apt20250930_10q.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File No.001-15725

Alpha Pro Tech, Ltd.

(Exact Name of Registrant as Specified in Its Charter)

Delaware, U.S.A.	63-1009183
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification No.)

53 Wellington Street East

Aurora, Ontario, Canada

L4G 1H6

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (905) 479-0654

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock,

$0.01 par value

APT

NYSE American

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Outstanding November 3, 2025
Common Stock, $0.01 par value		10,360,062 shares

Alpha Pro Tech, Ltd.

Index

PART I.	FINANCIAL INFORMATION

ITEM 1.	Financial Statements	page

	Condensed Consolidated Balance Sheets (Unaudited)	1

	Condensed Consolidated Statements of Income (Unaudited)	2

	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	3

	Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)	4

	Condensed Consolidated Statements of Cash Flows (Unaudited)	5

	Notes to Condensed Consolidated Financial Statements (Unaudited)	6

ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	24

ITEM 4.	Controls and Procedures	25

PART II.	OTHER INFORMATION

ITEM I.	Legal Proceedings	25

ITEM IA.	Risk Factors	25

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	26

ITEM 5.	Other Information	26

ITEM 6.	Exhibits	27

SIGNATURES		28

Alpha Pro Tech, Ltd.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets (Unaudited)

	September 30,			December 31,
	2025			2024
Assets
Current assets:
Cash and cash equivalents	$	17,658,000		$	18,636,000
Accounts receivable, net		5,499,000			3,692,000
Accounts receivable, related party		1,630,000			1,202,000
Inventory, net		23,479,000			22,733,000
Prepaid expenses		3,482,000			4,376,000
Total current assets		51,748,000			50,639,000

Property and equipment, net		8,207,000			8,520,000
Goodwill		55,000			55,000
Right-of-use assets		8,016,000			8,714,000
Equity investment in unconsolidated affiliate		5,842,000			5,814,000
Total assets	$	73,868,000		$	73,742,000

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	1,730,000		$	1,283,000
Accrued liabilities		989,000			947,000
Current portion of lease liabilities		951,000			893,000
Total current liabilities		3,670,000			3,123,000

Lease liabilities, net of current portion		7,154,000			7,882,000
Deferred income tax liabilities, net		503,000			503,000
Total liabilities		11,327,000			11,508,000
Commitments and contingencies
Shareholders' equity:
Common stock, $.01 par value: 50,000,000 shares authorized; 10,284,565 and 10,816,878 shares outstanding as of September 30, 2025 and December 31, 2024, respectively		103,000			108,000
Additional paid-in capital		15,938,000			16,368,000
Retained earnings		48,275,000			47,257,000
Accumulated other comprehensive loss		(1,775,000	)		(1,499,000	)
Total shareholders' equity		62,541,000			62,234,000
Total liabilities and shareholders' equity	$	73,868,000		$	73,742,000

The condensed consolidated balance sheet as of December 31, 2024, has been prepared using information from the audited consolidated balance sheet as of that date.

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

Alpha Pro Tech, Ltd.

Condensed Consolidated Statements of Income (Unaudited)

	For the Three Months Ended				For the Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024

Net sales	$	14,785,000	$	14,251,000	$	45,279,000	$	44,023,000

Cost of goods sold, excluding depreciation and amortization		8,917,000		8,767,000		27,888,000		26,280,000
Gross profit		5,868,000		5,484,000		17,391,000		17,743,000

Operating expenses:
Selling, general and administrative		4,568,000		4,502,000		13,818,000		14,234,000
Depreciation and amortization		203,000		245,000		686,000		734,000
Total operating expenses		4,771,000		4,747,000		14,504,000		14,968,000

Income from operations		1,097,000		737,000		2,887,000		2,775,000

Other income:
Equity in income of unconsolidated affiliate		27,000		97,000		305,000		435,000
Gain on sale of asset		-		30,000		-		30,000
Interest income, net		169,000		235,000		484,000		700,000
Total other income		196,000		362,000		789,000		1,165,000

Income before provision for income taxes		1,293,000		1,099,000		3,676,000		3,940,000

Provision for income taxes		317,000		237,000		843,000		858,000

Net income	$	976,000	$	862,000	$	2,833,000	$	3,082,000


Basic earnings per common share	$	0.09	$	0.08	$	0.27	$	0.28

Diluted earnings per common share	$	0.09	$	0.08	$	0.27	$	0.28

Basic weighted average common shares outstanding		10,354,289		11,075,527		10,525,957		11,103,467

Diluted weighted average common shares outstanding		10,485,088		11,173,739		10,642,957		11,194,178

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

Alpha Pro Tech, Ltd.

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

	For the Three Months Ended					For the Nine Months Ended
	September 30,					September 30,
	2025			2024		2025			2024

Net income	$	976,000		$	862,000	$	2,833,000		$	3,082,000
Other comprehensive income - foreign currency translation gain (loss)		(189,000	)		75,000		(276,000	)		23,000
Comprehensive income	$	787,000		$	937,000	$	2,557,000		$	3,105,000

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

Alpha Pro Tech, Ltd.

