CAPSTONE COMPANIES Business Summary

Capstone Companies, Inc. (CAPC) is currently executing a fundamental strategic pivot from its legacy consumer electronics business to the development and operation of integrated sports-entertainment recreational centers. Following the 2024 closure of its underperforming LED lighting and smart mirror divisions, the company’s primary business model now targets the "Health, Fitness, and Social Activities" (HFS) industry, with secondary revenue potential from licensing its "Connected Chef" kitchen tablet technology. Revenue is generated through facility memberships, court fees for high-growth sports such as pickleball and padel, and hospitality services including food, beverage, and corporate event hosting. Capstone competes in the "eatertainment" and boutique fitness sectors against established players like Life Time Group Holdings, Inc., Pinstripes Holdings, Inc., and Bowlero Corp, positioning itself as a community-centric platform that bridges the gap between traditional fitness clubs and social entertainment venues. The leadership transition is spearheaded by Chief Executive Officer Alexander Jacobs, a proven entrepreneur appointed in late 2024 who previously founded and scaled Coppermine Ventures, LLC into a profitable network of over 20 athletic facilities. Jacobs, a former All-American athlete from Denison University, has notably committed to a $1.00 annual salary to prioritize capital preservation during the company's restructuring. Stewart Wallach, the company’s co-founder and former long-term CEO, continues to serve as Chairman of the Board, providing strategic continuity alongside directors Jeffrey Postal and Jeffrey Guzy. This executive team is currently focused on leveraging Jacobs’ operational pedigree and the board’s retail distribution expertise to secure the third-party financing necessary to transition the company from a public shell into a scalable, revenue-generating HFS operator.