44 unchanged sentences
We believe that our audits provide a reasonable basis for our opinion.
+Added: Critical Audit Matter
+Added: The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that:
+Added: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments.
+Added: The Communication of the critical audit matter does not alter in any way our opinion on the financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the account or disclosure to which it relates.
+Added: Evaluation of Sufficiency of Audit Evidence over Revenue
+Added: During the year ended December 31, 2020, the Company’s net sales increased from approximately $47 million to approximately $103 million as the result of increased sales driven by the COVID-19 pandemic.
+Added: This large increase in sales included large sales to new customers and a significant change in product mix due to the increase in sales of disposable protective apparel.
+Added: As a result of the significant increases in sales volume that occurred during 2020, we identified the evaluation of the sufficiency of audit evidence over revenue as a critical audit matter as it required especially subjective auditor judgment in determining the appropriate level of audit evidence to address the change in volume and nature of revenue transactions.
+Added: Our audit procedures over the Company’s revenue included, among others, sending confirmations to certain customers as third-party evidence regarding the existence of sales, detail testing of a sample of transactions and reconciliation to underlying documents as well as performance of analytics over sales volume and gross margins.
/s/Tanner LLC
6 unchanged sentences
Cash and cash equivalents
−Removed: Accounts receivable, net of allowance for doubtful accounts of $53,000 and $64,000 as of December 31, 2019 and 2018, respectively
+Added: Accounts receivable, net of allowance for doubtful accounts of $71,000 as of December 31, 2020 and $53,000 as of December 31, 2019
Accounts receivable, related party
−Removed: Right-of-use assets
Prepaid expenses
2 unchanged sentences
Definite-lived intangible assets, net
−Removed: Right-of-use assets, net of current portion
−Removed: Equity investments in unconsolidated affiliate
+Added: Right-of-use assets
+Added: Equity investment in unconsolidated affiliate
Liabilities and Shareholders' Equity
2 unchanged sentences
Accrued liabilities
+Added: Customer advance payments of orders
Lease liabilities
6 unchanged sentences
50,000,000 shares authorized;
−Removed: 12,885,273 and 13,502,684 shares outstanding as of December 31, 2019 and 2018, respectively
+Added: 13,419,847 and 12,885,273 shares outstanding as of December 31, 2020 and December 31, 2019, respectively
Additional paid-in capital
14 unchanged sentences
Equity in income of unconsolidated affiliate
−Removed: Gain/(loss) from marketable securities
+Added: Gain (loss) on marketable securities
Interest income, net
−Removed: Total other income, net
+Added: Total other income
Income before provision for income taxes
7 unchanged sentences
Consolidated Statements of Shareholders ’ Equity
−Removed: Comprehensive
−Removed: Income (Loss)
Balance as of December 31, 2018
2 unchanged sentences
Options exercised
−Removed: Cumulative-effect adjustment of change in accounting for unrealized loss on marketable securities
Balance as of December 31, 2019
20 unchanged sentences
Accounts payable and accrued liabilities
+Added: Customer advance payments of orders
Lease liabilities
8 unchanged sentences
Net cash used in financing activities
−Removed: Decrease in cash
+Added: Increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of the year
6 unchanged sentences
Alpha Pro Tech, Ltd.
−Removed: (“Alpha Pro Tech” or the “Company”) is in the business of protecting people, products and environments.
−Removed: The Company accomplishes this by developing, manufacturing and marketing a line of building supply products for the new home and re-roofing markets;
−Removed: a line of disposable protective apparel for the cleanroom, the industrial markets and the pharmaceutical markets;
−Removed: and a line of infection control products for the medical and dental markets.
−Removed: The Building Supply segment consists of construction weatherization products, such as housewrap and synthetic roof underlayment, as well as other woven material.
+Added: (“Alpha Pro Tech,” the “Company,” “we”, “us” or “our”) is in the business of protecting people, products and environments.
