Company: APT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007218
Chunk: 31

Company: ALPHA PRO TECH LTD
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 31
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 hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s own assumptions. The fair value hierarchy prioritizes the inputs into three broad levels.

This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. There were no fair values of the Company’s financial assets as of December 31, 2024 and 2023.

New Accounting Standards

In December 2023, the FASB issued ASU 2023-09, Income Taxes (“ Topic 740”): Improvements to Income Tax Disclosures. These amendments address investor requests for enhanced transparency regarding income tax information. Specifically, they improve income tax disclosures related to rate reconciliation and income taxes paid. ASU 2023-09 became effective for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact the adoption of this guidance will have on its consolidated financial statements.

Management periodically reviews new accounting standards that are issued. Management has not identified any other new standards that it believes merit further discussion at this time.

  Inventories  
 ───────────────

Inventories consisted of the following:

                       December 31,                                            
                       2024                              2023                  
 ───────────────────────────────────────────────────────────────────────────────
  Raw materials        $                 10,948,000      $         10,470,000  
  Work in process                         2,934,000                 2,236,000  
  Finished goods                          8,851,000                 7,425,000  
  Total inventory      $                 22,733,000      $         20,131,000  

  Property and Equipment  
 ──────────────────────────

Property and equipment consisted of the following:

                                                      December 31,                                                
                                                      2024                                2023                    
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Buildings                                           $                      493,000      $              493,000  
  Machinery and equipment                                                 16,732,000                  15,461,000  
  Office furniture and equipment                                           2,927,000                   2,541,000  
  Leasehold improvements                                                     690,000                     658,000  
  Software                                                                         -                       3,000