| ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements
for the years ended December 31, 2022 and 2021, include the accounts of the parent entity and its wholly-owned subsidiaries.
All intra-entity transactions and balances have been eliminated in consolidation. This summary of accounting policies for Capstone
Companies, Inc. (“CAPC”), a Florida corporation (formerly, “CHDT Corporation”) and its wholly-owned subsidiaries
(collectively referred to as the “Company”, “we”, “our” or “us”), is presented to assist
in understanding the Company’s consolidated financial statements. The accounting policies conform to accounting principles generally
accepted in the United States of America (“U.S. GAAP”) and have been consistently applied in the preparation of the consolidated
financial statements. Organization and Nature of Business Capstone Companies, Inc. is headquartered in
Deerfield Beach, Florida and is incorporated under the laws of the State of Florida. On April 13, 2012, the Company established a
wholly owned subsidiary in Hong Kong, named Capstone International Hong Kong Ltd (“CIHK”) which provides support services
such as engineering, new product development, product sourcing, factory certification and compliance, product price negotiating, product
testing and quality control and ocean freight logistics for the Company’s other subsidiaries. With the shift of manufacturing to
Thailand from China, the CIHK operation was downsized and dormant as of March 2022 Since 2007, the Company, through Capstone Industries,
has been primarily engaged in the business of developing, marketing, and selling home LED products (“Lighting Products”) through
national and regional retailers in North America and in certain overseas markets. The Lighting Products are targeted for applications
such as home indoor and outdoor lighting and have different functionalities to meet consumer’s needs. Over the last few years there
has been significant LED price erosion, which has commoditized LED consumer products. The LED category has matured and is no longer the
innovative “must have” consumer product as in previous years. As such, the Company entered into another home goods product
segment by developing a smart interactive mirror (“Smart Mirror”) for residential use. The Company planned for the Smart Mirror
product launch in 2021, but its release to the retail market was delayed until March 2022 due to product development delays at the Company’s
suppliers, resulting from the impact of COVID-19. The development of the Smart Mirrors is part of the Company’s strategic effort
to find new product lines to replace the Lighting Products that are nearing or at the end of their product life cycle. These products
are offered either under the Capstone brand or licensed brands. The Company’s products are typically
manufactured In Thailand and China by contract manufacturing companies. As of the date of these consolidated financial
statements, the Company’s future product development effort is focused on the development of a “Connected Surfaces”
portfolio. The Connected Surfaces portfolio is designed to tap into consumer’s ever-expanding Internet of Things, wireless
connected lifestyles prevalent today, with the initial product launch of the Smart Mirror, an internet connected and interactive
mirror. The Company intends to expand the new line of Connected Surfaces for the next several years. The Company’s
product roadmap outlines the plan for an additional product launch in 2023, branded the “Connected Chef”, a kitchen
utility item, and this will continue to expand as consumer product acceptance validates its innovations. The Company believes
this program will leverage existing relationships with its current retail partners and collectively contribute organic growth
for the Company. The Company’s operations in 2022 consist of one reportable segment
for financial reporting purposes: consumer home goods. Effects of COVID-19 During the year ended December 31, 2021, the outbreak
and global spread of COVID-19 pandemic caused significant economic volatility, uncertainty and disruption in our operating environment.
We began 2020 in an environment exhibiting strong economic conditions combined with the successful launch of our new product category,
the Smart Mirror at the 2020 CES Show. However, on March 11, 2020, the World Health Organization declared COVID-19 a global pandemic,
and the various containment and mitigation measures adopted by governments and institutions globally and in the U.S. began to have a severe
economic impact, including causing the U.S. to enter an economic recession. Our business operations and financial performance
for the years ended December 31, 2022 and 2021 were significantly and adversely impacted by
the long term impacts of the global pandemic. The planned 2021 launch of the Smart Mirror was delayed until March 2022 due to COVID-19
related supply chain bottlenecks, shipping delays, and increased cost of freight containers. When the global pandemic restrictions gradually
lifted during 2022, the consumer’s buying habits had been altered. After stocking up on home goods, home improvements and electronics
during the stay-at-home orders, once those orders were lifted, consumers chose to spend their
money on things to do versus things to have. This change in consumer spending on activities versus goods negatively impacted the 2022
launch of the Smart Mirror significantly. Sales of the Smart Mirror severely underperformed management’s expectations, generating
approximately $74,000 in net sales for an approximate 105 units sold. In addition to the change in consumer spending, the Company changed
its marketing course in late 2021 and 2022 by moving away from the Big Box retailers and put all of its marketing effort into the e-commerce
marketing industry. The Company’s first parlay into e-commerce proved to be very costly and a difficult market to secure customer
acquisition with the Company spending approximately $285,000 in 2022 on social media, advertising and trade shows, included in sales
and marketing expense on the statement of operations as of December 31, 2022, which was an increase of $260,000 over the prior year.
