Company: APT
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001437749-25-015457
Chunk: 4

Company: ALPHA PRO TECH LTD
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 1
Chunk 4
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 of the 2020 Incentive Plan, no future equity awards will be made pursuant to the 2004 Option Plan. Although no new awards may be granted under the 2004 Option Plan, all previously granted awards under the 2004 Option Plan will continue to be governed by the terms of the 2004 Option Plan.

The Company records compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options and restricted stock, and restricted stock units (“ RSUs”), over the determined requisite service period, which is generally ratably over the vesting term.

The following table summarizes restricted stock and RSU awards activity for the three months ended March 31, 2025:

                                                                     Weighted Average                   
                                                                     Grant Date Price                   
                                                                     Restricted stock awards            
  Outstanding, December 31, 2024                        256,675      $                            4.38  
  Granted to employees and non-employee directors         9,870                                   5.79  
  Vested                                               ( 10,715                                   5.32  
  Outstanding, March 31, 2025                           255,830                                   4.40  

During the three months ended March 31, 2025 and 2024,9,870and10,715RSU stock awards were granted under the 2020 Incentive Plan, respectively. The Company recognized $121,000and $94,000in stock-based compensation expense associated with outstanding RSU awards for the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, $574,000of total unrecognized compensation cost related to the RSU grants was expected to be recognized over a weighted average remainder period of1.50years.

The Company uses the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the expected life of the options. The risk-free interest rate for periods within the contractual life of an award is based on the US Treasury yield curve in effect at the time of grant. The estimated volatility is based on historical volatility and management’s expectations of future volatility. The Company uses an estimated dividend payout of zero, as the Company has not paid dividends in the past and, at this time, does not expect to do so in the future. The Company accounts for option forfeitures as they occur.

The following table summarizes option activity for the three months ended March 31, 2025:

                                                          Weight