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

For the Nine Months Ended September 30, 2025													Accumulated
							Additional						Other
	Common Stock						Paid-in			Retained			Comprehensive
	Shares			Amount			Capital			Earnings			Income (Loss)			Total
Balance as of December 31, 2024		10,816,878		$	108,000		$	16,368,000		$	47,257,000		$	(1,499,000	)	$	62,234,000
Net income		-			-			-			613,000			-			613,000
Common stock repurchased and retired		(221,413	)		(2,000	)		(335,000	)		(841,000	)		-			(1,178,000	)
Treasury stock excise tax		-			-			(12,000	)		-			-			(12,000	)
Stock-based compensation expense		-			-			136,000			-			-			136,000
Other comprehensive loss		-			-			-			-			(65,000	)		(65,000	)
Balance as of March 31, 2025		10,595,465			106,000			16,157,000			47,029,000			(1,564,000	)		61,728,000
Net income		-			-			-			1,244,000			-			1,244,000
Common stock repurchased and retired		(181,100	)		(2,000	)		(277,000	)		(551,000	)		-			(830,000	)
Treasury stock excise tax		-			-			(8,000	)		-			-			(8,000	)
Stock-based compensation expense		-			-			136,000			-			-			136,000
Other comprehensive loss		-			-			-			-			(22,000	)		(22,000	)
Balance as of June 30, 2025		10,414,365			104,000			16,008,000			47,722,000			(1,586,000	)		62,248,000
Net income		-			-			-			976,000			-			976,000
Common stock repurchased and retired		(129,800	)		(1,000	)		(200,000	)		(423,000	)		-			(624,000	)
Treasury stock excise tax		-			-			(6,000	)		-			-			(6,000	)
Stock-based compensation expense		-			-			136,000			-			-			136,000
Other comprehensive loss		-			-			-			-			(189,000	)		(189,000	)
Balance as of September 30, 2025		10,284,565		$	103,000		$	15,938,000		$	48,275,000		$	(1,775,000	)	$	62,541,000

For the Nine Months Ended September 30, 2024													Accumulated
							Additional						Other
	Common Stock						Paid-in			Retained			Comprehensive
	Shares			Amount			Capital			Earnings			Income (Loss)			Total
Balance as of December 31, 2023		11,416,212		$	114,000		$	16,339,000		$	46,552,000		$	(1,437,000	)	$	61,568,000
Net income		-			-			-			576,000			-			576,000
Common stock repurchased and retired		(270,000	)		(2,000	)		(386,000	)		(1,029,000	)		-			(1,417,000	)
Treasury stock excise tax		-			-			(14,000	)		-			-			(14,000	)
Stock-based compensation expense		-			-			109,000			-			-			109,000
Options exercised		226,666			2,000			813,000			-			-			815,000
Other comprehensive income		-			-			-			-			6,000			6,000
Balance as of March 31, 2024		11,372,878			114,000			16,861,000			46,099,000			(1,431,000	)		61,643,000
Net income		-			-			-			1,644,000			-			1,644,000
Common stock repurchased and retired		(245,000	)		(3,000	)		(363,000	)		(918,000	)		-			(1,284,000	)
Treasury stock excise tax		-			-			(13,000	)		-			-			(13,000	)
Stock-based compensation expense		-			-			109,000			-			-			109,000
Other comprehensive loss		-			-			-			-			(58,000	)		(58,000	)
Balance as of June 30, 2024		11,127,878			111,000			16,594,000			46,825,000			(1,489,000	)		62,041,000
Net income		-			-			-			862,000			-			862,000
Common stock repurchased and retired		(180,000	)		(2,000	)		(267,000	)		(761,000	)		-			(1,030,000	)
Treasury stock excise tax		-			-			(10,000	)		-			-			(10,000	)
Stock-based compensation expense		-			-			109,000			-			-			109,000
Options exercised		5,000			1,000			16,000			-			-			17,000
Other comprehensive income		-			-			-			-			75,000			75,000
Balance as of September 30, 2024		10,952,878		$	110,000		$	16,442,000		$	46,926,000		$	(1,414,000	)	$	62,064,000

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

Alpha Pro Tech, Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

	For the Nine Months Ended September 30,
	2025			2024
Cash Flows From Operating Activities:
Net income	$	2,833,000		$	3,082,000
Adjustments to reconcile net income to net cash and cash equivalents used in operating activities:
Stock-based compensation		408,000			327,000
Depreciation and amortization		686,000			734,000
Equity in income of unconsolidated affiliate		(305,000	)		(435,000	)
Gain on sale of asset		-			(30,000	)
Non-cash lease expense		698,000			674,000
Changes in operating assets and liabilities:
Accounts receivable, net		(1,807,000	)		(123,000	)
Accounts receivable, related party		(428,000	)		397,000
Inventory, net		(746,000	)		(946,000	)
Prepaid expenses		894,000			342,000
Accounts payable and accrued liabilities		489,000			(70,000	)
Lease liabilities		(670,000	)		(667,000	)

Net cash and cash equivalents provided by operating activities		2,052,000			3,285,000

Cash Flows From Investing Activities:
Purchases of property and equipment		(372,000	)		(

SEC Form 10-Q filed by Alpha Pro Tech Ltd.