What changed in this filing

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Item 1. Financial Statements

2025-08-07 compared with 2025-05-08 · 92 added, 59 removed, 296 unchanged (34% of the section changed)

24 unchanged sentences

50,000,000 shares authorized;

10,595,465 and 10,816,878 shares outstanding as of March 31, 2025 and December 31, 2024, respectively

10,414,365 and 10,816,878 shares outstanding as of June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital

8 unchanged sentences

For the Three Months Ended

For the Six Months Ended

Cost of goods sold, excluding depreciation and amortization

18 unchanged sentences

For the Three Months Ended

Other comprehensive income - foreign currency translation gain (loss)

For the Six Months Ended

Other comprehensive income - foreign currency translation loss

Comprehensive income

2 unchanged sentences

Condensed Consolidated Statements of Shareholders ’ Equity (Unaudited)

For the Three Months Ended March 31, 2025

For the Six Months Ended June 30, 2025

Comprehensive

6 unchanged sentences

Balance as of March 31, 2025

For the Three Months Ended March 31, 2024

Common stock repurchased and retired

Treasury stock excise tax

Stock-based compensation expense

Other comprehensive loss

Balance as of June 30, 2025

For the Six Months Ended June 30, 2024

Comprehensive

7 unchanged sentences

Balance as of March 31, 2024

Common stock repurchased and retired

Treasury stock excise tax

Stock-based compensation expense

Other comprehensive loss

Balance as of June 30, 2024

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Cash Flows From Operating Activities:

14 unchanged sentences

Purchases of property and equipment

Net cash and cash equivalents used in investing activities

Cash Flows From Financing Activities:

3 unchanged sentences

Net cash and cash equivalents used in financing activities

Increase (decrease) in cash and cash equivalents

Decrease in cash and cash equivalents

Cash and cash equivalents, beginning of the period

18 unchanged sentences

The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings, as well as the Company’s consolidated financial statements for the year ended December 31, 2024, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 (the “2024 Form 10-K”), filed with the SEC on March 12, 2025.

The results of operations for the three months ended March 31, 2025, in this Quarterly Report on Form 10-Q are not necessarily indicative of the results to be expected for the full year.

The results of operations for the three and six months ended June 30, 2025, in this Quarterly Report on Form 10-Q are not necessarily indicative of the results to be expected for the full year.

The condensed consolidated balance sheet as of December 31, 2024 was prepared using information from the audited consolidated balance sheet contained in the 2024 Form 10-K;

14 unchanged sentences

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 labeling.

The Company has determined as of March 31, 2025, that it had no material contract assets, and concluded that its contract liabilities (primarily rebates) had the right of offset against customer receivables.

The Company has determined as of June 30, 2025, that it had no material contract assets, and concluded that its contract liabilities (primarily rebates) had the right of offset against customer receivables.

See Note 10 and Note 11 of these Notes to Condensed Consolidated Financial Statements (Unaudited) for information on revenue disaggregated by type and by geographic region.

3 unchanged sentences

Repurchase Program

During the three months ended March 31, 2025, the Company repurchased and retired 221,413 shares of its common stock for $ 1,178,000 .

During the three months ended March 31, 2024, the Company repurchased and retired 270,000 shares of its common stock for $ 1,417,000 .

As of March 31, 2025, the Company had $ 1,564,000 available to repurchase common shares under the repurchase program.

During the three months ended June 30, 2025, the Company repurchased and retired 181,100 shares of its common stock for $ 830,000 .

During the three months ended June 30, 2024, the Company repurchased and retired 245,000 shares of its common stock for $ 1,284,000 .

During the six months ended June 30, 2025, the Company repurchased and retired 402,513 shares of its common stock for $ 2,008,000 .

During the six months ended June 30, 2024, the Company repurchased and retired 515,000 shares of its common stock for $ 2,701,000 .

As of June 30, 2025, the Company had $ 2,735,000 available to repurchase common shares under the repurchase program.

