apt20260630_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 June 30, 2026

☐ 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 August 3, 2026
Common Stock, $0.01 par value		10,206,218 shares

Alpha Pro Tech, Ltd.

Index

		page
PART I.	FINANCIAL INFORMATION

ITEM 1.	Financial Statements

	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	17

ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	27

ITEM 4.	Controls and Procedures	27

PART II.	OTHER INFORMATION

ITEM I.	Legal Proceedings	28

ITEM IA.	Risk Factors	28

ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

ITEM 5.	Other Information	29

ITEM 6.	Exhibits	30

SIGNATURES		31

EXHIBITS

Alpha Pro Tech, Ltd.

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets (Unaudited)

	June 30,			December 31,
	2026			2025
Assets
Current assets:
Cash and cash equivalents	$	18,901,000		$	16,988,000
Accounts receivable, net		9,500,000			6,936,000
Accounts receivable, related party		1,635,000			1,202,000
Inventories, net		18,650,000			23,598,000
Prepaid expenses		5,508,000			3,796,000
Total current assets		54,194,000			52,520,000

Property and equipment, net		7,975,000			8,234,000
Goodwill		55,000			55,000
Right-of-use assets		7,504,000			7,775,000
Equity investment in unconsolidated affiliate		5,620,000			5,548,000
Total assets	$	75,348,000		$	74,132,000

Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable	$	1,234,000		$	2,005,000
Accrued liabilities		894,000			1,088,000
Lease liabilities		1,052,000			965,000
Total current liabilities		3,180,000			4,058,000

Lease liabilities, net of current portion		6,569,000			6,917,000
Deferred income tax liabilities, net		679,000			679,000
Total liabilities		10,428,000			11,654,000
Commitments and contingencies
Shareholders' equity:
Common stock, $.01 par value: 50,000,000 shares authorized; 10,120,851 and 10,131,565 shares outstanding as of June 30, 2026 and December 31, 2025, respectively		101,000			101,000
Additional paid-in capital		16,099,000			15,828,000
Retained earnings		50,959,000			48,496,000
Accumulated other comprehensive loss		(2,239,000	)		(1,947,000	)
Total shareholders' equity		64,920,000			62,478,000
Total liabilities and shareholders' equity	$	75,348,000		$	74,132,000

The condensed consolidated balance sheet as of December 31, 2025, 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 Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025

Net sales	$	18,674,000	$	16,672,000	$	33,259,000	$	30,494,000

Cost of goods sold, excluding depreciation and amortization		11,696,000		10,541,000		20,765,000		18,971,000
Gross profit		6,978,000		6,131,000		12,494,000		11,523,000

Operating expenses:
Selling, general and administrative		4,698,000		4,556,000		9,384,000		9,250,000
Depreciation and amortization		268,000		240,000		518,000		483,000
Total operating expenses		4,966,000		4,796,000		9,902,000		9,733,000

Income from operations		2,012,000		1,335,000		2,592,000		1,790,000

Other income:
Equity in income of unconsolidated affiliate		209,000		137,000		364,000		278,000
Interest income, net		163,000		139,000		313,000		315,000
Total other income		372,000		276,000		677,000		593,000

Income before provision for income taxes		2,384,000		1,611,000		3,269,000		2,383,000

Provision for income taxes		558,000		367,000		741,000		526,000

Net income	$	1,826,000	$	1,244,000	$	2,528,000	$	1,857,000

Basic earnings per common share	$	0.18	$	0.12	$	0.25	$	0.18

Diluted earnings per common share	$	0.18	$	0.12	$	0.24	$	0.18

Basic weighted average common shares outstanding		10,120,766		10,501,865		10,126,136		10,407,287

Diluted weighted average common shares outstanding		10,347,645		10,611,052		10,339,386		10,517,652

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 Six Months Ended
	June 30,					June 30,
	2026		2025			2026			2025

Net income	$	1,826,000	$	1,244,000		$	2,528,000		$	1,857,000
Other comprehensive income - foreign currency translation gain (loss)		7,000		(22,000	)		(292,000	)		(87,000	)
Comprehensive income	$	1,833,000	$	1,222,000		$	2,236,000		$	1,770,000

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

Alpha Pro Tech, Ltd.

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

	For the Six Months Ended June 30, 2026												Accumulated
							Additional						Other
		Common Stock					Paid-in			Retained			Comprehensive
		Shares			Amount		Capital			Earnings			Income (Loss)			Total
Balance as of December 31, 2025			10,131,565		$	101,000	$	15,828,000		$	48,496,000		$	(1,947,000	)	$	62,478,000
Net income			-			-		-			702,000			-			702,000
Stock-based compensation expense			-			-		132,000			-			-			132,000
Other comprehensive loss			-			-		-			-			(299,000	)		(299,000	)
Balance as of March 31, 2026			10,131,565			101,000		15,960,000			49,198,000			(2,246,000	)		63,013,000
Net income			-			-		-			1,826,000			-			1,826,000
Common stock repurchased and retired			(21,800	)		-		(34,000	)		(65,000	)		-			(99,000	)
Stock-based compensation expense			-			-		127,000			-			-			127,000
Options exercised			11,086			-		46,000			-			-			46,000
Other comprehensive income			-			-		-			-			7,000			7,000
Balance as of June 30, 2026			10,120,851		$	101,000	$	16,099,000		$	50,959,000		$	(2,239,000	)	$	64,920,000

	For the Six Months Ended June 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

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

Alpha Pro Tech, Ltd.

