Company: APT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033545
Chunk: 43

Company: ALPHA PRO TECH LTD
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 43
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 2024 and due to a higher percentage of receivables with extended terms. The number of days that sales remained outstanding as of September 30, 2025, calculated by using an average of accounts receivable outstanding and annual revenue, was 37 days, compared to 36 days as of December 31, 2024.

Inventory increased by $746,000, or 3.3%, to $23,479,000 as of September 30, 2025, from $22,733,000 as of December 31, 2024. The increase was due to an increase in inventory for the Building Supply segment of $969,000, or 8.9%, to $11,900,000, partially offset by a decrease in inventory for the Disposable Protective Apparel Building Supply segment of $223,000, or 1.9%, to $11,579,000.

Prepaid expenses decreased by $894,000, or 20.4%, to $3,482,000 as of September 30, 2025, from $4,376,000 as of December 31, 2024. The decrease was primarily due to a decrease in prepaid insurance and prepaid taxes partially offset by increase in prepaid inventory for Building Supply segment.

23

Alpha Pro Tech, Ltd.

Right-of-use-assets as of September 30, 2025, decreased by $698,000 to $8,016,000 from $8,714,000 as of December 31, 2024, as a result of amortization of the right-of- use-assets.

Lease liabilities as of September 30, 2025, decreased by $670,000 to $8,105,000 from $8,775,000 as of December 31, 2024. The decrease in lease liabilities was the result of lease payments made during the period.

Accounts payable and accrued liabilities as of September 30, 2025, increased by $489,000, or 21.9%, to $2,719,000, from $2,230,000 as of December 31, 2024. The increase was primarily due to increases in trade payables, partially offset by decreases in accrued bonuses.

Net cash used in investing activities was $372,000 for the nine months ended September 30, 2025, compared to net cash used in investing activities of $2,333,000 for the same period of 2024. Investing activities for the