The excess of repurchase price over par value is allocated between additional paid-in capital and retained earnings.

10 unchanged sentences

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.

The Company records compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options and restricted stock, and restricted stock units (“RSUs”), over the determined requisite service period, which is generally ratably over the vesting term.

The following table summarizes restricted stock and RSU awards activity for the three months ended March 31, 2025:

The Company records compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options, restricted stock, and restricted stock units (“RSUs”), over the determined requisite service period, which is generally ratably over the vesting term.

The following table summarizes RSUs awards activity for the six months ended June 30, 2025:

Weighted Average

Grant Date Price

Restricted stock awards

Outstanding, December 31, 2024

Granted to employees and non-employee directors

Outstanding, March 31, 2025

During the three months ended March 31, 2025 and 2024, 9,870 and 10,715 RSU stock awards were granted under the 2020 Incentive Plan, respectively.

The Company recognized $ 121,000 and $ 94,000 in stock-based compensation expense associated with outstanding RSU awards for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, $ 574,000 of total unrecognized compensation cost related to the RSU grants was expected to be recognized over a weighted average remainder period of 1.50 years.

Outstanding, June 30, 2025

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

During the six months ended June 30, 2025 and 2024, 9,870 and 10,715 RSUs were granted under the 2020 Incentive Plan, respectively.

The Company recognized $ 243,000 and $ 189,000 in stock-based compensation expense associated with outstanding RSUs for the six months ended June 30, 2025 and 2024, respectively.

As of June 30, 2025, $ 453,000 of total unrecognized compensation cost related to the RSU grants was expected to be recognized over a weighted average remainder period of 1.13 years.

The Company uses the Black-Scholes option-pricing model to value the options.

4 unchanged sentences

The Company accounts for option forfeitures as they occur.

The following table summarizes option activity for the three months ended March 31, 2025:

The following table summarizes option activity for the six months ended June 30, 2025:

Weighted Average

1 unchanged sentence

Options outstanding, December 31, 2024

Options outstanding, March 31, 2025

Options exercisable, March 31, 2025

As of March 31, 2025, $ 74,000 of total unrecognized compensation cost related to the stock option grants was expected to be recognized over a weighted average remainder period of 1.37 years.

Options outstanding, June 30, 2025

Options exercisable, June 30, 2025

As of June 30, 2025, $ 59,000 of total unrecognized compensation cost related to the stock option grants was expected to be recognized over a weighted average remainder period of 1.17 years.

Recent Accounting Pronouncements

3 unchanged sentences

Specifically, they improve income tax disclosures related to rate reconciliation and income taxes paid.

ASU 2023-09 becomes effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

ASU 2023-09 became effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

In November 2024, the FASB issued ASU 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40):

6 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

As of March 31, 2025 and December 31, 2024, inventories net of reserves consisted of the following:

As of June 30, 2025 and December 31, 2024, inventories net of reserves consisted of the following:

Raw materials

22 unchanged sentences

The Company periodically reviews its investment in Harmony for impairment.

Management has determined that no impairment was required as of March 31, 2025, or December 31, 2024.

Management has determined that no impairment was required as of June 30, 2025, or December 31, 2024.

Under the equity method, since the Company’s reporting currency is different from of Harmony’s reporting currency, the Company is required to translate our proportionate share of equity for effects of translations in foreign currency and adjust the investment accordingly and accrue the adjustment as a component of Accumulated other comprehensive loss (“AOCL”).

For the three months ended March 31, 2025 and 2024, the Company purchased $ 4,755,000 and $ 5,329,000 of inventories, respectively, from Harmony.

For both three months ended March 31, 2025 and 2024, the Company sold $ 0 of inventories, to Harmony.

For the three months ended March 31, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $ 141,000 and $ 138,000 , respectively, related to Harmony.

