Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 40

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 40
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 June 30, 2025, from 32.7% for the same period of 2024.

The change in expenses by segment for the six months ended June 30, 2025, was as follows: Building Supply expenses were down by $128,000, or 3.4%; Disposable Protective Apparel expenses were up by $2,000, or 0.1%; and corporate unallocated expenses were down by $356,000, or 11.0%.

The decrease in the Building Supply segment expenses was primarily related to decreased employee compensation. The increase in the Disposable Protective Apparel segment expenses was primarily related to increased employee compensation, marketing and sales travel expenses, partially offset by lower rent and utilities, general office and factory expenses and commission. The decrease in corporate unallocated expenses was primarily due to decreased professional fees, insurance expenses, general office expenses, and reorganization costs in the six months ended June 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 $84,000 was accrued for the three months ended June 30, 2025, compared to $111,000 for the three months ended June 30, 2024. A bonus amount of $125,000 was accrued for the six months ended June 30, 2025, compared to $149,000 for the six months ended June 30, 2024.

Depreciation and Amortization. Depreciation and amortization expense decreased by $5,000, or 2.0%, to $240,000 for the three months ended June 30, 2025, from $245,000 for the three months ended June 30, 2024. Depreciation and amortization expense decreased by $6,000, or 1.2%, to $483,000 for the six months ended June 30, 2025, from $489,000 for the six months ended June 30, 2024.

Income from Operations. Income from operations decreased by $377,000, or 22.0%, to $1,335,000