What changed in this filing

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Item 1. Financial Statements

2026-08-07 compared with 2026-05-07 · 134 added, 79 removed, 300 unchanged (42% of the section changed)

24 unchanged sentences

50,000,000 shares authorized;

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

10,120,851 and 10,131,565 shares outstanding as of June 30, 2026 and December 31, 2025, 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

For the Six Months Ended

Other comprehensive income - foreign currency translation gain (loss)

3 unchanged sentences

Condensed Consolidated Statements of Shareholders ’ Equity (Unaudited)

For the Three Months Ended March 31, 2026

For the Six Months Ended June 30, 2026

Comprehensive

1 unchanged sentence

Balance as of December 31, 2025

Common stock repurchased and retired

Treasury stock excise tax

Stock-based compensation expense

1 unchanged sentence

Balance as of March 31, 2026

For the Three Months Ended March 31, 2025

Common stock repurchased and retired

Stock-based compensation expense

Options exercised

Other comprehensive income

Balance as of June 30, 2026

For the Six Months Ended June 30, 2025

Comprehensive

6 unchanged sentences

Balance as of March 31, 2025

Common stock repurchased and retired

Treasury stock excise tax

Stock-based compensation expense

Other comprehensive loss

Balance as of June 30, 2025

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

Cash Flows From Operating Activities:

Adjustments to reconcile net income to net cash and cash equivalents used in operating activities:

Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:

Stock-based compensation

14 unchanged sentences

Cash Flows From Financing Activities:

Proceeds from exercise of stock options

Repurchase of common stock

1 unchanged sentence

Net cash and cash equivalents used in financing activities

Decrease in cash and cash equivalents

Increase (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, 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 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 results of operations for the three and six months ended June 30, 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 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.

The Company has determined as of June 30, 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.

1 unchanged sentence

Notes to Condensed Consolidated Financial Statements (Unaudited)

Shareholder’s Equity

Shareholders ’ Equity

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.

During the three months ended June 30, 2026, the Company repurchased and retired 21,800 shares of its common stock for $ 99,000 .

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 six months ended June 30, 2026, the Company repurchased and retired 21,800 shares of its common stock for $ 99,000 .

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

As of June 30, 2026, the Company had $ 1,298,000 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 Company previously granted stock options to eligible individuals under the 2004 Stock Option Plan (the “ 2004 Option Plan ”).

Grants made under the 2004 Option 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 Option 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 Option Plan provided for a total of 5,000,000 common shares eligible for issuance.

Under the 2004 Option 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 Option Plan, option grants had a three -year vesting period and, since 2005, expired 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.

4 unchanged sentences

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.

Although no new awards may be granted under the 2004 Option Plan, all previously granted awards 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:

The following table summarizes restricted stock unit (“RSU”) awards activity for the six months ended June 30, 2026:

Weighted Average

2 unchanged sentences

Granted to employees and non-employee directors

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.

Canceled/expired/forfeited

Outstanding, June 30, 2026

During the six months ended June 30, 2026 and 2025, 12,425 and 9,870 RSU awards were granted under the 2020 Incentive Plan, respectively.

The Company recognized $ 236,000 and $ 243,000 in stock-based compensation expense associated with outstanding RSU awards for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, $ 128,000 of total unrecognized compensation cost related to the RSU awards was expected to be recognized over a weighted average remainder period of 0.31 years.

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

4 unchanged sentences

The Company accounts for option forfeitures as they occur.

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

The following table summarizes stock option activity for the six months ended June 30, 2026:

Weighted Average

1 unchanged sentence

Options outstanding, December 31, 2025

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.

Options outstanding, June 30, 2026

Options exercisable, June 30, 2026

The Company recognized $ 23,000 and $ 29,000 in stock-based compensation expense associated with the outstanding stock option awards for the six months ended June 30, 2026 and 2025, respectively.

As of June 30, 2026, $ 11,000 of total unrecognized compensation expense related to the stock options was expected to be recognized over a weighted average remainder period of 0.25 years.

Recent Accounting Pronouncements

1 unchanged sentence

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.

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

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

6 unchanged sentences

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

The Company adopted this ASU effective January 1, 2026.

