APT Alpha Pro Tech Ltd

Alpha Pro Tech, Ltd.

 

Index

 

		page
PART I.	FINANCIAL INFORMATION
ITEM 1.	Financial Statements
	Condensed Consolidated Balance Sheets (Unaudited)	1
	Condensed Consolidated Statements of Income (Unaudited)	2
	Condensed Consolidated Statements of Comprehensive Income (Unaudited)	3
	Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)	4
	Condensed Consolidated Statements of Cash Flows (Unaudited)	5
	Notes to Condensed Consolidated Financial Statements (Unaudited)	6
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	15
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	22
ITEM 4.	Controls and Procedures	22
PART II.	OTHER INFORMATION
ITEM I.	Legal Proceedings	23
ITEM IA.	Risk Factors	23
ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
ITEM 6.	Exhibits	25
SIGNATURES		26
EXHIBITS

 

 PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Condensed Consolidated Balance Sheets (Unaudited)

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(1) The condensed consolidated balance sheet as of December 31, 2022, has been prepared using information from the audited consolidated balance sheet as of that date.

 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

Condensed Consolidated Statements of Income (Unaudited)

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See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

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See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

Condensed Consolidated Statements of Shareholders’ Equity (Unaudited)

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For the Nine Months Ended September 30, 2023

 

 

For the Nine Months Ended September 30, 2022

 

 

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

 

 

Condensed Consolidated Statements of Cash Flows (Unaudited)

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See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited).

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1.	The Company

 

Alpha Pro Tech, Ltd. (“Alpha Pro Tech,” the “Company,” “we”, “us” or “our”) is in the business of protecting people, products and environments. The Company accomplishes this by developing, manufacturing and marketing a line of building supply products for the new home and re-roofing markets and a line of disposable protective apparel for the cleanroom, industrial, pharmaceutical, medical and dental markets.

 

The Building Supply segment consists of construction weatherization products, such as housewrap, housewrap accessories, namely tape and flashing, and synthetic roof underlayment, as well as other woven material.

 

The Disposable Protective Apparel segment consists of a complete line of disposable protective garments (shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats), face masks and face shields. All of our disposable protective apparel products, including face masks and face shields, are sold through similar distribution channels, are single-use and disposable, have the purpose of 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 as well as under private label and are predominantly sold in the United States of America (“U.S.”).

 

 

2.	Basis of Presentation and Revenue Recognition Policy

 

The interim financial information included in this report is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods reflected herein. These interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, omit certain information and note disclosures that would be necessary to present the statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings, as well as the Company’s consolidated financial statements for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”), filed with the SEC on March 16, 2023. The results of operations for the three and nine months ended September 30, 2023 in this Quarterly Report on Form 10-Q are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet as of December 31, 2022 was prepared using information from the audited consolidated balance sheet contained in the 2022 Form 10-K; however, it does not include all disclosures required by U.S. GAAP for annual consolidated financial statements.

 

Net sales include revenue from products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Our customer contracts have a single performance obligation: transfer control of products to customers. Revenue is measured as the amount of consideration that we expect to receive in exchange for transferring control of products. All revenue is recognized when we satisfy our performance obligations under the applicable contract. We recognize revenue in connection with transferring control of the promised products to the customer, with revenue being recognized at the point in time when the customer obtains control of the products, which is generally when title passes to the customer upon delivery to a third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements, at which time a receivable is created for the invoice sent to the customer. Shipping and handling activities are performed prior to the customer obtaining control of the goods and are accounted for as fulfillment activities and are not a promised good or service. Shipping and handling charges billed to customers are included in revenue. Shipping and handling costs, associated with the distribution of the Company’s product to the customers, are recorded in cost of goods sold and are recognized when control of the product is transferred to the customer, which is generally when title passes to the customer upon delivery to a third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements. We estimate product returns based on historical return rates and estimate rebates based on contractual agreements. Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract. Sales taxes and value added taxes in foreign and domestic jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net sales. The Company manufactures certain private label goods for customers and has determined that control does not pass to the customer at the time of manufacture, based upon the nature of the private labeling. The Company has determined as of September 30, 2023 that it had no material contract assets and concluded that its contract liabilities (primarily rebates) had the right of offset against customer receivables. See Note 10 and Note 11 of these Notes to Condensed Consolidated Financial Statements (Unaudited) for information on revenue disaggregated by type and by geographic region.

