What changed in this filing

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Item 1. Financial Statements

2026-05-07 compared with 2025-11-06 · 103 added, 143 removed, 276 unchanged (47% of the section changed)

1 unchanged sentence

Condensed Consolidated Balance Sheets (Unaudited)

September 30,

Current assets:

2 unchanged sentences

Accounts receivable, related party

Inventory, net

Inventories, net

Prepaid expenses

7 unchanged sentences

Accrued liabilities

Current portion of lease liabilities

Lease liabilities

Total current liabilities

6 unchanged sentences

50,000,000 shares authorized;

10,284,565 and 10,816,878 shares outstanding as of September 30, 2025 and December 31, 2024, respectively

10,131,565 shares outstanding as of March 31, 2026 and December 31, 2025

Additional paid-in capital

8 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

September 30,

Cost of goods sold, excluding depreciation and amortization

6 unchanged sentences

Equity in income of unconsolidated affiliate

Gain on sale of asset

Interest income, net

10 unchanged sentences

For the Three Months Ended

For the Nine Months Ended

September 30,

Other comprehensive income - foreign currency translation gain (loss)

3 unchanged sentences

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

For the Nine Months Ended September 30, 2025

For the Three Months Ended March 31, 2026

Comprehensive

6 unchanged sentences

Balance as of March 31, 2026

Common stock repurchased and retired

Treasury stock excise tax

Stock-based compensation expense

Other comprehensive loss

Balance as of June 30, 2025

Common stock repurchased and retired

Treasury stock excise tax

Stock-based compensation expense

Other comprehensive loss

Balance as of September 30, 2025

For the Nine Months Ended September 30, 2024

For the Three Months Ended March 31, 2025

Comprehensive

4 unchanged sentences

Stock-based compensation expense

Options exercised

Other comprehensive income

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

Common stock repurchased and retired

Treasury stock excise tax

Stock-based compensation expense

Options exercised

Other comprehensive income

Balance as of September 30, 2024

Balance as of March 31, 2025

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

1 unchanged sentence

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Nine Months Ended

September 30,

For the Three Months Ended March 31,

Cash Flows From Operating Activities:

3 unchanged sentences

Equity in income of unconsolidated affiliate

Gain on sale of asset

Non-cash lease expense

Amortization of right-of-use assets

Changes in operating assets and liabilities:

1 unchanged sentence

Accounts receivable, related party

Inventory, net

Inventories, net

Prepaid expenses

1 unchanged sentence

Lease liabilities

Net cash and cash equivalents provided by operating activities

Net cash and cash equivalents provided by (used in) operating activities

Cash Flows From Investing Activities:

Purchases of property and equipment

Proceeds from sale of asset

Net cash and cash equivalents used in investing activities

Cash Flows From Financing Activities:

Proceeds from exercise of stock options

Repurchase of common stock

22 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, 2025, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (the “2025 Form 10-K”), filed with the SEC on March 11, 2026.

The results of operations for the three and nine months ended September 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 results of operations for the three months ended March 31, 2026, 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, 2025 was prepared using information from the audited consolidated balance sheet contained in the 2025 Form 10-K;

9 unchanged sentences

Shipping and handling charges billed to customers are included in revenue.

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.

2 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 September 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.

The Company has determined as of March 31, 2026, 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 September 30, 2025, the Company repurchased and retired 129,800 shares of its common stock for $ 624,000 .

During the three months ended September 30, 2024, the Company repurchased and retired 180,000 shares of its common stock for $ 1,030,000 .

During the nine months ended September 30, 2025, the Company repurchased and retired 532,313 shares of its common stock for $ 2,632,000 .

During the nine months ended September 30, 2024, the Company repurchased and retired 695,000 shares of its common stock for $ 3,731,000 .

As of September 30, 2025, the Company had $ 2,111,000 available to repurchase common shares under the repurchase program.

During the three months ended March 31, 2026, the Company did not repurchase any shares of its common stock.

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

As of March 31, 2026, the Company had $ 1,397,000 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.

Option Activity

The Company previously granted stock options to eligible individuals under the 2004 Stock Option Plan (the “2004 Plan”).

