Company: APT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007218
Chunk: 29

Company: ALPHA PRO TECH LTD
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 29
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 any interest and penalties assessed by the Internal Revenue Service as a component of the provision for income taxes. The Company provides allowances for uncertain income tax positions when it is more likely than not that the position will not be sustained upon examination by the tax authority.

Alpha Pro Tech, Ltd. and its subsidiaries file income tax returns in the U. S. federal jurisdiction, and in various state and foreign jurisdictions.

Earnings Per Common Share

The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“ EPS”), which utilizes the weighted average number of common shares outstanding without regard to potential common shares, and “diluted” EPS, which includes all potential common shares which are dilutive for the years ended December 31, 2024 and 2023.

                                                          Years Ended December 31,                                            
                                                          2024                                          2023                  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net income (numerator)                                  $                              3,929,000      $          4,189,000  
  Shares (denominator):                                                                                                       
  Basic weighted average common shares outstanding                                      11,137,873                11,856,356  
  Add: Dilutive effect of common stock options                                              97,173                         -  
  Diluted weighted average common shares outstanding                                    11,235,046                11,856,356  
  Earnings per common share:                                                                                                  
  Basic                                                   $                                   0.35      $               0.35  
  Diluted                                                 $                                   0.35      $               0.35  

Translation of Foreign Currencies

Transactions in foreign currencies are translated into U. S. dollars at the exchange rate prevailing at the transaction date. Monetary assets and liabilities in foreign currencies at each period end are translated at the exchange rate in effect at that date. Transaction gains or losses on foreign currencies are reflected in selling, general and administrative expenses and were not material for the years ended December 31, 2024 and 2023.

The Company does not have a material foreign currency exposure in regards to purchase agreements with companies in Asia and Mexico as the agreements are in U. S. dollars. In addition, all sales transactions are in U. S. dollars. The Company has a foreign currency exposure with respect to its Canadian branch office. The foreign currency exposure is not material due to the fact that the Company does not manufacture