+Added: The Company accomplishes this by developing, manufacturing and marketing a line of building supply products for the new home and re-roofing markets and a line of disposable protective apparel for the cleanroom, industrial, pharmaceutical, medical and dental markets.
+Added: The Building Supply segment consists of construction weatherization products, such as housewrap, housewrap accessories, namely tape and flashing, and synthetic roof underlayment, as well as other woven material.
The Disposable Protective Apparel segment consists of a complete line of disposable protective garments (shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats), face masks and face shields.
2 unchanged sentences
Based on these similarities, the Infection Control segment was combined with the Disposable Protective Apparel segment during the first quarter of 2019.
−Removed: The disclosures herein reflect this current segmentation.
−Removed: The Company’s products are sold under the “Alpha Pro Tech” brand name, and under private label, and are predominantly sold in the United States of America (“U.S.”).
+Added: The disclosures in these Notes to Consolidated Financial Statements reflect this current segmentation.
+Added: The Company’s products are sold under the "Alpha Pro Tech" brand name as well as under private label, and are predominantly sold in the United States of America (“US”).
+Added: The ongoing novel coronavirus (COVID-19) pandemic has adversely affected global economies, financial markets and the overall environment in which we do business.
+Added: The impact of the COVID-19 pandemic continues to unfold.
+Added: Overall, the increase in sales of our Disposable Protective Apparel segment products resulting from the pandemic has had a positive impact on our 2020 year end results.
+Added: The extent of the pandemic’s effect on our future operational and financial performance will depend in large part on future developments, which cannot be predicted with confidence at this time.
+Added: Future developments include the duration, scope and severity of the pandemic, including the severity and transmission rate of COVID-19 variants the actions taken to contain or mitigate its impact, the impact on governmental programs and budgets, the development of treatments or vaccines and mass vaccinations efforts, and the resumption of widespread economic activity in certain sectors.
+Added: Due to the inherent uncertainty of the unprecedented and rapidly evolving situation, we are unable to predict with any certainty the likely impact of the COVID-19 pandemic on our future operations.
Summary of Significant Accounting Policies
−Removed: Principles of C onsolidation
+Added: Principles of Consolidation
The consolidated financial statements of the Company include the accounts of the Company and its wholly-owned subsidiaries, Alpha Pro Tech, Inc.
7 unchanged sentences
Actual results could differ from these estimates.
−Removed: Periods P resented
−Removed: All amounts have been rounded to the nearest thousand with the exception of the share data.
+Added: Periods Presented
+Added: All amounts have been rounded to the nearest thousand with the exception of the per share data.
The Company qualified as a smaller reporting company at the measurement date for determining such qualification during 2020.
According to the disclosure requirements for smaller reporting companies, the Company has included balance sheets as of the end of the two most recent years and statements of income, comprehensive income, shareholders’ equity and cash flows for each of the two most recent years.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
Cash and Cash Equivalents
The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
−Removed: The Company periodically invests a portion of its cash in excess of short-term operating needs in marketable equity securities.
−Removed: These investments are classified as available-for-sale in accordance with U.S.
+Added: Investments are classified as available-for-sale in accordance with U.S.
The Company does not have any investments in securities that are classified as held-to-maturity or trading.
Available-for-sale investments are carried at their fair values using quoted prices in active markets for identical securities, with realized and unrealized gains and losses reported in net income.
−Removed: Prior to January 1, 2018, unrealized gains and losses net of tax, were reported as a component of accumulated other comprehensive income (loss), and declines in value deemed to be other-than-temporary on available-for-sale investments, were recognized in net income.
The cost of securities sold is based on the specific identification method.
Investments that the Company intends to hold for more than one year are classified as long-term investments in the accompanying balance sheets.
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
Accounts Receivable
7 unchanged sentences
The Company assesses inventories for estimated obsolescence or unmarketable products and writes down the difference between the cost of the inventories and the estimated net realizable values based upon assumptions about future sales and supplies on-hand.
