As filed with the Securities and Exchange Commission on June 26, 2026.

Registration No. 333-

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM S-1
REGISTRATION STATEMENT
Under The Securities Act of 1933

CAPSTONE HOLDING CORP.
(Exact name of Registrant as specified in its charter)

Delaware		5090		86-0585310
(State or Other Jurisdiction of Incorporation or Organization)		(Primary Standard Industrial Classification Code Number)		(I.R.S. Employer Identification Number)

~~5141~~18400 W.76th ~~122nd Street~~Avenue ~~Alsip~~Tinley Park, IL ~~60803~~60477 (708) 371-0660 (Address, including zip code, and telephone number, including area code, of Registrant’s principal executive offices)

Matthew Lipman, Chief Executive Officer Edward Schultz, Chief Financial Officer Capstone Holding Corp. ~~5141~~18400 W.76th ~~122nd Street~~Avenue ~~Alsip~~Tinley Park, IL ~~60803~~ (708) 371-0660 (Name, address, including zip code, and telephone number including area code, of agent for service)

With Copies to:

Joseph M. Lucosky, Esq.
Lawrence Metelitsa, Esq.
Steven A. Lipstein, Esq.
Lucosky Brookman LLP
101 Wood Avenue South, 5^th Floor
Woodbridge, New Jersey 08830
Phone: (732) 395-4400

Fax: (732) 395-4401

Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this Registration Statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☒

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large-Accelerated Filer	☐	Accelerated Filer	☐
Non-Accelerated Filer	☒	Smaller Reporting Company	☒
		Emerging Growth Company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. ☐

~~This~~The registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the registrant shall file a further amendment which specifically states that this registration statement shall ~~hereafter~~thereafter become effective in accordance with Section 8(a) of the ~~provisions~~Securities Act of 1933, ~~section~~or ~~8(a)~~until ofthis Registration Statement shall become effective on such date as the Securities ~~Act~~and ofExchange ~~1933~~Commission, acting pursuant to Section 8(a), may determine.

Table of Contents

The information in this prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

PRELIMINARY PROSPECTUS SUBJECT TO COMPLETION DATED: ~~OCTOBER~~JUNE 2326, ~~2025~~2026

CAPSTONE HOLDING CORP.

4,~~306~~407,~~664~~ 334 Shares of Common Stock

This prospectus relates to the offer and resale from time to time by the selling stockholder identified in this prospectus of up to an aggregate of 4,~~306~~407,~~664~~334 shares of common stock, par value $0.0005 per share (the “Common Stock”), of Capstone Holding Corp., a Delaware corporation (the “Company,” “we,” “us,” “our”), consisting of (a) 4,~~306~~002,~~664~~334 shares issuable upon conversion of ~~the~~a senior secured convertible note, issued by the Company in the aggregate original principal amount of $3,545,712.42, ~~issued~~of ~~pursuant~~which ~~to the securities purchase agreement~~$1, ~~dated July 29~~650,388 ~~2025~~remains outstanding (the “~~Purchase~~October ~~Agreement~~2025 Convertible Note”) (based on 3.03 ~~The~~times the difference between the maximum number of shares issuable upon conversion of the ~~convertible~~remaining ~~note~~outstanding ~~is based~~principal onamount aof ~~fixed~~$1,650,388 at a conversion price of $10.1057, ~~per~~or ~~share~~2,895,416 shares, and the 1,573,329 shares underlying the October 2025 Convertible Note that have been previously registered but not issued), and (b) 405,000 shares issuable upon exercise of a warrant for 405,000 shares of Common Stock (the “3i Warrant”).

Our registration of the shares of Common Stock covered by this prospectus does not mean that the selling stockholder will offer or sell any of the shares. The selling stockholder may offer and sell or otherwise dispose of the shares of Common Stock described in this prospectus from time to time through public or private transactions at prevailing market prices, at prices related to prevailing market prices or at privately negotiated prices. See “Plan of Distribution”.

We are not selling any shares of Common Stock offered by this prospectus and will not receive any of the proceeds from the sale by the selling stockholder of the shares of Common Stock offered hereby.

The selling stockholder will pay all underwriting discounts and selling commissions, if any, in connection with the sale of the shares of Common Stock. We have agreed to pay certain expenses in connection with this registration statement and to indemnify the selling stockholder and certain related persons against certain liabilities. No underwriter or other person has been engaged to facilitate the sale of shares of Common Stock in this prospectus.

The selling stockholder is an “underwriter” within the meaning of Section 2(a)(11) of the Securities Act and any profits on the sales of shares of our Common Stock by the selling stockholder and any discounts, commissions, or concessions received by the selling stockholder are deemed to be underwriting discounts and commissions under the Securities Act.

Shares of our Common Stock are listed on the Nasdaq Capital Market (“Nasdaq”) under the symbol “CAPS”. On ~~October~~June 2225, ~~2025~~2026, the closing sale price of our Common Stock was $10.14 2351 per share.

WeEntities ~~are a “controlled company” following this offering as defined under the Nasdaq Stock Market Rules. We are a “controlled company” because entities~~ individually or jointly controlled by Matthew Lipman, our chief executive officer and a member of our board of directors, and Michael Toporek, the chairman of our board of directors (Brookstone Partners Acquisition XIV, LLC ~~(“BPA XIV~~, ~~LLC”),~~ BP Peptides LLC, and Nectarine Management LLC), ~~have~~beneficially ~~the~~own ~~ability~~a tosignificant ~~control~~portion ~~all~~of our voting power and may be able to influence matters requiring ~~shareholder~~stockholder approval. ~~because~~As ~~these~~a ~~entities~~result ~~own~~of ~~over~~the ~~50%~~issuance of ~~our~~shares of Common Stock ~~and~~upon ~~control~~conversion ~~over~~of ~~50%~~the ofConvertible ~~our~~Notes ~~voting~~and ~~stock~~sales ~~(inclusive~~under ofour ~~the~~equity ~~votes~~line of ~~the~~credit, ~~over~~these ~~50%~~entities ofno ~~the~~longer ~~Series~~hold Ba ~~Preferred~~majority ~~Stock~~of ~~shares~~our ~~outstanding). Although~~voting power, and we are ~~considered~~not a “controlled company”, weas dodefined ~~not~~under ~~intend to rely on~~ the ~~exemptions~~Nasdaq toStock ~~corporate~~Market ~~governance requirements as a “controlled company~~Rules.”

We are an “emerging growth company” and a “smaller reporting company,” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended, and have elected to take advantage of certain scaled disclosure available to smaller reporting companies. This prospectus is intended to comply with the requirements that apply to an issuer that is a smaller reporting company. See “Prospectus Summary — Implications of Being an Emerging Growth Company and a Smaller Reporting Company.”

Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 8 of this prospectus and under similar headings in the other documents that are incorporated by reference into this prospectus for a discussion of information that should be considered in connection with an investment in our securities.

You should rely only on the information contained in this prospectus, contained in the other documents that are incorporated by reference into this prospectus, or contained any prospectus supplement or amendment hereto. We have not authorized anyone to provide you with different information.

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of the securities offered hereby, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

The date of this prospectus is _________ , ~~2025~~2026

Table of Contents

TABLE OF CONTENTS

		Page
Prospectus Summary		1
Risk Factors		8
Use of Proceeds		1011
Cautionary Note Regarding Forward-Looking Statements		1011
Determination of Offering Price		1112
Dilution		1213
The Convertible Note Financing		1314
Selling Stockholder		1415
Plan of Distribution		1516
Legal Matters		1718
Experts		1718
Incorporation of Certain Information by Reference		1718
Where You Can Find More Information		1819

You should rely only on information contained in this prospectus or in any free writing prospectus we may authorize to be delivered or made available to you. We have not, and the selling stockholder has not, authorized anyone to provide you with additional information or information different from that contained in this prospectus or in any free writing prospectus. Neither the delivery of this prospectus nor the sale of our securities means that the information contained in this prospectus or any free writing prospectus is correct after the date of this prospectus or such free writing prospectus. This prospectus is not an offer to sell or the solicitation of an offer to buy our securities under any circumstances in which the offer or solicitation is unlawful or in any state or other jurisdiction where the offer is not permitted.

The information in this prospectus is accurate only as of the date on the front cover of this prospectus and the information in any free writing prospectus that we may provide you in connection with this offering is accurate only as of the date of that free writing prospectus. Our business, financial condition, results of operations and prospects may have changed since those dates.

No person is authorized in connection with this prospectus to give any information or to make any representations about us, the securities offered hereby or any matter discussed in this prospectus, other than the information and representations contained in this prospectus. If any other information or representation is given or made, such information or representation may not be relied upon as having been authorized by us.

Neither we nor the selling stockholder have done anything that would permit this offering or possession or distribution of this prospectus in any jurisdiction where action for that purpose is required, other than the United States. You are required to inform yourself about, and to observe any restrictions relating to, this offering and the distribution of this prospectus.

Table of Contents

PROSPECTUS SUMMARY

This summary highlights selected information appearing elsewhere in this prospectus. While this summary highlights what we consider to be important information about us, you should carefully read this entire prospectus and the documents incorporated by reference in this prospectus before investing in our Common Stock, especially the risks and other information we discuss under the heading “Risk Factors” and our consolidated financial statements and related notes incorporated by reference herein. Our fiscal year end is December 31, and our fiscal years ended December 31, ~~2024~~ 2025 and ~~2023~~2024 are sometimes referred to herein as fiscal years ~~2024~~2025 and ~~2023~~2024, respectively. Some of the statements made in this prospectus discuss future events and developments, including our future strategy and our ability to generate revenue, income and cash flow. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those contemplated in these forward-looking statements. See “Cautionary Note Regarding Forward-Looking Statements”. Unless otherwise indicated or the context requires otherwise, the words “Capstone,” “we,” “us,” “our”, the “Company” or “our Company” refer to Capstone Holding Corp., a Delaware corporation, and its subsidiaries.

Capstone Holding Corp. is a national, technology-enabled building products distribution ~~network~~and installation platform. ~~The~~Through ~~existing~~our ~~company~~three isoperating ~~comprised~~subsidiaries of- Instone, (a ~~leading~~trade ~~distributor~~name of ~~thin~~TotalStone, ~~veneer~~LLC ~~stone~~(dba ~~and~~“Instone”)), ~~related~~Canadian ~~masonry~~Stone ~~products in~~Industries ~~the~~(operated ~~United~~through ~~States,~~Fraser ~~serving~~Canyon ~~both~~Holdings ~~residential~~Inc. and ~~commercial~~its ~~construction~~subsidiaries, ~~markets.~~collectively ~~Founded over 30 years ago~~"CSI"), weand ~~have~~Carolina ~~grown~~Stone to(operated ~~become the~~through ~~largest~~Carolina ~~wholesale~~Stone ~~distributor~~Holdings, inLLC ~~the~~and ~~thin~~its ~~veneer~~subsidiary, ~~masonry~~Carolina ~~products~~Stone ~~industry.~~Distributors, ~~Our~~LLC) ~~comprehensive~~- ~~product~~we ~~offering~~distribute ~~includes~~and ainstall ~~wide~~thin ~~range of~~veneer ~~manufactured~~stone, ~~and~~ natural stone, ~~products~~manufactured stone, ~~supported~~and byrelated amasonry ~~strategically~~and ~~located~~hardscape ~~distribution~~products ~~network~~for ~~designed~~residential toand ~~provide~~commercial ~~reliable~~construction ~~and efficient~~markets ~~service~~across to38 ~~our~~U.S. ~~diverse~~states ~~customer~~and ~~base~~two Canadian provinces.

WeInstone, ~~are~~founded ~~committed~~over to30 ~~being~~years ago, is the ~~preferred~~largest ~~partner for~~wholesale ~~our~~distributor ~~customers~~of bythin ~~providing~~veneer ~~high-quality~~masonry products in the United States, ~~expert~~operating ~~support~~from five distribution centers in the Northeast, Midwest, Mid-Atlantic, and ~~exceptional~~West ~~service~~Coast. ~~Our~~CSI ~~success~~ is ~~driven~~a byleading ~~our~~wholesale ~~deep~~distributor ~~industry expertise~~of natural and manufactured stone products in Canada, ~~long~~operating from two locations in British Columbia and Ontario. Carolina Stone distributes and installs thin veneer stone and related masonry products for residential, commercial, and multi-~~standing~~family ~~customer~~projects ~~relationships~~in the Southeast United States from two locations in North Carolina. Together, our platform offers over 3,000 SKUs across nine warehouse and distribution center locations, serving a ~~relentless~~diverse ~~focus~~base onof ~~operational~~masonry ~~excellence~~dealers, contractors, builders, and homeowners.

~~Corporate~~We ~~History~~are committed to being the preferred partner for our customers by providing high-quality products, expert support, and exceptional service. Our success is driven by our deep industry expertise, long-standing customer and supplier relationships, an expanding North American footprint, digital infrastructure that supports our customers and a relentless focus on operational excellence.

The Company was formed in 1987 as OrthoLogic Corp. In 2005, the Company filed its restated certificate of incorporation (the “Restated Certificate of Incorporation”). In 2010, the Company changed its name to Capstone Therapeutics Corp. On August 22, 2019, the Company filed a certificate of amendment to its Restated Certificate of Incorporation effecting a 1 for 1,000 reverse stock split of the Common Stock of the Company, whereby each 1,000 shares of Common Stock of the Company became 1 share of Common Stock. In 2021, the Company filed a certificate of amendment to its Restated Certificate of Incorporation decreasing the total number of shares of Common Stock authorized to be issued by the Company from 150,000,000 shares to 205,000 shares, consisting of 200,000 shares of Common Stock, par value $0.0005 per share and 5,000 shares of preferred stock, par value $0.0005 per share. On February 18, 2022, the Company filed a certificate of amendment to its Restated Certificate of Incorporation, changing the Company’s name from Capstone Therapeutics Corp. to Capstone Holding Corp. On February 20, 2025, following the Company’s controlling shareholder’s approval, the Company filed an amendment to its Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to increase the authorized shares of Common Stock to 50,000,000 shares and increase the authorized shares of preferred stock to 25,000,000 shares. On February 20, 2025, the Company filed a Certificate of Designation (the “Series B Certificate of Designation”) with the Delaware Secretary of State which designated 2 million shares of the Company’s authorized preferred stock as Series B Preferred Stock (“Series B Preferred Stock”), no par value.