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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3.	Stock-Based Compensation

 

The Company previously granted stock options to employees and non-employee directors under a stock option plan (the “2004 Option Plan”). Stock options have been granted with exercise prices at or above the fair market value of the underlying shares of common stock on the date of grant. Options vest and expire according to terms established at the grant date. The 2004 Option Plan provided for a total of 5,000,000 common shares eligible for issuance. Under the 2004 Option Plan, approximately 5,009,750 options (taking into account cancelled and expired options that were added back to the plan reserve) had been granted as of December 31, 2020.

 

At the Company’s 2020 Annual Meeting of Shareholders, the Company’s shareholders approved the Alpha Pro Tech, Ltd. 2020 Omnibus Incentive Plan (the “2020 Incentive Plan”). The 2020 Incentive Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, awards of restricted stock and restricted stock units, performance share awards, cash awards and other equity-based awards to employees (including officers), consultants and non-employee directors of the Company and its affiliates. A total of 1,800,000 shares of the Company’s common stock are reserved for issuance under the 2020 Incentive Plan, plus the number of shares underlying any award granted under the 2004 Option Plan that expires, terminates or is cancelled or forfeited under the terms of the 2004 Option Plan. As a result of the approval of the 2020 Incentive Plan, no future equity awards will be made pursuant to the 2004 Option Plan. Although no new awards may be granted under the 2004 Option Plan, all previously granted awards under the 2004 Option Plan will continue to be governed by the terms of the 2004 Option Plan.

 

The Company records compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options and restricted stock awards, over the determined requisite service period, which is generally ratably over the vesting term.

 

For the nine months ended September 30, 2023 and 2022, 46,400 and 19,600 stock options were granted under the 2020 Incentive Plan, respectively. The Company recognized $10,000 and $39,000 in stock-based compensation expense for the nine months ended September 30, 2023 and 2022, respectively, related to outstanding options previously granted under the 2004 Option Plan. For the nine months ended September 30, 2023 and 2022, 227,600 and 13,600 restricted stock awards were granted under the 2020 Incentive Plan, respectively. The Company recognized $58,000 and $80,000 in compensation expense associated with outstanding restricted stock awards for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, $966,000 of total unrecognized compensation cost related to outstanding restricted stock awards was expected to be recognized over a weighted-average remainder period of 2.86 years.

 

The Company uses the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the expected life of the options. The risk-free interest rate for periods within the contractual life of an award is based on the US Treasury yield curve in effect at the time of grant. The estimated volatility is based on historical volatility and management’s expectations of future volatility. The Company uses an estimated dividend payout of zero, as the Company has not paid dividends in the past and, at this time, does not expect to do so in the future. The Company accounts for option forfeitures as they occur. The following table summarizes stock option activity for the nine months ended September 30, 2023:

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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						Weighted Average
						Exercise Price
		Options				Per Option
Options outstanding, December 31, 2022			410,615			$	3.50
Granted to employees and non-employee directors			46,400				4.23
Exercised			134,250				3.27
Canceled/expired/forfeited			13,333				3.61
Options outstanding, September 30, 2023			309,432				3.70
Options exercisable, September 30, 2023			253,231				3.59

 

As of September 30, 2023, $161,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of 2.75 years.

 

4.	Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU 2020-06 Debt --Debt with Conversion and Other Options (Subtopic 470 and Derivatives and Hedging --Contracts in Entity's Own Equity (Subtopic 815: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which is intended to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity's own equity. The guidance allows for either full retrospective adoption or modified retrospective adoption. The guidance is effective for the Company January 1, 2024 and early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its condensed consolidated financial statements.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments --Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. Public business entities classified as smaller reporting companies are required to apply the provision of ASU 2016-13 with annual reporting periods after December 15, 2022. The Company adopted Topic 326 effective January 1, 2023, which did not have a material impact on the Company’s condensed consolidated financial statements.

