Company: APT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015457
Chunk: 7

Company: ALPHA PRO TECH LTD
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 7
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 The Company records its equity interest in Harmony’s results of operations as “equity in income of unconsolidated affiliate” in the accompanying consolidated statements of income. The Company periodically reviews its investment in Harmony for impairment. Management has determined thatnoimpairment was required as of March 31, 2025, or December 31, 2024. Under the equity method, since the Company’s reporting currency is different from of Harmony’s reporting currency, the Company is required to translate our proportionate share of equity for effects of translations in foreign currency and adjust the investment accordingly and accrue the adjustment as a component of Accumulated other comprehensive loss (“ AOCL”).

For the three months ended March 31, 2025 and 2024, the Company purchased $4,755,000and $5,329,000of inventories, respectively, from Harmony. For both three months ended March 31, 2025 and 2024, the Company sold $0of inventories, to Harmony. For the three months ended March 31, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $141,000and $138,000, respectively, related to Harmony.

As of March 31, 2025, the Company’s investment in Harmony was $5,890,000, which consisted of its original $1,450,000investment and cumulative equity in income of unconsolidated affiliate of $7,023,000, less $942,000in repayments of an advance, $77,000in payments of dividends, and $1,564,000in AOCL on foreign currency translations.

  Accrued Liabilities  
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As of March 31, 2025 and December 31, 2024, accrued liabilities consisted of the following:

                                                                       March 31,                   December 31,               
                                                                       2025                        2024                       
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  Payroll expenses and taxes payable                                   $              350,000      $                 221,000  
  Commissions and bonuses payable and general accrued liabilities                     152,000                        726,000  
  Total accrued liabilities                                            $              502,000      $                 947,000  

  Basic and Diluted Earnings Per Common Share  
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The following table provides a reconciliation