Our Business Strategy and Operating Model

Capstone Long-Term Growth Strategy. Our long-term growth strategy is built on the foundational strengths of our ~~current~~ operating ~~subsidiary~~subsidiaries and the strategic opportunities available in the building products distribution and manufacturing industry. Our strategy has the following characteristics:

Deep Team. A significant portion of Capstone’s voting power is controlled by Brookstone Partners, a private equity group with 25 years of deep expertise in building products investment. Brookstone Partners is controlled by Matthew Lipman, our chief executive officer, ~~and~~ a member of our board of directors, and Michael Toporek, the chairman of our board. The Capstone leadership team includes seasoned operating executives and building products acquisition and investment professionals. Capstone’s leadership team includes its Lead Independent Director, Charles “Chuck” Dana. Mr. Dana spent 19 years at Owens Corning, a leading building materials company. At Owens Corning, Mr. Dana held various positions including Controller, President Global Composites and then Group President Building Materials. In addition, from the Company’s acquisition of Instone in April 2020 through December 31, ~~2024~~2025, Instone’s revenues have increased from approximately $32.2 million to approximately $44.9 2 million. In February 2008, a Brookstone Partners affiliate invested $8.8 million in Woodcrafter’s Home Products Holdings LLC. Brookstone’s team worked with Woodcrafter’s management to grow earnings and Brookstone completed the sale of all of its interests in Woodcrafter’s for $32 million in December 2013. The ability to identify, acquire and integrate acquisition candidates is a critical skill set to augment the operating expertise that drives organic growth. The current operating company has successfully executed multiple acquisitions and integrations, laying a solid foundation for continued expansion.

Table of Contents

Strategic Timing. We believe we are strategically positioned to capitalize on market conditions within the building products sector. Historically, acquiring companies at interest rate peaks has yielded strong returns, and we are poised to leverage these strategic investment opportunities as the market evolves.

Industry Dynamics. According to the Bain & Company Global M&A Report published in 2024 (the “Bain Report”), this is “just the type of environment that has proved to offer opportunities to companies that are willing to make bold moves.” The Bain Report goes on to say, “building products companies that make frequent and material acquisitions substantially outpace inactive companies in total shareholder returns, 9.6% vs 2.7%” and “the most successful companies will pursue scope M&A to build product, geography, and capability adjacencies.”

The M&A environment for the building products sector is expected to improve because, according to the Bain Report, “there are ample one-off opportunities to acquire struggling assets”, and “financial investors have taken a step back, especially in North America, removing a potentially formidable layer of competition.”

Scale. For scale M&A, opportunities in core businesses allow for more operational synergies. The Bain Report states that “allowing management to focus on a more related group of products with some level of shared channels, end markets, or manufacturing processes helps focus efforts and tells a clearer equity story.”

Scope. Given macroeconomic uncertainty, companies who leverage their parenting advantage, the ability to effectively manage and integrate acquisitions, will be the most successful with regards to scope M&A. The Bain Report states that “the path to leadership generally means overlooking smaller assets in favor of bigger players for a first move in a new space.”

The “Annual total shareholder returns for building products companies” chart and quotes from the Bain Report are used with permission from Bain & Company. The Bain Report was not commissioned by the Company. The Company does not currently and has not in the past had a direct or indirect business relationship with Bain & Company. The Bain Report is publicly available via the Insight - Featured Topics portion of Bain & Company’s website.

Table of Contents

Strategic Positioning. We believe we are strategically well-positioned to take advantage of the current market opportunities because of:

Team strength. The industry experience of the Board and Instone management provides the Company with the expertise to evaluate, acquire, and integrate acquisitions.

Experience integrating acquisitions. Since 2006, the Company has successfully integrated ~~four~~six acquisitions. The team believes the Company has the resources and expertise to continue to integrate acquisitions successfully.

Geographic distribution footprint ~~of Instone~~. The current service area of the Company, which includes 3138 ~~states~~U.S. ~~(with such~~ states ~~having~~and ~~over~~two ~~60%~~Canadian ~~of American households)~~provinces, provides a good basis on which to make both “scale” and “scope” acquisitions.

Growth Premium. As Capstone continues to scale, growing its EBITDA, we anticipate benefiting from valuation premiums associated with increased size. This growth, coupled with consistent earnings performance, is expected to drive substantial shareholder value and enhance our market positioning.

~~Our~~During ~~current~~fiscal ~~operating~~year ~~company~~2025, ~~Instone, intends~~the toCompany ~~drive~~completed ~~sustainable~~two ~~growth,~~material ~~expands~~acquisitions ~~its~~that ~~geographic~~significantly ~~presence~~expanded inits ~~the~~geographic ~~building products industry~~footprint, ~~and~~product ~~delivers superior value to its customers~~offerings, ~~shareholders,~~ and ~~other~~revenue ~~stakeholders. We expect to work with Instone to achieve this through the following strategic pillars~~base:

~~Expand~~Fraser ~~Market~~Canyon ~~Presence~~Holdings Inc. ~~We are~~ ~~committed~~/ toCanadian ~~expanding~~Stone ~~our~~Industries. ~~geographic~~On ~~footprint~~December 1, ~~increasing~~2025, ~~penetration~~through inits ~~existing~~indirect ~~markets~~subsidiary Instone Canada Corp., the Company acquired 100% of the outstanding equity interests of Fraser Canyon Holdings, Inc. (“FCHI”) and ~~entering~~substantially ~~new~~all assets of Continental Stone Industries, ~~underserved~~Inc. ~~regions~~(“CSIA”), collectively the CSI business. ~~Our~~ ~~sales~~FCHI is the parent company of Canadian Stone Industries Partnership (“CSIP”), Canadian Stone Industries Inc. (“CSII”), and ~~marketing~~CSIA, ~~team~~which ~~continues~~together todistribute ~~seek~~natural ~~new~~and ~~opportunities~~manufactured tostone ~~onboard~~products ~~customers~~wholesale from locations in ~~markets~~Langley, weBritish ~~are~~Columbia, ~~not~~North ~~currently~~York, ~~servicing~~Ontario, and San Leandro, California. InEffective ~~2024~~at the closing of the CSI acquisition, we ~~onboarded~~the ~~customers~~San Leandro, California operations were integrated into Instone’s U.S. distribution network; the CSI business today operates from two locations in British Columbia and Ontario. The purchase consideration for the combined Fraser Canyon Acquisition consisted of: (i) C$6,200,000 ~~new~~in ~~states~~cash (approximately US$4,447,000 at the closing-day exchange rate of US$1.00 = C$1.3943), of which ~~are~~approximately ~~included~~US$459,000 (C$647,000) represented the Continental Cash Purchase Price paid by TotalStone, LLC for the CSIA Asset Purchase, less a working capital reduction of C$473,189 (approximately US$339,000) that reduced the Cash Purchase Price payable to the FCHI sellers; (ii) a First SPA Note in ~~our~~the ~~distribution~~principal ~~network~~amount of C$1,600,000 (approximately US$1,148,000), maturing March 31, ~~states~~2027; (iii) a Second SPA Note in the principal amount of C$2,000,000 (approximately US$1,434,000), maturing December 1, 2028; and (iv) contingent earn-out consideration of up to C$3,000,000 (approximately US$2,152,000) based on Average EBITDA during the 2026-2027 and 2027-2028 measurement periods. WeThe ~~will~~acquisition-date ~~achieve~~fair ~~this~~value ~~through~~of ~~both organic~~the ~~growth~~contingent earn-out consideration, as determined with the assistance of Loop Capital, was approximately US$100,000 and ~~strategic~~is ~~acquisitions~~reflected ~~that~~in ~~complement~~the ~~our~~purchase ~~existing~~price ~~business~~allocation (see Note 4). The seller notes, working capital adjustment, and ~~provide~~earn-out ~~opportunities~~provisions relate solely to ~~broaden~~the ~~our~~FCHI ~~product~~Share ~~offerings~~ Purchase. U.S. dollar amounts have been translated from Canadian dollars at the closing-day exchange rate of US$1.00 = C$1.3943. This acquisition marked the Company's entry into the Canadian market and ~~customer~~the ~~base~~U.S. West Coast, and is reported within the Company's Instone/TotalStone segment. FCHI reported net revenue of $16.4 million for the year ended December 31, 2024.

Carolina Stone Holdings, LLC. On August 22, 2025, through its indirect subsidiary CS Purchase Holdings, LLC, the Company acquired 100% of the membership interests of Carolina Stone Holdings, LLC (“CSH”). CSH, together with its subsidiary Carolina Stone Distributors, LLC, operates a stone distribution and installation business under the trade name “Carolina Stone Products” in the Raleigh-Durham and Charlotte, North Carolina markets. The aggregate purchase consideration consisted of (i) $2,625,000 in cash, subject to a working capital adjustment, (ii) a seller note in the original principal amount of $1,250,000, and (iii) contingent earn-out consideration of up to $825,000 (acquisition-date fair value of approximately $250,000), payable based on Carolina Stone’s achievement of specified Adjusted EBITDA thresholds during the fiscal years ending December 31, 2025, 2026, and 2027. The final working capital true-up resulted in additional cash consideration of $76,500 paid at closing and $200,000 released from holdback in December 2025, plus $56,047 added to the seller note principal, for total cash consideration of $2,758,000. Aggregate purchase consideration, including the earn-out at fair value, was approximately $4.2 million. The acquisition was financed in part with proceeds from the Company’s convertible note facility. Carolina Stone’s operations include both wholesale distribution and professional stone installation services for residential, commercial, and multi-family construction projects, and are reported in the Company’s Carolina Stone segment.

Table of Contents

Capstone intends to drive sustainable growth, expand its geographic presence in the building products industry, and deliver superior value to its customers, shareholders, and other stakeholders. We expect to work with our businesses to achieve this through the following strategic pillars:

Expand Market Presence. We are committed to expanding our geographic footprint, increasing penetration in existing markets, and entering new, underserved regions. Our sales and marketing team continues to seek new opportunities to onboard customers in markets we are not currently servicing. In 2025, we onboarded customers in 6 new states, which are included in our distribution network of 38 U.S. states and two Canadian provinces. We will achieve this through both organic growth and strategic acquisitions that complement our existing business and provide opportunities to broaden our product offerings and customer base.

Enhance Product Portfolio. We continuously strive to expand and diversify our product offerings to meet the evolving needs of our customers. This includes introducing new textures, colors, and materials within our stone product lines, as well as expanding into adjacent building products and stone substitutes. By broadening our portfolio, we aim to increase our share of wallet with existing customers and attract new customers.

Operational Excellence. We are focused on optimizing our operations to improve efficiency, reduce costs, and enhance customer satisfaction. This involves investing in advanced technologies, streamlining our supply chain, and implementing best practices across all aspects of our business. Operational excellence is key to maintaining our competitive edge and ensuring long-term profitability.

Customer-Centric Approach. Our customers are at the heart of everything we do. We are committed to building strong, long-lasting relationships by providing high-quality products, exceptional service, and expert support. Our goal is to be the preferred partner for our customers, helping them succeed in their projects and achieve their business objectives.

Innovation. We recognize the importance of innovation in the building products sector and prioritize it, continually seeking new ways to improve our products, processes, and services to stay ahead of industry trends and meet the demands of a changing market. The most recent example is our introduction of the Toro® family of manufactured stone products. We used our 30 years of market knowledge to formulate a product offering that is well thought out to meet the needs of end use customers and distributors. We painstakingly designed each color family. We honed in on key manufacturing steps to drive quality and consistency then thoughtfully designed packaging to meet the needs of distributors. The end result was a set of products that competes with high-end alternatives in the sector on aesthetics, but for a better value. We expect Toro® to help drive significant organic revenue growth in the next three years.

~~Our~~Operating ~~Public Offering and Uplisting on Nasdaq Capital Market~~Model

OnOur ~~March~~operating 7,model ~~2025,~~is ~~the~~designed ~~Company~~to ~~closed~~support ~~its~~our ~~follow-on~~business ~~public~~strategy ~~offering (the~~and ~~“Public~~drive ~~Offering”) of 1~~consistent,~~250,000~~ ~~shares~~profitable ~~of Common Stock~~growth. OnKey ~~March~~elements 6,of ~~2025,~~our ~~the~~operating ~~Company’s~~model ~~Common Stock began trading on the Nasdaq Capital Market under the symbol “CAPS”.~~include:

3Integrated Supply Chain. We operate an integrated supply chain that connects our network of suppliers, manufacturing partners, and distribution centers. This allows us to efficiently manage inventory, optimize logistics, and ensure timely delivery of products to our customers. Our supply chain capabilities are a critical component of our ability to provide reliable service and meet the needs of our diverse customer base.

~~Brookstone~~Strategic ~~Investment~~Distribution Network. Our strategically located distribution centers enable us to serve 38 U.S. states and two Canadian provinces with speed and efficiency. Our nine distribution and warehouse facilities across the United States and Canada are designed to optimize inventory management, reduce lead times, and ensure that our customers have access to the products they need, when they need them. Our expanded North American distribution network is a key competitive advantage that supports our market position and provides a robust base for integrating additional distributors or manufacturers.