 

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.

 

5.	Inventories

 

As of September 30, 2023 and December 31, 2022, inventories net of reserves consisted of the following:

 

		September 30,				December 31,
		2023				2022
Raw materials		$	11,220,000			$	13,018,000
Work in process			2,594,000				2,225,000
Finished goods			7,712,000				9,154,000
		$	21,526,000			$	24,397,000

 

6.	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 of 41.66% owned by Alpha ProTech Engineered Products, Inc. and 58.34% 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 extrusion coated fabrics. In addition, the joint venture now supplies products for the Company’s Disposable Protective Apparel segment.

 

The capital from the initial funding and a bank loan, which is guaranteed exclusively by the individual shareholders of Maple Industries and associates and collateralized by the assets of Harmony, were utilized to purchase the original manufacturing facility in India. Harmony currently has four facilities in India (three owned and one rented), consisting of: (1) a 139,000 square foot building for manufacturing building products; (2) a 121,000 square foot building for manufacturing coated material and sewing proprietary disposable protective apparel; (3) a 23,000 square foot facility for sewing proprietary disposable protective apparel; and (4) a 159,000 square foot facility (rented) for manufacturing Building Supply segment products. All additions have been financed by Harmony with no guarantees from the Company.

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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In accordance with ASC 810, Consolidation, the Company assesses whether or not related entities are variable interest entities (“VIEs”). For those related entities that qualify as VIEs, ASC 810 requires the Company to determine whether the Company is the primary beneficiary of the VIE, and, if so, to consolidate the VIE. The Company has determined that Harmony is not a VIE and is, therefore, considered to be an unconsolidated 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 that no impairment was required as of September 30, 2023, or December 31, 2022. 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, 2023 and 2022, the Company purchased $5,001,000 and $7,786,000 of inventories, respectively, from Harmony. For the nine months ended September 30, 2023 and 2022, the Company purchased $14,871,000 and $19,645,000 of inventories, respectively, from Harmony. The Company sold $66,000 of inventories to Harmony for each of the three months ended September 30, 2023 and 2022. For the nine months ended September 30, 2023 and 2022, the Company sold $266,000 and $280,000 of inventories, respectively, to Harmony.

 

For the three months ended September 30, 2023 and 2022, the Company recorded equity in income of unconsolidated affiliate of $180,000 and loss in income from unconsolidated affiliate of $13,000, respectively, related to Harmony. For the nine months ended September 30, 2023 and 2022, the Company recorded equity in income of unconsolidated affiliate of $392,000 and $87,000, respectively, related to Harmony.

 

As of September 30, 2023, the Company’s investment in Harmony was $5,116,000, which consisted of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $6,168,000, less $942,000 in repayments of an advance, $77,000 in payments of dividends, and $1,483,000 in AOCL on foreign currency translations.

 

7.	Accrued Liabilities

 

As of September 30, 2023 and December 31, 2022, accrued liabilities consisted of the following:

 

		September 30,				December 31,
		2023				2022
Payroll expenses and taxes payable		$	298,000			$	138,000
Commissions and bonuses payable and general accrued liabilities			587,000				695,000
Total accrued liabilities		$	885,000			$	833,000

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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8.	Basic and Diluted Earnings Per Common Share

 

The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to dilutive shares, and “diluted” EPS, which includes all such dilutive shares, for the three and nine months ended September 30, 2023 and 2022:

 

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Net income (numerator)		$	1,430,000			$	503,000			$	3,128,000			$	2,718,000
Shares (denominator):
Basic weighted average common shares outstanding			11,781,071				12,615,187				11,974,336				12,834,505
Add: dilutive effect of common stock options			-				73,194				-				75,365
Diluted weighted average common shares outstanding			11,781,071				12,688,381				11,974,336				12,909,870
Earnings per common share:
Basic		$	0.12			$	0.04			$	0.26			$	0.21
Diluted		$	0.12			$	0.04			$	0.26			$	0.21

 

9.	Accumulated Other Comprehensive Loss

 

Accumulated other comprehensive loss (“AOCL”), a component of shareholders' equity, consists of foreign currency translation adjustments related to foreign currency gains or losses on our unconsolidated affiliate as its functional currency is other than the U.S. dollar. The resulting foreign currency translation gains or losses are deferred as AOCL and reclassified to earnings only upon sale or liquidation of that business. The accumulated other comprehensive loss on equity in unconsolidated affiliate was $1,483,000 and $1,489,000 as of September 30, 2023 and December 31, 2022, respectively.

