Financial Performance - Net sales for the three months ended June 30, 2025, were $12,852,000, a slight decrease of 0.3% compared to $12,886,000 for the same period in 2024[11]. - Gross profit for the six months ended June 30, 2025, was $4,455,000, compared to $4,508,000 for the same period in 2024, reflecting a decrease of 1.2%[11]. - The net loss attributable to Capstone Holding Corp. stockholders for the three months ended June 30, 2025, was $700,000, compared to a net loss of $1,328,000 for the same period in 2024, showing an improvement of 47.3%[11]. - For the six months ended June 30, 2025, the net loss was $2.428 million, compared to a net loss of $1.494 million for the same period in 2024, representing a 62.4% increase in losses[16]. - The company reported a net loss per share of $0.13 for the three months ended June 30, 2025, compared to a net loss per share of $8.43 for the same period in 2024[11]. - The company reported a loss from operations of $260,000 for the three months ended June 30, 2025, compared to a profit of $14,000 in the same period of 2024[65]. - The company incurred a loss from operations of $1,688,000 for the six months ended June 30, 2025, compared to a loss of $703,000 in the same period of 2024[65]. - The Company reported a net loss of $700,000 for the three months ended June 30, 2025, compared to a net loss of $381,000 in 2024, representing an increase of $319,000 or 84%[87]. - The company incurred a net loss of $2.4 million for the six months ended June 30, 2025, compared to a net loss of $1.5 million for the same period in 2024[109][110]. Assets and Liabilities - Total assets increased to $51,885,000 as of June 30, 2025, up from $47,221,000 on December 31, 2024, representing an increase of 5.6%[9]. - Total current liabilities increased to $16,971,000 as of June 30, 2025, from $12,550,000 as of December 31, 2024, marking an increase of 35.0%[9]. - The company’s total equity improved to $26,274,000 as of June 30, 2025, compared to a negative equity of $(3,058,000) as of December 31, 2024[9]. - Long-term debt, net of current portion, decreased to $5,827,000 as of June 30, 2025, from $6,323,000 as of December 31, 2024, a reduction of 7.8%[9]. - As of June 30, 2025, the company reported long-term debt of $5.8 million, with $2.9 million due within the next 12 months[51]. - The company has a lease liability of $3.3 million and right-of-use assets of $3.2 million as of June 30, 2025[53]. Cash Flow and Financing - Cash and cash equivalents increased significantly to $773,000 as of June 30, 2025, from $11,000 as of December 31, 2024[9]. - Cash flows used in operating activities for the six months ended June 30, 2025, were $3.992 million, significantly higher than $1.135 million for the same period in 2024[16]. - Net cash provided by financing activities was $4.76 million for the six months ended June 30, 2025, driven by a public offering and an increase in the line of credit[112]. - The company raised approximately $3.252 million in net proceeds from its IPO, selling 1,250,000 shares at a price of $4.00 per share[19]. - The company has sufficient liquidity to operate for at least one year from the issuance date of the June 30, 2025 interim consolidated financial statements[47]. Operational Metrics - Selling, general and administrative expenses rose to $3,390,000 for the three months ended June 30, 2025, compared to $2,750,000 for the same period in 2024, an increase of 23.3%[11]. - Selling, general and administrative expenses increased by $932,000 or 18% for the six months ended June 30, 2025, mainly due to higher investor relations expenses[98]. - Cost of goods sold decreased by $1.4 million or 8% for the six months ended June 30, 2025, driven by product mix and lower outbound freight[96]. - Gross profit margin for the six months ended June 30, 2025, increased to 21.5% from 20.3% in 2024, attributed to product mix and lower costs[97]. Compliance and Agreements - The company was in compliance with its Revolver's financial covenants as of June 30, 2025, after previously being out of compliance in 2024[43]. - The company executed an amendment to its Revolver in June 2025, extending the maturity date from June 2025 to December 2025[43]. - The company entered into a securities purchase agreement for senior secured convertible notes totaling up to $10,909,885, with initial proceeds of $3,000,000 received[46]. - The company executed a First Amendment to the Common Stock Purchase Agreement on June 26, 2025, with Tumim Stone Capital, LLC[10.3]. - Certifications pursuant to the Sarbanes-Oxley Act of 2002 were filed by both the Chief Executive Officer and Chief Financial Officer[31.1][31.2][32.1][32.2]. Strategic Initiatives - The company aims to continue growing its business through organic growth and strategic acquisitions[76]. - The company plans to utilize proceeds from its March 2025 Public Offering for organic growth and acquisitions in the building products sector[113]. - The company has the right to sell up to $20 million in common stock under a common stock purchase agreement with an accredited investor[59].
Capstone Holding Corp(CAPS) - 2025 Q2 - Quarterly Report