Capstone Companies Reports 2018 Year-End Performance

• Revenue decline resulting from reduced promotional activity
• Looking forward - 2019 CES product line introductions focused on emerging Smart Home market

Capstone Companies, Inc. 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.

Stewart Wallach, Capstone's Chairman and CEO, commented, "2018 promotional scheduling, as a result of business uncertainties caused by trade negotiations, was significantly reduced and accordingly resulting revenues were disappointing. On a looking forward positive note, the Company has taken aggressive measures to mitigate the future impact of tariff increases and has also ramped up product development efforts to revitalize the Company's growth by accelerating the 2019 launch of its newly developed smart home product portfolio."

Mr. Wallach added, "our initial smart home product was introduced at CES in January. This was our first entry in the electronics industry showcase and we have subsequently been covered in numerous industry publications, interviews and were recognized by Android Headlines as one of their 'Best of CES' choices."

Gerry McClinton, Capstone's CFO, commented further, "while 2018 revenues were down, our Company resources remain stable and we are rapidly preceding to improve the revenue stream through diversifying our product portfolio into high growth areas. Management remained resolute through 2018 to efficiently manage its resources yielding strong year-end cash balances and zero debt standing."

Webcast and Teleconference to Review Results and Outlook

The Company will host a live webcast and conference call on Tuesday, April 2, 2019 at 10:30 a.m. Eastern Time. 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. The conference call can be accessed by dialing (201) 689-8562. The listen-only audio webcast can be monitored at www.capstonecompaniesinc.com.

A telephonic replay will be available from 1:30 p.m. ET the day of the call until Tuesday, April 9, 2019. To listen to the archived call, dial (412) 317-6671 and enter conference ID number 13686341. Alternatively, the archive of the webcast will be available on the Company's website at www.capstonecompaniesinc.com, along with a transcript, once available.

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, Limited, in the development, manufacturing and marketing of consumer product to retail channels throughout North America and international markets.

Visit www.capstonecompaniesinc.com for more information about the Company and www.capstoneindustries.com for information on our current product offerings.

FORWARD-LOOKING STATEMENTS:

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.

FINANCIAL TABLES FOLLOW. THE FOLLOWING SUMMARY FINANCIAL STATEMENT SHOULD BE READ ALONG WITH THE FORM 10-K FINANCIAL STATEMENT FILED BY THE COMPANY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
	CONSOLIDATED STATEMENTS OF OPERATIONS
					For the Years Ended
					December 31,
					2018		2017
	Revenues, net				$ 12,830,324		$ 36,752,813
	Cost of sales				(9,936,745)		(27,910,869)
	Gross Profit				2,893,579		8,841,944
	Operating Expenses:
	Sales and marketing				915,205		2,266,601
	Compensation				1,502,590		1,612,480
	Professional fees				510,022		549,844
	Product development				518,969		376,981
	Other general and administrative				691,466		805,077
	Total Operating Expenses				4,138,252		5,610,983
	Operating Income (Loss)				(1,244,673)		3,230,961
	Other Expenses:
	Miscellaneous expense, net				(55,360)		-
	Interest expense				-		(122,091)
	Total Other Expenses				(55,360)		(122,091)
	Income (Loss) Before Tax Provision (Benefit)				(1,300,033)		3,108,870
	Provision (Benefit) for Income Tax				(288,975)		1,029,694
	Net Income (Loss)				$ (1,011,058)		$ 2,079,176
	Net Income (Loss) per Common Share
	Basic				($0.021)		$0.044
	Diluted				($0.021)		$0.044
	Weighted Average Shares Outstanding
	Basic				47,046,364		47,007,296
	Diluted				47,046,364		47,188,450

	CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
	CONSOLIDATED BALANCE SHEETS
			December 31,				December 31,
				2018				2017
	Assets:
	Current Assets:
	Cash		$	3,822,359			$	3,668,196
	Accounts receivable, net			64,511				4,367,721
	Inventories			27,497				140,634
	Prepaid expenses			243,876				239,150
	Income tax refundable			220,207				-
	Total Current Assets			4,378,450				8,415,701
	Property and Equipment:
	Computer equipment and software			51,195				9,895
	Machinery and equipment			170,567				318,801
	Furniture and fixtures			6,828				5,665
	Less: Accumulated depreciation			(152,870	)			(266,997	)
	Total Property & Equipment			75,720				67,364
	Other Non-current Assets:
	Deposit			102,805				13,616
	Goodwill			1,936,020				1,936,020
	Total Other Non-current Assets			2,038,825				1,949,636
	Total Assets		$	6,492,995			$	10,432,701
	Liabilities and Stockholders' Equity:
	Current Liabilities:
	Accounts payable and accrued liabilities		$	461,446			$	2,733,516
	Deferred rent incentive			108,844				-
	Income tax payable			11,694				624,782
	Total Current Liabilities			581,984				3,358,298
	Long Term Liabilities:
	Deferred tax liabilities			12,000				251,000
	Total Long Term Liabilities			12,000				251,000
	Total Liabilities			593,984				3,609,298
	Commitments and Contingencies
	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 -0-
	shares			-				-
	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 47,046,364
	shares			4,704				4,704
	Additional paid-in capital			7,092,219				7,005,553
	Accumulated deficit			(1,197,912	)			(186,854	)
	Total Stockholders' Equity			5,899,011				6,823,403
	Total Liabilities and Stockholders' Equity		$	6,492,995			$	10,432,701

	CAPSTONE COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
			For the Years Ended
			December 31,
				2018				2017
	CASH FLOWS FROM OPERATING ACTIVITIES:
	Net income (loss)		$	(1,011,058	)		$	2,079,176
	Adjustments to reconcile net income (loss) to net cash provided by operating activities:
	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.		$	-			$	500,000

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