−Removed: Property and E quipment
+Added: Property and Equipment
Property and equipment are stated at cost less accumulated depreciation and amortization.
8 unchanged sentences
Expenditures for renewals and betterments are capitalized, whereas costs of maintenance and repairs are charged to operations in the period incurred.
−Removed: Goodwill and Intangible A ssets
+Added: Goodwill and Intangible Assets
The Company accounts for goodwill and definite-lived intangible assets in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 350, Intangibles – Goodwill and Other.
5 unchanged sentences
The Company’s financial instruments consist primarily of cash, cash equivalents and marketable securities.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
The Company’s marketable securities are classified as available-for-sale and are carried at fair market value based on quoted market prices.
−Removed: Impairment of L ong- L ived A ssets
+Added: Impairment of Long-Lived Assets
The Company reviews long-lived assets for impairment whenever events or changes in its business circumstances indicate that the carrying amounts of the assets may not be fully recoverable.
1 unchanged sentence
The Company believes that the future undiscounted net cash flows to be received from its long-lived assets exceed the assets’ carrying values and, accordingly, the Company has not recognized any impairment losses for the years ended December 31, 2020 and 2019.
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
−Removed: Revenue R ecognition
−Removed: As of January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers.
−Removed: This standard was retrospectively adopted for the 2017 year, and there was no cumulative effect adjustment upon adoption.
−Removed: Under ASC 606, net sales includes revenue from products and shipping and handling charges, net of estimates for product returns and any related sales incentives.
−Removed: Revenue is measured as the amount of consideration that we expect to receive in exchange for transferring products.
+Added: Revenue Recognition
+Added: Net sales includes revenue from products and shipping and handling charges, net of estimates for product returns and any related sales incentives.
+Added: Our customer contracts have a single performance obligation:
+Added: transfer control of products to customers.
+Added: Revenue is measured as the amount of consideration that we expect to receive in exchange for transferring control of products.
All revenue is recognized when we satisfy our performance obligations under the applicable contract.
−Removed: We recognize revenue in connection with transferring the promised products to the customer, with revenue being recognized at the point in time when the customer obtains control of the products, which is generally when title passes to the customer upon delivery, at which time a receivable is created for the invoice sent to the customer.
−Removed: We recognize revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer.
+Added: We recognize revenue in connection with transferring control of the promised products to the customer, with revenue being recognized at the point in time when the customer obtains control of the products, which is generally when title passes to the customer upon delivery to a third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements, at which time a receivable is created for the invoice sent to the customer.
+Added: Shipping and handling activities are performed prior to the customer obtaining control of the goods, and are accounted for as fulfillment activities and are not a promised good or service.
+Added: Shipping and handling charges billed to customers are included in revenue.
+Added: Shipping and handling costs, associated with the distribution of the Company’s product to the customers, are recorded in cost of goods sold and are recognized when control of the product is transferred to the customer, which is generally when title passes to the customer upon delivery to a third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements.
We estimate product returns based on historical return rates and estimate rebates based on contractual agreements.
Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract.
−Removed: Our contracts have a single performance obligation.
Sales taxes and value added taxes in foreign and domestic jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net sales.
The Company manufactures certain private label goods for customers and has determined that control does not pass to the customer at the time of manufacture, based upon the nature of the private labelling.
−Removed: In connection with the adoption of ASC 606, the Company determined that it had no material contract assets, and concluded that its contract liabilities (primarily rebates) had the right of offset against customer receivables.
−Removed: See Note 14 and Note 15 for information on revenue disaggregated by type and by geographic region
+Added: The Company has determined as of December 31, 2020 that it had no material contract assets, and concluded that its contract liabilities (primarily rebates) had the right of offset against customer receivables.
+Added: As of December 31, 2020, we had contract liabilities of $209,000 as a result of customer advance payments of orders in connection with the COVID-19 pandemic.
+Added: No such contract liabilities existed as of December 31, 2019.
