NOTES AND LOANS PAYABLE TO RELATED PARTIES	12 Months Ended
Dec. 31, 2016
NOTES AND LOANS PAYABLE TO RELATED PARTIES
NOTES AND LOANS PAYABLE TO RELATED PARTIES	NOTE 5 – NOTES AND LOANS PAYABLE TO RELATED PARTIES Capstone Companies, Inc. - Notes Payable to Officers and Directors On May 30, 2007, the Company executed a $575,000 promissory note payable to a Director of the Company. This note was amended on July 1, 2009 and again on January 2, 2010. As amended, the note carries an interest rate of 8% per annum. All principal was payable in full, with accrued interest, on January 2, 2014. On November 2, 2007, the Company issued 12,074 shares of its Series B Preferred stock valued at $28,975 as payment towards this loan. The loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. On July 12, 2011, Stewart Wallach, the Chief Executive Officer and Director of the Company and JWTR Holdings, LLC owned by a Director, Jeffrey Postal entered into a Securities and Notes Purchase Agreement with Howard Ullman (former Chairman), whereby they would purchase equally all of Mr. Ullman's notes net of any offsets, monies due from Mr. Ullman to the Company. The original terms of all notes would remain the same. On July 12, 2011, this note payable was reassigned by Mr. Ullman, equally split between Stewart Wallach, Chief Executive Director and Director, and JWTR Holdings LLC. The note balance of $466,886 was reduced by $47,940 for offsets due by Mr. Ullman. The revised loan balance of $418,946 was reassigned equally, $209,473 to Stewart Wallach and $209,473 to JWTR Holdings LLC. As amended the note was due on or before April 3, 2017. As of December 31, 2015, the total combined balance due on these two notes including accrued interest was $567,060. On September 19, 2016, this note was paid in full to both parties. Each party was paid $295,558 which included principal of $209,473 and interest of $86,085. On March 11, 2010, the Company received a loan from a Director in the amount of $100,000. As amended, the note was due on or before April 3, 2017 and carried an interest rate of 8% per annum. At December 31, 2015, the total balance due on this note including accrued interest was $146,466. On September 22, 2016, this note was paid in full including accrued interest of $52,296. On May 11, 2010, the Company received a loan from Stewart Wallach in the amount of $75,000. As amended, the note was due on or before April 1, 2016 and carried an interest rate of 8% per annum. At December 31, 2015, the total balance due on this note including accrued interest was $108,847. On March 2, 2016, this note was paid in full including accrued interest of $34,866. On January 15, 2013, the Company received a loan in the amount of $250,000 from Stewart Wallach. The loan carried an interest rate of 8% per annum. This loan was amended and the due date was extended until April 3, 2017. At December 31, 2015, the total balance due on this note including accrued interest was $309,178. On April 1, 2016, Stewart Wallach transferred ownership of this note and all accrued interest to Director, Jeffrey Postal. The amount transferred was $250,000 and accrued interest of $64,164. This loan was cancelled and a new loan entered into with Jeffrey Postal on April 1, 2016. On January 15, 2013, the Company received a loan in the amount of $250,000 from a Director of Capstone. The loan carries an interest rate of 8% per annum. This loan was amended and the due date has been extended until April 3, 2017. At December 31, 2016 and 2015, the total amount payable on this note was $329,233 and $309,178, respectively, including accrued interest of $79,233 and $59,178, respectively. This loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. Purchase Order Assignment- Funding Agreements On March 18, 2016, Capstone received $360,000 against a note from Group Nexus. The note was due on or before September 30, 2016, and carried an interest rate of 8.0% per year. The note with accumulated interest of $5,287 was paid off in full on May 24, 2016. On April 19, 2016, Capstone received $500,000 against a note from George Wolf, a consultant. The note was due on or before December 31, 2016, and carried an interest rate of 8% per year. On June 1, 2016, the note was paid off in full with accumulated interest of $4,712. Working Capital Loan Agreements On April 1, 2012, the Company signed a working capital loan agreement with Postal Capital Funding, LLC ("PCF"), a private capital funding company owned by Jeffrey Postal. Pursuant to the agreement, the Company may borrow up to a maximum of $1,000,000 of revolving credit from PCF. Amounts borrowed carry an interest rate of 8%. This loan was amended and the due date has been extended until April 3, 2017. As of December 31, 2016, and 2015, the loan balance under this agreement was $663,255 and $623,306, respectively, including accrued interest of $165,255 and $125,306, respectively. Notes and Loans Payable to Related Parties – Interest Expense During the years ended December 31, 2016 and 2015, interest expense on the notes payable to related parties amounted to $120,963 and $236,277, respectively.

