Company: APT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007218
Chunk: 32

Company: ALPHA PRO TECH LTD
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 32
---
20,842,000                  19,156,000  
  Less accumulated depreciation and amortization                        ( 12,322,000                ( 13,569,000  
  Total net property and equipment                    $                    8,520,000      $            5,587,000  

Depreciation and amortization expense for property and equipment was $873,000and $925,000for the years ended December 31, 2024 and 2023, respectively.

  Goodwill and Intangible Assets  
 ──────────────────────────────────

Management evaluates goodwill for impairment on an annual basis (in the fourth quarter), and no impairment charge was identified for the years presented.

Definite-lived intangible assets, consisting of patents and trademarks, are amortized over their useful lives. Amortization expense for intangible assets was $0and $1,000for the years ended December 31, 2024 and 2023, respectively. There is no estimated future amortization expense related to definite-lived intangible assets as of December 31, 2024.

  Equity Investments in Unconsolidated Affiliate  
 ──────────────────────────────────────────────────

In 2005, Alpha ProTech Engineered Products, Inc. (a subsidiary of Alpha Pro Tech, Ltd.) entered into a joint venture with a manufacturer in India, Maple Industries and associates, for the production of building products. Under the terms of the joint venture agreement, a private company, Harmony Plastics Private Limited (“ Harmony”), was created with ownership interests of41.66% owned by Alpha ProTech Engineered Products, Inc. and58.34% owned by Maple Industries and associates.

This joint venture positions Alpha ProTech Engineered Products, Inc. to respond to current and expected increased product demand for housewrap and synthetic roof underlayment and provides future capacity for sales of specialty roofing component products and custom products for industrial applications requiring high quality extrusion coated fabrics. In addition, the joint venture now supplies products for the Company’s Disposable Protective Apparel segment.

The capital from the initial funding and a bank loan, which loan is guaranteed exclusively by the individual shareholders of Maple Industries and associates and collateralized by the assets of Harmony, were utilized to purchase the original manufacturing facility in India. Harmony currently has fourfacilities in India ( threeowned and onerented), consisting of: (1) a139,000square foot building for manufacturing building products; (2) a121,000square foot building for manufacturing coated material and