 

10.	Activity of Business Segments

 

The Company operates through two business segments:

 

(1) Building Supply: consisting of a line of construction supply weatherization products. The construction supply weatherization products consist of housewrap and housewrap accessories including window and door flashing and seam tape, and synthetic roof underlayment, as well as other woven material. The majority of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment.

 

(2) Disposable Protective Apparel: consisting of a complete line of disposable protective garments, including shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods, as well as face masks and face shields for the pharmaceutical, cleanroom, industrial, medical and dental markets. A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment.

 

Segment data excludes charges allocated to the principal executive office and other unallocated corporate overhead expenses and income tax. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.

 

The accounting policies of the segments are the same as those described previously under Summary of Significant Accounting Policies (see Note 2).

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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The following table presents consolidated net sales for each segment for the three and nine months ended September 30, 2023 and 2022:

 

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Building Supply		$	11,449,000			$	9,604,000			$	30,616,000			$	30,657,000
Disposable Protective Apparel			4,604,000				5,118,000				15,351,000				19,099,000
Consolidated net sales		$	16,053,000			$	14,722,000			$	45,967,000			$	49,756,000

 

The following table presents the reconciliation of consolidated segment income to consolidated net income for the three and nine months ended September 30, 2023 and 2022:

 

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Building Supply		$	1,973,000			$	1,386,000			$	4,456,000			$	4,968,000
Disposable Protective Apparel			982,000				489,000				3,090,000				2,412,000
Total segment income			2,955,000				1,875,000				7,546,000				7,380,000
Unallocated corporate overhead expenses			1,130,000				1,213,000				3,444,000				3,854,000
Provision for income taxes			395,000				159,000				974,000				808,000
Consolidated net income		$	1,430,000			$	503,000			$	3,128,000			$	2,718,000

 

The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of September 30, 2023 and December 31, 2022:

 

		September 30,				December 31,
		2023				2022
Building Supply		$	3,316,000			$	3,395,000
Disposable Protective Apparel			1,246,000				1,327,000
Total segment assets			4,562,000				4,722,000
Unallocated corporate assets			1,036,000				1,076,000
Total consolidated assets		$	5,598,000			$	5,798,000

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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11.	Financial Information about Geographic Areas

 

The following table summarizes the Company’s net sales by geographic region for the three and nine months ended September 30, 2023 and 2022:

 

		For the Three Months Ended								For the Nine Months Ended
		September 30,								September 30,
		2023				2022				2023				2022
Net sales by geographic region
United States		$	15,928,000			$	14,569,000			$	45,682,000			$	48,385,000
International			125,000				153,000				285,000				1,371,000
Consolidated net sales		$	16,053,000			$	14,722,000			$	45,967,000			$	49,756,000

 

Net sales by geographic region are based on the countries in which our customers are located. For the three months ended September 30, 2023 and 2022, the Company generated approximately $42,000 and $103,000, respectively, in sales from Canada. For the nine months ended September 30, 2023 and 2022, the Company generated approximately $140,000 and $1,119,000, respectively, in sales from Canada. No country other than the United States was significant to the Company’s consolidated net sales.

 

The following table summarizes the locations of the Company’s long-lived assets by geographic region as of September 30, 2023 and December 31, 2022:

 

		September 30,				December 31,
		2023				2022
Long-lived assets by geographic region
United States		$	4,283,000			$	4,380,000
International			1,260,000				1,362,000
Consolidated total long-lived assets		$	5,543,000			$	5,742,000

 

12.	Related Party Transactions

 

As of September 30, 2023, the Company had no related party transactions, other than the Company’s transactions with its unconsolidated affiliate, Harmony. See Note 6 of these Notes to Condensed Consolidated Financial Statements (Unaudited).

