Capstone Holding Corp. Files Q2 2025 10-Q Report

TL;DR

Capstone Holding Corp. filed its Q2 2025 10-Q. Check financials.

AI Summary

Capstone Holding Corp. filed its quarterly report for the period ended June 30, 2025. The company, formerly known as Capstone Therapeutics Corp. and Orthologic Corp., is incorporated in Delaware and headquartered in Alsip, IL. The filing details its financial performance and operations for the specified quarter.

Why It Matters

This filing provides investors with an update on Capstone Holding Corp.'s financial health and operational performance for the second quarter of 2025.

Risk Assessment

Risk Level: low — This is a standard quarterly filing providing financial information and does not inherently indicate increased risk.

Key Players & Entities

• Capstone Holding Corp. (company) — Registrant
• June 30, 2025 (date) — Quarterly period end date
• Alsip, IL (location) — Principal executive offices location
• Capstone Therapeutics Corp. (company) — Former company name
• Orthologic Corp (company) — Former company name

FAQ

Filing Documents

• ea0252950-10q_capstone.htm (10-Q) — 622KB
• ea025295001ex31-1_capstone.htm (EX-31.1) — 8KB
• ea025295001ex31-2_capstone.htm (EX-31.2) — 8KB
• ea025295001ex32-1_capstone.htm (EX-32.1) — 4KB
• ea025295001ex32-2_capstone.htm (EX-32.2) — 4KB
• 0001213900-25-077016.txt ( ) — 4236KB
• caps-20250630.xsd (EX-101.SCH) — 35KB
• caps-20250630_cal.xml (EX-101.CAL) — 37KB
• caps-20250630_def.xml (EX-101.DEF) — 194KB
• caps-20250630_lab.xml (EX-101.LAB) — 349KB
• caps-20250630_pre.xml (EX-101.PRE) — 207KB
• ea0252950-10q_capstone_htm.xml (XML) — 463KB

FINANCIAL STATEMENTS

FINANCIAL STATEMENTS 1 Consolidated Balance Sheets as of June 30, 2025 (Unaudited) and December 31, 2024 1 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) 2 Consolidated Statements of Stockholders' Equity (Deficit) for the Three and Six Months Ended June 30, 2025 and 2024 (Unaudited) 3 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2025 and 2024 (Unaudited) 4

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 5 ITEM 2:

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION 15 ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURE ABOUT MARKET RISK 23 ITEM 4:

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 23 PART II 24 ITEM 1:

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 24 ITEM 1A:

RISK FACTORS

RISK FACTORS 24 ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS 24 ITEM 3: DEFAULTS UPON SENIOR SECURITIES 24 ITEM 5: OTHER INFORMATION 24 ITEM 6: EXHIBITS 25

SIGNATURES

SIGNATURES 26 i PART I

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CAPSTONE HOLDING CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) (unaudited) June 30, 2025 December 31, 2024 ASSETS Current Assets: Cash $ 773 $ 11 Accounts receivable, net 5,487 2,762 Inventories 9,590 9,635 Prepaid expenses 439 150 Other current assets 242 242 Total current assets 16,531 12,800 Long-term Assets: Property and equipment, net 1,466 1,594 Goodwill 23,286 23,286 Other intangible assets 61 48 Right of use assets 3,185 2,068 Deferred tax asset 7,178 7,178 Other long-term assets 178 247 Total long-term assets 35,354 34,421 Total Assets $ 51,885 $ 47,221 LIABILITIES & EQUITY Current Liabilities: Accounts payable $ 3,599 $ 3,304 Accrued expenses 923 394 Line of credit 8,713 6,259 Current portion of long-term debt 2,910 1,855 Current portion, lease liability 826 738 Total current liabilities 16,971 12,550 Long-term liabilities: Accrued related party management fee 351 351 Long term debt, net of current portion 5,827 6,323 Lease liability, net of current portion 2,462 1,437 Total long-term liabilities 8,640 8,111 Total Liabilities 25,611 20,661 TotalStone, LLC – Class B Preferred Units — 28,475 TotalStone, LLC – Special Preferred Units — 1,143 Equity: Series B Preferred Stock, no par value; 2,000,000 shares authorized; 985,063 issued as of June 30, 2025. No shares were authorized or issued as of December 31, 2024. 30 — Common Stock $ 0.0005 par value; 50,000,000 and 200,000 shares authorized; 5,406,305 and 157,610 issued as of June 30, 2025 and December 31, 2024, respectively. 3 — Additional paid-in capital 225,476 193,044 Accumulated deficit ( 199,235 ) ( 196,102 ) Total Equity 26,274 ( 3,058 ) Total Liabilities, TotalStone, LLC. Preferred Units & Equity $ 51,885 $ 47,221 See notes to consolidated financial statements 1 CAPSTONE HOLDING COR

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1 Nature of Operations Capstone Holding Corp. (the "Capstone") is a holding company and its operations consist substantially of the operations of its consolidated subsidiary, TotalStone, LLC ("TotalStone"). On April 1, 2020, Capstone obtained controlling interest in TotalStone, a materials distribution company that distributes masonry stone products for residential and commercial construction in the Midwest and Northeast United States under the trade names Instone and Northeast Masonry Distributors ("NMD"). Note 2 IPO and Restructuring On March 7, 2025 (the "Restructuring Date"), Capstone closed its Public Offering of 1,250,000 shares of common stock (the "Public Offering Shares"), which were registered under the Rule 424(b) of the Securities Act of 1933, as amended, pursuant to the Registration Statement on Form S-1 (File No. 333-284105) which was declared effective by the SEC on February 14, 2025. The Public Offering Shares were sold at a public offering price of $ 4.00 per share, which generated net proceeds of approximately $ 3,252,000 after deducting underwriting discounts and commissions and other offering expenses. On March 7, 2025, TotalStone entered into a fifth amended and restated limited liability company agreement to govern its operations and affairs and its relationship with its members, which post restructuring is solely Capstone. On March 10, 2025, TotalStone paid Brookstone Partners IAC, Inc. $ 200,000 for financial advisory and related services with respect to Capstone's capital raising transaction as agreed upon in the Restated Management Fee Agreement and Transaction Fee Agreement executed in March 2025. Outstanding warrants to purchase 1,125 Class A Common Interests in TotalStone were cancelled on the Restructuring Date. On the Restructuring Date, pursuant to a master exchange agreement (the "Master Exchange Agreement") entered into by the Capstone, TotalStone and TotalStone's Class B a

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View this 10-Q filing on SEC EDGAR