Grants made under the 2004 Plan were intended to recognize the contributions made to the Company by key employees, provide key employees with additional incentive to devote themselves to the future success of the Company and improve the ability of the Company to attract, retain and motivate individuals.

Grants made under the 2004 Plan also were intended as an incentive to certain members of the Board of Directors of the Company to continue to serve on the Board of Directors and to devote themselves to the future success of the Company.

The 2004 Plan provided for a total of 5,000,000 common shares eligible for issuance.

Under the 2004 Plan, approximately 5,009,750 options (taking into account cancelled, forfeited and expired options that were added back to the plan reserve) had been granted as of December 31, 2020.

Under the 2004 Plan, option grants had a three-year vesting period and, since 2005, expire no later than the fifth anniversary from the date of grant.

The exercise price of the options was determined based on the fair market value of the stock on the date of grant.

At the Company’s 2020 Annual Meeting of Shareholders held on June 9, 2020, the Company’s shareholders approved the Alpha Pro Tech, Ltd.

2020 Omnibus Incentive Plan (the “2020 Incentive Plan”).

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.

A total of 1,800,000 shares of the Company’s common stock are reserved for issuance under the 2020 Incentive Plan.

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 nine months ended September 30, 2025:

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 (“RSU”), 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.

A total of 1,800,000 shares of the Company’s common stock were 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.

As a result of the approval of the 2020 Incentive Plan, no future equity awards will be made pursuant to the 2004 Option Plan.

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.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table summarizes restricted stock unit (“RSU”) awards activity for the three months ended March 31, 2026:

Weighted Average

2 unchanged sentences

Granted to employees and non-employee directors

Outstanding, September 30, 2025

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

During the nine months ended September 30, 2025 and 2024, 32,330 and 29,675 RSUs were granted under the 2020 Incentive Plan, respectively.

The Company recognized $ 364,000 and $ 283,000 in stock-based compensation expense associated with outstanding RSUs for the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, $ 332,000 of total unrecognized compensation cost related to the RSU grants was expected to be recognized over a weighted average remainder period of 0.98 years.

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

Outstanding, March 31, 2026

During the three months ended March 31, 2026 and 2025, 12,425 and 9,870 RSU awards were granted under the 2020 Incentive Plan, respectively.

The Company recognized $ 121,000 in stock-based compensation expense associated with outstanding RSU awards for both the three months ended March 31, 2026 and 2025.

As of March 31, 2026, $ 254,000 of total unrecognized compensation cost related to the RSU awards was expected to be recognized over a weighted average remainder period of 0.54 years.

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

The Company uses historical data to estimate the expected life of the options.

3 unchanged sentences

The Company accounts for option forfeitures as they occur.

The following table summarizes option activity for the nine months ended September 30, 2025:

The following table summarizes stock option activity for the three months ended March 31, 2026:

Weighted Average

1 unchanged sentence

Options outstanding, December 31, 2025

Options outstanding, September 30, 2025

Options exercisable, September 30, 2025

As of September 30, 2025, $ 45,000 of total unrecognized compensation cost related to the stock option grants was expected to be recognized over a weighted average remainder period of 0.99 years.

Options outstanding, March 31, 2026

Options exercisable, March 31, 2026

The Company recognized $ 11,000 and $ 15,000 , respectively, in stock-based compensation expense associated with the outstanding stock option awards for the three months ended March 31, 2026 and 2025.

As of March 31, 2026, $ 33,000 of total unrecognized compensation expense related to the stock option grants was expected to be recognized over a weighted average remainder period of 0.50 years.

Recent Accounting Pronouncements

In December 2023, the FASB issued ASU 2023-09, Income Taxes (“Topic 740”):

Improvements to Income Tax Disclosures.

These amendments address investor requests for enhanced transparency regarding income tax information.

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

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

In October 2023, the FASB issued ASU 2023-06, Disclosure Improvements:

Codification Amendments in Response to the SEC ’ s Disclosure Update and Simplification Initiative .

The amendments are expected to impact various disclosure areas, including the statement of cash flows, accounting changes and error corrections, earnings per share, debt, derivatives, and transfer of financial assets.

The amendments will become effective on the date the related disclosures are removed from Regulation S-X or Regulation S-K by the SEC and will no longer be effective if the SEC has not removed the applicable disclosure requirement by June 30, 2027.