 

13.

Leases

 

The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2026. The Company’s primary operating lease commitments as of September 30, 2023 related to the Company’s corporate office in Aurora, Canada and its manufacturing facilities in Valdosta, Georgia; Nogales, Arizona; and Salt Lake City, Utah.

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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As of September 30, 2023, the Company had operating lease right-of-use assets of $1,210,000 and operating lease liabilities of $1,251,000. As of September 30, 2023, the Company did not have any finance leases recorded on the Company’s condensed consolidated balance sheet. Operating lease expense was approximately $922,000 during the nine months ended September 30, 2023.

 

The aggregate future minimum lease payments and reconciliation to lease liabilities as of September 30, 2023 were as follows:

 

		September 30,
		2023
Remaining three months of 2023		$	281,000
2024			551,000
2025			434,000
2026			47,000
Total future minimum lease payments			1,313,000
Less imputed interest			(62,000	)
Total Lease liabilities		$	1,251,000

 

As of September 30, 2023, the weighted average remaining lease term of the Company’s operating leases was 2.2 years. During the nine months ended September 30, 2023, the weighted average discount rate with respect to these leases was 4.55%.

 

14.	Income taxes

 

The Company accounts for income taxes using the asset and liability method. A valuation allowance is recorded to reduce the carrying amounts of deferred income tax assets unless it is more likely than not that such assets will be realized. The Company’s policy is to record any interest and penalties assessed by the Internal Revenue Service as a component of the provision for income taxes. The Company provides allowances for uncertain income tax positions when it is more likely than not that the position will not be sustained upon examination by the tax authority.

 

Alpha Pro Tech, Ltd. and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions.

 

An employer generally does not claim a corporate income tax deduction (which would be in an amount equal to the amount of income recognized by the employee) upon the exercise of its employee's incentive stock options (“ISOs”) unless the employee does not meet the holding period requirements and sells early, making a disqualifying disposition, or if the options otherwise do not qualify as ISOs under applicable tax laws. With non-qualified stock options (“NQSOs”), on the other hand, the employer is typically eligible to claim a deduction upon its employee's exercise of the NQSOs.

 

15.	Contingencies

 

On June 7, 2022, the Company filed a lawsuit (the “Lawsuit”) in Utah naming as defendants the vendors from which the Company ordered equipment for its facility in Utah (collectively the “Defendants”). The Lawsuit relates to certain equipment ordered from Defendants and paid for by the Company, which Defendants never delivered. In the Lawsuit the Company is seeking the following relief: compensatory damages in the amount $490,000, representing the money the Company paid for the machines it never received, lost profits in the form of mask sales it could have made if Defendants had delivered the machines on the promised date, and other monetary and equitable relief. As of September 30, 2023, the Company has written off the $490,000 balance of the deposit paid for the equipment, pending any recovery in the Lawsuit. As of the date hereof, no counterclaims have been asserted against the Company. The Company believes there would not be any meritorious claims against the Company related to the Lawsuit. The Lawsuit has not been resolved and the final outcome, including the potential amount of any recovery for the Company’s claims, is uncertain. Any potential recovery represents a gain contingency in accordance with ASC 450, Contingencies, that has not been recorded as the matter was not resolved as of September 30, 2023. Any recovery will be recorded when received.

 

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Alpha Pro Tech, Ltd.

 

Notes to Condensed Consolidated Financial Statements (Unaudited)

 

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The Company is subject to various pending and threatened litigation actions in the ordinary course of business. Although it is not possible to determine with certainty at this point in time what liability, if any, the Company will have as a result of such litigation, based on consultation with legal counsel, management does not anticipate that the ultimate liability, if any, resulting from such litigation will have a material effect on the Company’s financial condition and results of operations.

 

16.	Subsequent Events

 

The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of September 30, 2023 through the filing date of this Quarterly Report on Form 10-Q that would require accounting or disclosure and has concluded that there are no such subsequent events.

