Company: APT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033545
Chunk: 21

Company: ALPHA PRO TECH LTD
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 compensation and general factory expenses, partially offset by increased insurance expenses. The increase in the Disposable Protective Apparel segment expenses was primarily related to increased employee compensation, marketing, sales travel expenses, partially offset by lower rent and utilities, general office and factory expenses. The decrease in corporate unallocated expenses was primarily due to decreased professional fees, insurance expenses, and reorganization costs in the nine months ended September 30, 2025 compared to the same period of 2024. The reorganization costs in 2024 were incurred in connection with moving our face mask manufacturing facility from Utah to Arizona.

In accordance with the terms of his employment agreement, the Company’s current President and Chief Executive Officer is entitled to an annual bonus equal to 5% of the pre-tax profits of the Company, excluding bonus expense, up to a maximum of $1.0 million. A bonus amount of $69,000 was accrued for the three months ended September 30, 2025, compared to $58,000 for the three months ended September 30, 2024. A bonus amount of $194,000 was accrued for the nine months ended September 30, 2025, compared to $207,000 for the nine months ended September 30, 2024.

Depreciation and Amortization. Depreciation and amortization expense decreased by $42,000, or 17.1%, to $203,000 for the three months ended September 30, 2025, from $245,000 for the three months ended September 30, 2024. Depreciation and amortization expense decreased by $48,000, or 6.5%, to $686,000 for the nine months ended September 30, 2025, from $734,000 for the nine months ended September 30, 2024.

Income from Operations. Income from operations increased by $360,000, or 48.8%, to $1,097,000 for the three months ended September 30, 2025, compared to $737,000 for the three months ended September 30, 2024. The increased income from operations was primarily due to an increase in gross profit of $384,000 and a decrease in depreciation and amortization expenses of $42,000, partially offset by an increase in selling, general and administrative expenses of $66,000. Income from operations as a percentage of net sales for the three months ended September 30, 2025, was 7