Capstone Holding Corp. Restates Weighted Shares; Revises 2025 EPS

What Happened
Capstone Holding Corp. announced on August 7, 2026 that its CFO concluded previously issued unaudited quarterly financial statements for parts of 2025 should no longer be relied upon for the weighted average common shares and related basic and diluted net loss per share. The Audit Committee concurred on August 10, 2026. The company is filing amended Form 10‑Q/A for the quarters ended June 30, 2025; September 30, 2025; and the March 31, 2026 10‑Q (where comparative amounts are presented) to correct weighted average share counts, per‑share amounts and a schedule of potentially dilutive securities. Net loss amounts, balance sheets, statements of cash flows and the 2025 Form 10‑K are not affected.

Key Details

• The error was using period‑end shares (or otherwise incorrect day‑weighting) instead of time‑weighted average shares when calculating EPS. Management identified a material weakness in internal control over that computation and review.
• Three months ended March 31, 2025: weighted average shares changed from 5,190,251 to 1,555,566; net loss per share revised from $(0.47) to $(1.56); pro forma EPS from $(0.29) to $(0.97). Net loss ($2.433M) unchanged.
• Six months ended June 30, 2025: weighted average shares restated from 5,406,305 to 3,405,568; EPS revised from $(0.58) to $(0.92). Three and nine month periods to Sept 30, 2025 also show adjusted share counts and modest EPS changes (e.g., nine months EPS from $(1.45) to $(1.22)).
• The company will describe the material weakness and remediation status in the amended quarterly reports.

Why It Matters
For investors, the restatement changes per‑share loss metrics (EPS) used to compare performance and calculate per‑share ratios, but it does not change the company’s reported net losses or balance sheet totals. The disclosure of a material weakness in controls over EPS calculation is notable because it raises concerns about the company’s financial reporting processes until remediation is completed. The company is correcting the public filings via amended 10‑Qs to provide accurate per‑share information.