Company: APT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007218
Chunk: 37

Company: ALPHA PRO TECH LTD
Filing Date: 2025-03-12
Form: 10-K
Item: Item 7A
Chunk 37
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,000      $         1,236,000  

  11.      Leases  
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Operating Lease Commitments: The Company leases its facilities under non-cancelable operating leases expiring on various dates through December 31, 2034. The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2034. The Company’s primary operating lease commitments as of December 31, 2024, related to the Company’s manufacturing facilities in Valdosta, Georgia and Nogales, Arizona, as well as the Company’s corporate headquarters in Aurora, Ontario, Canada.

As of December 31, 2024, the Company had operating lease right-of-use assets of $8,714,000and operating lease liabilities of $8,775,000. As of December 31, 2024, the Company did nothave any finance leases recorded on the consolidated balance sheet. Operating lease expenses were approximately $1,650,000and $1,285,000for the years ended December 31, 2024 and 2023, respectively.

The aggregate future minimum lease payments and reconciliation to lease liabilities as of December 31, 2024, were as follows:

                                           December 31,  
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  2025                                       $1,471,000  
  2026                                        1,473,000  
  2027                                        1,459,000  
  2028                                        1,489,000  
  2029                                        1,520,000  
  Thereafter                                  4,856,000  
  Total future minimum lease payments        12,268,000  
  Less imputed interest                     ( 3,493,000  
  Total lease liabilities                    $8,775,000  

As of December 31, 2024, the weighted average remaining lease term of the Company’s operating leases was10.04years. During the year ended December 31, 2024, the weighted average discount rate with respect to these leases was7.00%.

  12.      Legal  
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Legal Proceedings:

On June 7, 2022, the Company filed a lawsuit (the “ Lawsuit”) in the Fourth Judicial District Court of Utah naming as defendants Mechanized Concepts, LLC, Matthew D. Collegee, Collegee Machine, Engineering, Design, LLC, Joseph Collegee