Company: APT
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033545
Chunk: 6

Company: ALPHA PRO TECH LTD
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 6
---
consolidated affiliate.

The Company records its investment in Harmony as “equity investment in unconsolidated affiliate” in the accompanying consolidated balance sheets. The Company records its equity interest in Harmony’s results of operations as “equity in income of unconsolidated affiliate” in the accompanying consolidated statements of income. The Company periodically reviews its investment in Harmony for impairment. Management has determined thatnoimpairment was required as of September 30, 2025, or December 31, 2024. Under the equity method, since the Company’s reporting currency is different from of Harmony’s reporting currency, the Company is required to translate our proportionate share of equity for effects of translations in foreign currency and adjust the investment accordingly and accrue the adjustment as a component of Accumulated other comprehensive loss (“ AOCL”).

For the three months ended September 30, 2025 and 2024, the Company purchased $5,723,000and $5,465,000of inventory, respectively, from Harmony. For the nine months ended September 30, 2025 and 2024, the Company purchased $15,637,000and $16,644,000of inventory, respectively, from Harmony. For the three months ended September 30, 2025 and 2024, the Company sold $213,000and $61,000of inventory, respectively, to Harmony. For the nine months ended September 30, 2025 and 2024, the Company sold $628,000and $301,000of inventory, respectively, to Harmony. For the three months ended September 30, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $27,000and $97,000, respectively, related to Harmony. For the nine months ended September 30, 2025 and 2024, the Company recorded equity in income of unconsolidated affiliate of $305,000and $435,000, respectively, related to Harmony.

As of September 30, 2025, the Company’s investment in Harmony was $5,842,000, which consisted of its original $1,450,000investment and cumulative equity in income of unconsolidated affiliate of $7,186,000, less $942,000in repayments of an advance, $77,000in payments of dividends, and $1,775,000in AOCL on foreign currency translations.

  Accrued Liabilities