|
|
|
|
|
— |
|
|
Common Stock, par value $.0001 per share, authorized 56,666,667 shares, issued 48,893,031 shares at September 30, 2021 and 46,296,364 shares at December 31, 2020 |
|
|
4,892 |
|
|
|
4,630 |
|
|
Additional paid-in capital |
|
|
8,548,716 |
|
|
|
7,053,328 |
|
|
Accumulated deficit |
|
|
(6,165,466 |
) |
|
|
(4,473,397 |
) |
|
Total Stockholders’ Equity |
|
|
2,388,144 |
|
|
|
2,584,561 |
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
3,590,299 |
|
|
$ |
3,840,947 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
CAPSTONE COMPANIES, INC., AND SUBSIDIARIES |
||||||||||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended |
|
For the Nine Months Ended |
||||||||||||
|
|
|
September 30, |
|
September 30, |
||||||||||||
|
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
|
|
|
|
|
|
|
|
|
||||||||
|
Revenues, net |
|
$ |
44,640 |
|
|
$ |
709,654 |
|
|
|
483,063 |
|
|
$ |
1,765,189 |
|
|
Cost of sales |
|
|
(32,177 |
) |
|
|
(535,270 |
) |
|
|
(341,953 |
) |
|
|
(1,521,628 |
) |
|
Gross Profit |
|
|
12,463 |
|
|
|
174,384 |
|
|
|
141,110 |
|
|
|
243,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
|
|
7,082 |
|
|
|
22,337 |
|
|
|
18,910 |
|
|
|
277,264 |
|
|
Compensation |
|
|
314,890 |
|
|
|
362,706 |
|
|
|
1,017,125 |
|
|
|
1,139,107 |
|
|
Professional fees |
|
|
80,593 |
|
|
|
99,579 |
|
|
|
284,134 |
|
|
|
339,816 |
|
|
Product development |
|
|
112,887 |
|
|
|
75,948 |
|
|
|
191,932 |
|
|
|
169,133 |
|
|
Other general and administrative |
|
|
115,497 |
|
|
|
113,026 |
|
|
|
313,141 |
|
|
|
364,941 |
|
|
Goodwill impairment charge |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
490,766 |
|
|
Total Operating Expenses |
|
|
630,949 |
|
|
|
673,596 |
|
|
|
1,825,242 |
|
|
|
2,781,027 |
|
|
Operating Loss |
|
|
(618,486 |
) |
|
|
(499,212 |
) |
|
|
(1,684,132 |
) |
|
|
(2,537,466 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Income (Expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
|
— |
|
|
|
— |
|
|
|
41,059 |
|
|
|
— |
|
|
Other expense |
|
|
— |
|
|
|
(47 |
) |
|
|
(48,996 |
) |
|
|
(181 |
) |
|
Total Other Income (Expenses) |
|
|
— |
|
|
|
(47 |
) |
|
|
(7,937 |
) |
|
|
(181 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss Before Tax Benefit |
|
|
(618,486 |
) |
|
|
(499,259 |
) |
|
|
(1,692,069 |
) |
|
|
(2,537,647 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Benefit for Income Tax |
|
|
— |
|
|
|
(21,222 |
) |
|
|
— |
|
|
|
(805,160 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(618,486 |
) |
|
$ |
(478,037 |
) |
|
|
(1,692,069 |
) |
|
$ |
(1,732,487 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
$ |
(0.01 |
) |
|
$ |
(0.01 |
) |
|
|
(0.04 |
) |
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
48,878,745 |
|
|
|
46,296,364 |
|
|
|
47,962,310 |
|
|
|
46,350,909 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements
|
CAPSTONE COMPANIES, INC., AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY |
||||||||||||||||||||||||||||||||||||||||||||
|
FOR THE THREE MONTHS AND NINE MONTHS ENDED SEPTEMBER 30, 2021, AND SEPTEMBER 30, 2020 |
||||||||||||||||||||||||||||||||||||||||||||
|
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred |
|
Preferred |
|
Preferred |
|
|
|
Additional |
|
|
|
|
||||||||||||||||||||||||||||||
|
|
|
Series A |
|
Series B-1 |
|
Series C |
|
Common Stock |
|
Paid-In |
|
Accumulated |
|
Total |
||||||||||||||||||||||||||||||
|
|
|
Shares |
|
Par Value |
|
Shares |
|
Par Value |
|
Shares |
|
Par Value |
|
Shares |
|
Par Value |
|
Capital |
|
Deficit |
|
Equity |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
Balance at December 31, 2020 |
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
46,296,364 |
|
|
$ |
4,630 |
|
|
$ |
7,053,328 |
|
|
$ |
(4,473,397 |
) |
|
$ |
2,584,561 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options for compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
|
4,200 |
|
|
Stocks issued to Directors for loan |
|
|
- |
|
|
|
- |
|
|
|
15,000 |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
48,994 |
|
|
|
- |
|
|
|
48,996 |
|
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
(498,986 |
) |
|
|
(498,986 |
) |
|
Balance at March 31, 2021 |
|
|
- |
|
|
|
- |
|
|
|
15,000 |
|
|
|
2 |
|
|
|
- |
|
|
|
- |
|
|
|
46,296,364 |
|
|
|
4,630 |
|
|
|
7,106,522 |
|
|
|
(4,972,383 |
) |
|
|
2,138,771 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options for compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,200 |
|
|
|
- |
|
|
|
4,200 |
|
|
Common Stock issued for cash, net of fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
2,496,667 |
|
|
|
251 |
|
|
|
1,392,889 |
|
|
|
- |
|
|
|
1,393,140 |
|
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(574,597 |
) |
|
|
(574,597 |
) |
|
Balance at June 30, 2021 |
|