As described in an 8-K filing with the Securities and Exchange Commission (the “SEC”) on July 17, 2017 (filed under the issuer name of Capstone Therapeutics Corp.), on July 14, 2017, the Company entered into a Securities Purchase, Loan and Security Agreement (the “Brookstone Agreement”) with BP Peptides, LLC (“Brookstone”).

Pursuant to the Brookstone Agreement, Brookstone funded an aggregate of $3,440,000, with net proceeds of approximately $2,074,000, after paying off (a) certain convertible promissory notes dated December 11, 2015 and due July 14, 2017, payable to Biotechnology Value Fund, L.P. and affiliated entities and (b) transaction costs. Of this amount, $1,012,500 went towards the purchase of 18,000 (following a 1 for 750 reduction in the authorized Common Stock in February 2021) newly issued shares of our Common Stock, and $2,427,500 was in the form of a secured loan, due October 15, 2020. On July 14, 2017 Brookstone also purchased 6,722 (following a 1 for 750 reduction in the authorized Common Stock in February 2021) shares of the Company’s Common Stock directly from Biotechnology Value Fund affiliated entities, resulting in ownership of 24,722 shares.

In August 2019 the Company filed a Form 15 and received approval from its shareholders for a 1-for-750 reverse stock split of common shares to reduce the number of authorized common shares to 200,000 and a 1 for 400 reverse stock split of the preferred shares to reduce the number of preferred shares to 2,500. This split brought shareholders of record to below 300 and allowed Capstone to become exempt from standard reporting requirements of the SEC. The Company continues to fully comply with the Alternate Reporting Format guidelines of the OTCQB, which, in part, requires filing of quarterly financial statements and audited annual financial statements.

Building Materials Business

TotalStone, LLC is the Company’s primary operating subsidiary, engaged in distributing masonry stone products for residential and commercial construction across the Midwest and Northeast U.S, under the trade names Instone and Northeast Masonry Distributors (NMD), which has been the Company’s primary business activity since 2020. The Company acquired a controlling interest in TotalStone on April 1, 2020, and, upon completion of the public offering on March 7, 2025, now owns 100% of its equity interests.

TotalStone, LLC (dba “Instone”), a Delaware limited liability company, was formed on October 4, 2006. TotalStone is engaged in the distribution of pre-cast specialty items and thin stone products and related accessories. All of its operations are performed in Illinois, Ohio and New Jersey. Its administrative functions are performed in Massachusetts and Illinois, with its corporate headquarters located in New Jersey. TotalStone services the Northeast and Midwest regions, which comprise 31 states.

TotalStone has a wholly owned subsidiary that is a single member Delaware limited liability company, Northeast Masonry Distributors, LLC (“NMD”, f/k/a NEM Purchaser, LLC), that was formed on September 23, 2019. On November 14, 2019, NEM Purchaser, LLC completed the purchase of Northeast Masonry Distributors, LLC including all of the assets and assumed liabilities, receivables, fixed assets, and other assets. The aggregate purchase price was $6,029,342. Post acquisition, NEM Purchaser LLC changed its name to Northeast Masonry Distributors, LLC. Prior to the acquisition, NMD was engaged in light fabrication and distribution of natural stone products with operations in Plainville, Massachusetts. All of its manufacturing and distribution operations are performed in Massachusetts. Administrative functions are performed in Massachusetts and New Jersey. NMD services the Northeast and Midwest regions, which comprise 31 states.

TotalStone operated under a management agreement with the Company for strategic and financial advisory services. On March 7, 2025, a restructuring was completed, under which all of TotalStone’s outstanding Class B and Class C membership interests were exchanged for 3,782,641 shares of the Company’s Common Stock. Following this exchange, the Company became the sole member of TotalStone. Effective April 1, 2025, the management agreement between TotalStone and the Company was terminated.

In connection with the restructuring, certain TotalStone management warrants were cancelled, and TotalStone’s special preferred interests were exchanged for debt obligations under the Company’s credit agreement with Stream Finance, LLC. TotalStone continues to maintain a revolving credit facility with Berkshire Bank, which provides for up to $14 million in working capital financing.

Recent Developments

Acquisition of Carolina Stone Holdings

On August 15, 2025, the Company entered into a membership interest purchase agreement (the “D22L Purchase Agreement”) with D22L, Inc., a North Carolina corporation (the “Seller Entity”), David Clary, and Stuart Powell (together with David Clary and the Seller Entity, the “Seller”), to purchase from the Seller Entity all of the issued and outstanding membership interests (the “Holdings Membership Interests”) in Carolina Stone Holdings, LLC, a Delaware limited liability company (“Carolina Stone Holdings”), which owns all of the issued and outstanding membership interests of Carolina Stone Distributors, LLC, a Delaware limited liability company (together with the Carolina Stone Holdings, the “Carolina Stone Companies”). The aggregate purchase price for the Holding Membership Interests is (i) $2,625,000 in cash, subject to adjustment set forth in Section 2.6 of the D22L Purchase Agreement, plus (ii) a seller note in the original principal amount of $1,250,000, plus (iii) the amount payable pursuant to the terms of the earn-out agreement (the “Acquisition”). The Carolina Stone Companies operate showrooms, warehouses and staging yards to sell and distribute stone products and the installation of stonework in residential and commercial properties. The Acquisition closed on August 22, 2025.

~~Notes~~Table ~~Exchange and Creation~~ of ~~Series Z 8% Non-Convertible Preferred Stock~~Contents

OnScalable ~~September~~Infrastructure. We ~~30,~~have ~~2025,~~invested ~~the~~in ~~Company~~scalable ~~entered~~infrastructure ~~into an~~that ~~exchange~~can ~~agreement~~support ~~with~~our BPgrowth ~~Peptides,~~objectives ~~LLC~~ and ~~Brookstone~~adapt ~~Partners~~to ~~Acquisition~~changing ~~XXI~~market ~~Corporation~~conditions. ~~(together,~~This includes state-of-the-art ~~“Brookstone entities”)~~facilities, ~~entities~~ ~~controlled~~advanced ~~by Matthew Lipman~~technology, ~~the Chief Executive Officer of the Company~~ and ~~Michael~~robust ~~Toporek,~~business ~~the~~processes ~~Chairman~~that ofenable ~~the~~us ~~board of directors. Pursuant~~ to ~~the~~efficiently ~~Exchange~~manage ~~Agreement,~~our ~~the~~operations ~~Brookstone entities exchanged notes with an aggregate principal~~ and ~~interest~~deliver ~~amount~~consistent ~~of approximately $1~~performance.94 million for 642,276 and 825,067 shares, respectively, of the Company’s newly created Series Z 8% Non-Convertible Preferred Stock. The exchange was based on the Nasdaq Official Closing Price of the Company’s Common Stock of $1.32 per share on the day prior to the transaction.

OnExperienced ~~September~~and ~~30,~~Committed ~~2025,~~Workforce. Our ~~following~~employees ~~Board~~are ~~approval,~~ the ~~Company~~foundation ~~filed~~of ~~the~~our ~~Certificate~~success. ofWe ~~Designation~~have ofa ~~Preferences,~~highly ~~Rights~~experienced and ~~Limitations~~committed ofworkforce ~~Series~~that Zshares 8%our ~~Non-Convertible~~dedication ~~Preferred~~to ~~Stock (the~~excellence, ~~“Certificate~~innovation, ofand ~~Designation”)~~customer ~~with~~satisfaction. We invest in the ~~Secretary~~training ofand ~~State~~development of ~~the~~our ~~State~~employees ofto ~~Delaware~~ensure ~~with~~they uphave tothe ~~three~~skills ~~million~~and ~~five~~knowledge ~~hundred thousand~~needed ~~(3,500,000)~~to ~~Series~~drive Zour ~~Preferred~~business ~~shares~~forward ~~being~~and ~~authorized~~meet ~~for~~the ~~issuance~~challenges of a dynamic industry.

~~Pursuant~~Financial toDiscipline. We ~~the Certificate of Designation, the Series Z Preferred shares~~ are ~~not~~committed ~~convertible~~to ~~into~~maintaining ~~shares~~financial ofdiscipline ~~Common Stock, has voting rights of one vote per shares~~ and ~~will~~leveraging ~~vote~~our ~~together as~~resources ato ~~single~~drive ~~class~~sustainable ~~with the Common Stock shareholders~~growth. ~~Each~~This ~~share~~includes ofprudent ~~Series~~capital Zallocation, ~~Preferred~~cost ~~will~~management, ~~accrue~~and ~~cumulative dividends at~~ a ~~rate~~focus ofon ~~eight percent~~generating ~~(8%)~~strong ~~per~~cash ~~annum based on the $1~~flow.32 ~~stated~~We ~~value~~intend ~~per~~to ~~share~~invest ofin ~~the~~strategic ~~Series Z Preferred~~initiatives, ~~accruing~~pursue ~~daily~~growth ~~and payable~~opportunities, atand ~~the~~return ~~sole~~value ~~option of~~to ~~the~~our ~~Board, either in cash or payment-in-kind via the issuance of further shares of Series Z Preferred~~shareholders. The Series Z Preferred shares are redeemable upon the earlier of the seven year anniversary of the issuance of the shares or the occurrence of a fundamental transaction (as defined in the Certificate of Designation).

~~Other~~Through ~~Corporate~~the ~~Actions~~execution of our business strategy and the strength of our operating model, we are well-positioned to capitalize on the opportunities in the thin veneer stone and masonry products industry and deliver long-term value to our stakeholders.

InProduct March 2020, the Company and Brookstone amended the Brookstone Agreement to extend the Secured Debt’s maturity to March 31, 2022 and continued deferral of interest payable. As consideration, the Company has provided an option, for a period ending December 31, 2021, to convert all or part of the aggregate outstanding principal amount and any accrued interest of the Secured Debt or exercise of any warrant into Capstone Common Stock at a conversion price range of between $10.00 and $30.00 per share, as determined by an independent valuation at the time of conversion.Categories

InThe ~~December 2020,~~Company ~~Brookstone~~offers ~~exercised~~a diverse range of stone and masonry products through its ~~option~~ tothree ~~convert~~operating ~~$572~~subsidiaries,~~700~~ oforganized ~~accrued~~into ~~interest~~the following categories: (i) manufactured stone veneer, including Cultured Stone®, Dutch Quality Stone®, and ~~secured~~our ~~debt~~proprietary ~~into~~Toro 24Stone™ brand; (ii) natural stone,~~900 shares~~ ofincluding ~~Capstone~~Pangaea ~~Common~~Stone® ~~Stock~~and atour anInterloc™ ~~exercise~~panelized ~~price of~~stone ~~$23~~system; ~~per~~(iii) ~~share~~mechanically asattached ~~supported~~stone byveneer ~~independent~~systems, ~~valuation.~~including ~~With~~Beon ~~this~~Stone ~~acquisition~~with its patented D-Rain™ moisture management system; (iv) landscape and hardscape products, ~~Brookstone~~including ~~owned~~our ~~54.8%~~Aura™ Natural Landscapes line of pavers, steps, and coping; and (v) modular masonry fireplaces under the Isokern® brand. These product categories enable the Company’s ~~outstanding Common~~to ~~Stock~~serve as a consolidated sourcing platform for masonry dealers, contractors, and builders across residential and commercial construction markets.

InCorporate March 2021, the Company and Brookstone amended the Brookstone Agreement to extend the Secured Debt’s maturity to April 1, 2024 (subsequently extended to December 31, 2024) with continued interest deferral on the loan.History

The Company was formed in 1987 as OrthoLogic Corp. In 2005, the Company filed its restated certificate of incorporation (the “Restated Certificate of Incorporation”). In 2010, the Company changed its name to Capstone Therapeutics Corp. On August 22, 2019, the Company filed a certificate of amendment to its Restated Certificate of Incorporation effecting a 1 for 1,000 reverse stock split of the common stock of the Company, whereby each 1,000 shares of common stock of the Company became 1 share of common stock. In 2021, the Company filed a certificate of amendment to its Restated Certificate of Incorporation decreasing the total number of shares of common stock authorized to be issued by the Company from 150,000,000 shares to 205,000 shares, consisting of 200,000 shares of common stock, par value $0.0005 per share and 5,000 shares of preferred stock, par value $0.0005 per share. On February 18, 2022, the Company ~~legally~~filed ~~changed~~ a certificate of amendment to its Restated Certificate of Incorporation, changing the Company’s name from Capstone Therapeutics Corp. to Capstone Holding Corp. ~~reflecting~~On February 20, 2025, following the Company’s controlling shareholder’s approval, the Company filed an amendment to its ~~primary~~Restated ~~line~~Certificate of ~~business~~Incorporation inwith ~~building~~the ~~products~~Secretary of State of the State of Delaware to increase the authorized shares of Common Stock to 50,000,000 shares and increase the authorized shares of preferred stock to 25,000,000 shares. On February 20, 2025, the Company filed a Certificate of Designation (the “Series B Certificate of Designation”) with the Delaware Secretary of State which designated 2 million shares of the Company’s authorized preferred stock as Series B Preferred Stock (“Series B Preferred Stock”), no par value.

In March 2022, Brookstone exercised its option to convert $688,104 of accrued interest and $1,951,260 of secured debt into 78,153 shares of Capstone Common Stock at an exercise price of $24.75 per share as supported by independent valuation. With this acquisition, Brookstone currently owns 77.3% of the Company’s outstanding Common Stock.