Early adoption is prohibited.

The Company is currently evaluating the impact of these amendments on the consolidated financial statements.

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

Disaggregation of Income Statement Expenses (“ASU 2024-03”), which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement.

Disaggregation of Income Statement Expenses, which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement.

The new disclosure requirements are effective for the Company’s annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted.

The Company is currently in the process of evaluating the impact of this pronouncement on its related disclosures.

The Company is evaluating the impact of this pronouncement on its related disclosures.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (“Topic 326”):

Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to assume that conditions as of the balance sheet date remain unchanged over the life of the asset when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under ASU Topic 606 (Revenue from Contracts with Customers).

The amendment is effective for fiscal years beginning after December 15, 2025, and interim reporting periods within those annual reporting periods.

The amendment in this update should be applied on a prospective basis.

The adoption of this pronouncement did not have a significant impact on the Company's consolidated financial statements and related disclosures.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Management periodically reviews new accounting standards that are issued.

Management has not identified any other new standards that it believes merit further discussion at this time.

As of September 30, 2025 and December 31, 2024, inventory net of reserves consisted of the following:

September 30,

As of March 31, 2026 and December 31, 2025, inventories net of reserves consisted of the following:

Raw materials

1 unchanged sentence

Finished goods

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Equity Investment in Unconsolidated Affiliate

19 unchanged sentences

The Company periodically reviews its investment in Harmony for impairment.

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

Management has determined that no impairment was required as of March 31, 2026, or December 31, 2025.

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 September 30, 2025 and 2024, the Company purchased $ 5,723,000 and $ 5,465,000 of inventory, respectively, from Harmony.

For the nine months ended September 30, 2025 and 2024, the Company purchased $ 15,637,000 and $ 16,644,000 of inventory, respectively, from Harmony.

For the three months ended September 30, 2025 and 2024, the Company sold $ 213,000 and $ 61,000 of inventory, respectively, to Harmony.

For the nine months ended September 30, 2025 and 2024, the Company sold $ 628,000 and $ 301,000 of inventory, respectively, to Harmony.

For the three months ended September 30, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $ 27,000 and $ 97,000 , respectively, related to Harmony.

For the nine months ended September 30, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $ 305,000 and $ 435,000 , respectively, related to Harmony.

As of September 30, 2025, the Company’s investment in Harmony was $ 5,842,000 , which consisted of its original $ 1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $ 7,186,000 , less $ 942,000 in repayments of an advance, $ 77,000 in payments of dividends, and $ 1,775,000 in AOCL on foreign currency translations.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

For the three months ended March 31, 2026 and 2025, the Company purchased $ 3,094,000 and $ 4,755,000 of inventories, respectively, from Harmony.

For three months ended March 31, 2026 and 2025, the Company sold $ 234,000 and $ 0 of inventories, respectively, to Harmony.

For the three months ended March 31, 2026 and 2025, the Company recorded equity in income of unconsolidated affiliate of $ 155,000 and $ 141,000 , respectively, related to Harmony.

As of March 31, 2026, the Company’s investment in Harmony was $ 5,405,000 , which consisted of its original $ 1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $ 7,178,000 , less $ 942,000 in repayments of an advance, $ 77,000 in payments of dividends, and $ 2,246,000 in AOCL on foreign currency translations.

Accrued Liabilities

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

September 30,

As of March 31, 2026 and December 31, 2025, 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 and nine months ended September 30, 2025 and 2024:

For the Three Months Ended

For the Nine Months Ended

September 30,

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 $ 1,775,000 and $ 1,499,000 as of September 30, 2025 and December 31, 2024, respectively.

The AOCL on equity in unconsolidated affiliate was $ 2,246,000 and $ 1,947,000 as of March 31, 2026 and December 31, 2025, respectively.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Segments Reporting

6 unchanged sentences

A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

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 (1) employees, and (2) financial or capital resources, based on segment net sales.

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

The Company evaluates the performance of its segments and allocates resources to them based primarily on 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 2025 Form 10-K).