NOTES AND LOANS PAYABLE TO RELATED PARTIES

12 Months Ended

Dec. 31, 2016

NOTES AND LOANS PAYABLE TO RELATED PARTIES

NOTES AND LOANS PAYABLE TO RELATED PARTIES

NOTE 5 – NOTES AND LOANS PAYABLE TO RELATED PARTIES

Capstone Companies, Inc. - Notes Payable to Officers and Directors

On May 30, 2007, the Company executed a $575,000 promissory note payable to a Director of the Company. This note was amended on July 1, 2009 and again on January 2, 2010. As amended, the note carries an interest rate of 8% per annum. All principal was payable in full, with accrued interest, on January 2, 2014. On November 2, 2007, the Company issued 12,074 shares of its Series B Preferred stock valued at $28,975 as payment towards this loan. The loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal. On July 12, 2011, Stewart Wallach, the Chief Executive Officer and Director of the Company and JWTR Holdings, LLC owned by a Director, Jeffrey Postal entered into a Securities and Notes Purchase Agreement with Howard Ullman (former Chairman), whereby they would purchase equally all of Mr. Ullman's notes net of any offsets, monies due from Mr. Ullman to the Company. The original terms of all notes would remain the same. On July 12, 2011, this note payable was reassigned by Mr. Ullman, equally split between Stewart Wallach, Chief Executive Director and Director, and JWTR Holdings LLC. The note balance of $466,886 was reduced by $47,940 for offsets due by Mr. Ullman. The revised loan balance of $418,946 was reassigned equally, $209,473 to Stewart Wallach and $209,473 to JWTR Holdings LLC. As amended the note was due on or before April 3, 2017. As of December 31, 2015, the total combined balance due on these two notes including accrued interest was $567,060. On September 19, 2016, this note was paid in full to both parties. Each party was paid $295,558 which included principal of $209,473 and interest of $86,085.

On March 11, 2010, the Company received a loan from a Director in the amount of $100,000. As amended, the note was due on or before April 3, 2017 and carried an interest rate of 8% per annum. At December 31, 2015, the total balance due on this note including accrued interest was $146,466. On September 22, 2016, this note was paid in full including accrued interest of $52,296.

On May 11, 2010, the Company received a loan from Stewart Wallach in the amount of $75,000. As amended, the note was due on or before April 1, 2016 and carried an interest rate of 8% per annum. At December 31, 2015, the total balance due on this note including accrued interest was $108,847. On March 2, 2016, this note was paid in full including accrued interest of $34,866.

On January 15, 2013, the Company received a loan in the amount of $250,000 from Stewart Wallach. The loan carried an interest rate of 8% per annum. This loan was amended and the due date was extended until April 3, 2017. At December 31, 2015, the total balance due on this note including accrued interest was $309,178. On April 1, 2016, Stewart Wallach transferred ownership of this note and all accrued interest to Director, Jeffrey Postal. The amount transferred was $250,000 and accrued interest of $64,164. This loan was cancelled and a new loan entered into with Jeffrey Postal on April 1, 2016.

On January 15, 2013, the Company received a loan in the amount of $250,000 from a Director of Capstone. The loan carries an interest rate of 8% per annum. This loan was amended and the due date has been extended until April 3, 2017. At December 31, 2016 and 2015, the total amount payable on this note was $329,233 and $309,178, respectively, including accrued interest of $79,233 and $59,178, respectively. This loan grants to the holder a security interest in the accounts receivable of the Company up to the amount of the unpaid principal.

Purchase Order Assignment- Funding Agreements

On March 18, 2016, Capstone received $360,000 against a note from Group Nexus. The note was due on or before September 30, 2016, and carried an interest rate of 8.0% per year. The note with accumulated interest of $5,287 was paid off in full on May 24, 2016.

On April 19, 2016, Capstone received $500,000 against a note from George Wolf, a consultant. The note was due on or before December 31, 2016, and carried an interest rate of 8% per year. On June 1, 2016, the note was paid off in full with accumulated interest of $4,712.

Working Capital Loan Agreements

On April 1, 2012, the Company signed a working capital loan agreement with Postal Capital Funding, LLC ("PCF"), a private capital funding company owned by Jeffrey Postal. Pursuant to the agreement, the Company may borrow up to a maximum of $1,000,000 of revolving credit from PCF. Amounts borrowed carry an interest rate of 8%. This loan was amended and the due date has been extended until April 3, 2017. As of December 31, 2016, and 2015, the loan balance under this agreement was $663,255 and $623,306, respectively, including accrued interest of $165,255 and $125,306, respectively.

Notes and Loans Payable to Related Parties – Interest Expense

During the years ended December 31, 2016 and 2015, interest expense on the notes payable to related parties amounted to $120,963 and $236,277, respectively.