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Capstone Holding Corp. (CAPS-9.32%) has submitted its 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing a decrease in net sales to $44.9 million from $48.4 million in the previous year. The decrease is attributed to lower market demand and price reductions.
Cost of goods sold for the year was $35.3 million, compared to $38.7 million in the previous year. The decrease is due to normalization of supply chain disruptions and related costs.
The company reported a gross profit of $9.6 million for the year, compared to $9.6 million in the previous year, with a slight decline attributed to reduced sales.
Selling, general, and administrative expenses decreased to $10.2 million from $10.9 million, primarily due to a reduction in workforce and overall spending adjustments.
Net loss for the year was $2.6 million, compared to a net loss of $3.8 million in the previous year. The improvement is due to the absence of a loss on investment and a gain on extinguishment of debt recorded in the previous year.
Capstone had a working capital of $250,000 as of December 31, 2024, a decrease from $1.1 million in the previous year. The decrease is attributed to reductions in inventory and the revolving line of credit.
The filing also details the company's debt structure, including a revolving credit agreement with Berkshire Bank and a mezzanine term loan with Stream Finance, LLC.
Capstone's growth strategy focuses on expanding its market presence, enhancing product offerings, and optimizing operations. The company plans to pursue organic growth and strategic acquisitions.
Capstone does not anticipate cash dividend payments to common stockholders in the near future.
The company identified material weaknesses in its internal controls over financial reporting due to limited review controls and a lack of segregation of duties.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Capstone Holding Corp. annual 10-K report dated March 31, 2025. To report an error, please email earnings@qz.com.