CAPSHIGH SIGNALOPERATIONAL10-K

CAPS has transformed from a single-subsidiary distributor into a multi-subsidiary platform spanning 38 U.S. states and two Canadian provinces through significant expansion.

The company has evolved from describing itself as "a leading distributor" focused primarily on Instone to positioning as "a national, technology-enabled building products distribution and installation platform" operating three major subsidiaries across North America. This represents a fundamental shift in business scale and complexity that significantly expands market reach but also introduces new operational and integration risks.

Comparing 2026-04-16 vs 2025-03-31View on EDGAR →
FINANCIAL ANALYSIS

The balance sheet reflects substantial expansion with current assets growing meaningfully to $23.0M, driven primarily by inventory increases to $17.1M and accounts receivable growth to $4.9M. Total liabilities increased notably to $38.9M with current liabilities reaching $22.9M, while total debt grew to $13.1M, indicating the company leveraged both debt and working capital to fund this expansion. Gross profit grew modestly to $10.8M while SG&A expenses increased significantly to $14.4M, suggesting the operational scaling is still in progress with integration costs impacting near-term profitability.

FINANCIAL STATEMENT CHANGES
Total Liabilities
Balance Sheet
+88.4%
$20.7M→$38.9M

Liabilities grew 88.4% — significant increase in debt or obligations, assess impact on financial flexibility.

Current Liabilities
Balance Sheet
+82.7%
$12.6M→$22.9M

Current liabilities surged 82.7% — significant near-term obligations; verify ability to meet short-term debt.

Current Assets
Balance Sheet
+79.7%
$12.8M→$23.0M

Current assets grew 79.7% — improving short-term liquidity or inventory/receivables build.

Inventory
Balance Sheet
+77.1%
$9.6M→$17.1M

Inventory surged 77.1% — growing significantly faster than typical sales pace; potential demand softening or supply chain overcorrection.

Accounts Receivable
Balance Sheet
+76.1%
$2.8M→$4.9M

Receivables surged 76.1% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.

Total Debt
Balance Sheet
+54.6%
$8.4M→$13.1M

Debt increased 54.6% — substantial leverage increase; assess whether deployed for growth or covering losses.

SG&A Expense
P&L
+40.8%
$10.2M→$14.4M

SG&A up 40.8% — significant increase in sales or administrative costs, monitor impact on operating leverage.

Gross Profit
P&L
+12.8%
$9.6M→$10.8M

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

LANGUAGE CHANGES
NEW — 2026-04-16
PRIOR — 2025-03-31
ADDED
The registrant had 11,453,707 shares of its common stock, par value $0.0005, issued and outstanding as of April 15, 2026.
("Capstone," "we," "us," or the "Company") is a national, technology-enabled building products distribution and installation platform.
Through our three operating subsidiaries Instone (a trade name of TotalStone, LLC (dba Instone )), Canadian Stone Industries (operated through Fraser Canyon Holdings Inc.
and its subsidiaries, collectively "CSI"), and Carolina Stone (operated through Carolina Stone Holdings, LLC and its subsidiary, Carolina Stone Distributors, LLC) we distribute and install thin veneer stone, natural stone, manufactured stone, and related masonry and hardscape products for residential and commercial construction markets across 38 U.S.
states and two Canadian provinces.' Instone, founded over 30 years ago, is the largest wholesale distributor of thin veneer masonry products in the United States, operating from five distribution centers in the Northeast, Midwest, Mid-Atlantic, and West Coast.
CSI is a leading wholesale distributor of natural and manufactured stone products in Canada, 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-family projects 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 diverse base of masonry dealers, contractors, builders, and homeowners.
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.
In addition, from the Company s acquisition of Instone in April 2020 through December 31, 2025, Instone s revenues have increased from approximately $32.2 million to approximatel y $44.2 million.
REMOVED
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C.
The registrant had 5,190,251 shares of its common stock, par value $0.0005, issued and outstanding as of March 31, 2025.
The existing network is comprised of Instone, a leading distributor of thin veneer stone and related masonry products in the United States, serving both residential and commercial construction markets.
Founded over 30 years ago, we have grown to become the largest wholesale distributor in the thin veneer masonry products industry.
Our comprehensive product offering includes a wide range of manufactured and natural stone products, supported by a strategically located distribution network designed to provide reliable and efficient service to our diverse customer base.
Our success is driven by our deep industry expertise, long-standing customer relationships, and a relentless focus on operational excellence.
In addition, from the Company s acquisition of Instone in April 2020 through December 31, 2024, Instone s revenues have increased from approximately $32.2 million to approximately $45.8 million.
Since 2006, the Company has successfully integrated four acquisitions.
The current service area of the Company, which includes 31 states (with such states having over 60% of American households), provides a good basis on which to make both scale and scope acquisitions.
This growth, coupled with consistent earnings performance, is expected to drive substantial shareholder value and enhance our market positioning 2 Our current operating company, Instone, intends to drive sustainable growth, expands its geographic presence in the building products industry, and delivers superior value to its customers, shareholders, and other stakeholders.
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