The following provides segment information as described below:

For the Three Months Ended

For the Nine Months Ended

September 30, 2025

Building Supply

Protective Apparel

For the Three Months Ended March 31, 2026

Building Supply

Protective Apparel

Disposable Protective Apparel

Segment sales

5 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

For the Three Months Ended

For the Nine Months Ended

September 30, 2024

Building Supply

Protective Apparel

For the Three Months Ended March 31, 2025

Building Supply

Protective Apparel

Disposable Protective Apparel

Segment sales

3 unchanged sentences

Segment net income

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

The following table presents net sales for each segment for the three months ended March 31, 2026 and 2025:

For the Three Months Ended

For the Nine Months Ended

September 30,

Building Supply

1 unchanged sentence

Consolidated net sales

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

The following table presents the reconciliation of total segment income to consolidated net income for the three months ended March 31, 2026 and 2025:

For the Three Months Ended

For the Nine Months Ended

September 30,

Building Supply

6 unchanged sentences

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

September 30,

The following table presents the net property and equipment, goodwill and definite-lived intangible assets (“total assets”) by segment as of March 31, 2026 and December 31, 2025:

Building Supply

4 unchanged sentences

Financial Information about Geographic Areas

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

The following table summarizes the Company’s net sales by geographic region for the three months ended March 31, 2026 and 2025:

For the Three Months Ended

For the Nine Months Ended

September 30,

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 and nine months ended September 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 September 30, 2025 and December 31, 2024:

September 30,

For the three months ended March 31, 2026 and 2025, 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, 2026 and December 31, 2025:

Long-lived assets by geographic region

3 unchanged sentences

Related Party Transactions

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

As of March 31, 2026, 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 September 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.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

As of September 30, 2025, the Company had operating lease right-of-use assets of $ 8,016,000 and operating lease liabilities of $ 8,105,000 .

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

Operating lease expense was approximately $ 1,132,000 during the nine months ended September 30, 2025.

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

September 30,

Remaining three months of 2025

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, 2026, 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, 2026, the Company had operating lease right-of-use assets of $ 7,530,000 and operating lease liabilities of $ 7,644,000 .

As of March 31, 2026, we did not have any finance leases recorded on the Company’s consolidated balance sheet.

Operating lease expense was approximately $ 381,000 during the three months ended March 31, 2026.

The aggregate future minimum lease payments and reconciliation to total lease liabilities as of March 31, 2026 were as follows:

Remaining nine months of 2026

Total future minimum lease payments

1 unchanged sentence

Total lease liabilities

As of September 30, 2025, the weighted average remaining lease term of the Company’s operating leases was 9.57 years.

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

As of March 31, 2026, the weighted average remaining lease term of the Company’s operating leases was 9.29 years.

During the three months ended March 31, 2026, the weighted average discount rate with respect to these leases was 7.0 %.

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

10 unchanged sentences

With non-qualified stock options (“NQSOs”), on the other hand, the employer is typically eligible to claim a deduction upon its employee's exercise of the NQSOs.

Contingencies

The Company is subject to various pending and threatened litigation actions in the ordinary course of business.

Although it is not possible to determine with certainty at this point in time what liability, if any, the Company will have as a result of such litigation, based on consultation with legal counsel, management does not anticipate that the ultimate liability, if any, resulting from such litigation will have a material effect on the Company’s financial condition and results of operations.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Contingencies

The Company is subject to various litigation actions in the ordinary course of business.

Tariff Matter

In February 2026, the U.S.

Supreme Court issued a ruling that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the United States were unauthorized.

Following that ruling, the U.S.

Court of International Trade ("CIT") issued an order directing the U.S.

Customs and Border Protection ("CBP") to process refunds of the IEEPA tariffs, although the CIT immediately suspended the order while CBP develops and implements the refund process.

The IEEPA tariffs and related refund framework remain subject to ongoing litigation, including potential appeals, as well as regulatory and administrative developments.

Accordingly, the ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain.

Any potential recovery of IEEPA tariffs represents a loss recovery.

As of March 31, 2026, the Company has not recognized any receivable or loss recovery related to potential refunds of IEEPA tariffs because the realization of any recovery is dependent on future events, and the Company cannot conclude that recovery is probable or reasonably estimable as of the date of this quarterly report;

however, it is reasonably possible that the potential refunds of IEEPA tariffs could be material.

Subsequent Events

The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of September 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.

The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of March 31, 2026 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