+Added: See Note 15 and Note 16 of these Notes to Consolidated Financial Statements for information on revenue disaggregated by type and by geographic region.
Shipping and Handling Costs
6 unchanged sentences
ASC 718 requires companies to record compensation expense for the value of all outstanding and unvested share-based awards, including employee stock options.
−Removed: For the years ended December 31, 2019 and 2018, there were 370,000 and 349,750 stock options granted, respectively, under the Company’s option plan.
+Added: For the year ended December 31, 2020 there were no stock options granted under the Company’s stock option plan.
+Added: For the year ended 2019, there were 370,000 stock options granted under the Company’s option plan.
The Company recognized $375,000 and $451,000 in share-based compensation expense for the years ended December 31, 2020 and 2019, respectively, related to outstanding options.
+Added: For the year ended December 31, 2020, 8,912 restricted stock equity awards had been granted under the 2020 Incentive Plan, the compensation expense associated with the one year vest of these awards is $6,000.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
The Company accounts for income taxes using the asset and liability method.
5 unchanged sentences
federal jurisdiction, and in various state and foreign jurisdictions.
−Removed: The Tax Cuts and Jobs Act (the “Tax Act”) was enacted in December 2017.
−Removed: The Tax Act significantly changed U.S.
−Removed: tax law by, among other things, lowering U.S.
−Removed: corporate income tax rates, implementing a territorial tax system and imposing a one-time transition tax on deemed repatriated earnings of foreign subsidiaries.
−Removed: The Tax Act reduced the U.S.
−Removed: corporate income tax rate from 35% to 21%, effective January 1, 2018.
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
Earnings Per Common Share
7 unchanged sentences
Earnings per common share:
−Removed: Translation of F oreign C urrencies
+Added: Translation of Foreign Currencies
Transactions in foreign currencies are translated into U.S.
5 unchanged sentences
The Company’s only foreign currency exposure is with its Canadian branch office.
−Removed: The foreign currency exposure is not material due to the fact that the Company does not manufacture in Canada.
+Added: The foreign currency exposure is not material due to the fact that the Company does not manufacture products in Canada.
The exposure primarily relates to payroll expenses in the Company’s administrative branch office in Canada.
2 unchanged sentences
Such costs were not material for the years ended December 31, 2020 and 2019.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
Advertising Costs
−Removed: The Company expenses advertising costs as incurred.
+Added: The Company expenses advertising and promotional costs as incurred.
These costs are included in selling, general and administrative expenses and were $32,000 and $16,000 for the years ended December 31, 2020 and 2019, respectively.
3 unchanged sentences
In determining whether a loss should be accrued, we evaluate, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss.
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
−Removed: Fair V alue Measurements
+Added: Fair Value Measurements
ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value in accordance with U.S.
13 unchanged sentences
New Accounting Standards
−Removed: Effective January 1, 2018, we adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), and ASU 2015-14, Revenue from Contracts with Customers (Topic 606):
−Removed: Deferral of Effective Date, which deferred the effective date of ASU 2014-09 by one year.
−Removed: ASU 2014-09 supersedes the revenue recognition requirements in ASC 605, Revenue Recognition, and is based on the principle that revenue is recognized to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
−Removed: It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue, cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract.
−Removed: The adoption of ASU 2014-09, using a full retrospective approach, had no significant impact on our results of operations, cash flows or financial position.
−Removed: Revenue continues to be recognized at a point in time for our product sales when products are delivered to or picked up by the customer, and revenue for shipping and handling charges continues to be recognized when products are delivered to or picked up by the customer.
−Removed: We continue to reduce revenue for estimates of sales incentives based on probability estimates and for product returns based on historical return rates.
In February 2016, the FASB issued ASU 2016-02, Leases, which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance.
5 unchanged sentences
Upon adoption, both assets and liabilities on our consolidated balance sheet increased by approximately $3,455,000.