In November 2023, Capstone and Brookstone Acquisition Partners XXI, LLC (“Brookstone XXI”), a related entity to the Company’s majority shareholder, agreed to terms of an unsecured promissory note in the amount of $800,000 as part of a 2021 transaction through its Capstone Beta, LLC (“Beta”) subsidiary to own a minority membership interest in Diamond Products Holdings, LLC (“DPH”) valued at $8 million for a $8 million secured note payable to Brookstone Acquisition Partners XXI. The agreed to terms of the $800,000 note were formalized in a note agreement executed on March 31, 2024. The sole assets of DPH consisted of a 95% membership interest in Diamond Products LLC (“Diamond”), a consumer products holding company. The majority membership interests in DPH and Diamond were controlled by Brookstone XXI. The $800,000 unsecured promissory note was triggered when the members of Diamond sold their membership interests to a third party as part of a restructuring and recapitalization transaction of the Diamond operating entities. This $800,000 unsecured promissory note was issued on March 31, 2024. The primary consideration received in the transaction was the release of guarantees of the senior debt of Diamond operating entities. No cash proceeds were received in the transaction. Pursuant to the terms of the Beta and Brookstone XXI $8 million secured note, upon sale or disposition of the membership interests in Diamond, Brookstone XXI’s remaining payments due under the note are limited to cash proceeds received by DPH from the sale, accrued interest and a limited payment guaranty of $800,000 provided by Capstone. Since no cash proceeds were received upon the sale of the Diamond membership interests, the $8 million note payable to Brookstone XXI was forgiven and replaced by the new $800,000 note issued by Capstone resulting in a net $7.2 million gain on extinguishment of debt which offset the $8 million write-off of the investment in DPH. This promissory note of $800,000 plus accrued interest of $240,555 (as of September 30, 2024) has been amended and extended for maturity through June 30, 2026.

In May 2024, the Board authorized and declared a dividend distribution of one right (a “Right”) for each outstanding share of Common Stock, par value $0.0005 per share, of the Company to shareholders of record as of the close of business on May 1, 2024. Each Right entitles the registered holder to purchase from the Company one one-hundredth of a share of Series A Preferred Stock, par value $0.0005 per share, of the Company at an exercise price of $5.00 per one one-hundredth of a Preferred Share, subject to adjustment. The terms of the Rights are set forth in a Tax Benefit Preservation Plan (the “Benefit Plan”), dated as of May 1, 2024, between the Company and Computershare Inc., as rights agent.

By adopting the Benefit Plan, the Board is seeking to protect the Company’s ability to use its net operating losses and other tax attributes (collectively, “Tax Benefits”). The Company views its Tax Benefits as highly valuable assets that are likely to inure to the benefit of the Company and its shareholders. The Board believes that it is in the best interests of the Company and its shareholders that the Company provide for the protection of these assets. The final expiration date of the Benefit Plan is April 1, 2027. The Benefit Plan was cancelled per the Master Exchange and Other Transaction Agreement executed on March 3, 2025.

On November 11, 2024, BP Peptides, LLC (a Brookstone entity) and the Company agreed to the terms of the Second Amended and Restated Note, with a principal amount of $700,617.52 and an accrued interest of $101.810.28, at an initial interest rate of 6.0% per annum, to extend the maturity date through June 30, 2026.

Implications of Being an Emerging Growth and a Smaller Reporting Company

We are an “emerging growth company” as defined in Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). As an emerging growth company, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, but not limited to: (1) presenting only two years of audited financial statements in addition to any required unaudited interim financial statements with correspondingly reduced “Management’s Discussion and Analysis of Financial Condition and Results of Operations” disclosure in this prospectus; (2) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”); (3) having reduced disclosure obligations regarding executive compensation; (4) being exempt from the requirements to hold a non-binding advisory vote on executive compensation or to seek stockholder approval of any golden parachute payments not previously approved; and (5) not being required to adopt certain accounting standards applicable to public companies until those standards would otherwise apply to private companies.

Table of Contents

Although we are still evaluating our options under the JOBS Act, we may take advantage of some or all of the reduced regulatory and reporting obligations that will be available to us so long as we qualify as an emerging growth company, and thus the level of information we provide may be different than that of other public companies. If we do take advantage of any of these exemptions, some investors may find our securities less attractive, which could result in a less active trading market for our Common Stock, and the price of our Common Stock may be more volatile. As an emerging growth company under the JOBS Act, we are permitted to delay the adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies.

We do not intend to take advantage of this extended transition period, which means that the financial statements included in this prospectus, as well as any financial statements that we file in the future, will be subject to all new or revised accounting standards generally applicable to public companies. The decision not to take advantage of the extended transition period is irrevocable.

We could remain an emerging growth company until the earliest to occur of: (1) the end of the 2030 fiscal year (the end of the fiscal year following the fifth anniversary of ~~this~~the 2025 offering in connection with which our common stock began trading on Nasdaq); (2) the first fiscal year after our annual gross revenues are $1.235 billion or more; (3) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt securities; or (4) the date on which we are deemed to be a “large accelerated filer” under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). We have taken advantage of reduced disclosure regarding executive compensation arrangements and the presentation of certain historical financial information in the information incorporated by reference in this prospectus, and we may choose to take advantage of some but not all of these reduced disclosure obligations in future filings. If we do, the information that we provide to our stockholders may be different from what you might get from other public companies in which you hold stock.

We are also a smaller reporting company, as defined in the Exchange Act. Even after we no longer qualify as an emerging growth company, we may still qualify as a smaller reporting company, which would allow us to continue taking advantage of many of the same exemptions from disclosure requirements, including reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements. In addition, for so long as we continue to qualify as a non-accelerated filer, we will not be required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act.

Corporate Information

Capstone Holding Corp., formerly known as Capstone Therapeutics Corp. and OrthoLogic Corp., was incorporated in Delaware in 1987 as a domestic corporation, with formal name changes in February 2022 and May 2010, respectively. The Company’s principal executive offices are located at ~~5141~~18400 W.76th ~~122nd~~Avenue, ~~St.~~Tinley ~~Alsip~~Park, IL ~~60803~~ 60477 and the telephone number is (708) 371-0660.

Table of Contents

THE OFFERING

Common Stock offered by the selling stockholder		Up to 4,~~306~~407,~~664~~334 shares of our Common Stock, assuming the issuance of (a) 4,~~306~~002,~~664~~334 shares issuable upon conversion of the October 2025 Convertible Note (based on 3.03 times the difference between the maximum number of shares issuable upon conversion of the ~~senior~~remaining ~~secured~~outstanding ~~convertible~~principal ~~note~~amount of $1,650,388 at a conversion price of $0.57, or 2,895,416 shares, and the 1,573,329 shares underlying the October 2025 Convertible Note that have been previously registered but not issued), ~~pursuant~~and to(b) 405,000 shares issuable upon exercise of the ~~Purchase~~3i ~~Agreement~~Warrant.
Common Stock outstanding before the offering		715,~~906~~203,~~205~~173 shares of Common Stock.
Common Stock to be outstanding after this offering		1219,~~212~~610,~~869~~507 shares of Common Stock.
Use of proceeds		We will not receive any of the proceeds from the resale by the selling stockholder of the shares of Common Stock issuable upon conversion of the ~~senior~~October ~~secured~~2025 ~~convertible~~Convertible ~~note.~~Note Weand ~~may~~exercise ~~use the proceeds from sales~~ of the ~~Convertible~~3i ~~Notes (as defined herein) to the selling stockholder for working capital and general corporate purposes~~Warrant. See section entitled “Use of Proceeds”.
Nasdaq Capital Market Trading Symbol		Our Common Stock is listed on the Nasdaq Capital Market under the symbol “CAPS”.
Dividends		We do not anticipate paying dividends on our Common Stock for the foreseeable future.
Risk factors		Investing in our securities is highly speculative and involves a high degree of risk. You should carefully consider the information set forth in the “Risk Factors” section beginning on page 8 before deciding to invest in our securities.

Table of Contents

RISK FACTORS

Investing in our securities involves a great deal of risk. Careful consideration should be made of the following factors as well as other information included in this prospectus before deciding to purchase our securities. We have also identified a number of these factors under the heading “Risk Factors” in our periodic reports we file with the SEC, including our annual report on Form 10-K for the year ended December 31, ~~2024~~2025 (the “Annual Report”), which section is incorporated by reference herein. There are many risks that affect our business and results of operations, some of which are beyond our control. Our business, financial condition or operating results could be materially harmed by any of these risks. This could cause the trading price of our securities to decline, and you may lose all or part of your investment. Additional risks that we do not yet know of or that we currently think are immaterial may also affect our business and results of operations.

Risks related to this offering

The issuance of our Common Stock to the selling stockholder may cause dilution and the sale of the shares of Common Stock acquired by the selling stockholder, or the perception that such sales may occur, could cause the price of our Common Stock to decrease.

The shares of our Common Stock issuable upon conversions of the October 2025 Convertible Note and exercise of the 3i Warrant and the sale of such shares may cause the trading price of our Common Stock to decrease.

Further, we are not restricted from issuing additional securities in the future, including our common stock, securities that are convertible into or exchangeable for, or that represent the right to receive, our Common Stock or substantially similar securities. To the extent that we raise additional funds through the sale of equity or convertible debt securities, the issuance of such securities will result in dilution to our stockholders.

We may require additional financing to sustain our operations, without which we may not be able to continue operations, and the terms of subsequent financings may adversely impact our stockholders.

We may receive an additional $3,750,000 gross proceeds from the issuances of further Convertible Notes in the aggregate principal amount of $4,091,207 pursuant to the 3i Purchase Agreement.

The extent we rely on the selling stockholder as a source of funding will depend on a number of factors, including the prevailing market price of our Common Stock and the extent to which we are able to secure financing from other sources. If obtaining sufficient financing from the selling stockholder were to prove unavailable or prohibitively dilutive, we may need to secure another source of funding in order to satisfy our financing needs. Even if we issue further Convertible Notes equal to $4,091,207 (for gross proceeds of $3,750,000) pursuant to the 3i Purchase Agreement to the selling stockholder, we may still need additional capital to finance our future working capital needs, and we may have to raise funds through the issuance of equity or debt securities. Depending on the type and the terms of any financing we pursue, stockholders’ rights and the value of their investment in our Common Stock could be reduced. A financing could involve one or more types of securities including Common Stock, preferred stock, convertible debt or warrants to acquire Common Stock. These securities could be issued at or below the then prevailing market price for our Common Stock. In addition, if we issue secured debt securities, the holders of the debt would have a claim to our assets that would be prior to the rights of stockholders until the debt is paid. Interest on these debt securities would increase costs and negatively impact operating results. If the issuance of new securities results in diminished rights to holders of our Common Stock, the market price of our Common Stock could be negatively impacted.

Should the financing we require to sustain our financing needs be unavailable or prohibitively expensive when we require it, the consequences could be a material adverse effect on our business, operating results, financial condition and prospects.

~~Management~~Table ~~will have broad discretion as to the use~~ of ~~the proceeds from our sale of Common Stock to the selling stockholder under the Purchase Agreement, and such uses may not improve our financial condition or market value.~~Contents

WeManagement ~~currently intend to use the proceeds from any issuance of Convertible Notes pursuant to the Purchase Agreement for general corporate purposes, including working capital. Our management~~ will have broad discretion inas ~~the~~to ~~application of such proceeds, including for any of~~ the ~~purposes~~use ~~described in “Use~~ of ~~Proceeds,” and we could spend~~ the proceeds from ~~any~~our ~~issuances~~sale of ~~further~~Common ~~Convertible~~Stock ~~Notes pursuant~~ to the ~~Purchase~~ ~~Agreement,~~selling ifstockholder ~~any,~~under inthe ~~ways~~3i ~~our~~Purchase ~~stockholders may not agree with or that do not yield a favorable return~~Agreement, orand ~~for corporate~~such ~~purposes~~uses ~~that~~ may not improve our financial condition or ~~advance~~market ~~our business objectives~~value. You will not have the opportunity, as part of your investment decision, to assess whether such proceeds are being used in a manner agreeable to you. You will be relying on the judgment of our management concerning these uses and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. The failure of our management to apply these funds effectively could result in unfavorable returns and uncertainty about our prospects, each of which could cause the price of our Common Stock to decline.

We currently intend to use the proceeds from any issuance of Convertible Notes pursuant to the 3i Purchase Agreement for general corporate purposes, including working capital. Our management will have broad discretion in the application of such proceeds, including for any of the purposes described in “Use of Proceeds,” and we could spend the proceeds from any issuances of further Convertible Notes pursuant to the 3i Purchase Agreement, if any, in ways our stockholders may not agree with or that do not yield a favorable return, or for corporate purposes that may not improve our financial condition or advance our business objectives. You will not have the opportunity, as part of your investment decision, to assess whether such proceeds are being used in a manner agreeable to you. You will be relying on the judgment of our management concerning these uses and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. The failure of our management to apply these funds effectively could result in unfavorable returns and uncertainty about our prospects, each of which could cause the price of our Common Stock to decline.

The selling stockholder may choose to sell the shares at prices below the current market price.

The selling stockholder is not restricted as to the prices at which it may sell or otherwise dispose of the shares covered by this prospectus. Sales or other dispositions of the shares below the then-current market prices could adversely affect the market price of our Common Stock.

You may experience future dilution as a result of issuance of the shares, future equity offerings by us and other issuances of our Common Stock or other securities. In addition, the issuance of the shares and future equity offerings and other issuances of our Common Stock or other securities may adversely affect our Common Stock price.

The shares sold by the selling stockholder will be freely tradable without restriction or further registration under the Securities Act. As a result, a substantial number of shares of our Common Stock may be sold in the public market following this offering. If there are significantly more shares of our Common Stock offered for sale than buyers are willing to purchase, then the market price of our Common Stock may decline to a market price at which buyers are willing to purchase the offered Common Stock and sellers remain willing to sell our Common Stock. The issuance of the shares or any future sales of a substantial number of shares of our Common Stock in the public market, or the perception that such sales may occur, could also adversely affect the price of our Common Stock. We cannot predict the effect, if any, that market sales of those shares of Common Stock or the availability of those shares for sale will have on the market price of our Common Stock.

