Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 4

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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10,715                            5.32  
  Outstanding, June 30, 2025                            255,830                            4.40  

During the six months ended June 30, 2025 and 2024,9,870and10,715RSUs were granted under the 2020 Incentive Plan, respectively. The Company recognized $243,000and $189,000in stock-based compensation expense associated with outstanding RSUs for the six months ended June 30, 2025 and 2024, respectively. As of June 30, 2025, $453,000of total unrecognized compensation cost related to the RSU grants was expected to be recognized over a weighted average remainder period of1.13years.

The Company uses the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the expected life of the options. The risk-free interest rate for periods within the contractual life of an award is based on the US Treasury yield curve in effect at the time of grant. The estimated volatility is based on historical volatility and management’s expectations of future volatility. The Company uses an estimated dividend payout of zero, as the Company has not paid dividends in the past and, at this time, does not expect to do so in the future. The Company accounts for option forfeitures as they occur.

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

                                                          Weighted Average            
                                                          Exercise Price              
                                                          Per Option                  
  Options outstanding, December 31, 2024      61,100      $                     4.17  
  Exercised                                        -                            0.00  
  Options outstanding, June 30, 2025          61,100                            4.17  
  Options exercisable, June 30, 2025          25,264                            4.14  

As of June 30, 2025, $59,000of total unrecognized compensation cost related to the stock option grants was expected to be recognized over a weighted average remainder period of1.17years.

  Recent Accounting Pronouncements  
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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