Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 23

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 23
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 professional fees, insurance expenses, general office expenses, and reorganization costs in the six months ended June 30, 2025 compared to the same period of 2024. The reorganization costs in 2024 were incurred in connection with moving our face mask manufacturing facility from Utah to Arizona.

In accordance with the terms of his employment agreement, the Company’s current President and Chief Executive Officer is entitled to an annual bonus equal to 5% of the pre-tax profits of the Company, excluding bonus expense, up to a maximum of $1.0 million. A bonus amount of $84,000 was accrued for the three months ended June 30, 2025, compared to $111,000 for the three months ended June 30, 2024. A bonus amount of $125,000 was accrued for the six months ended June 30, 2025, compared to $149,000 for the six months ended June 30, 2024.

Depreciation and Amortization. Depreciation and amortization expense decreased by $5,000, or 2.0%, to $240,000 for the three months ended June 30, 2025, from $245,000 for the three months ended June 30, 2024. Depreciation and amortization expense decreased by $6,000, or 1.2%, to $483,000 for the six months ended June 30, 2025, from $489,000 for the six months ended June 30, 2024.

Income from Operations. Income from operations decreased by $377,000, or 22.0%, to $1,335,000 for the three months ended June 30, 2025, compared to $1,712,000 for the three months ended June 30, 2024. The decreased income from operations was primarily due to a decrease in gross profit of $710,000, partially offset by a decrease in selling, general and administrative expenses of $328,000 and a decrease in depreciation and amortization expenses of $5,000. Income from operations as a percentage of net sales for the three months ended June 30, 2025, was 8.0%, compared to 10.5% for the three months ended June 30, 2024.

Income from operations decreased by $248,000, or 12.2%, to $1,790,000 for the six months ended June 30,