In addition, in order to raise additional capital, we may in the future offer additional shares of our Common Stock or other securities convertible into or exchangeable for our Common Stock at prices that may not be the same as the price per share as prior issuances of Common Stock. We may not be able to sell shares or other securities in any other offering at a price per share that is equal to or greater than the price per share previously paid by investors, and investors purchasing shares or other securities in the future could have rights superior to existing stockholders. The price per share at which we sell additional shares of our common stock or securities convertible into Common Stock in future transactions may be higher or lower than the prices per share previously paid. In addition, the exercise price of the Warrant may be greater than the price per share previously paid by certain investors. You will incur dilution upon exercise of any outstanding stock options, warrants or upon the issuance of shares of Common Stock under our stock incentive programs. In addition, sales under an Amended and Restated Common Stock Purchase Agreement with Tumim Stone Capital, dated June 11, 2026 (the "Tumim Purchase Agreement"), together with conversions of the Convertible Notes, will result in additional dilution to our stockholders and additional shares of Common Stock entering the public market. In addition, the issuance of the shares and any future sales of a substantial number of shares of our Common Stock in the public market, or the perception that such sales may occur, could adversely affect the price of our Common Stock. We cannot predict the effect, if any, that market sales of those shares of Common Stock or the availability of those shares for sale will have on the market price of our Common Stock.

Table of Contents

Risks Related to Our Business and Financial Condition

Our financial statements contain disclosure that there is substantial doubt about our ability to continue as a going concern.

Our unaudited financial statements for the quarter ended March 31, 2026 include disclosure that certain conditions, including our recurring losses, negative working capital and upcoming debt maturities, raise substantial doubt about our ability to continue as a going concern within one year. While management believes that its operating plans and available liquidity, including our equity line of credit, are sufficient to alleviate that doubt, we cannot assure you that we will be successful. If we are unable to generate sufficient cash flow from operations, obtain additional capital on acceptable terms, or manage our debt maturities, we may be unable to continue operating, and you could lose all or part of your investment.

We are not currently in compliance with the Nasdaq minimum bid price requirement, and our Common Stock could be delisted.

In January 2026, we received a notice from the Nasdaq Stock Market that the closing bid price of our Common Stock had been below $1.00 per share for 30 consecutive business days and that we were therefore not in compliance with Nasdaq Listing Rule 5550(a)(2). We have until July 6, 2026 to regain compliance. On June 18, 2026, we obtained stockholder authorization at our 2026 annual meeting to effect a reverse stock split, if needed, to satisfy the minimum bid price requirement. While we expect to be eligible for an additional 180 calendar day period to regain compliance and have obtained the stockholder authorization to conduct a reverse stock split, we cannot assure you that any reverse stock split will be effected or, if effected, that it will result in a lasting increase in our bid price, particularly in light of the limitations on the repeated use of reverse stock splits under amended Nasdaq Listing Rule 5810(c)(3)(A). If our Common Stock is delisted from Nasdaq, the liquidity and market price of our Common Stock, and our ability to raise capital, would be materially and adversely affected.

Table of Contents

USE OF PROCEEDS

All securities sold pursuant to this prospectus will be offered and sold by the selling ~~stockholder~~stockholders. We will not receive any proceeds from the resale of Common Stock offered by the selling stockholder.

OnUpon ~~July~~the ~~29,~~exercise ~~2025,~~of the ~~Company~~3i ~~entered~~Warrant ~~into~~we ~~the Purchase~~would ~~Agreement~~receive ~~with~~aggregate ~~3i,~~gross LPproceeds ~~(the~~of ~~“selling~~approximately ~~stockholder~~$4,”050. orAny ~~the~~proceeds ~~“Purchaser”),~~from ~~pursuant~~the toexercise ~~which~~of the ~~Company issued~~3i toWarrant will be used for working capital and general corporate purposes. We cannot predict when or if the ~~Purchaser~~3i ~~senior~~Warrant ~~secured~~will ~~convertible~~be ~~notes~~exercised, inand ~~the~~it ~~aggregate~~is ~~original~~possible ~~principal~~that ~~amount~~the of3i upWarrant tomay ~~$10,909,885,~~expire ~~which~~and ~~are~~never ~~being issued~~be ~~with~~exercised aor ~~8.34%~~may ~~original~~be ~~issue~~exercised ~~discount~~pursuant ~~(each,~~to a ~~“Convertible~~cashless ~~Note”),~~exercise. We will bear the ~~first~~out-of-pocket ~~Convertible~~costs, ~~Note~~expenses ~~was~~and ~~issued~~fees incurred in connection with the ~~original principal~~registration ~~amount~~of the shares of ~~approximately~~Common $3Stock to be sold by the selling stockholder,~~272~~ including registration,~~966~~ listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel, or collectively, the ~~second~~“Registration ~~Convertible~~Expenses.” ~~Note~~Other ~~was~~than ~~issued~~Registration inExpenses, the ~~original~~selling ~~principal~~stockholder ~~amount~~will ofbear ~~approximately $~~underwriting $3discounts,~~545~~ commissions,~~712.42~~ ~~(the~~placement ~~“Convertible~~agent ~~Note~~fees ~~Financing”)~~or other similar expenses payable with respect to sales of shares.

We may receive up to $10 million in aggregate gross proceeds from sales of the Convertible Notes to the selling stockholder pursuant to the Purchase Agreement, from time to time, if the selling stockholder agrees to purchase and the Company agrees to issue and sell such Convertible Notes, subject to the conditions set forth in the Purchase Agreement. We may use the proceeds from sales of our Convertible Notes to the selling stockholder for acquisition costs and fees, and costs and fees associated with this sale of the Securities, with any remaining proceeds to be available for other working capital and general corporate purposes.

Our expected use of proceeds from sales of the Convertible Notes pursuant to the Purchase Agreement represents our intentions based on our present plans and business conditions, which could change as our plans and business conditions evolve. The amounts and timing of our actual expenditures will depend on numerous factors, including cash flows from operations, the extent and results of our research and development efforts, the anticipated growth of our business, and other factors. We may find it necessary or advisable to use such proceeds for other purposes, and, except as set forth above, we will have broad discretion in the application of such proceeds.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This prospectus, including the information incorporated by reference into this prospectus, contains forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements involve risks and uncertainties and include statements regarding, among other things, our projected revenue growth and profitability, our growth strategies and opportunity, anticipated trends in our market and our anticipated needs for working capital. They are generally identifiable by use of the words “may,” “will,” “should,” “anticipate,” “estimate,” “plans,” “potential,” “projects,” “continuing,” “ongoing,” “expects,” “management believes,” “we believe,” “we intend” or the negative of these words or other variations on these words or comparable terminology. These statements may be found under the sections entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business,” in our Annual Report, as well as in this prospectus generally. In particular, these include statements relating to future actions, prospective products, market acceptance, future performance or results of current and anticipated products, sales efforts, expenses, and the outcome of contingencies such as legal proceedings and financial results. Such forward-looking statements include, without limitation, statements regarding:

●

our need for, and our ability to raise, additional equity or debt financing on acceptable terms, if at all;

●

our need to take additional cost reduction measures, cease operations or sell our operating assets, if we are unable to obtain sufficient additional financing;

●

our belief that we have sufficient liquidity to finance normal operations;

●

the options we may pursue in light of our financial condition;

●

the amount of cash necessary to operate our business;

●

general economic conditions;

●

the anticipated future financial performance and business operations of our company; and

●

our ability to retain our core group of personnel.

We operate in a very competitive and rapidly changing environment. New risks emerge from time to time. It is not possible for us to predict all of those risks, nor can we assess the impact of all of those risks on our business or the extent to which any factor may cause actual results to differ materially from those contained in any forward-looking statement. The forward-looking statements in this prospectus are based on assumptions management believes are reasonable. However, due to the uncertainties associated with forward-looking statements, you should not place undue reliance on any forward-looking statements. Further, forward-looking statements speak only as of the date they are made, and unless required by law, we expressly disclaim any obligation or undertaking to publicly update any of them in light of new information, future events, or otherwise.

1011

Table of Contents

DETERMINATION OF OFFERING PRICE

The selling stockholder will offer shares of our Common Stock for sale under this prospectus at prevailing market prices or privately negotiated prices. We cannot currently determine the price or prices at which the shares of Common Stock may be sold by the selling stockholder under this prospectus. The offering price of our Common Stock does not necessarily bear any relationship to our book value, assets, past operating results, financial condition or any other established criteria of value.

1112

Table of Contents

DILUTION

The issuance of shares of our Common Stock to the selling stockholder pursuant to the conversions of the Convertible Note will have a dilutive impact on our stockholders.

Our net tangible book value represents total tangible assets less total liabilities divided by the number of shares of Common Stock outstanding on ~~June~~March 3031, ~~2025~~2026. As of ~~June~~March 3031, ~~2025~~2026, we had a historical net tangible book value (deficit) of $(~~7,435,772~~9.0) million, or $(10.3896) per share of Common Stock.

After giving effect to the issuance of 4,~~306~~407,~~664~~334 shares of our Common Stock to the selling stockholder upon the assumed conversion of the ~~convertible~~October ~~note~~2025 Convertible Note, in the remaining outstanding principal amount of $31,~~545~~650,~~712~~388, ~~issued~~and ~~pursuant to~~the assumed exercise of the ~~Purchase~~3i ~~Agreement~~Warrant, and after deducting estimated offering expenses payable by us, our as-adjusted net tangible book value (deficit) as of ~~June~~March 3031, ~~2025~~2026 would have been approximately $(7~~,435,772~~.4) million, or $(0.7747) per share. This represents an immediate increase in net tangible book value of $0.6132 per share to existing stockholders and an immediate dilution of $1.5204 per share to new investors.

The following table illustrates this per share dilution:

Net tangible book deficit value per share as of June 30, 2025	$	(1.38	)
Net tangible book deficit value per share as of March 31, 2026	$	(0.79	)
Increase in net tangible book deficit value per share attributable to the effects to this offering				$	0.6132
As-adjusted net tangible book deficit value per share after giving effect to this offering				$	(0.7747	)
Dilution in net tangible book deficit value per share to new investors				$	(1.5204	)

The calculations above are based on 511,~~406~~423,~~305~~ 707 shares of our Common Stock outstanding as of ~~June~~March 3031, ~~2025.~~2026, and including the following:

12● 1,995,000 unvested restricted stock awards granted on March 30, 2026.

~~The CONVERTIBLE NOTE Financing~~13

OnTable July 29, 2025, the Company entered into the Purchase Agreement with 3i, LP (the “selling stockholder,” or the “Purchaser”), pursuant to which the Company issued to the Purchaser Senior Secured Convertible Notes, in the aggregate original principal amount of up to $10,909,885, which are being issued with a 8.34% original issue discount (each, a “Convertible Note”), the first Convertible Note was issued in the original principal amount of approximately $3,272,966, and the second Convertible Note was issued in the original principal amount of approximately $3,545,712.42 (the “Convertible Note Financing”). The shares issuable upon exercise of the first Convertible Note were registered under a registration statement on Form S-1, File No. 333-289222, which was declared effective on August 11, 2025. The number of shares registered for resale hereunder equals two hundred percent (200%) of the maximum number of shares issuable upon conversion of the second Convertible Note’s principal amount of $3,545,712.42 and accrued interest of $248,199.87, based on a fixed conversion price of $1.10 per share. The Company received gross proceeds of $3,250,000, prior to the deduction of transaction related expenses, from the initial closing.Contents

InTHE ~~connection~~CONVERTIBLE ~~with~~NOTE ~~the Convertible Note Financing and the Purchase Agreement, on the same day, the Company entered into a Registration Rights Agreement and a Security Agreement with the Purchaser.~~FINANCING

~~Consistent~~On July 29, 2025, the Company entered into a purchase agreement (the “3i Purchase Agreement”) with ~~certain~~3i, ~~applicable~~LP ~~Nasdaq~~(the ~~rules~~“selling stockholder, ” or the ~~Company~~“Purchaser”), ~~may~~pursuant ~~not~~to ~~issue~~which the Company issued to the Purchaser ~~more~~Senior ~~than~~Secured 1Convertible Notes,~~093,195~~ ~~shares~~in the aggregate original principal amount of ~~its~~up ~~Common~~to ~~Stock~~$10,909,885, which are being issued with a 8.34% original issue discount (each, a “Convertible Note”), the first Convertible Note (the “~~Exchange~~July ~~Cap~~2025 Convertible Note”) ~~under~~was issued in the ~~Purchase Agreement,~~original ~~which~~principal ~~number~~amount of ~~shares~~approximately is$3,272,966, ~~equal~~and tothe ~~19.99%~~October of2025 Convertible Note was issued in the ~~shares~~original principal amount of approximately $3,545,712.42 (the “Convertible Note Financing”). The Company’s ~~Common~~received ~~Stock~~gross ~~issued~~proceeds of $3,000,000 and ~~outstanding~~$3,250,000, ~~immediately~~ respectively, prior to the ~~execution~~deduction of ~~the~~transaction ~~Purchase~~related ~~Agreement~~expenses, ~~unless~~from the ~~Company~~issuance ~~obtains~~of ~~stockholder~~the ~~approval~~July to2025 ~~issue~~Convertible ~~shares~~Note ofand ~~its~~the ~~Common~~October ~~Stock in~~2025 ~~excess~~Convertible ofNote, ~~such~~respectively. ~~limit~~Pursuant into ~~accordance~~the ~~with~~effective ~~applicable~~registration ~~rules~~statements ofon ~~Nasdaq~~Form S-1 (File Nos. ~~The~~333-289222 ~~stockholder~~and ~~approval~~333-291041), ~~was~~the ~~obtained~~Company onregistered ~~July~~a 26total of 8,388,336 ~~2025~~shares of Common Stock issuable upon conversion of the Convertible Notes.