The Company has decided to re-focus their marketing strategy in 2023 and move back to brick and mortar and Big Box retailers, which was
their core strength with the Lighting Products. Liquidity and Going Concern The accompanying consolidated financial statements
have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments
in the normal course of business. During the year ended
December 31, 2022, the Company used cash in operations of approximately $ 1.9
2.7
448 9.1 1.3 61 We are seeking
alternative sources of liquidity, including but not limited to accessing the capital markets, or other alternative financing measures.
However, instability in, or tightening of the capital markets, could adversely affect our ability to access the capital markets on terms
acceptable to us. An economic recession or a slow recovery could adversely affect our business and liquidity. The Company may be able to raise the required additional
capital through debt or equity financing. However, the Company can make no assurances that it will be able to raise the required capital,
on acceptable terms or at all. Unless the Company succeeds in raising additional capital or successfully increases cash generated from
operations, management believes there is substantial doubt about the Company’s ability to continue as a going concern and meet its
obligations over the next twelve months from the filing date of this report. However, there are compensating factors and actions that
are being and have been taken to address these uncertainties, including the following:
● The Company received Purchase
Order Funding Agreement note payable proceeds of $680,000 from related parties and $340,000 from unrelated parties during 2021.
● The Company received working
capital note payable proceeds of $500,000 from related parties and $200, 000
from unrelated parties during 2022. Subsequent to December 31, 2022, and
through the date of this filing, the Company has received an additional $183,500 in working capital note payable proceeds from related parties,
See subsequent events, Note 7 .
● The Company has modified
its marketing strategy for the Connected Surfaces product lines and will not pursue e-commerce selling directly to consumers as its
primary strategy. In 2023, the Company will return to retail marketing targeting home good retailers and the Big Box warehouses,
which was their core strength with the product lighting consumer goods.
● The Company has a mitigation
plan in place that reduced discretionary expenses, executive managements’ compensation, resulted in the closure of our Hong Kong
operation and also reduced future travel, lodging and show expenses.
● In order to conserve operating
cashflow, the Company’s executive management has agreed to defer compensation until working capital is improved. See Note 4
and Note 7. Concentrations
of Credit Risk Cash is deposited with major banks
in the United States. From time to time, such deposits may be in excess of insured limit. Generally, the FDIC limit per bank is
$250,000. Any loss incurred or a lack of access to such funds above the FDIC limit could have a significant adverse impact on
the Company’s financial condition, results of operations and cash flows. Accounts Receivable For product revenue, the Company invoices its customers
at the time of shipment for the sales value of the product shipped. Accounts receivables are recognized at the amount expected to be collected
and are not subject to any interest or finance charges. The Company does not have any off-balance sheet credit exposure related to any
of its customers. The Company evaluates the collectability of accounts
receivable based on a combination of factors. In cases where the Company becomes aware of circumstances that may impair a specific customer’s
ability to meet its financial obligations subsequent to the original sale, the Company will recognize an allowance against amounts due,
and thereby reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers,
the Company recognizes an allowance for doubtful accounts based on the length of time the receivables are past due and consideration of
other factors such as industry conditions, the current business environment and the Company’s historical payment experience. An
allowance for doubtful accounts is established as losses are estimated to have occurred through a provision for bad debts charged to earnings.