 

 

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Alpha Pro Tech, Ltd.

 

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ITEM 2.          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

You should read the following discussion and analysis together with our unaudited condensed consolidated financial statements and the notes to our unaudited condensed consolidated financial statements, which appear elsewhere in this report, as well as our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the Securities and Exchange Commission (the “SEC”) on March 16, 2023 (the “2022 Form 10-K”).

 

Special Note Regarding Forward-Looking Statements

 

Certain information set forth in this Quarterly Report on Form 10-Q contains “forward-looking statements” within the meaning of federal securities laws. Forward-looking statements include statements concerning our plans, objectives, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions, including, without limitation, our expected orders, production levels and sales in 2023 and 2024, and other information that is not historical information. When used in this report, the words “estimates,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes” and variations of such words or similar expressions are intended to identify forward-looking statements. We may make additional forward-looking statements from time to time. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise. All forward-looking statements, whether written or oral and whether made by us or on our behalf, are expressly qualified by this special note.

 

The following are some of the risks that could affect our financial performance or that could cause actual results to differ materially from those expressed or implied in our forward-looking statements:

 

	●	We are exposed to foreign currency exchange risks related to our unconsolidated affiliate operations in India.
	●	Failure to remediate the material weakness in our internal control over financial reporting could result in us being unable to accurately and timely report our financial results or comply with the requirements of being a public company, which would adversely affect us.

●

We are subject to risks associated with our joint venture.

●

The effects of the COVID-19 pandemic, including effects on the business and operations of those within our supply chain and on global economic conditions generally, which have had, and could continue to have, a material adverse effect on our business, financial results and results of operations.

●

The loss of any large customer or a reduction in orders from any large customer could reduce our net sales and harm our operating results.

●

We rely on suppliers and contractors, and our business could be seriously harmed if these suppliers and contractors are not able to meet our requirements.

●

Risks associated with international manufacturing could have a significant effect on our business.

●

Our success depends in part on protection of our intellectual property, and our failure to protect our intellectual property could adversely affect our competitive advantage, our brand recognition and our business.

●

Our industry is highly competitive, which may negatively affect our ability to grow our customer base and generate sales.

●

The Company’s results are affected by competitive conditions and customer preferences.

●

The Company’s growth objectives are largely dependent on the timing and market acceptance of our new product offerings, including our ability to continually renew our pipeline of new products and to bring those products to market.

●

Global economic conditions could adversely affect the Company’s business and financial results.

●

We are subject to risks related to climate change and natural disasters or other events beyond our control.

●

Security breaches and other disruptions to the Company’s information technology infrastructure could interfere with the Company’s operations, compromise information belonging to the Company and our customers and suppliers and expose the Company to liability, which could adversely impact the Company’s business and reputation.

 

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●

The Company’s future results may be affected by various legal and regulatory proceedings and legal compliance risks.

●

Our common stock price is volatile, which could result in substantial losses for individual shareholders.

 

The foregoing list of risks is not exclusive. For a more detailed discussion of the risk factors associated with our business, see the risks described in Part I, Item IA, “Risk Factors,” in the 2022 Form 10-K. These and many other factors could affect the Company’s future operating results and financial condition and could cause actual results to differ materially from expectations based on forward-looking statements made in this document or elsewhere by the Company or on its behalf.

 

Special Note Regarding Smaller Reporting Company Status

 

We are filing this report as a “smaller reporting company” (as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended). As a result of being a smaller reporting company, we are allowed and have elected to omit certain information from this Management’s Discussion and Analysis of Financial Condition and Results of Operations; however, we have provided all information for the periods presented that we believe to be appropriate.

 

Where to find more information about us. We make available, free of charge, on our website (http://www.alphaprotech.com) our most recent Annual Report on Form 10-K, any Current Reports on Form 8-K furnished or filed since our most recent Annual Report on Form 10-K, and any amendments to such reports, as soon as reasonably practicable following the electronic filing of such reports with the SEC. In addition, in accordance with SEC rules, we provide paper copies of our filings free of charge upon request.

