CAPSTONE COMPANIES, INC. Annual Report - How They Did This Year

I’m putting together a guide to help you understand how Capstone Companies, Inc. performed this year. My goal is to explain the corporate details clearly so you can decide if this company fits your investment goals.

1. What does this company do?

Capstone Companies, Inc. (OTC: CAPC) has transitioned into a "shell" company. As of December 31, 2025, the company completed the sale of its consumer hardware businesses, including LED lighting and smart mirrors. It currently has no active operations, no inventory, and no products to sell. Its primary objective is to secure a merger or acquisition to establish a new business direction.

2. Financial Health: A "Going Concern"

The company’s auditors have issued a "going concern" warning, indicating that Capstone requires additional capital or a successful merger to continue operations.

• No Sales: The company reported $0 in revenue for 2025.
• Reliance on Loans: Operations are currently funded through debt. The company owes approximately $530,000 to Coppermine Ventures, an entity controlled by CEO Alexander Jacobs. These funds are utilized primarily for essential administrative costs, such as legal fees and SEC compliance.
• Funding Uncertainty: A bridge loan from eBliss Global has been secured to support the company through late 2026. Because the company lacks internal cash flow, the successful completion of a merger is necessary to sustain the business long-term.

3. Recent Strategic Shifts

Capstone has moved through several business models over the past year:

• Connected Chef: The company abandoned this project in November 2025 due to supply chain challenges and manufacturing obstacles.
• Legacy Segments: The smart mirror and LED lighting segments have been divested, with remaining inventory liquidated.
• HFS Pivot: A proposed expansion into the "Health, Fitness, and Social" sector, specifically involving pickleball facilities, was canceled due to the inability to secure the necessary capital for real estate and construction.

4. The eBliss Global Agreement

Capstone is currently operating under a 90-day "no-shop" agreement with eBliss Global, an electric bicycle company.

• Exclusivity: Capstone is restricted from pursuing other merger partners until this agreement concludes.
• Strategic Direction: The company intends to merge with eBliss to enter the e-mobility market. This transaction would serve as a vehicle for eBliss to access public markets.

5. Key Risks for Investors

• Speculative Nature: Given the lack of revenue and the history of discontinued projects, the company is in a high-risk survival phase.
• Dilution: Future funding rounds or a potential merger will likely require the issuance of additional shares, which would decrease the ownership percentage of existing shareholders.
• Market Liquidity: As an OTC Pink sheet stock, the company faces limited trading volume, which can lead to significant price volatility and difficulty in executing trades.

The Bottom Line

Capstone is currently in a "win or lose" position. With no active products and a total reliance on external debt, the company’s future depends entirely on the outcome of the eBliss merger. If the deal is finalized, the company will attempt to pivot into the e-mobility sector; if the deal fails, the company faces a high probability of insolvency. Before investing, consider whether you are comfortable with a company that has no current operations and is entirely dependent on a single upcoming transaction.