This evaluation is inherently subjective and requires estimates that are susceptible to significant revisions as more information becomes
available. As of both Decembers 31, 2022 and 2021, management
determined that the accounts receivable is fully collectible. As such, management has not recorded an allowance for doubtful accounts. As of December 31, 2022 and 2021, accounts receivable
has not been collateralized against debt. Inventory The Company’s inventory, which consists of finished
Thin Cast Smart Mirror products for resale to consumers by Capstone, is recorded at the lower of landed cost (first-in, first-out) or
net realizable value. The Company writes down its inventory balances for estimates of excess and obsolete amounts. The Company reduces
inventory on hand to its net realizable value on an item-by-item basis when the expected realizable value of a specific inventory item
falls below its original cost. Management regularly reviews the Company’s investment in inventories for such declines in value.
The write-downs are recognized as a component of cost of sales. During 2021,
$150,874 of the initial Smart Mirror inventory order arrived at the Company’s fulfillment center damaged. This damaged inventory
was expensed to cost of goods sold upon receipt. As of December 31, 2021, no reserve against the inventory was deemed necessary. During 2022,
Management reviewed the valuation of inventory on hand as of the year ended December 31, 2022, and considered the need for a reserve
for slow moving inventory due to sales not meeting projected forecasts during 2022. Management estimated a 50% reserve for inventory
held in domestic warehouses and a 100% reserve for inventory held in international warehouses , which resulted in an increase in the
inventory reserve of $533,254 . Prepaid Expenses The Company’s
prepaid expenses consist primarily of deposits on inventory purchases for future orders as well as prepaid insurance, trade show and
subscription expenses. As of December 31, 2022 and 2021, respectively, prepaid expenses were $37,090 and $500,748, respectively.
During the year ended December 31, 2022, the Company wrote off a deposit on inventory in the amount of $158,900, which has been included
in increase in inventory reserve and write offs on the consolidated statements of operations, as the Company does not anticipate completing
the manufacturing of the product. Property and Equipment Property and equipment are stated at cost. Depreciation
and amortization are computed using the straight-line method over the estimated economic useful lives of the related assets as follows:
Schedule of Useful Lives, Depreciation of Property and Equipment
Useful Life December 31, 2022 December 31, 2021
Computer equipment and software 3 7 $ 53,819 $ 53,819
Machinery and equipment 3 7 76,928 151,251
Furniture and fixtures 3 7 6,828 6,828
Less: Accumulated depreciation (86,290 ) (134,970 )
Less: Impairment
of equipment (51,285 ) —
Property and Equipment, Net $ — $ 76,928 Long-lived assets are reviewed for impairment whenever
events or changes in circumstances indicate that the related carrying amount may not be recoverable. When required, impairment losses
on assets to be held and used are recognized based on the fair value of the asset. Long-lived assets to be disposed of, if any, are reported
at the lower of carrying amount or fair value less cost to sell. Upon sale or other disposition of property and equipment, the cost and
related accumulated depreciation or amortization are removed from the accounts and any gain or loss is included in the determination of
income or loss. In 2022, the Company began a re-engineering of the
Smart Mirror for its next rollout for version two and decided the current tooling and product molds will not manufacture the mold for
version two. The Company determined its Smart Mirror tooling machine was impaired as of December 31, 2022 and recorded an impairment
loss of $51,285, included in product development expenses on the consolidated statements o f
operations .
The Company wrote off fully depreciated fixed assets with a net book value of $74,323 during the year ended December 31, 2022. Depreciation and amortization expense was $ 25,643 9,852 Leases The Company accounts for leases under ASU 2016-02 which requires leases
with durations greater than twelve months to be recognized on the balance sheet and disclose key information about the leasing arrangements.