 

Critical Accounting Policies and Estimates

 

The preparation of our financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of net sales and expenses during the periods reported. We base estimates on past experience and on various other assumptions that are believed to be reasonable under the circumstances. The application of these accounting policies on a consistent basis enables us to provide timely and reliable financial information. Our significant accounting policies and estimates are more fully described in Note 3 – “Summary of Significant Accounting Policies” in the notes to our consolidated financial statements in Item 8 of the 2022 Form 10-K. Since December 31, 2022, there have been no material changes to our critical accounting policies and estimates as described in the 2022 Form 10-K.

 

OVERVIEW

 

Alpha Pro Tech is in the business of protecting people, products and environments. We accomplish this by developing, manufacturing and marketing a line of high-value, disposable protective apparel products for the cleanroom, industrial, pharmaceutical, medical and dental markets. We also manufacture a line of building supply construction weatherization products. Our products are sold under the “Alpha Pro Tech” brand name, as well as under private label.

 

Our products are grouped into two business segments: (i) the Building Supply segment, consisting of construction weatherization products, such as housewrap and housewrap accessories and synthetic roof underlayment as well as other woven material; and (ii) the Disposable Protective Apparel segment, consisting of disposable protective garments (including shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats), face masks and face shields.

 

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

 

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Our products are used primarily in cleanrooms, industrial safety manufacturing environments, health care facilities, such as hospitals, laboratories and dental offices, and building and re-roofing sites. Our products are distributed principally in the United States through a network consisting of purchasing groups, national distributors, local distributors, independent sales representatives and our own sales and marketing force.

 

RESULTS OF OPERATIONS

 

The following table sets forth certain operational data as a percentage of net sales for the periods indicated:

 

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2023				2022				2023				2022
Net sales			100.0	%			100.0	%			100.0	%			100.0	%
Gross profit			37.6	%			32.7	%			37.3	%			33.9	%
Selling, general and administrative expenses			27.3	%			27.0	%			28.9	%			24.8	%
Income from operations			8.9	%			4.4	%			6.9	%			7.8	%
Income before provision for income taxes			11.4	%			4.5	%			8.9	%			7.1	%
Net income			8.9	%			3.4	%			6.8	%			5.5	%

 

Three and Nine months ended September 30, 2023 compared to Three and Nine months ended September 30, 2022

 

Sales.

 

Consolidated sales for the quarter ended September 30, 2023 increased to $16,053,000, from $14,722,000 for the quarter ended September 30, 2022, representing an increase of $1,331,000, or 9.0%. This increase consisted of increased sales in the Building Supply segment of $1,845,000, partially offset by decreased sales in the Disposable Protective Apparel segment of $514,000.

 

Building Supply segment sales for the quarter ended September 30, 2023 increased by $1,845,000, or 19.2%, to a record sales quarter of $11,449,000, compared to $9,604,000 for the quarter ended September 30, 2022. The 19.2% increase is comprised of a 25.7% increase in housewrap sales and a 164.5% increase in other woven material sales, partially offset by a 4.5% decrease in synthetic roof underlayment sales. The sales mix of the Building Supply segment for the quarter ended September 30, 2023 was approximately 43% for synthetic roof underlayment, 43% for housewrap and 14% for other woven material. That is compared to approximately 53% for synthetic roof underlayment, 41% for housewrap and 6% for other woven material for the quarter ended September 30, 2022. Our synthetic roof underlayment product line primarily includes REX SynFelt®, REX TECHNOply® and TECHNO SB®, and our housewrap product line primarily consists of REX Wrap®, REX Wrap Plus® and REX™ Wrap Fortis. Housewrap accessories consist of REXTREME Window and Door Flashing and REX™ Premium Seam Tape.

