Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 44

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 44
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 used in investing activities of $273,000, and cash used in financing activities of $2,028,000.

Net cash used in operating activities of $1,871,000 for the six months ended June 30, 2025 was due to net income of $1,857,000, as adjusted primarily by the following: stock-based compensation expense of $272,000, depreciation and amortization expense of $483,000, equity in income of unconsolidated affiliate of $278,000, operating lease asset amortization of $462,000, an increase in accounts receivable of $4,886,000, a decrease in prepaid expenses of $438,000, a decrease in inventory of $372,000, a decrease in accounts payable and accrued liabilities of $156,000, and a decrease in lease liabilities of $435,000, all compared to December 31, 2024.

Accounts receivable increased by $4,886,000, or 99.8%, to $9,780,000 as of June 30, 2025, from $4,894,000 as of December 31, 2024. The increase in accounts receivable was primarily related to increased sales in the latter part of the second quarter of 2025 compared to the latter part of 2024 and due to a higher percentage than normal of receivables with extended terms. The number of days that sales remained outstanding as of June 30, 2025, calculated by using an average of accounts receivable outstanding and annual revenue, was 40 days, compared to 36 days as of December 31, 2024.

Inventory decreased by $372,000, or 1.6%, to $22,361,000 as of June 30, 2025, from $22,733,000 as of December 31, 2024. The decrease was due to a decrease in inventory for the Disposable Protective Apparel segment of $519,000, or 4.4%, to $11,283,000, partially offset by an increase in inventory for the Building Supply segment of $147,000, or 1.3%, to $11,078,000.

Prepaid expenses decreased by $438,000, or 10.0%, to $3,938,000 as of June 30, 2025, from $4,376,000 as of December 31, 2024. The decrease was primarily due to