−Removed: We have elected a package of transition practical expedients which include not reassessing whether any expired or existing contracts are or contain leases, not reassessing the lease classification of expired or existing leases, and not reassessing initial direct costs for existing leases.
−Removed: We have also elected a practical expedient to not separate lease and non-lease components.
+Added: We elected a package of transition practical expedients, which included not reassessing whether any expired or existing contracts are or contain leases, not reassessing the lease classification of expired or existing leases, and not reassessing initial direct costs for existing leases.
+Added: We also elected a practical expedient to not separate lease and non-lease components.
We did not elect the practical expedient to use hindsight in determining the lease terms or assessing impairment of the ROU assets.
−Removed: See also Note 13.
+Added: See also Note 12 of these Notes to Consolidated Financial Statements for more information.
Alpha Pro Tech, Ltd.
5 unchanged sentences
This guidance is applicable to the Company’s fiscal year beginning January 1, 2020.
−Removed: Management is currently evaluating the requirements of this guidance and has not yet determined the impact on the adoption of the Company’s financial position or results from operations.
+Added: Adoption of the new standard did not have a material impact on our consolidated financial statements.
In June 2018, the FASB issued ASU 2018-07, Compensation - Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting.
This ASU is intended to simplify aspects of share-based compensation issued to non-employees by making the guidance consistent with accounting for employee share-based compensation.
−Removed: ASU 2018-07 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoptions permitted but no earlier than an entity’s adoption date of ASC Topic 606.
+Added: ASU 2018-07 is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods, with early adoption permitted but no earlier than an entity’s adoption date of ASC Topic 606 - Revenue form Contracts with Customers.
The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application.
1 unchanged sentence
Adoption of the new standard did not have a material impact on our consolidated financial statements.
+Added: In December 2019, the FASB issued ASU No.
+Added: 2019-12, Income Taxes (Topic 740):
+Added: Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes.
+Added: ASU 2019-12 removes certain exceptions to the general principles in Topic 740 and also clarifies and amends existing guidance to improve consistent application.
+Added: This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted.
+Added: The Company is currently evaluating the impact of this standard on its consolidated financial statements and related disclosures.
Management periodically reviews new accounting standards that are issued.
2 unchanged sentences
Certain marketable securities were sold during the years ended December 31, 2020 and 2019.
−Removed: The total gain on marketable securities during the year ended December 31, 2019 was $231,000 and the total loss on marketable securities during the year ended December 31, 2018 was $50,000.
+Added: The total loss on marketable securities during the year ended December 31, 2020 was $62,000 and the total gain on marketable securities during the year ended December 31, 2019 was $231,000.
+Added: The loss for the year ended December 31, 2020 was due to an unrealized gain of $98,000 and a realized loss of $160,000.
The gain for the year ended December 31, 2019 was due to an unrealized gain of $170,000 and a realized gain of $61,000.
−Removed: The loss for the year ended December 31, 2018 was due to an unrealized loss of $57,000 partially offset by a realized gain of $7,000.
Inventories consisted of the following:
19 unchanged sentences
December 31, 2019
−Removed: Weighted Average Amortization Period (Years)
−Removed: Gross Carrying Amount
+Added: Period (Years)
Accumulated Amortization
−Removed: Net Carrying Amount
−Removed: Weighted Average Amortization Period (Years)
−Removed: Gross Carrying Amount
+Added: Period (Years)
Accumulated Amortization
−Removed: Net Carrying Amount
Patents and Trademarks
−Removed: Amortization expense for intangible assets was $5,000 for the years ended December 31, 2019 and 2018, respectively.
+Added: Amortization expense for intangible assets was $4,000 and $5,000 for the years ended December 31, 2020 and 2019, respectively.
+Added: Estimated future amortization expense related to definite-lived intangible assets is as follows:
Alpha Pro Tech, Ltd.