Operating leases are included in operating lease right-of-use (“ROU”) assets and operating lease liabilities on the consolidated
balance sheets. See Note 6 “Operating Leases” for additional disclosures as required by the new standard. Goodwill On September 13, 2006, the Company entered into a
Stock Purchase Agreement with Capstone Industries, Inc., a Florida corporation (“Capstone”). Capstone was incorporated in
Florida on May 15, 1996 and is engaged primarily in the business of wholesaling technology inspired consumer products to distributors
and retailers in the United States. Under the Stock Purchase Agreement, the Company acquired
100% of the issued and outstanding shares of Capstone’s Common Stock, and recorded goodwill of $1,936,020. Goodwill acquired in
business combinations is initially computed as the amount paid by the acquiring company in excess of the fair value of the net assets
acquired. Goodwill is tested for impairment on December 31 of each year or more frequently if events or changes in circumstances indicate
that the asset might be impaired. If the carrying amount exceeds its fair value, an impairment loss is recognized. Goodwill is not amortized.
The Company estimates the fair value of its single reporting unit relative to the Company’s market capitalization. The total impairment charges for the year ended December
31, 2022 and 2021 was $ 0 The Company estimates the fair value of its single
reporting unit relative to the Company’s market capitalization. Fair Value Measurement The accounting guidance under Financial Accounting
Standards Board (“FASB”) Accounting Standards Codification (“ASC”), “Fair Value Measurements and Disclosures”
(ASC 820-10) requires the Company to make disclosures about the fair value of certain of its assets and liabilities. ASC 820-10 clarifies
the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and
establishes a fair value hierarchy that prioritizes the information used to develop those assumptions. ASC 820-10 utilizes a fair value
hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The three levels of
the hierarchy are as follows: Level 1: Observable inputs such as quoted prices in
active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are
observable for the asset or liability, either directly or indirectly. Level 3: Significant unobservable inputs. Earnings Per Common Share Basic earnings per common share is computed by dividing
net income(loss) by the weighted average number of shares of common stock outstanding as of December 31, 2022 and 2021. Diluted earnings
per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted
into common stock. For calculation of the diluted earnings per share, the basic weighted average number of shares is increased by the
dilutive effect of stock options and warrants using the treasury stock method. In periods where losses are reported, the weighted average
number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. As of December 31,
2022 and 2021, the total number of potentially dilutive common stock equivalents excluded from the diluted earnings per share calculation
was 608,288 199,733 888,288 199,733 Revenue Recognition The Company generates revenue from developing,
marketing and selling consumer products through national and regional retailers. The Company’s products are targeted for
applications such as home indoor and outdoor lighting as well as Internet-of-Thing devices and will have different functionalities.
Capstone currently operates in the consumer electronic products category in the Unites States and in specific overseas markets.
These products may be offered either under the Capstone brand or a private brand. A sales contract occurs when the customer-retailer
submits a purchase order to buy a specific product, a specific quantity, at an agreed-fixed price, within a ship window, from a specific
location and on agreed payment terms. The selling price in all of our customers’ orders has been previously negotiated and agreed
to including any applicable discount prior to receiving the customer’s purchase order. The stated unit price in the customer’s
order has already been determined and is fixed at the time of invoicing. Revenue Recognition The Company recognizes lighting product revenue when
the Company’s performance obligations as per the terms in the customers purchase order have been fully satisfied, specifically,
when the specified product and quantity ordered has been manufactured and shipped pursuant to the customers requested ship window, when
the sales price as detailed in the purchase order is fixed, when the product title and risk of loss for that order has passed to the customer,
and collection of the invoice is reasonably assured. This means that the product ordered and to be shipped has gone through quality assurance
inspection, customs and commercial documentation preparation, the goods have been delivered, title transferred to the customer and confirmed
by a signed cargo receipt or bill of lading. Only at the time of shipment when all performance obligations have been satisfied will the
judgement be made to invoice the customer and complete the sales contract. Marketing allowances include the cost of underwriting
an in-store instant rebate coupon or a target markdown allowance on a specific product. The Company retains these allowances for a period
of 3 to 5 years in the event the customer chargebacks for a promotional allowance against an open invoice or submits an invoice for their
claim. Cash discounts represent discounts offered to the retailer off outstanding accounts receivable in order to initiate early payment.