Condensed Consolidated Statements of Cash Flows (Unaudited)

	For the Six Months Ended June 30,
	2026			2025
Cash Flows From Operating Activities:
Net income	$	2,528,000		$	1,857,000
Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:
Stock-based compensation		259,000			272,000
Depreciation and amortization		518,000			483,000
Equity in income of unconsolidated affiliate		(364,000	)		(278,000	)
Amortization of right-of-use assets		494,000			462,000
Changes in operating assets and liabilities:
Accounts receivable, net		(2,564,000	)		(4,671,000	)
Accounts receivable, related party		(433,000	)		(215,000	)
Inventories, net		4,948,000			372,000
Prepaid expenses		(1,712,000	)		438,000
Accounts payable and accrued liabilities		(965,000	)		(156,000	)
Lease liabilities		(484,000	)		(435,000	)

Net cash and cash equivalents provided by (used in) operating activities		2,225,000			(1,871,000	)

Cash Flows From Investing Activities:
Purchases of property and equipment		(259,000	)		(273,000	)
Net cash and cash equivalents used in investing activities		(259,000	)		(273,000	)

Cash Flows From Financing Activities:
Proceeds from exercise of stock options		46,000			-
Repurchase of common stock		(99,000	)		(2,008,000	)
Treasury stock excise tax		-			(20,000	)

Net cash and cash equivalents used in financing activities		(53,000	)		(2,028,000	)

Increase (decrease) in cash and cash equivalents		1,913,000			(4,172,000	)

Cash and cash equivalents, beginning of the period		16,988,000			18,636,000

Cash and cash equivalents, end of the period	$	18,901,000		$	14,464,000

Supplemental disclosure of non-cash transactions:
Net non-cash changes to operating leases	$	223,000		$	-

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

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

1.	The Company

Alpha Pro Tech, Ltd. (“Alpha Pro Tech,” the “Company,” “we”, “us” or “our”) is in the business of protecting people, products and environments. The Company accomplishes this by developing, manufacturing and marketing a line of building supply products for the new home and re-roofing markets and a line of disposable protective apparel for the cleanroom, industrial, pharmaceutical, medical and dental markets.

The Building Supply segment consists of construction weatherization products, such as housewrap, housewrap accessories including window and door flashing, seam tape, synthetic roof underlayment and synthetic roof underlayment accessories, as well as other woven materials.

The Disposable Protective Apparel segment consists of a complete line of disposable protective garments (shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats), face masks and face shields. All of our disposable protective apparel products, including face masks and face shields, are sold through similar distribution channels, are single-use and disposable, have the purpose of protecting people, products and environments, and have to be produced in Food and Drug Administration approved facilities, regardless of the market served.

The Company’s products are sold under the “Alpha Pro Tech” brand name as well as under private label and are predominantly sold in the United States of America (“U.S.”).

2.	Basis of Presentation and Revenue Recognition Policy

The interim financial information included in this report is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods reflected herein. These interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) and, therefore, omit certain information and note disclosures that would be necessary to present the statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). 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 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; however, it does not include all disclosures required by U.S. GAAP for annual consolidated financial statements.

Net sales include revenue from products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Our customer contracts have a single performance obligation: transfer control of products to customers. Revenue is measured as the amount of consideration that we expect to receive in exchange for transferring control of products. All revenue is recognized when we satisfy our performance obligations under the applicable contract. We recognize revenue in connection with transferring control of the promised products to the customer, with revenue being recognized at the point in time when the customer obtains control of the products, which is generally when title passes to the customer upon delivery to a third-party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements, at which time a receivable is created for the invoice sent to the customer. Shipping and handling activities are performed prior to the customer obtaining control of the goods and are accounted for as fulfillment activities and are not a promised good or service. 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. Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract. Sales taxes and value added taxes in foreign and domestic jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net sales. The Company manufactures certain private label goods for customers and has determined that control does not pass to the customer at the time of manufacture, based upon the nature of the private labeling. 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.

Alpha Pro Tech, Ltd.

Notes to Condensed Consolidated Financial Statements (Unaudited)

3.	Shareholders’ Equity

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 Option Plan ”). Grants made under the 2004 Option Plan were intended to recognize the contributions made to the Comp