|
- |
|
|
- |
|
|
|
15,000 |
|
|
$ |
2 |
|
|
|
- |
|
|
$ |
- |
|
|
|
48,793,031 |
|
|
$ |
4,881 |
|
|
$ |
8,503,611 |
|
|
$ |
(5,546,980 |
) |
|
$ |
2,961,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options for compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
1,615 |
|
|
|
- |
|
|
|
1,615 |
|
|
Common Stock issued for cash, net of fees |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
100,000 |
|
|
|
11 |
|
|
|
43,490 |
|
|
|
- |
|
|
|
43,501 |
|
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(618,486) |
|
|
|
(618,486) |
|
|
Balance at September 30, 2021 |
|
|
- |
|
|
$ |
- |
|
|
|
15,000 |
|
|
$ |
2 |
|
|
|
- |
|
|
$ |
- |
|
|
|
48,893,031 |
|
|
$ |
4,892 |
|
|
$ |
8,548,716 |
|
|
$ |
(6,165,466) |
|
|
$ |
2,388,144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 31, 2019 |
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
46,579,747 |
|
|
$ |
4,658 |
|
|
$ |
7,061,565 |
|
|
$ |
(2,089,581 |
) |
|
$ |
4,976,642 |
|
|
Stock options for compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,925 |
|
|
|
- |
|
|
|
8,925 |
|
|
Repurchase of common stock |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(283,383 |
) |
|
|
(28 |
) |
|
|
(36,305 |
) |
|
|
- |
|
|
|
(36,333 |
) |
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(597,376 |
) |
|
|
(597,376 |
) |
|
Balance at March 31, 2020 |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
46,296,364 |
|
|
|
4,630 |
|
|
|
7,034,185 |
|
|
|
(2,686,957 |
) |
|
|
4,351,858 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options for compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8,925 |
|
|
|
- |
|
|
|
8,925 |
|
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(657,074 |
) |
|
|
(657,074 |
) |
|
Balance at June 30, 2020 |
|
|
- |
|
|
- |
|
|
|
- |
|
|
- |
|
|
|
- |
|
- |
|
|
|
46,296,364 |
|
|
4,630 |
|
|
7,043,110 |
|
|
(3,344,031 |
) |
|
3,703,709 |
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock options for compensation |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
6,018 |
|
|
|
- |
|
|
|
6,018 |
|
|
Net Loss |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(478,037) |
|
|
|
(478,037) |
|
|
Balance at September 30, 2020 |
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
- |
|
|
$ |
- |
|
|
|
46,296,364 |
|
|
$ |
4,630 |
|
|
$ |
7,049,128 |
|
|
$ |
(3,822,068) |
|
|
$ |
3,231,690 |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
|
CAPSTONE COMPANIES, INC., AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
||||||
|
|
|
September 30, |
||||||
|
|
|
2021 |
|
2020 |
||||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss |
|
$ |
(1,692,069 |
) |
|
$ |
(1,732,487 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
7,392 |
|
|
|
18,222 |
|
|
Stock based compensation expense |
|
|
10,015 |
|
|
|
23,868 |
|
|
Stock issued to Director’s for loan |
|
|
48,996 |
|
|
|
— |
|
|
Noncash lease expense |
|
|
44,472 |
|
|
|
41,406 |
|
|
Unpaid accrued interest on paycheck protection program loan |
|
|
— |
|
|
|
359 |
|
|
Goodwill impairment charge |
|
|
— |
|
|
|
490,766 |
|
|
Increase (decrease) in accounts receivable, net |
|
|
76,094 |
|
|
|
(198,050 |
) |
|
Increase in inventories |
|
|
(16,666 |
) |
|
|
11,392 |
|
|
(Increase) decrease in prepaid expenses |
|
|
(672,944 |
) |
|
|
69,146 |
|
|
Decrease in deposits |
|
|
14,412 |
|
|
|
34,873 |
|
|
Decrease in accounts payable and accrued liabilities |
|
|
(7,440 |
) |
|
|
(2,843 |
) |
|
(Increase) decrease in income tax refund- |
|
|
575,645 |
|
|
|
(574,631 |
) |
|
Decrease in operating lease liabilities |
|
|
(46,791 |
) |
|
|
(36,290 |
) |
|
Net cash used in operating activities |
|
|
(1,658,884 |
) |
|
|
(1,854,269 |
) |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Purchases of property and equipment |
|
|
(68,928 |
) |
|
|
(15,739 |
) |
|
Net cash used in investing activities |
|
|
(68,928 |
) |
|
|
(15,739 |
) |
|
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Proceeds from loan under paycheck protection program |
|
|
— |
|
|
|
89,600 |
|
|
Proceeds from sale of common stock, net of fees |
|
|
1,436,641 |
|
|
|
— |
|
|
Repurchase of common stock |
|
|
— |
|
|
|
(36,333 |
) |
|
Net cash provided by financing activities |
|
|
1,436,641 |
|
|
|
53,267 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Increase (Decrease) in Cash |
|
|
(291,171 |
) |
|
|
(1,816,741 |
) |
|
Cash at Beginning of Period |
|
|
1,223,770 |
|
|
|
3,131,249 |
|
|
Cash at End of Period |
|
$ |
932,599 |
|
|
$ |
1,314,508 |
|
|
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
|
Preferred stocks issued to Directors for loan fee |
|
$ |
48,996 |
|
|
$ |
— |
|
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
View source version on businesswire.com: https://www.businesswire.com/news/home/20211116006239/en/