Notes to Consolidated Financial Statements
−Removed: Estimated future amortization expense related to definite-lived intangible assets is as follows:
−Removed: Year s ending December 31 ,
−Removed: Equity Investment s in Unconsolidated Affiliate
+Added: Years ending December 31,
+Added: Equity Investments in Unconsolidated Affiliate
In 2005, Alpha ProTech Engineered Products, Inc.
21 unchanged sentences
For the years ended December 31, 2020 and 2019, the Company recorded equity in income of unconsolidated affiliate of $710,000 and $359,000, respectively.
+Added: For the years ended December 31, 2020 and 2019, the Company sold $1,087,000 and $1,332,000 of inventories, respectively, to Harmony.
As of December 31, 2020, the Company’s investment in Harmony was $5,549,000, which consisted of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $5,118,000, less $942,000 in repayments of an advance and payments of $77,000 in dividends.
8 unchanged sentences
Notes Payable
−Removed: The Company maintains a credit facility with Wells Fargo Bank that expires in May 2020.
−Removed: Pursuant to the terms of the credit facility, the Company has a borrowing capacity up to $3,500,000 based on eligible accounts receivable and inventories.
−Removed: The credit facility bears interest at prime plus 0.5% (prime rate was 4.75% and 5.50% as of December 31, 2019 and 2018, respectively) and is collateralized by accounts receivable, inventories, trademarks, patents and property and equipment.
−Removed: Under the terms of the facility, the Company pays a 0.5% unused loan fee on a quarterly basis.
−Removed: As of December 31, 2019, the Company had no outstanding borrowings on its line of credit and no other debt.
+Added: The Company previously maintained a $3,500,000 credit facility with Wells Fargo Bank, which expired in May 2020, and which the Company decided not to renew.
+Added: The Company has continued its relationship with Wells Fargo, with the exception of the credit facility.
+Added: The Company determined that the credit line is not necessary at this time, as it had not been used in several years, and the Company currently had sufficient funding from operations.
+Added: Pursuant to the terms of the credit facility, the Company had a borrowing capacity up to $3,500,000 based on eligible accounts receivable and inventories and was collateralized by accounts receivable, inventories, trademarks, patents and property and equipment.
+Added: Under the terms of the facility, the Company paid a 0.5% unused loan fee on a quarterly basis.
+Added: As of December 31, 2020, the Company had no outstanding borrowings and no other debt.
Shareholders ’ Equity
3 unchanged sentences
As of December 31, 2020, the Company had $4,486,000 available to repurchase common shares under the repurchase program.
−Removed: Option A ctivity
+Added: Option Activity
The 2004 Stock Option Plan (the “2004 Plan”) is an equity compensation plan that provides for grants of stock options to eligible individuals.
5 unchanged sentences
The exercise price of the options is determined based on the fair market value of the stock on the date of grant.
+Added: At the Company’s 2020 Annual Meeting of Shareholders held on June 9, 2020, the Company’s shareholders approved the Alpha Pro Tech, Ltd.
+Added: 2020 Omnibus Incentive Plan (the “2020 Incentive Plan”).
+Added: The 2020 Incentive Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, awards of restricted stock and restricted stock units, performance share awards, cash awards and other equity-based awards to employees (including officers), consultants and non-employee directors of the Company and its affiliates.
+Added: A total of 1,800,000 shares of the Company’s common stock are reserved for issuance under the 2020 Incentive Plan, plus the number of shares underlying any award granted under the 2004 Option Plan that expires, terminates or is cancelled or forfeited under the terms of the 2004 Option Plan.
+Added: As a result of the approval of the 2020 Incentive Plan, no future equity awards will be made pursuant to the 2004 Option Plan.
+Added: Although no new awards may be granted under the 2004 Option Plan, all previously granted awards under the 2004 Option Plan will continue to be governed by the terms of the 2004 Option Plan.
+Added: As of December 31, 2020, 8,912 restricted stock equity awards had been granted under the 2020 Incentive Plan, the compensation expense associated with the one year vest of these awards is $6,000.