These allowances are evaluated when our relationship with a customer is terminated, or we cease selling a specific product to a customer
and may be released as other income if deemed not required. During the year ended December 31, 2022, the Company reversed into other income
approximately $39,300 of previously accrued marketing and promotional allowances for previous product sales that are deemed highly unlikely
for the customer to chargeback the Company due to the age of the allowance and the sales of the specific item ceasing . With the Company launching the Connected
Surfaces Smart Mirror program, the direct-to-consumer orders are sold initially through e-commerce platforms. The Company
also sells the Connected Surfaces Smart Mirror program through independent retailers. The Company will only bill the customer
and recognize revenue upon the customer obtaining control of the Smart Mirror order which generally occurs upon delivery. The Company expenses license royalty fees and sales
commissions when incurred and these expenses are recognized during the period the related sale is recorded. These costs are recorded within
sales and marketing expenses. The following table presents net revenue by geographic
location which is recognized at a point in time:
Schedule of Net Revenue by Major Source
For
the Year Ended For
the Year Ended
Capstone
Brand %
of Capstone
Brand %
of
Lighting
Products- U.S. $ 228,680 66 % $ 340,896 49 %
Smart
Mirror Products- U.S. 73,154 13 % 3,795 1
Lighting
Products-International 44,640 21 % 341,163 50 %
Total
Revenue $ 346,474 100 % $ 685,854 100 % We provide our Smart Mirror customers
with limited rights of return for non-conforming product warranty claims. We provide our Lighting Product customers with limited
rights of return for non-conforming product warranty claims. As a policy, the Company does not accept product returns from customers,
however occasionally as part of a customers in store test for new product, we may receive back residual inventory. Smart Mirror customer orders are shipped
within one to two days of receipt. Revenue is recorded upon processing of the sale with a third-party merchant processor such as
Stripe or Amazon Pay. Lighting Product customer orders received are not long-term orders and are typically shipped within six months
of the order receipt, but certainly within a one-year period. Our Smart Mirror customers are charged when executing
the e-commerce purchase. We do not have extended payment terms for our Smart Mirror customers. Our Lighting Product payment terms may
vary by the type of customer, the customer’s credit standing, the location where the product will be picked up from and for international
customers and which country their corporate office is located. The time between invoicing date and when payment is due may vary between
30 days and 90 days depending on the customer type. To ensure there are no payment issues, overseas customers or new customers may be
required to provide a deposit or full payment before the order is delivered to the customer. Revenue Recognition The Company selectively supports retailer’s
initiatives to maximize sales of the Company’s products on the retail floor or to assist in developing consumer awareness of new
product launches, by providing marketing fund allowances to the customer. The Company recognizes these incentives at the time they are
offered to the customers and records a credit to their account with an offsetting charge as either a reduction to revenue, increase to
cost of sales, or marketing expenses depending on the type of sales incentives. Sales reductions for anticipated discounts, allowances
and other deductions are recognized during the period the related revenue is recorded. The reduction of accrued allowances is included
in net revenues and amounted to $ 26,700 8,000 Warranties The Company provides the end user with limited rights
of return as a consumer assurance warranty on all products sold, stipulating that the product will function properly for the warranty
period. The warranty period for all products is one year from date of consumer purchase. Certain retail customers may receive an off-invoice
based discount such as a defective/warranty allowance, that will automatically reduce the unit selling price at the time the order is
invoiced. This allowance will be used by the retail customer to defray the cost of any returned units from consumers and therefore negate
the need to ship defective units back to the Company. Such allowances are charged to cost of sales at the time the order is invoiced.
For those customers that do not receive a discount off-invoice, the Company recognizes a charge to cost of sales for anticipated non-conforming
returns based upon an analysis of historical product warranty claims and other relevant data. For the new online Smart Mirror customers the product
has a One Year Limited Warranty. The purchaser must register the product within 30 days from date of purchase with specific product information
to activate the warranty. Capstone warrants the product to be free from defects in workmanship and materials for the warranty period.
