Company: APT
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001437749-25-007218
Chunk: 3

Company: ALPHA PRO TECH LTD
Filing Date: 2025-03-12
Form: 10-K
Item: Item 1
Chunk 3
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 protecting people, products and environments, and have to be produced in Food and Drug Administration (“ FDA”) approved facilities, regardless of the market served.

The Company’s products are sold under the “ Alpha Pro Tech” brand name and under private label, and they are predominantly sold in the U. S.

Financial information related to the two segments can be found in Note 14 to our consolidated financial statements.

MARKETS

Our products are sold to the following markets: (i) construction weatherization products (building supply products) are sold to construction supply and roofing distributors, and (ii) disposable protective apparel products are sold to the industrial, cleanroom, medical and dental markets.

Our target customers are construction building supply and roofing distributors; companies in pharmaceutical manufacturing, bio-pharmaceutical manufacturing, medical device manufacturing, lab animal research, and high technology electronics manufacturing (which includes the semi-conductor market); and medical and dental distributors.

DISTRIBUTION

We rely primarily on a network of independent distributors for the sale of our products. We generally do not have a material amount of backlog orders, as orders are usually placed for shipment and shipped within 30 days. Appropriate levels of inventories are maintained to supply distributors on a timely basis. From time to time, we will stockpile inventory for periods of unusually high demand.

Disruptions in the supply chain have created occasional backlogs of unfulfilled orders for our personal protective equipment (“ PPE”) products and certain of our building supply products, and uncertainty in the timing of deliveries and fulfillment of backlogged orders can occur from time to time.

Standard payment terms are net 30 days from the date of shipment. All pricing and payment for our products are in U. S. dollars. Authorized returns must be unopened, in good condition and in the original carton and may be returned within 90 days of the original date of shipment. All authorized returns are subject to a restocking fee of 20% of the original invoice.

5

FINANCIAL INFORMATION ABOUT GEOGRAPHIC AREAS

The following table summarizes the Company’s net sales by geographic region for the Company’s last two years. All amounts have been rounded to the nearest thousand.

                                      Years Ended December 31,                                            
                                      2024                                          2023                  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net sales by geographic region                                                                          
  United States                       $                             57,211,000      $         60,882,000  
  International                                                        629,000