+Added: As of December 31, 2020, $102,000 of total unrecognized compensation cost related to the restricted stock grants was expected to be recognized over a weighted-average remainder period of .942 years.
Alpha Pro Tech, Ltd.
11 unchanged sentences
Stock options to purchase 568,740 and 1,326,414 shares of common stock were outstanding as of December 31, 2020 and 2019, respectively.
−Removed: All except 455,000 and 145,000 of the stock options, which were anti-dilutive, were included in the computation of the weighted-average number of dilutive common shares outstanding for the years ended December 31, 2019 and 2018.
+Added: All of the stock options were included in the computation of the weighted-average number of dilutive common shares outstanding for the year ended December 31, 2020.
+Added: All except 455,000 of the stock options, which were anti-dilutive, were included in the computation of the weighted-average number of dilutive common shares outstanding for the year ended December 31, 2019.
The fair values of the share-based compensation awards granted were estimated using the Black-Scholes option-pricing model with the following assumptions and weighted average fair values:
5 unchanged sentences
Expected life in years
−Removed: Dividend rate
Black-Scholes fair value
6 unchanged sentences
The Company accounts for option forfeitures as they occur.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
The following table summarizes information about stock options as of December 31, 2020:
1 unchanged sentence
Options Exercisable
−Removed: Average Exercise Price
−Removed: Average Remaining Contract Life (in years)
−Removed: Average Exercise Price
−Removed: Average Remaining Contract Life (in years)
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
+Added: Average Exercise
+Added: Contract Life
+Added: Average Exercise
+Added: Contract Life
The intrinsic value is the amount by which the market value of the underlying common stock exceeds the exercise price of the respective stock options.
9 unchanged sentences
Provision for income taxes
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
Deferred income tax assets (liabilities) consisted of the following:
10 unchanged sentences
Net deferred income tax assets (liabilities)
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
The provision for income taxes differs from the amount that would be obtained by applying the U.S.
8 unchanged sentences
Operating Lease Commitments:
−Removed: The Company leases its facilities under non-cancelable operating leases expiring on various dates through January 1, 2024.The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2024.
−Removed: The Company’s primary operating lease commitments at December 31, 2019 related to the Company’s manufacturing facilities in Valdosta, Georgia, Nogales, Arizona and Salt Lake City, Utah, as well as the Company’s corporate headquarters in Markham, Ontario, Canada.
+Added: The Company leases its facilities under non-cancelable operating leases expiring on various dates through January 1, 2024.
+Added: The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2024.The Company’s primary operating lease commitments at December 31, 2020 related to the Company’s manufacturing facilities in Valdosta, Georgia, Nogales, Arizona and Salt Lake City, Utah, as well as the Company’s corporate headquarters in Markham, Ontario, Canada.
As of December 31, 2020, the Company had operating lease right-of-use assets of $3,535,000 and operating lease liabilities of $3,586,000.
−Removed: As of December 31, 2019, we did not have any finance leases recorded on the Company’s condensed consolidated balance sheet.
−Removed: Operating lease expense was approximately $201,000 and $603,000 for the year ended December 31, 2019.
+Added: As of December 31, 2020, we did not have any finance leases recorded on the Company’s consolidated balance sheet.
+Added: Operating lease expense was approximately $1,154,000 and $1,109,000 for the years ended December 31, 2020 and 2019, respectively.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
The aggregate future minimum lease payments and reconciliation to lease liabilities as of December 31, 2020 were as follows:
4 unchanged sentences
During the year ended December 31, 2020, the weighted average discount rate with respect to these leases was 4.17%.
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
Legal Proceedings:
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Based on these similarities, we determined that it would be best to consolidate the Infection Control segment into the Disposable Protective Apparel segment beginning with the first quarter of 2019.
+Added: The disclosures in these Notes to Consolidated Financial Statements reflect this current segmentation.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
Segment data excludes charges allocated to the principal executive office and other unallocated corporate overhead expenses and income tax.
