---
schema_version: "secwatch.filing_event.v1"
accession: "0001903596-24-000743"
form_type: "8-K"
ticker: "CAPC"
cik: "0000814926"
company_name: "CAPSTONE COMPANIES, INC."
filed_at: "2024-12-23T23:59:59+00:00"
generated_at: "2026-05-28T23:57:34.053548+00:00"
event_type: "other_material"
sentiment: "negative"
materiality_score: 0.85
calibrated_materiality_score: 0.85
confidence: "high"
source: SEC EDGAR
---

# Capstone cancels $3.7M in debt by issuing convertible preferred shares, causing potential 50% dilution

## Summary
- Cancelled $3,665,303 in debt owed to five related parties (Wallach, Group Nexus, Postal, Wolf, Fleisig estate) for 750,075 Series B-1 Convertible Preferred shares.
- Each B-1 share converts into 66.66 common shares; full conversion would add ~50M shares (50.5% of then-outstanding common stock).
- Stewart Wallach (20.1% holder, chair) and Jeffrey Postal (18.5% holder, former director) are among creditors; conversion could give them joint voting control.
- Company has no revenue, limited funding through March 2025, and going concern doubts; debt cancellation deemed necessary to attract a new business line.
- B-1 shares have no dividend or voting rights, are junior to other preferred, and are lock-up restricted until December 20, 2025, with limited transfer exceptions.

## SEC filing metadata
- accession: 0001903596-24-000743
- form_type: 8-K
- ticker: CAPC
- cik: 0000814926
- company_name: CAPSTONE COMPANIES, INC.
- filed_at: 2024-12-23T23:59:59+00:00
- event_type: other_material
- sentiment: negative
- materiality_score: 0.85
- calibrated_materiality_score: 0.85
- confidence: high
- sec_items: 1.01, 5.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/814926/000190359624000743/0001903596-24-000743-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/814926/000190359624000743/capc_8k.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001903596-24-000743
- JSON: https://secwatch.observer/filing/0001903596-24-000743.json
- Plain text: https://secwatch.observer/filing/0001903596-24-000743.txt

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.