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)

In December 2025, the FASB issued ASU 2025-11, “Interim Reporting (Topic 270):

Narrow Scope Improvements,” which provides additional guidance on what disclosures should be provided in interim reporting periods including disclosure of events since the end of the last annual reporting period that have a material impact on the entity.

The amendments in this ASU will be effective for interim reporting periods within annual reporting periods beginning after December 15, 2027.

Early adoption is permitted.

The amendments in this ASU can be applied either prospectively or retrospectively to any or all prior periods presented in the financial statements.

The Company is in the process of evaluating the impact of the new guidance and determining the transition method and the timing of adoption.

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

As of June 30, 2026 and December 31, 2025, inventories net of reserves consisted of the following:

Raw materials

9 unchanged sentences

In addition, the joint venture now supplies products for the Company’s Disposable Protective Apparel segment.

The capital from the initial funding and a bank loan, which is guaranteed exclusively by the individual shareholders of Maple Industries and associates and collateralized by the assets of Harmony, were utilized to purchase the original manufacturing facility in India.

The capital from the initial funding and a bank loan, which is guaranteed exclusively by the individual shareholders of Maple Industries and associates and collateralized by the assets of Harmony, was utilized to purchase the original manufacturing facility in India.

Harmony currently has four facilities in India ( three owned and one rented), consisting of:

4 unchanged sentences

All additions have been financed by Harmony with no guarantees from the Company.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

In accordance with ASC 810, Consolidation, the Company assesses whether or not related entities are variable interest entities (“VIEs”).

4 unchanged sentences

The Company periodically reviews its investment in Harmony for impairment.

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”).

Management has determined that no impairment was required as of June 30, 2026, or December 31, 2025.

Under the equity method, since the Company’s reporting currency is different from Harmony’s reporting currency, the Company is required to translate our proportionate share of equity for the 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 June 30, 2026 and 2025, the Company purchased $ 374,000 and $ 5,159,000 of inventories, respectively, from Harmony.

For the six months ended June 30, 2026 and 2025, the Company purchased $ 3,468,000 and $ 9,914,000 of inventories, respectively, from Harmony.

For the three months ended June 30, 2026 and 2025, the Company sold $ 203,000 and $ 415,000 of inventories, respectively, to Harmony.

For the six months ended June 30, 2026 and 2025, the Company sold $ 437,000 and $ 415,000 of inventories, respectively, to Harmony.

For the three months ended June 30, 2026 and 2025, the Company recorded equity in income of unconsolidated affiliate of $ 209,000 and $ 137,000 , respectively, related to Harmony.

For the six months ended June 30, 2026 and 2025, the Company recorded equity in income of unconsolidated affiliate of $ 364,000 and $ 278,000 , respectively, related to Harmony.

As of June 30, 2026, the Company’s investment in Harmony was $ 5,620,000 , which consisted of its original $ 1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $ 7,428,000 , less $ 942,000 in repayments of an advance, $ 77,000 in payments of dividends, and $ 2,239,000 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 March 31, 2026 and December 31, 2025, accrued liabilities consisted of the following:

As of June 30, 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 months ended March 31, 2026 and 2025:

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 $ 2,246,000 and $ 1,947,000 as of March 31, 2026 and December 31, 2025, respectively.

The AOCL on equity in unconsolidated affiliate was $ 2,239,000 and $ 1,947,000 as of June 30, 2026 and December 31, 2025, respectively.

Alpha Pro Tech, Ltd.

14 unchanged sentences

The following provides segment information as described below:

For the Three Months Ended March 31, 2026

For the Three Months Ended

For the Six Months Ended

June 30, 2026

Building Supply

Disposable Protective Apparel

Protective Apparel

Building Supply

Protective Apparel

Segment sales

3 unchanged sentences

Segment net income

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

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

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

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

The following table presents net sales for each segment for the three and six months ended June 30, 2026 and 2025:

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 total segment income to consolidated net income for the three months ended March 31, 2026 and 2025:

The following table presents the reconciliation of total segment income to consolidated net income for the three and six months ended June 30, 2026 and 2025:

