Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 42

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 42
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 2024, representing a decrease of $508,000, or 24.0%. This decrease in income before provision for income taxes was due to a decrease in income from operations of $377,000 and a decrease in other income of $131,000.

Income before provision for income taxes for the six months ended June 30, 2025, was $2,383,000, compared to income before provision for income taxes of $2,841,000 for the same period of 2024, representing a decrease of $458,000, or 16.1%. This decrease in income before provision for income taxes was due to a decrease in income from operations of $248,000 and a decrease in other income of $210,000.

Provision for Income Taxes. The provision for income taxes for the three months ended June 30, 2025, was $367,000, compared to $475,000 for the same period of 2024. The estimated effective tax rate was 22.8% for the three months ended June 30, 2025, compared to 22.4% for the three months ended June 30, 2024.

The provision for income taxes for the six months ended June 30, 2025, was $526,000, compared to $621,000 for the same period of 2024. The estimated effective tax rate was 22.1% for the six months ended June 30, 2025, compared to 21.9% for the six months ended June 30, 2024.

On July 4, 2025, the One Big Beautiful Bill Act (“ OBBBA”) was enacted, which includes permanent extensions of most expiring Tax Cuts and Jobs Act provisions and international tax changes. The Company is still evaluating the potential impacts of the OBBBA; however, the Company does not anticipate it will have a material impact on the Company’s financial statements.

The Company does not record a tax provision on equity in income of unconsolidated affiliate, which reduces the effective tax rate.

Net Income. Net income for the three months ended June 30, 2025, was $1,244,000 compared to net income of $1,644,000 for the same period of 2024, representing a decrease of $400,000, or 24.3%. The net income decrease between the three months ended June 30, 2025 and the same period of