Subsequently, on November 28, 2025, the conversion price of the July 2025 Convertible Note was reduced to $0.75 with respect to the entire amount of principal under the July 2025 Convertible Note, and the conversion price of the October 2025 Convertible Note on $1,772,856 of principal was reduced from $1.10 to $0.75 per share, while the conversion price of the remaining $1,772,856 of principal continued at $1.10 per share. On April 16, 2026, the conversion price of the October 2025 Convertible Note was further reduced to $0.57 with respect to $500,000 of principal amount that had previously been subject to the $1.10 conversion price (collectively, the “Conversion Price,” and the reduction of the Conversion Price are referred to collectively as the “Conversion Price Adjustments.”).

In February 2026, the Company entered into a letter agreement with 3i pursuant to which the $606,054 payment due January 22, 2026 under the July 2025 Convertible Note was deferred to the maturity date. As consideration for the deferral, the Company issued a warrant to 3i, LP for 405,000 shares of Common Stock at an exercise price of $0.01 per share with a five-year term (the “3i Warrant”).

In connection with the Convertible Note Financing and the 3i Purchase Agreement, on the same day, the Company entered into a Registration Rights Agreement and a Security Agreement with the Purchaser.

Consistent with certain applicable Nasdaq rules, the Company may not issue to the Purchaser more than 1,093,195 shares of its Common Stock (the “Exchange Cap”) under the 3i Purchase Agreement, which number of shares is equal to 19.99% of the shares of the Company’s Common Stock issued and outstanding immediately prior to the execution of the 3i Purchase Agreement, unless the Company obtains stockholder approval to issue shares of its Common Stock in excess of such limit in accordance with applicable rules of Nasdaq. The stockholder approval was obtained on July 26, 2025.

Moreover, the Company may not issue or sell any shares of Common Stock to the Purchaser, which, when aggregated with all other shares of common stock then beneficially owned by the Purchaser and its affiliates (as calculated pursuant to Section 13(d) of the Exchange Act and Rule 13d-3 promulgated thereunder), would result in the Purchaser beneficially owning more than 4.99% of the issued and outstanding shares of Common Stock, unless such limit is increased by the Purchaser up to a maximum of 9.99%.

The 3i Purchase Agreement provides customary representations, warranties, and covenants of the Company and the Purchaser.

The number of shares registered for resale hereunder consist of (a) 4,002,334 shares issuable upon conversion of the October 2025 Convertible Note (based on 3.03 times the difference between the maximum number of shares issuable upon conversion of the remaining outstanding principal amount of $1,650,388 at a conversion price of $0.57, or 2,895,416 shares, and the 1,573,329 shares underlying the October 2025 Convertible Note that have been previously registered but not issued), and (b) 405,000 shares issuable upon exercise of the 3i Warrant.

Joseph Gunnar & Co., LLC (the “Placement Agent”) acted as the sole sales agent for the Convertible Note Financing. The Company agreed to pay the Placement Agent a cash fee equal to seven percent (7%) of the gross proceeds upon each closing of a drawdown (each, a “Closing”) under the Convertible Note Financing.

1314

Table of Contents

SELLING STOCKHOLDER

This prospectus relates to the possible resale from time to time by the selling stockholder, 3i, LP, or 3i, of any or all of the shares of Common Stock that may be issued by us to 3i under the ~~Purchase~~October ~~Agreement~~2025 Convertible Note and the 3i Warrant. For additional information regarding the issuance of Common Stock covered by this prospectus, see the section titled “The Convertible Note Financing” above. We are registering the shares of Common Stock pursuant to the provisions of the Registration Rights Agreement we entered into with 3i on July 29, 2025, in order to permit the selling stockholder to offer the shares for resale from time to time. Except for the transactions contemplated by the 3i Purchase Agreement, Tumim Purchase Agreement and the Registration Rights ~~Agreement~~ Agreements, 3ithe selling stockholder has not had any material relationship with us within the past three years. As used in this prospectus, the term “selling stockholder” means 3i, LP.

~~The~~This ~~table~~prospectus ~~below~~covers ~~presents~~the ~~information~~possible ~~regarding~~ resale by the selling stockholder ~~and~~identified in the table below of up to 4,407,334 shares of Common Stock ~~that~~consisting itof: ~~may~~(a) ~~offer~~4,002,334 ~~from~~shares ~~time~~issuable toupon ~~time~~conversion ~~under~~of ~~this~~the ~~prospectus.~~October ~~This~~2025 ~~table~~Convertible isNote ~~prepared~~ (based on ~~information~~3.03 ~~supplied~~times tothe usdifference bybetween the ~~selling~~maximum ~~stockholder,~~number ~~and reflects holdings as~~ of ~~October~~shares ~~22,~~issuable ~~2025.~~upon ~~The~~conversion ~~number~~ of ~~shares in~~ the ~~column~~remaining ~~“Maximum~~outstanding ~~Number~~principal ofamount ~~Shares~~ of ~~Common~~$1,650,388 ~~Stock~~at toa beconversion ~~Offered~~price ~~Pursuant~~of to$0.57, ~~this~~or ~~Prospectus”~~2,895,416 ~~represents~~shares, ~~all~~and of the 1,573,329 shares of ~~Common~~underlying ~~Stock~~the ~~that~~October ~~the~~2025 ~~selling~~Convertible ~~stockholder~~Note ~~may~~that ~~offer~~have ~~under~~been ~~this~~previously ~~prospectus.~~registered ~~The~~but ~~selling~~not ~~stockholder~~issued), ~~may~~and ~~sell~~(b) ~~some~~405,000 ~~all~~shares orissuable ~~none~~upon exercise of ~~its shares~~the in3i ~~this offering~~Warrant.

The table below presents information regarding the selling stockholder and the shares of Common Stock that it may offer from time to time under this prospectus. This table is prepared based on information supplied to us by the selling stockholder, and reflects holdings as of June 26, 2026. The number of shares in the column “Maximum Number of Shares of Common Stock to be Offered Pursuant to this Prospectus” represents all of the shares of Common Stock that the selling stockholder may offer under this prospectus. The selling stockholder may sell some, all or none of its shares in this offering.

We do not know how long the selling stockholder will hold the shares before selling them, and we are not currently aware of any existing agreements, arrangements or understandings between the selling stockholder and any other stockholder, broker, dealer, underwriter or agent relating to the sale or distribution of the shares of our Common Stock offered by this prospectus by the selling stockholder.

Beneficial ownership is determined in accordance with Rule 13d-3(d) promulgated by the SEC under the Exchange Act, and includes shares of Common Stock with respect to which the selling stockholder has voting and investment power. The percentage of shares of Common Stock beneficially owned by the selling stockholder prior to the offering shown in the table below is based on an aggregate of 715,~~906~~203,~~205~~173 shares of our Common Stock outstanding on ~~October~~June 2226, ~~2025~~2026. The fourth column assumes the sale of all of the shares offered by the selling stockholder pursuant to this prospectus.

Number of Shares of Common Stock Owned Prior to Offering(1)

Maximum Number of Shares of Common Stock to be Offered Pursuant to

Maximum Number of Shares of Common Stock Owned After Offering

Maximum Number

Number of Shares of

of Shares of

Maximum Number of

Common Stock

Common Stock to be

Shares of Common Stock

Owned Prior to Offering

Offered Pursuant to

Owned After Offering

Name of Selling Stockholder

Number

Percent

this Prospectus

Number(2)

Percent

3i, LP(3)

97405,~~781~~000

(1)

12.~~237~~6

4,~~306~~407,~~664~~334

~~97,781~~0

~~0.801~~-

(1) Including 405,000 shares issuable upon exercise of the 3i Warrant. In accordance with Rule 13d-3(d) under the Exchange Act, we have excluded from the number of shares beneficially owned prior to the offering all of the shares that the selling stockholder may be required to purchase under the 3i Purchase Agreement, because the issuance of such shares is subject to conditions contained in the 3i Purchase Agreement, the satisfaction of which are entirely outside of control, including the registration statement that includes this prospectus becoming and remaining effective. Furthermore, the issuances of Common Stock are subject to certain agreed upon maximum amount limitations set forth in the 3i Purchase Agreement. Also, the 3i Purchase Agreement prohibits us from issuing and selling any shares of our Common Stock to the selling stockholder to the extent such shares, when aggregated with all other shares of our Common Stock then beneficially owned by the selling stockholder, would cause the selling stockholder’s beneficial ownership of our Common Stock to exceed the 4.99% Beneficial Ownership Cap. The 3i Purchase Agreement also prohibits us from issuing or selling shares of our Common Stock under the 3i Purchase Agreement in excess of the 19.99% Exchange Cap, unless we obtain stockholder approval to do so, or unless sales of Common Stock are made at a price equal to or greater than $1.00 per share, such that the Exchange Cap limitation would not apply under applicable Nasdaq rules. Neither the Beneficial Ownership Limitation nor the Exchange Cap (to the extent applicable under Nasdaq rules) may be amended or waived under the 3i Purchase Agreement.

(2)	Assumes the sale of all shares being offered pursuant to this prospectus, although the selling stockholder is under no obligation to sell any of such shares.

(3)

The business address of 3i, LP is 2 Wooster Street, 2nd Floor, New York, New York 10013. 3i’s principal business is that of a private investor. Maier Joshua Tarlow is the manager of 3i Management, LLC, the general partner of 3i, LP, and has sole voting control and investment discretion over securities beneficially owned directly by 3i, LP and indirectly by 3i Management, LLC. We have been advised that none of Mr. Tarlow, 3i Management, LLC or 3i, LP is a member of the Financial Industry Regulatory Authority, or FINRA, or an independent broker-dealer, or an affiliate or associated person of a FINRA member or independent broker-dealer. The foregoing should not be construed in and of itself as an admission by Mr. Tarlow as to beneficial ownership of the securities beneficially owned directly by 3i, LP and indirectly by 3i Management, LLC.

1415

Table of Contents

PLAN OF DISTRIBUTION

The shares of Common Stock offered by this prospectus are being offered by the selling stockholder, 3i, LP, or 3i. The shares may be sold or distributed from time to time by the selling stockholder directly to one or more purchasers or through brokers, dealers, or underwriters who may act solely as agents at market prices prevailing at the time of sale, at prices related to the prevailing market prices, at negotiated prices, or at fixed prices, which may be changed. The sale of the ~~ordinary~~ shares of Common Stock offered by this prospectus could be effected in one or more of the following methods:

●

ordinary brokers’ transactions;

●

transactions involving cross or block trades;

●

through brokers, dealers, or underwriters who may act solely as agents;

● “at the market” into an existing market for the ~~ordinary~~ shares of Common Stock;

●

in other ways not involving market makers or established business markets, including direct sales to purchasers or sales effected through agents;

●

in privately negotiated transactions; or

●

any combination of the foregoing.

In order to comply with the securities laws of certain states, if applicable, the shares may be sold only through registered or licensed brokers or dealers. In addition, in certain states, the shares may not be sold unless they have been registered or qualified for sale in the state or an exemption from the state’s registration or qualification requirement is available and complied with.

3iThe selling stockholder has informed us that it intends to use one or more registered broker-dealers to effectuate all sales, if any, of our Common Stock that it has acquired and may in the future acquire from us pursuant to the ~~Purchase~~purchase ~~Agreement~~agreement. Such sales will be made at prices and at terms then prevailing or at prices related to the then current market price. Each such registered broker-dealer will be an underwriter within the meaning of Section 2(a)(11) of the Securities Act. 3iThe selling stockholder has informed us that each such broker-dealer will receive commissions from 3ithe selling stockholder that will not exceed customary brokerage commissions.

Brokers, dealers, underwriters or agents participating in the distribution of the shares of our Common Stock offered by this prospectus may receive compensation in the form of commissions, discounts, or concessions from the purchasers, for whom the broker-dealers may act as agent, of the shares sold by the selling stockholder through this prospectus. The compensation paid to any such particular broker-dealer by any such purchasers of shares of our Common Stock sold by the selling stockholder may be less than or in excess of customary commissions. Neither we nor the selling stockholder can presently estimate the amount of compensation that any agent will receive from any purchasers of shares of our Common Stock sold by the selling stockholder.

We know of no existing arrangements between the selling stockholder or any other stockholder, broker, dealer, underwriter or agent relating to the sale or distribution of the shares of our Common Stock offered by this prospectus.

We may from time to time file with the SEC one or more supplements to this prospectus or amendments to the registration statement of which this prospectus forms a part to amend, supplement or update information contained in this prospectus, including, if and when required under the Securities Act, to disclose certain information relating to a particular sale of shares offered by this prospectus by the selling stockholder, including the names of any brokers, dealers, underwriters or agents participating in the distribution of such shares by the selling stockholder, any compensation paid by the selling stockholder to any such brokers, dealers, underwriters or agents, and any other required information.

We will pay the expenses incident to the registration under the Securities Act of the offer and sale of the shares of our Common Stock covered by this prospectus by the selling stockholder. We also have agreed to reimburse 3i up to $25,000 for the fees and disbursements of its counsel in connection with the offering, payable upon execution of the Purchase Agreement.16

WeTable ~~also have agreed to indemnify 3i and certain other persons against certain liabilities in connection with the offering~~ of shares of our Common Stock offered hereby, including liabilities arising under the Securities Act or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. 3i has agreed to indemnify us against liabilities under the Securities Act that may arise from certain written information furnished to us by 3i specifically for use in this prospectus or, if such indemnity is unavailable, to contribute amounts required to be paid in respect of such liabilities. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to our directors, officers, and controlling persons, we have been advised that in the opinion of the SEC this indemnification is against public policy as expressed in the Securities Act and is therefore, unenforceable.Contents

~~The~~We ~~total~~will pay the expenses ~~for~~incident to the ~~offering~~registration ~~were~~under ~~approximately~~the Securities Act of the offer and sale of the shares of our Common Stock covered by this prospectus by the selling stockholder. We also have agreed to reimburse 3i up to $~~308~~25,~~116~~000 for the fees and disbursements of its counsel in connection with the offering, payable upon execution of the 3i Purchase Agreement.

