Company: APT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007218
Chunk: 26

Company: ALPHA PRO TECH LTD
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 26
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 remote. As of December 31, 2024, 2023, and 2022, the Company had accounts receivable totally $4,894,222, $6,545,000and $6,973,000, respectively. As of December 31, 2024 and 2023, the Company had recorded an allowance for credit losses on accounts receivable of $35,000for both periods respectively.

Inventories

Inventories include freight-in, materials, labor and overhead costs and are stated at the lower of cost or net realizable value. Allowances are recorded for slow-moving, obsolete or unusable inventories. The Company assesses inventories for estimated obsolescence or unmarketable products and writes down the difference between the cost of the inventories and the estimated net realizable values based upon assumptions about future sales and supplies on-hand. As of December 31, 2024 and 2023, the Company had recorded an allowance for excess and obsolete inventories of $416,000and $292,000, respectively.

Property and Equipment

Property and equipment are stated at cost less accumulated depreciation and amortization. Costs to develop internal use software are charged to expense as incurred until the preliminary project stage has been completed and application development begins. The Company discontinues capitalization upon entering the post-implementation stage and expenses ongoing maintenance and support costs. Property and equipment are depreciated or amortized using the straight-line method over the shorter of the respective useful lives of the assets or the related lease terms as follows:

  Buildings (in years)                           25          
  Machinery and equipment (in years)              5      15  
  Office furniture and equipment (in years)       2       7  
  Leasehold improvements (in years)               4       5  
  Software (in years)                             5          

Expenditures for renewals and betterments are capitalized, whereas costs of maintenance and repairs are charged to operations in the period incurred.

Goodwill and Intangible Assets

The Company accounts for goodwill and definite-lived intangible assets in accordance with Financial Accounting Standards Board (“ FASB”) Accounting Standards Codification (“ ASC”) 350, Intangibles - Goodwill and Other. Goodwill is not amortized, but rather is tested annually for impairment. Intangible assets with finite lives are amortized over their useful lives (see Note 5). The Company’s patents and trademarks are recorded at cost and are amortized using the straight-line method