For the Three Months Ended

For the Six Months Ended

Building Supply

4 unchanged sentences

Consolidated net income

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

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:

The following table presents the net property and equipment, goodwill and definite-lived intangible assets (“total assets”) by segment as of June 30, 2026 and December 31, 2025:

Building Supply

3 unchanged sentences

Total consolidated assets

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

Financial Information about Geographic Areas

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

The following table summarizes the Company’s net sales by geographic region for the three and six months ended June 30, 2026 and 2025:

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, 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:

For the three and six months ended June 30, 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 June 30, 2026 and December 31, 2025:

Long-lived assets by geographic region

3 unchanged sentences

Related Party Transactions

As of March 31, 2026, the Company had no related party transactions, other than the Company’s transactions with its unconsolidated affiliate, Harmony.

As of June 30, 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 June 30, 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 June 30, 2026, the Company had operating lease right-of-use assets of $ 7,504,000 and operating lease liabilities of $ 7,621,000 .

As of June 30, 2026, we did not have any finance leases recorded on the Company’s consolidated balance sheet.

Operating lease expense was approximately $ 762,000 during the six months ended June 30, 2026.

Alpha Pro Tech, Ltd.

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, 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

The aggregate future minimum lease payments and reconciliation to total lease liabilities as of June 30, 2026 were as follows:

Remaining six months of 2026

Total future minimum lease payments

1 unchanged sentence

Total lease liabilities

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 %.

As of June 30, 2026, the weighted average remaining lease term of the Company’s operating leases was 9.01 years.

During the six months ended June 30, 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.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

The Company is subject to income tax examinations in various jurisdictions with respect to fiscal years after 2022.

The timing and potential resolution of income tax examinations is highly uncertain and when, and if, the Company is subject to a tax examination it is reasonably possible that a taxing authority may interpret certain tax laws differently resulting in additional taxes due from the Company.

Contingencies

5 unchanged sentences

Following that ruling, the U.S.

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

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

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

As previously disclosed, tariffs imposed under the IEEPA on goods imported into the United States remain subject to ongoing litigation, including appeals of the applicable court rulings, as well as related regulatory and administrative actions.

During the six months ended June 30, 2026, the Company received refunds representing a portion of the IEEPA tariffs previously paid.

The Company continues to seek recovery of additional IEEPA tariffs;

however, the ultimate amount, timing, and final resolution of any additional refunds remain uncertain pending the outcome of the ongoing litigation and related administrative processes.

The Company has elected to use a gain contingency model to account for recoveries of previously paid IEEPA tariffs, in accordance with ASC 450-30 "Gain Contingencies".

Under this model, a gain contingency is not recognized in the financial statements until the gain is realized or realizable.

As of June 30, 2026, the Company has recognized only those refunds received as of the balance sheet date.

Tariff recoveries are reflected as a reduction of cost of goods sold for inventory that has already been sold.

Subsequent to June 30, 2026, the Company received refunds for IEEPA tariffs previously paid totaling approximately $3.2 million, including an immaterial amount of interest.

As of June 30, 2026 these amounts were not deemed to be realized or realizable and, accordingly, these amounts were not recognized in the condensed consolidated financial statements for the period ending June 30, 2026.

As of June 30, 2026, the impact to the Company of these subsequently received IEEPA tariff refunds remains uncertain due to uncertainty around customer and vendor refunds, rebates, as well as the final resolution of pending litigation and appeals.

During the quarter ended June 30, 2026, the Company reassessed the appropriate accounting model for its tariff refund claims.

Based on further analysis of the applicable accounting guidance and the nature of the claims, management concluded that the claims represent gain contingencies subject to ASC 450-30.

(As previously disclosed in the Company's March 31, 2026 interim financial information, no tariff amounts were recorded as of March 31, 2026.)

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.

The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of June 30, 2026 through the filing date of this Quarterly Report on Form 10-Q.

Subsequent to June 30, 2026, the Company received approximately $ 3.2 million in refunds from U.S.

Customs and Border Protection related to previously paid IEEPA tariffs.

This is in addition to the approximately $ 300,000 in refunds the Company received (and recorded) during the second quarter of 2026.

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