Company: APT
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025400
Chunk: 5

Company: ALPHA PRO TECH LTD
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 5
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 2023-09 became effective for fiscal years beginning after December 15, 2024, with early adoption permitted.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses(“ ASU 2024-03”), which requires disclosure about the types of costs and expenses included in certain expense captions presented on the income statement. The new disclosure requirements are effective for the Company’s annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027, with early adoption permitted. The Company is currently in the process of evaluating the impact of this pronouncement on its related disclosures.

Management periodically reviews new accounting standards that are issued. Management has not identified any other new standards that it believes merit further discussion at this time.

  Inventories  
 ───────────────

As of June 30, 2025 and December 31, 2024, inventories net of reserves consisted of the following:

                       June 30,                      December 31,                  
                       2025                          2024                          
 ───────────────────────────────────────────────────────────────────────────────────
  Raw materials        $             10,339,000      $                 10,948,000  
  Work in process                     3,466,000                         2,934,000  
  Finished goods                      8,556,000                         8,851,000  
                       $             22,361,000      $                 22,733,000  

  Equity Investment in Unconsolidated Affiliate  
 ─────────────────────────────────────────────────

In 2005, Alpha ProTech Engineered Products, Inc. (a subsidiary of Alpha Pro Tech, Ltd.) entered into a joint venture with a manufacturer in India, Maple Industries and associates, for the production of building products. Under the terms of the joint venture agreement, a private company, Harmony Plastics Private Limited (“ Harmony”), was created with ownership interests of41.7% owned by Alpha ProTech Engineered Products, Inc. and58.3% owned by Maple Industries and associates.

This joint venture positions Alpha ProTech Engineered Products, Inc. to respond to current and expected increased product demand for housewrap and synthetic roof underlayment and provides future capacity for sales of specialty roofing component products and custom products for industrial applications requiring high quality