Company: APT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033545
Chunk: 3

Company: ALPHA PRO TECH LTD
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 3
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 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:

                                                                     Weighted Average            
                                                                     Grant Date Price            
                                                                     of Awards                   
  Outstanding, December 31, 2024                        256,675      $                     4.38  
  Granted to employees and non-employee directors        32,330                            5.11  
  Vested                                               ( 29,675                            5.56  
  Outstanding, September 30, 2025                       259,330                            3.92  

During the nine months ended September 30, 2025 and 2024,32,330and29,675RSUs were granted under the 2020 Incentive Plan, respectively. The Company recognized $364,000and $283,000in stock-based compensation expense associated with outstanding RSUs for the nine months ended September 30, 2025 and 2024, respectively. As of September 30, 2025, $332,000of total unrecognized compensation cost related to the RSU grants was expected to be recognized over a weighted average remainder period of0.98years.

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