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COMMITMENTS AND CONTINGENCIES
12 Months Ended
Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 4 – COMMITMENTS AND CONTINGENCIES

 

Operating Leases

 

The Company had operating lease agreements for its principal executive offices in Fort Lauderdale, Florida that expired June 30, 2023.

 

On April 26, 2023, the landlord amended the terms for the operating lease and related common area management expenses (“CAM”) owed by the Company for its principal executive office to extend the payment terms for the remaining three months of the lease term, ended June 30, 2023, over the following nine months through December 31, 2023. In addition to the monthly rent expense, the landlord included an estimate for additional CAM charges for the 2023 operating lease year of $5,435 and $17,124 for additional CAM charges for the 2022 operating lease year. The Company paid a total of $58,500 with monthly payments of $6,500 per month for nine months commencing April 1, 2023 and ending December 31, 2023, to satisfy the aforementioned operating lease liabilities for the executive office lease.

 

On July 1, 2023, the Company commenced an office space license to use designated office space at #144-V, 10 Fairway Drive, Suite 1000, Deerfield Beach, Florida 33441. The short-term lease is a month-to-month agreement for professional office space for a monthly fee of $75 with a security deposit of $75. The agreement may be terminated by the Company or the licensor of the office space upon a written notice provided thirty (30) days in advance.

 

The Company’s rent expense is recorded on a straight-line basis over the term of the lease. The rent expense for the period ended December 31, 2024 and 2023, amounted to $2,485 and $95,936, respectively, including the monthly CAM charges and storage facility rent expense.

 

Employment Agreements  

 

On February 5, 2020, the Company entered into a new Employment Agreement with Stewart Wallach, whereby Mr. Wallach will be paid $301,521 per annum. The initial term of this new agreement began February 5, 2020, and ended February 5, 2023. The parties may extend the employment period of this agreement by mutual consent with approval of the Company’s Board of Directors, but the extension may not exceed two years in length. On February 5, 2023, the employment agreement was extended for an additional two-year period through February 5, 2025.

 

Beginning in 2020 and through 2024, executive salaries and consulting fees have been deferred to conserve cash flow. Deferrals amounted to $969,603 and $734,156, as of September 30, 2024 and December 31, 2023, respectively, and were included in accounts payable and accrued liabilities. See Note 3 – Notes Payable to Related and Unrelated Parties for cancellation agreement for the deferred wages and consulting fees in exchange of issuance of Preferred B-1 Stock.

 

On December 4, 2024, the CEO of Coppermine Ventures, Alexander Jacobs, was appointed as CEO and Director of Capstone Companies, Inc. with former CEO S. Wallach voluntarily resigning and remaining as Capstone Companies, Inc Chair of the Board of Directors. There is no employment agreement for Mr. Jacobs as of the date of this filing Form 10-K. Mr. Jacobs has agreed to accrual of a base salary of One Dollar per year and is reflected in Accounts Payable and Accrued Expenses as of December 31, 2024.

 

Directors Compensation

 

On July 5, 2022, The Board of Directors voted to suspend compensation to the independent directors indefinitely.

  

Legal Matters

 

The Company is not a party to any other pending or threatened legal proceedings and, to the best our knowledge, no such action by or against us has been threatened. From time to time, we are subject to legal proceedings and claims that arise in the ordinary course of our business. Although occasional adverse decisions or settlements may occur in such routine lawsuits, we believe that the final disposition of such routine lawsuits will not have material adverse effect on its financial position, results of operations or status as a going concern.