Company: APT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033545
Chunk: 32

Company: ALPHA PRO TECH LTD
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 32
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 tariffs imposed under the Trump Administration exceed presidential authority and therefore are invalid, though the decision has been stayed pending U. S. Supreme Court review. This ruling introduces additional uncertainty as to the scope and durability of existing and future tariff measures. While the U. S. government has announced various trade deals, many such agreements are preliminary and may be subject to change.

Any new or increased tariffs, quotas, embargoes, or other trade barriers affecting other countries from which we do source supplies or our global network of third-party suppliers could impact our supply chain and cost structure. Additionally, retaliatory measures by affected countries could further disrupt our operations or reduce our competitiveness in international markets. An escalation in trade tensions or the implementation of broader tariffs, trade restrictions or retaliatory measures on our products or components originating from countries outside the U. S. could adversely impact our ability to source necessary components, manufacture products at competitive cost, or sell our products at prices customers are willing to pay. Any such developments could materially and adversely affect our business operations, results of operations and cash flows. We continue to monitor these changing tariffs and trade restrictions. If new tariffs or trade restrictions are imposed, we may need to adjust our pricing, increase inventory levels, or seek alternative suppliers, any of which could materially affect our revenue, gross margins, and overall financial performance.

18

Alpha Pro Tech, Ltd.

RESULTS OF OPERATIONS

The following table sets forth certain operational data as a percentage of net sales for the periods indicated:

                                                    For the Three Months Ended September 30,                 For the Nine Months Ended September 30,             
                                                                                        2025                                                    2025             
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net sales                                                                            100.0      100.0                                        100.0      100.0  
  Gross profit                                                                          39.7       38.5                                         38.4       40.3  
  Selling, general and administrative expenses                                          30.9       31.6                                         30.5       32.3  
  Income from operations                                                                 7.4        5.2                                          6.4        6.3  
  Income before provision for income taxes                                               8.7        7.7                                          8.1        8.9  
  Net income                                                                             6.6        6.0                                          6.3        7.0  

Three and Nine months ended September