Company: APT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007218
Chunk: 40

Company: ALPHA PRO TECH LTD
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 40
---
602,000  
  Unallocated corporate assets                               1,082,000                1,040,000  
  Total consolidated assets          $                       8,575,000      $         5,642,000  

  15.      Concentration of Risk  
 ──────────────────────────────────

The Company maintains its cash and cash equivalents in various bank accounts, the balances of which at times may exceed federally insured limits. The Company has not experienced any losses related to these accounts, and management does not believe that the Company is exposed to significant credit risk.

Management believes that adequate provision has been made for risk of loss on all credit transactions.

The Company buys a significant amount of its disposable protective apparel products from a limited number of contract manufacturers located in Asia and, to a much lesser extent, a contract manufacturer in Mexico. Management believes that other suppliers could provide similar products at comparable terms. A change in suppliers, however, could cause a delay in shipment and a possible loss of sales, which would affect operating results adversely.

The Building Supply segment buys semi-finished housewrap and synthetic roof underlayment from its joint venture, Harmony, located in India. Although there are a limited number of manufacturers of the particular product, management believes that other suppliers could provide similar products at comparable terms. A change in suppliers, however, could cause a delay in shipment and a possible loss of sales, which would affect operating results adversely.

The Company provides products to customers located primarily in the United States. Customers accounting for10% or more of accounts receivable as of December 31, 2024 and 2023, and10% or more of net sales for the years ended December 31, 2024 and 2023, were as follows:

                                            December 31,                  
                                                    2024                  
 ──────────────────────────────────────────────────────────────────────────
  Accounts Receivable:                                                    
                            Customer A                        36      34  
                            Customer B                        14      10  
                            Customer C                         *      11  
  Net sales:                                                              
                            Customer A                        20      20  
                            Customer B                        15      18  
                            Customer C                        13      14  

*Customer’s balance was below the 10% threshold for accounts receivable and/or net sales as of and for the year ended December 31, 2024.

  16.      Employment Agreements  
 ──────────────────────────────────

The Company has entered into an employment agreement with