3iWe ~~has~~also ~~represented~~have agreed to usindemnify ~~that~~the atselling nostockholder and ~~time~~certain ~~prior to~~other ~~the~~persons ~~date~~against ofcertain liabilities in connection with the ~~Purchase~~offering ~~Agreement~~of ~~has~~shares 3iof orour ~~its~~Common ~~agents~~Stock offered hereby, ~~representatives~~including orliabilities ~~affiliates~~arising ~~engaged~~under inthe orSecurities ~~effected~~Act or, inif ~~any~~such ~~manner~~indemnity ~~whatsoever~~is unavailable, ~~directly~~ orto ~~indirectly,~~contribute ~~any~~amounts ~~short~~required ~~sale~~to ~~(as~~be paid in respect of such ~~term~~liabilities. is3i ~~defined~~has inagreed ~~Rule~~to ~~200~~indemnify ofus ~~Regulation~~against ~~SHO~~liabilities ofunder the ~~Exchange~~Securities Act) ofthat ~~our~~may ~~Common~~arise ~~Stock or~~from ~~any~~certain ~~hedging~~written ~~transaction~~information furnished to us by 3i specifically for use in this prospectus or, ~~which~~if ~~establishes~~such aindemnity ~~net~~is ~~short~~unavailable, ~~position~~to ~~with~~contribute ~~respect~~amounts required to ~~our~~be ~~Common~~paid ~~Stock~~in respect of such liabilities. 3iInsofar ~~has~~as ~~agreed~~indemnification ~~that~~for ~~during~~liabilities ~~the~~arising ~~term of~~under the ~~Purchase~~Securities ~~Agreement,~~Act ~~neither~~may ~~3i,~~be ~~nor~~permitted ~~any~~to ofour ~~its~~directors, ~~agents~~officers, ~~representatives~~and orcontrolling ~~affiliates~~persons, ~~will~~we ~~enter~~have ~~into~~been oradvised ~~effect,~~that ~~directly~~in orthe ~~indirectly, any~~opinion of the ~~foregoing~~SEC ~~transactions~~this indemnification is against public policy as expressed in the Securities Act and is therefore, unenforceable.

The total expenses for the convertible note offering were approximately $60,000.

The selling stockholder has represented to us that at no time prior to the date of the 3i Purchase Agreement has the selling stockholder or its agents, representatives or affiliates engaged in or effected, in any manner whatsoever, directly or indirectly, any short sale (as such term is defined in Rule 200 of Regulation SHO of the Exchange Act) of our Common Stock or any hedging transaction, which establishes a net short position with respect to our Common Stock. The selling stockholder has agreed that during the term of the 3i Purchase Agreement, neither 3i, nor any of its agents, representatives or affiliates will enter into or effect, directly or indirectly, any of the foregoing transactions.

We have advised the selling stockholder that it is required to comply with Regulation M promulgated under the Exchange Act. With certain exceptions, Regulation M precludes the selling stockholder, any affiliated purchasers, and any broker-dealer or other person who participates in the distribution from bidding for or purchasing, or attempting to induce any person to bid for or purchase any security which is the subject of the distribution until the entire distribution is complete. Regulation M also prohibits any bids or purchases made in order to stabilize the price of a security in connection with the distribution of that security. All of the foregoing may affect the marketability of the securities offered by this prospectus.

This offering will terminate on the date that all shares of our Common Stock offered by this prospectus have been sold by the selling stockholder.

Our Common Stock is currently listed on The Nasdaq Capital Market under the symbol “CAPS.”

1617

Table of Contents

LEGAL MATTERS

Certain legal matters with respect to the securities offered hereby will be passed upon by Lucosky Brookman LLP, Woodbridge, New Jersey.

EXPERTS

The consolidated financial statements as of December 31, ~~2024~~ 2025 and ~~2023~~2024, and for each of the years in the two-year period ended December 31, ~~2024~~2025, incorporated by reference in this prospectus, have been audited by GBQ Partners LLC, an independent registered public accounting firm. Such financial statements are incorporated by reference in reliance upon the report of such firm given their authority as experts in accounting and auditing.

INCORPORATION OF CERTAIN INFORMATION BY REFERENCE

The SEC allows us to “incorporate by reference” information from other documents that we file with it, which means that we can disclose important information to you by referring you to those publicly available documents. The information incorporated by reference is considered to be part of this prospectus. Information in this prospectus supersedes information incorporated by reference that we filed with the SEC prior to the date of this prospectus. We incorporate by reference into this prospectus and the registration statement of which this prospectus is a part the information or documents listed below that we filed with the SEC:

● Our Annual Report on Form 10-K for the year ended December 31, ~~2024~~2025 filed with the SEC on ~~March~~April 3116, ~~2025~~2026;

● Our Quarterly ~~Reports~~Report on Form 10-Q for the period ended March 31, ~~2025~~2026 ~~and June 30, 2025~~ filed with the SEC on May 1520, ~~2025 ad August 15, 2025, respectively~~2026;

● Our Current Reports on Form 8-K filed with the SEC on ~~March~~January 119, ~~2025~~2026, ~~April,~~January ~~1, 2025, June~~ 27, ~~2025~~2026, ~~June~~February 3017, ~~2025~~2026, ~~August~~April 416, ~~2025~~2026, ~~August~~June 1512, ~~2025~~2026, ~~August 18, 2025, October 6, 2025,~~ and ~~October~~June 2322, ~~2025~~2026; and

●	The description of our Common Stock contained in our registration statement on Form 8-A12B filed with the SEC on February 14, 2025.

●	Notwithstanding the statements in the preceding paragraphs, no document, report or exhibit (or portion of any of the foregoing) or any other information that we have “furnished” to the SEC pursuant to the Exchange Act shall be incorporated by reference into this prospectus.

We also incorporate by reference into this prospectus all documents (other than current reports furnished under Item 2.02 or Item 7.01 of Form 8-K and exhibits filed on such form that are related to such items) that are filed by us with the SEC pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act (i) after the date of the initial filing of the registration statement of which this prospectus forms a part and prior to effectiveness of the registration statement, or (ii) after the date of this prospectus but prior to the termination of the offering. These documents include periodic reports, such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, as well as proxy statements on Schedule 14A.

Upon request, we will provide, without charge, to each person, including any beneficial owner, to whom a copy of this prospectus is delivered a copy of the documents incorporated by reference into this prospectus. You may request a copy of these filings, and any exhibits we have specifically incorporated by reference as an exhibit in this prospectus, at no cost by writing or telephoning us at the following address:

Capstone Holding Corp.

Attn: Chief Executive Officer

~~5141~~18400 W.76th ~~122nd Street~~Avenue

~~Alsip~~Tinley Park, IL ~~60803~~

(708) 371-0660

Any statement contained in a document incorporated or deemed to be incorporated by reference in this prospectus will be deemed modified, superseded or replaced for purposes of this prospectus to the extent that a statement contained in this prospectus modifies, supersedes or replaces such statement.

1718

Table of Contents

WHERE YOU CAN FIND MORE INFORMATION

For further information with respect to our company and the securities being offered hereby, reference is hereby made to the registration statement, including the exhibits thereto and the financial statements, notes, and schedules filed as a part thereof.

No person is authorized to give you any information or make any representation other than those contained or incorporated by reference in this prospectus. Any such information or representation must not be relied upon as having been authorized. Neither the delivery of this prospectus nor any sale made hereunder shall, under any circumstances, create any implication that there has been no change in our affairs since the date of the prospectus.

We are subject to the informational requirements of the Exchange Act, and must file reports, proxy statements and other information with the SEC, such as current, quarterly and annual reports on Forms 8-K, 10-Q and 10-K, respectively. These filings are available on the SEC’s website at http://www.sec.gov.

1819

~~4,306,664~~Table ~~Shares~~ of ~~Common Stock~~Contents

4,407,334 Shares of Common Stock

Capstone Holding Corp.

PROSPECTUS

, ~~2025~~ 2026

Table of Contents

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

Item 13. Other Expenses of Issuance and Distribution

The following table sets forth the costs and expenses, other than underwriting discounts and commissions, to be paid by the Registrant in connection with the issuance and distribution of the Common Stock being registered. All amounts other than the SEC registration fees are estimates.

	Amount to be Paid
SEC Registration Fees	$	~~616~~156
Legal Fees and Expenses	$	5015,000
Accounting Fees and Expenses	$	5,000
Total	$	5520,~~616~~156

Item 14. Indemnification of Directors and Officers

The restated certificate of incorporation, as amended, and the bylaws of the Company provide that the Company shall indemnify its officers, directors and certain others to the fullest extent permitted by the Delaware General Corporation Law (“DGCL”). Section 145 of the DGCL, provides in pertinent part as follows:

(a)

A corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that his conduct was unlawful.

(b)

A corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (including attorneys’ fees) actually and reasonably incurred by him in connection with the defense or settlement of such action or suit if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue or matter as to which such person shall have been adjudged to be liable to the corporation unless and only to the extent that the Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, such person is fairly and reasonably entitled to indemnity for such expenses which the Court of Chancery or such other court shall deem proper.

(c)

To the extent that a present or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to in subsections (a) and (b) of this Section, or in defense of any claim, issue or matter therein, he shall be indemnified against expenses (including attorneys’ fees) actually and reasonably incurred by him in connection therewith.

(d)

Any indemnification under subsections (a) and (b) of this Section (unless ordered by a court) shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the present or former director, officer, employee or agent is proper in the circumstances because he has met the applicable standard of conduct set forth in subsections (a) and (b) of this Section. Such determination shall be made with respect to a person who is a director or officer at the time of such determination (1) by a majority vote of directors who are not parties to such action, suit or proceeding, even though less than a quorum, (2) by a committee of such directors designated by majority vote of such directors, even though less than a quorum, (3) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion or (4) by the stockholders.

(e)

Expenses (including attorneys’ fees) incurred by an officer or director in defending any civil, criminal, administrative or investigative action, suit or proceeding may be paid by the corporation in advance of the final disposition of such action, suit or proceeding upon receipt of an undertaking by or on behalf of such director or officer to repay such amount if it shall ultimately be determined that he is not entitled to be indemnified by the corporation as authorized in this section. Such expenses (including attorneys’ fees) incurred by former directors and officers or other employees and agents may be so paid upon such terms and conditions, if any, as the corporation deems appropriate.

II-1

Table of Contents

(f)

The indemnification and advancement of expenses provided by, or granted pursuant to, the other subsections of this Section shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in his official capacity and as to action in another capacity while holding such office.

(g)

A corporation shall have power to purchase and maintain insurance on behalf of any person, who is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against any liability asserted against him and incurred by him in any such capacity, or arising out of his status as such, whether or not the corporation would have the power to indemnify him against such liability under this Section.

(h)

For purposes of this Section, references to “the corporation” shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under this Section with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

(i)

For purposes of this Section, references to “other enterprises” shall include employee benefit plans; references to “fines” shall include any excise taxes assessed on a person with respect to any employee benefit plan; and references to “serving at the request of the corporation” shall include any service as a director, officer, employee or agent of the corporation, which imposes duties on, or involves services by, such director, officer, employee, or agent of the corporation, which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interests of the corporation” as referred to in this Section.

(j)

The indemnification and advancement of expenses provided by, or granted pursuant to, this Section shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a director, officer, employee or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

As permitted by Section 102(b)(7) of the DGCL, the Company’s restated certificate of incorporation, as amended, eliminates the personal liability of each of the Company’s directors to the Company and its stockholders for monetary damages for breaches of his or her fiduciary duties as a director except that a director shall be liable to the extent provided by applicable law (i) for breach of the director’s duty of loyalty to the Company or its stockholders, (ii) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, (iii) pursuant to Section 174 of the Delaware General Corporation Law or (iv) for any transaction from which the director derived an improper personal benefit.

Item 15. Recent Sales of Unregistered Securities

The following sets forth information regarding all unregistered securities sold by us in transactions that were exempt from the requirements of the Securities Act in the last three years. Except where noted, all of the securities discussed in this Item 15 were all issued in reliance on the exemption under Section 4(a)(2) of the Securities Act.

II-2

Table of Contents

On February 25, 2025, the Company entered into a subscription agreement with Nectarine Management LLC, an entity controlled by Michael Toporek, for the sale and issuance of 985,063 shares of Series B Preferred Stock for a total purchase price of $30,000. The shares of Series B Preferred Stock were issued on March 6, 2025.

On March 7, 2025, all of TotalStone’s outstanding Class B and Class C membership interests were exchanged for 3,782,641 shares of the Common Stock.

On September 30, 2025, the Company entered into an exchange agreement (the “Exchange Agreement”) with BP Peptides, LLC and Brookstone Partners Acquisition XXI Corporation (together, the “Brookstone entities”), entities controlled by Matthew Lipman, the Chief Executive Officer of the Company and Michael Toporek, the Chairman of the Board of Directors. Pursuant to the Exchange Agreement, the Brookstone entities exchanged notes with an aggregate principal and interest amount of approximately $1.94 million for 642,276 and 825,067 shares, respectively, of the Company’s newly created Series Z 8% Non-Convertible Preferred Stock. The exchange was based on the closing price of the ~~of the~~ Common Stock on Nasdaq of $1.32 per share on the day prior to the transaction.

On February 12, 2026, in connection with a letter agreement with 3i, LP, the Company issued warrants to purchase 405,000 shares of Common Stock at an exercise price of $0.01 per share.