If the product fails during normal and proper use within the warranty period, Capstone at its discretion, will repair or replace the defective
parts of the product, or the product itself. We evaluate our warranty reserves based on various
factors including historical warranty claims assumptions about frequency of warranty claims, and assumptions about the frequency of product
failures derived from our reliability estimates. Actual product failure rates that materially differ from our estimates could have a significant
impact on our operating results. Product warranty reserves are reviewed each quarter and recognized at the time we recognize revenue. The following table summarizes the changes in the
Company’s product warranty liabilities which are included in accounts payable and accrued liabilities in the accompanying December
31, 2022 and 2021 balance sheets:
Schedule of Changes in Product Warranty Liabilities Included in Accounts Payable and Accrued Liabilities
December
31, December
31,
2022 2021
Balance
at the beginning of the year $ 46,322 $ 56,465
Amount
accrued 1,926 —
Payments
and credits (4,580 ) (10,142 )
Reversal
of prior years accrual unclaimed (41,742 ) —
Balance
at year-end $ 1,926 $ 46,322 Advertising and Promotion Advertising and promotion costs, including
advertising, social media, and trade show expenses, are expensed as incurred and included in sales and marketing expenses. Advertising
and promotion expenses were $284,659 and $23,425
for the years ended December 31, 2022 and 2021, respectively. Product Development Our research and development team located in Thailand
working with our designated factories, are responsible for the design, development, testing, and certification of new product releases.
Our engineering efforts support product development across all products, as well as product testing for specific overseas markets. All
research and development costs are charged to results of operations as incurred. For the year ended December 31, 2022 and 2021, product
development expenses were $ 203,751
308,823 Shipping and Handling The Company’s shipping and handling costs are
included in sales and marketing expenses and are recognized as an expense during the period in which they are incurred and amounted to
$ 50,150
1,237
Accounts Payable and Accrued Liabilities The following table summarizes the components of accounts
payable and accrued liabilities at December 31, 2022 and 2021:
Schedule of Components of Accounts Payable and Accrued Liabilities
December
31, December
31,
2022 2021
Accounts
payable $ 38,056 $ 126,281
Accrued
warranty reserve 1,926 46,322
Accrued
compensation and deferred wages, marketing allowances, customer deposits and other liabilities 269,457 365,948
Total $ 309,439 $ 538,551 Income Taxes The Company is subject to income taxes in the U.S.
federal jurisdiction, various state jurisdictions and certain other jurisdictions. The Company accounts for income taxes under the provisions
of 740 Income Taxes The Company recognizes the tax benefit from an uncertain
tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on
the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based
on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. Tax regulations within each jurisdiction are subject
to the interpretation of the relaxed tax laws and regulations and require significant judgement to apply. The Company is not subject to
U.S. federal, state and local tax examinations by tax authorities generally for a period of 3 years from the later of each return due
date or date filed. If the Company were to subsequently record an unrecognized
tax benefit, associated penalties and tax related interest expense would be recorded as a component of income tax expense. Stock-Based Compensation The Company accounts for stock-based compensation
under the provisions of ASC 718 Compensation- Stock Compensation Stock-based compensation expense recognized during
the period is based on the value of the portion of share-based payment awards that is ultimately expected to vest during the period. In
conjunction with the adoption of ASC 718, the Company adopted the straight-line single option method of attributing the value of stock-based
compensation expense. The Company accounts for forfeitures as they occur. Stock-based compensation expense recognized during
the years ended December 31, 2022 and 2021 was $ 7,844 15,619 Use of Estimates The preparation of consolidated financial statements
in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities,
revenue and expenses and the disclosure of contingent assets and liabilities. The Company evaluates its estimates on an ongoing basis,
including those related to valuation of inventories, impairments, valuation of deferred tax assets, and valuation of stock-based compensation.
The Company generally bases its estimates on historical experience, agreed obligations, and on various other assumptions that are believed
to be reasonable under the circumstances, the results of which form the basis of making judgments about the carrying value of assets and
liabilities that are not readily apparent from other sources. Historically, past changes to these estimates have
not had a material impact on the Company’s consolidated financial statements. However, circumstances could change, and actual results
could differ materially from those estimates. Recently Issued Accounting Pronouncements Not Yet
Adopted In June 2016, the FASB issued Accounting Standards
Update (“ASU”) 2016-13, “ Financial Instruments – Credit Losses The Company continually assesses any new accounting
pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the
Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements
and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. |
