Capstone Companies, Inc. Liquidation Value

Capstone Companies, Inc. (CAPC) is a non-operating shell in active wind-down posture. As of March 31, 2026, the company has no revenue-generating product line, no inventory, no receivables, and no fixed assets of consequence. Under a liquidation lens, the asset side is essentially cash-only: $257,040 in cash (recoverable at 100%) and a small prepaid balance. Against this, total current liabilities are approximately $823,000, consisting of $819,378 in notes payable plus accrued interest (related party Coppermine: $568,084; unrelated party eBliss: $251,294) and $3,957 in accounts payable. Reported book equity is negative $551,338, and liquidation value is structurally worse than book because there are no tangible assets to haircut—the entire asset base is already at or near liquidation-equivalent value. The MFFAIS-reported CLV/LLV/OLV of negative $479,052 as of a prior period has deteriorated further; the current-period negative working capital of $551,338 equals total stockholders' deficit, confirming zero recovery to equity in any liquidation scenario.

Note structure is the primary liability driver. The Coppermine note (controlled by CEO Alex Jacobs) was amended January 5, 2026 to a $558,191 principal commitment maturing December 31, 2026, with $530,163 drawn as of March 31, 2026. The eBliss note ($250,000 principal, 7% simple interest, due March 4, 2027) was funded March 4, 2026 and is unsecured. Both instruments are all-current, unsecured, and balloon-payment structures. There is no subordination arrangement disclosed, no collateral, and no conversion feature. All $780,163 in principal plus $39,215 in accrued interest sits in current liabilities.

Since December 31, 2025 (when total notes payable were $485,163 and stockholders' deficit was $459,069), the liability stack has grown by $295,000 in new borrowings while cash increased by only $217,918 net. The cash increment is entirely debt-funded; operating cash burn was $77,082 in Q1 2026. At that burn rate, the $257,040 cash balance supports approximately 3.3 quarters of operations absent new funding—consistent with management's own disclosure that funding is estimated to last into the latter half of 2026.

Additional structural notes relevant to liquidation: Series B-1 Convertible Preferred Stock (765,075 shares outstanding) carries a $765,075 liquidation preference senior to common equity, though junior to creditors. In a liquidation, preferred holders receive nothing after debt obligations consume all assets. The accumulated deficit stands at $12,772,037. No PP&E, no goodwill, no intangibles, no inventory, no AR—the asset side is trivially simple. Filing discusses the eBliss 90-day no-shop period and potential strategic transaction in MD&A but does not separately tag any related contingent liability or asset in XBRL. The going concern qualification is explicitly confirmed by management.