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Consolidated net sales
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
The following table presents the reconciliation of total segment income to total consolidated net income:
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Consolidated net income
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
The following table presents net sales and long-lived asset information by geographic area:
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Consolidated total long-lived assets
−Removed: Net sales by geographic region are based on the countries in which the customers are located.
−Removed: For the years ended December 31, 2019 and 2018, the Company did not generate sales from any single country, except the United States, that were significant to the Company’s consolidated net sales.
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
+Added: Net sales by geographic region are based on the countries in which our customers are located.
+Added: For the year ended December 31, 2020 the Company generated sales of approximately $8,090,000 from Australia.
+Added: No other single country other than the United States was significant to the Company’s consolidated net sales.
+Added: For the year ended December 31, 2019, the Company did not generate sales from any single country, other than the United States, that were significant to the Company’s consolidated net sales.
The following table presents the consolidated net property, equipment, goodwill and intangible assets by segment:
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The Company has not experienced any losses related to these accounts, and management does not believe that the Company is exposed to significant credit risk.
−Removed: The Company’s investments in marketable securities are in one publicly traded entity.
−Removed: The Company recognized a gain on investment in common stock warrants in a prior period and during 2019 recognized a realized gain of $61,000 and an unrealized gain of $170,000 in the consolidated statement of comprehensive income.
+Added: The Company’s investments in marketable securities were held in one publicly traded entity.
+Added: The Company recognized a gain on investment in common stock warrants in a prior period and during 2020 recognized a realized loss of $160,000 and an unrealized gain of $98,000 in the consolidated statement of comprehensive income.
During 2019, the Company recognized realized gain of $61,000 and an unrealized loss of $170,000 in the consolidated statement of comprehensive income.
−Removed: The Company is exposed to the fluctuation in the stock price of this investment.
+Added: The Company was exposed to the fluctuation in the stock price of this investment when it held these securities.
+Added: As of December 31, 2020 the Company no longer holds any investments in marketable securities.
Management believes that adequate provision has been made for risk of loss on all credit transactions.
+Added: Alpha Pro Tech, Ltd.
+Added: Notes to Consolidated Financial Statements
The Company buys a significant amount of its disposable protective apparel products from a limited number of contract manufacturers located in Asia and, to a much lesser extent, a contract manufacturer in Mexico.
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* Customer’s balance was below the 10% threshold for accounts receivable and/or net sales as of and for the year ended December 31, 2020 and December 31, 2019.
−Removed: Alpha Pro Tech, Ltd.
−Removed: Notes to Consolidated Financial Statements
Employment Agreements
−Removed: The Company has entered into employment agreements with its current President and Chief Executive Officer and its former President and Chairman, which have terms of approximately five years and which renew in accordance with their terms.
−Removed: The agreements provide that, if the officers’ employment is terminated without cause, as defined in the agreements, the officers are entitled to receive certain severance payments.
−Removed: If termination occurs due to retirement, the officers will enter into a four-year consulting arrangement with the Company at a specified percentage of the officers’ then current salaries.
−Removed: Upon death or disability, the Company will also make certain payments to the executive or the executive’s estate or beneficiary, as applicable.
+Added: The Company has entered into an employment agreement with its current President and Chief Executive Officer, which has a term of approximately five years and which renews in accordance with its terms.
+Added: The agreement provides that, if the officer’s employment is terminated without cause, as defined in the agreements, the officer is entitled to receive certain severance payments.
+Added: If termination occurs due to retirement, the officers will enter into a four-year consulting arrangement with the Company at a specified percentage of the officer’s then current salary.
+Added: Upon death or disability, the Company will also make certain payments to the officer or the officer’s estate or beneficiary, as applicable.
+Added: The Company had entered into an employment agreement with its former President and Chairman.
During the fourth quarter of 2017, the Company’s former President and Chairman passed away, which resulted in a death benefit expense of $619,000, in accordance with his employment agreement.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.