II-3

Table of Contents

Item 16. Exhibits and Financial Statement Schedules

(a) EXHIBITS

We have filed herewith, or, as noted, incorporated by reference herein, the exhibits listed on the accompanying Exhibit Index of this registration statement and below in this Item 16:

Exhibit		Incorporated by Reference			Filed or Furnished
Number	Exhibit Description	Form	Exhibit	Filing Date	Herewith
2.2	Asset Purchase Agreement, dated November 30, 2025, by and between TotalStone, LLC, Continental Stone Industries Inc. and Jeffery Leech	8-K	2.1	12/02/2025
2.3	Share Purchase Agreement, dated December 1, 2025, by and between InStone Canada Corp., Dream Family Holdings Ltd, Robert Jahnsen, The Jeffery Leech Family Trust, Jeffery Leech, Wendy Chiavacci, Michael Siemens, Nathan Thompson, Curt Trierweiler, and Jeffery Leech	8-K	2.2	12/02/2025
3.1	Restated Certificate of Incorporation, dated April 22, 2005, as amended on May 21, 2010, June 22, 2015, August 22, 2019, February 10, 2021, and February 18, 2022	S-1	3.1	12/31/2024
3.2	Bylaws of the Company	S-8	4.2	06/23/2015
3.3	Amended and Restated Certificate of Designation of Series A Preferred Stock, dated June 22, 2015	S-1	3.3	12/31/2024
3.4	Form of Certificate of Amendment to the Restated Certificate of Incorporation	S-1	3.4	2/6/2025
3.5	Form of Certificate of Designation of Series B Preferred Stock	S-1	3.5	2/6/2025
3.6	Certificate of Designation of Preferences, Rights and Limitations of Series Z 8% Non-Convertible Preferred Stock	8-K	3.1	10/6/2025
4.1	~~Amended~~Common ~~and~~Stock ~~Restated Warrant to~~ Purchase ~~Common Stock~~Warrant, dated ~~March~~February 2012, ~~2020~~2026, issued to ~~BP Peptides~~3i, ~~LLC~~LP	S10-1K	4.25	124/3116/~~2024~~2026
4.2	Warrant to Purchase Common Stock, dated January 30, 2018, issued to BP Peptides, LLC	8-K	10.2	02/01/2018
5.1	Opinion of Lucosky Brookman LLP				X
10.1	Form of Indemnification Agreement	S-1	10.1	2/6/2025
10.1†	Securities Purchase Agreement, dated July 29, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	10.1	8/4/2025
10.2	~~Series~~Senior BSecured ~~Preferred~~Convertible ~~Stock and Warrant Purchase Agreement~~Note, dated ~~August~~July 2529, ~~2016~~2025, issued by ~~and~~Capstone ~~between~~Holding ~~LipimetiX Development, Inc~~Corp. ~~and~~to ~~Capstone~~3i, ~~Therapeutics Corp.~~LP	8-K	10.12	088/264/~~2016~~2025
10.3	Securities Purchase, Loan and Security Agreement dated July 14, 2017, by and between Capstone Therapeutics Corp. and BP Peptides, LLC	8-K	10.1	07/17/2017
10.3†	Registration Rights Agreement, dated July 29, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	10.3	8/4/2025
10.4	First Amendment to Securities Purchase Loan and Security Agreement dated January 30, 2018, by and between Capstone Therapeutics, Corp. and BP Peptides, LLC	8-K	10.1	02/01/2018
10.4†	Security Agreement, dated July 29, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	10.4	8/4/2025
10.5	Senior Secured Convertible Note, dated October 22, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	4.1	10/23/2025
10.6	Conversion Price Voluntary Adjustment Notice, dated October 5, 2025	8-K	10.2	10/6/2025
10.7	Conversion Price Voluntary Adjustment Notice	8-K	10.1	11/28/2025
10.8	Conversion Price Voluntary Adjustment Notice dated April 16, 2026	8-K	10.1	4/16/2026
21.1	List of Subsidiaries	S-1	21.1	12/31/2024
23.1	Consent of GBQ Partners LLC				X
23.2	Consent of Lucosky Brookman LLP (included in Exhibit 5.1)				X
107	Filing Fee Table				X

II-3

Exhibit Number		Incorporated by Reference			Filed or Furnished
	Exhibit Description	Form	Exhibit	Filing Date	Herewith
10.5	Second Amendment to Securities Purchase Loan and Security Agreement dated March 15, 2019, by and between Capstone Therapeutics, Corp. and BP Peptides, LLC	8-K	10.1	03/19/2019
10.6	Third Amendment to Securities Purchase Loan and Security Agreement dated March 27, 2020, by and between Capstone Therapeutics, Corp. and BP Peptides, LLC	S-1	10.6	12/31/2024
10.7	Fourth Amendment to Securities Purchase Loan and Security Agreement dated March 15, 2021, by and between Capstone Therapeutics, Corp. and BP Peptides, LLC	S-1	10.7	12/31/2024
10.8	Termination of Securities Purchase, Loan and Security Agreement, dated November 13, 2024, by and between Capstone Holding Corp. and BP Peptides, LLC	S-1	10.8	12/31/2024
10.9	Promissory Note dated July 14, 2017, payable to BP Peptide, LLC	8-K	10.2	07/17/2017
10.10	Fourth Amended and Restated Operating Agreement of TotalStone, LLC, dated March 27, 2020 and Effective as of November 26, 2021	S-1	10.10	12/31/2024
10.11	Consent and First Amendment to the Fourth Amended and Restated Operating Agreement of TotalStone, LLC, dated March 27, 2020 and Effective as of November 26, 2021	S-1	10.11	12/31/2024
10.12	Second Amended and Restated Credit Agreement, dated March 8, 2023, by and between TotalStone, LLC, Northeast Masonry Distributors, LLC, TotalStone Properties, LLC, and Stream Finance, LLC	S-1	10.12	12/31/2024
10.13	Consent, Waiver and Amendment to Second Amended and Restated Credit Agreement, dated October 18, 2024, by and between TotalStone, LLC, Northeast Masonry Distributors, LLC, TotalStone Properties, LLC, and Stream Finance, LLC	S-1	10.13	12/31/2024
10.14	Non-negotiable Secured Subordinated Promissory Note by and between TotalStone, LLC and Northeast Masonry Distributors, LLC	S-1	10.14	12/31/2024
10.15	Non-negotiable Secured Subordinated Contingent Value Promissory Note by and between NEM Purchaser, LLC and Northeast Masonry Distributors, LLC	S-1	10.15	12/31/2024
10.16	Brookstone Partners IAC, Inc. Amended and Restated Management Fee Agreement Dated March 1, 2020 by and between TotalStone, LLC and Brookstone Partners IAC, Inc.	S-1	10.16	12/31/2024
10.17	Management Fee Agreement, dated March 27, 2020, by and between TotalStone, LLC and Capstone Holding Corp.	S-1	10.17	12/31/2024
10.18	Amendment of Amended and Restated Management Fee and Transaction Fee Agreement, dated November 15, 2024, by and between Capstone Holding Corp., TotalStone, LLC, and Brookstone Partners IAC, Inc.	S-1	10.18	12/31/2024
10.19	Limited Payment Guarantee dated March 31, 2021, between Capstone Therapeutics Corp. and Brookstone Acquisition Partners XXI Corporation	S-1	10.19	12/31/2024
10.20	Series B-2 Preferred Stock Purchase Agreement, dated August 11, 2017, by and between Capstone Therapeutics Corp. and LipimetiX Development, Inc.	10-Q	10.1	08/14/2017
10.21	First Amendment to the Amended and Restated Stockholders Agreement of LipimetiX Development, Inc., dated August 11, 2017	10-Q	10.2	08/14/2017
10.22	Joinder of August 25, 2016 Registration Rights Agreement of LipimetiX Development, Inc., dated August 11, 2017	10-Q	10.3	08/14/2017
10.23	LipimetiX Development, Inc. Contingent Value Rights Agreement, dated August 23, 2019, by and among Capstone Therapeutics Corp., the Shareholder Representative and Computershare Inc., and Computershare Trust Company, N.A., as Rights Agent	S-1	10.23	12/31/2024

II-4

Exhibit Number		Incorporated by Reference			Filed or Furnished
	Exhibit Description	Form	Exhibit	Filing Date	Herewith
10.24	Second Amended and Restated Promissory Note, dated November 11, 2024, issued by Capstone Holding Corp. to BP Peptides, LLC	S-1	10.24	12/31/2024
10.25	Revolving Credit, Term Loan and Security Agreement by and among TotalStone, LLC, Northeast Masonry Distributors, LLC, TotalStone Properties, LLC, and Berkshire Bank, dated December 20, 2017	S-1	10.25	12/31/2024
10.26	Amendments to Revolving Credit, Term Loan and Security Agreement Still in Effect As of December 30, 2024	S-1	10.26	12/31/2024
10.27	Second Amended and Restated Revolving Credit Note Issued by TotalStone, LLC and Northeast Masonry Distributors, LLC to Berkshire Bank, dated November 14, 2019	S-1	10.27	12/31/2024
10.28	Term Note Issued by TotalStone, LLC, Northeast Masonry Distributors, LLC, and TotalStone Properties, LLC to Berkshire Bank, dated November 22, 2021	S-1	10.28	12/31/2024
10.29	Second Amended and Restated Promissory Note Issued by Capstone Holding Corp. to Brookstone Partners Acquisition XXI Corporation, dated November 11, 2024	S-1	10.29	12/31/2024
10.30	Form of Master Exchange Agreement by and among Capstone Holding Corp., TotalStone, LLC, and TotalStone’s Class B Member	S-1	10.30	2/6/2025
10.31	Form of Subscription Agreement for Purchase of Series B Preferred Stock	S-1	10.31	2/6/2025
10.32	Executive Employment Agreement by and between Capstone Holding Corp. and Matthew Lipman	S-1	10.32	2/6/2025
10.33	Form of Underwriting Agreement	S-1	1.1	2/6/2025
10.34†	Common Stock Purchase Agreement, dated May 14, 2025, by and between Capstone Holding Corp. and Tumim Stone Capital, LLC	S-1	10.34	6/9/2025
10.35†	Registration Rights Agreement, dated May 14, 2025, by and between Capstone Holding Corp. and Tumim Stone Capital, LLC	S-1	10.35	6/9/2025
10.36†	Securities Purchase Agreement, dated July 29, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	10.1	8/4/2025
10.37	Senior Secured Convertible Note, dated July 29, 2025, issued by Capstone Holding Corp. to 3i, LP	8-K	10.2	8/4/2025
10.38†	Registration Rights Agreement, dated July 29, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	10.3	8/4/2025
10.39†	Security Agreement, dated July 29, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	10.4	8/4/2025
10.40†	Membership Interest Purchase Agreement, by and between Capstone Holding Corp., D22L, Inc., David Clary, and Stuart Powell	8-K	2.1	8/18/2025
10.41	Exchange Agreement by and among Capstone Holding Corp., BP Peptides, LLC, and Brookstone Partners Acquisition XXI Corporation, dated September 30, 2025	8-K	10.1	10/6/2025
10.42	Senior Secured Convertible Note, dated October 22, 2025, by and between Capstone Holding Corp. and 3i, LP	8-K	4.1	10/23/2025
21.1	List of Subsidiaries	S-1	21.1	12/31/2024
23.1	Consent of GBQ Partners LLC				X
23.2	Consent of Lucosky Brookman LLP (included in Exhibit 5.1)				X
107	Filing Fee Table				X

†	Schedules and exhibits to this agreement have been omitted. A copy of any omitted schedule and/or exhibit will be furnished to the SEC upon request.

II-54

Table of Contents

(b) Financial statement schedules.

All schedules have been omitted because either they are not required, are not applicable or the information is otherwise set forth in the financial statements and related notes thereto.

Item 17. Undertakings

The undersigned registrant hereby undertakes:

(1)	To file, during any period in which offers, or sales are being made, a post-effective amendment to this registration statement:

(i)	To include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

(ii)

To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the SEC pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than a 20 percent change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement;

(iii)

To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

(2)

That for the purpose of determining any liability under the Securities Act of 1933 each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(3)	To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.

(4)

That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5)	That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities:

The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

(i)	Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;

(ii)	Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;

II-65

Table of Contents

(iii)

The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and

(iv)	Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.

(6)	The undersigned Registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser.

(7)

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant pursuant to the provisions described in Item 14 above, or otherwise, the Registrant has been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

(8)	The undersigned Registrant hereby undertakes:

(i)

That for purposes of determining any liability under the Securities Act, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the Registrant pursuant to Rule 424(b)(1) or (4), or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

(ii)

That for the purpose of determining any liability under the Securities Act, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and this offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

II-76

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of ~~Alsip~~Tinley Park, Illinois, on ~~October~~June 2326, ~~2025~~2026.

	Capstone Holding Corp.

	By:	/s/ Matthew E. Lipman
		Matthew E. Lipman
		Chief Executive Officer

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated:

Signature	Title	Date
/s/ Matthew E. Lipman	Chief Executive Officer and Director	~~October~~June 2326, ~~2025~~2026
Matthew E. Lipman	(Principal Executive Officer)
/s/ Edward C. Schultz	Chief Financial Officer	~~October~~June 2326, ~~2025~~2026
Edward C. Schultz	(Principal Financial and Accounting Officer)
/s/ Michael M. Toporek	Chairman	~~October~~June 2326, ~~2025~~2026
Michael M. Toporek, III
Michael M. Toporek
/s/ Charles Dana	Director	~~October~~June 2326, ~~2025~~2026
Charles Dana
/s/ John M. Holliman	Director	~~October~~June 2326, ~~2025~~2026
John M. Holliman, III
/s/ Gordon Strout	Director	~~October~~June 2326, ~~2025~~2026
Gordon Strout
/s/ Fredric J. Feldman	Director	~~October~~June 2326, ~~2025~~2026
Fredric J. Feldman
/s/ Elwood D. Howse	Director	~~October~~June 2326, ~~2025~~2026
Elwood D. Howse

II-87

Filing Compare · Capstone Holding Corp.