As of March 31, 2025, the Company’s investment in Harmony was $ 5,890,000 , which consisted of its original $ 1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $ 7,023,000 , less $ 942,000 in repayments of an advance, $ 77,000 in payments of dividends, and $ 1,564,000 in AOCL on foreign currency translations.

For the three months ended June 30, 2025 and 2024, the Company purchased $ 5,159,000 and $ 5,849,000 of inventories, respectively, from Harmony.

For the six months ended June 30, 2025 and 2024, the Company purchased $ 9,914,000 and $ 11,179,000 of inventories, respectively, from Harmony.

For the three months ended June 30, 2025 and 2024, the Company sold $ 415,000 and $ 240,000 of inventories, respectively, to Harmony.

For the six months ended June 30, 2025 and 2024, the Company sold $ 415,000 and $ 240,000 of inventories, respectively, to Harmony.

For the three months ended June 30, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $ 137,000 and $ 200,000 , respectively, related to Harmony.

For the six months ended June 30, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $ 278,000 and $ 338,000 , respectively, related to Harmony.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

As of June 30, 2025, the Company’s investment in Harmony was $ 6,005,000 , which consisted of its original $ 1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $ 7,160,000 , less $ 942,000 in repayments of an advance, $ 77,000 in payments of dividends, and $ 1,586,000 in AOCL on foreign currency translations.

Accrued Liabilities

As of March 31, 2025 and December 31, 2024, accrued liabilities consisted of the following:

As of June 30, 2025 and December 31, 2024, accrued liabilities consisted of the following:

Payroll expenses and taxes payable

2 unchanged sentences

Basic and Diluted Earnings Per Common Share

The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to dilutive shares, and “diluted” EPS, which includes all such dilutive shares, for the three months ended March 31, 2025 and 2024:

For the Three Months Ended

For the Six Months Ended

Net income (numerator)

7 unchanged sentences

The resulting foreign currency translation gains or losses are deferred as AOCL and reclassified to earnings only upon sale or liquidation of that business.

The AOCL on equity in unconsolidated affiliate was $ 1,564,000 and $ 1,499,000 as of March 31, 2025 and December 31, 2024, respectively.

The AOCL on equity in unconsolidated affiliate was $ 1,586,000 and $ 1,499,000 as of June 30, 2025 and December 31, 2024, respectively.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Segments Reporting

7 unchanged sentences

The chief operating decision maker (‘CODM”) of the Company is the Company’s chief executive officer.

The CODM assesses performance and decides how to allocate resources, including employees, financial or capital resources, based on segment net sales.

The CODM assesses performance and decides how to allocate resources, including (1) employees, and (2) financial or capital resources, based on segment net sales.

Segment data excludes charges allocated to the principal executive office and other unallocated corporate overhead expenses and income tax.

The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company evaluates the performance of its segments and allocates resources to them based primarily on segment net sales.

The accounting policies of the segments are the same as those described previously under Summary of Significant Accounting Policies (see Note 2 in the notes to our consolidated financial statements in Item 8 of the 2024 Form 10-K).

The following provides segment information as described below:

For the Three Months Ended March 31, 2025

For the Three Months Ended

For the Six Months Ended

June 30, 2025

Building Supply

Disposable Protective Apparel

Protective Apparel

Building Supply

Protective Apparel

Segment sales

3 unchanged sentences

Segment net income

For the Three Months Ended March 31, 2024

For the Three Months Ended

For the Six Months Ended

June 30, 2024

Building Supply

Disposable Protective Apparel

Protective Apparel

Building Supply

Protective Apparel

Segment sales

3 unchanged sentences

Segment net income

The following table presents consolidated net sales for each segment for the three months ended March 31, 2025 and 2024:

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents consolidated net sales for each segment for the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended

For the Six Months Ended

Building Supply

1 unchanged sentence

Consolidated net sales

The following table presents the reconciliation of consolidated segment income to consolidated net income for the three months ended March 31, 2025 and 2024:

The following table presents the reconciliation of consolidated segment net income to consolidated net income for the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended

For the Six Months Ended

Building Supply

4 unchanged sentences

Consolidated net income

The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of March 31, 2025 and December 31, 2024:

The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of June 30, 2025 and December 31, 2024:

Building Supply

6 unchanged sentences

Financial Information about Geographic Areas

The following table summarizes the Company’s net sales by geographic region for the three months ended March 31, 2025 and 2024:

The following table summarizes the Company’s net sales by geographic region for the three and six months ended June 30, 2025 and 2024:

For the Three Months Ended

For the Six Months Ended

Net sales by geographic region

3 unchanged sentences

Net sales by geographic region are based on the countries in which our customers are located.

For the three months ended March 31, 2025 and 2024, 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 summarizes the locations of the Company’s long-lived assets by geographic region as of March 31, 2025 and December 31, 2024:

For the three and six months ended June 30, 2025 and 2024, 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 summarizes the locations of the Company’s long-lived assets by geographic region as of June 30, 2025 and December 31, 2024:

Long-lived assets by geographic region

2 unchanged sentences

Consolidated total long-lived assets

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Related Party Transactions

As of March 31, 2025, the Company had no related party transactions, other than the Company’s transactions with its unconsolidated affiliate, Harmony.

As of June 30, 2025, the Company had no related party transactions, other than the Company’s transactions with its unconsolidated affiliate, Harmony.

See Note 6 of these Notes to Condensed Consolidated Financial Statements (Unaudited).

The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2034.

The Company’s primary operating lease commitments as of March 31, 2025, related to the Company’s manufacturing facilities in Valdosta, Georgia and Nogales, Arizona, as well as the Company’s corporate headquarters in Aurora, Ontario, Canada.

As of March 31, 2025, the Company had operating lease right-of-use assets of $ 8,485,000 and operating lease liabilities of $ 8,562,000 .

As of March 31, 2025, we did not have any finance leases recorded on the Company’s consolidated balance sheet.

Operating lease expense was approximately $ 380,000 during the three months ended March 31, 2025.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

The aggregate future minimum lease payments and reconciliation to lease liabilities as of March 31, 2025 were as follows:

Remaining nine months of 2025

The Company’s primary operating lease commitments as of June 30, 2025, related to the Company’s manufacturing facilities in Valdosta, Georgia and Nogales, Arizona, as well as the Company’s corporate headquarters in Aurora, Ontario, Canada.

As of June 30, 2025, the Company had operating lease right-of-use assets of $ 8,252,000 and operating lease liabilities of $ 8,340,000 .

As of June 30, 2025, we did not have any finance leases recorded on the Company’s consolidated balance sheet.

Operating lease expense was approximately $ 760,000 during the six months ended June 30, 2025.

The aggregate future minimum lease payments and reconciliation to lease liabilities as of June 30, 2025 were as follows:

Remaining six months of 2025

Total future minimum lease payments

1 unchanged sentence

Total lease liabilities

As of March 31, 2025, the weighted average remaining lease term of the Company’s operating leases was 9.88 years.

During the three months ended March 31, 2025, the weighted average discount rate with respect to these leases was 7.0 %.

As of June 30, 2025, the weighted average remaining lease term of the Company’s operating leases was 9.72 years.

During the six months ended June 30, 2025, the weighted average discount rate with respect to these leases was 7.0 %.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company accounts for income taxes using the asset and liability method.

11 unchanged sentences

Subsequent Events

The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of March 31, 2025 through the filing date of this Quarterly Report on Form 10-Q that would require recognition or disclosure and has concluded that there are no such subsequent events.

The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of June 30, 2025 through the filing date of this Quarterly Report on Form 10-Q that would require recognition or disclosure and has concluded that there are no such subsequent events.

Alpha Pro Tech, Ltd.

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.

What changed 10-Q

Item 1. Financial Statements