Company: APT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033545
Chunk: 38

Company: ALPHA PRO TECH LTD
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 2
Chunk 38
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3.4%; and corporate unallocated expenses were down by $38,000, or 2.6%.

The increase in the Building Supply segment expenses was primarily related to increased employee compensation, marketing, insurance and sales travel expenses, partially offset by decreased general factory expenses. The increase in the Disposable Protective Apparel segment expenses was primarily related to increased general office expenses, partially offset by decreased rent and marketing. The decrease in corporate unallocated expenses was primarily due to decreased professional fees, partially offset by increased employee compensation and general office expenses in the three months ended September 30, 2025 compared to the same period of 2024.

Selling, general and administrative expenses decreased by $416,000, or 2.9%, to $13,818,000 for the nine months ended September 30, 2025, from $14,234,000 for the nine months ended September 30, 2024. As a percentage of net sales, selling, general and administrative expenses decreased to 30.5% for the nine months ended September 30, 2025, from 32.3% for the same period of 2024.

The change in expenses by segment for the nine months ended September 30, 2025, was as follows: Building Supply expenses were down by $69,000, or 1.3%; Disposable Protective Apparel expenses were up by $47,000, or 1.2%; and corporate unallocated expenses were down by $394,000, or 8.4%.

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Alpha Pro Tech, Ltd.

The decrease in the Building Supply segment expenses was primarily related to decreased employee compensation and general factory expenses, partially offset by increased insurance expenses. The increase in the Disposable Protective Apparel segment expenses was primarily related to increased employee compensation, marketing, sales travel expenses, partially offset by lower rent and utilities, general office and factory expenses. The decrease in corporate unallocated expenses was primarily due to decreased professional fees, insurance expenses, and reorganization costs in the nine months ended September 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 $