 

The housewrap market continues to be soft, as housing starts in the third quarter of 2023 in the United States decreased by 6.0% compared to the same period a year ago. Our sales of housewrap and accessories, which increased by 25.7% in the third quarter of 2023 over the prior-year quarter, continue to significantly outperform the market through market diversification, product development and sales team expansion. Sales of our REX Wrap® and REX Wrap Plus®, our entry-level housewrap products, were up 16.9% over the prior-year quarter, despite the major decrease in housing starts, as we have continued to form relationships with additional dealers across the country. Management is encouraged by our growth opportunities with REX™ Wrap Fortis, our premium housewrap line, as we continue to make inroads into the multi-family and commercial construction sector, evidenced by an increase of 24.8% in sales for this product in the third quarter of 2023. We also experienced a 256% increase in sales of housewrap accessories, REXTREME Window and Door Flashing and REX™ Premium Seam Tape, in the third quarter of 2023 over the prior-year quarter. Management expects that we will continue to see positive trends relative to the industry for both our entry level and premium housewrap and housewrap accessories product lines.

 

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The synthetic roof underlayment market has also been significantly affected by the continued decrease in new home starts, economic uncertainty, and a push in the market to reduce product selling prices. Despite these pressures, synthetic roof underlayment sales also outperformed the market despite being down 4.5% in the third quarter of 2023 compared to the third quarter of 2022. Management is encouraged by the trend in synthetic roof underlayment of it outperforming the market, especially as we should see an increase in sales as excess inventory is alleviated at the dealer and distribution level. Management is excited about our launch of a new line of self-adhered roofing products in late 2023 or early 2024, which should result in revenue growth within our current customer base and allow for expansion into new markets and business segments. We continue to work closely with our customers to develop new products that increase safety and productivity.

 

Other woven material sales increased in the third quarter of 2023 compared to the same period of 2022 by 164.5%, primarily due to increased sales to our major customer. We do not expect other woven material to be a growth driver in the remainder of 2023, as these products only represent approximately 12% of the Building Supply segment sales.

 

Management expects additional growth in the building supply segment. While housing starts may be trending down nationally, we have continually grown market share. We will build on our success within the multi-family and commercial segment and the single-family segment.

 

Disposable Protective Apparel segment sales for the quarter ended September 30, 2023 decreased by $514,000, or 10.0%, to $4,604,000, compared to $5,118,000 for the same period of 2022. This segment experienced an increase of 5.1% in sales of disposable protective garments, offset by a 60.6% decrease in sales of face masks and a 73.8% decrease in sales of face shields.

 

The sales mix of the Disposable Protective Apparel segment for the quarter ended September 30, 2023 was approximately 91% for disposable protective garments, 7% for face masks and 2% for face shields. This sales mix is compared to approximately 78% for disposable protective garments, 15% for face masks and 7% for face shields for the quarter ended September 30, 2022.

 

Sales of disposable protective garments in the third quarter of 2023 were up 5.1% as our channel partners and our end customers are continuing to work through their inventory. In addition, our sales have been positively affected as we can now meet face-to-face with our distribution partners and end-customers, something we have not been able to do since 2020. Face mask and face shield sales are still suffering from the COVID-19 residual excess inventories at the distributor level.

 

Consolidated sales for the nine months ended September 30, 2023 decreased to $45,967,000 from $49,756,000 for the nine months ended September 30, 2022, representing a decrease of $3,789,000, or 7.6%. This decrease consisted of decreased sales in the Building Supply segment of $41,000 and decreased sales in the Disposable Protective Apparel Segment of $3,748,000.

 

Building Supply segment sales for the nine months ended September 30, 2023 decreased by $41,000, or 0.1%, to $30,616,000, compared to $30,657,000 for the same period of 2022. Sales of housewrap increased by 12.2%, sales of other woven material increased by 1.4% and sales of synthetic roof underlayment decreased by 11.2% compared to the same period of 2022. Management is encouraged by the 12.2% increase in housewrap sales, especially since housing starts are down 12.6% year to date.

 

The sales mix of the Building Supply segment for the nine months ended September 30, 2023 was 42% for synthetic roof underlayment, 46% for housewrap and 12% for other woven material. This compared to 47% for synthetic roof underlayment, 41% for housewrap and 12% for other woven material for the nine months ended September 30, 2022.

 

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Disposable Protective Apparel segment sales for the nine months ended September 30, 2023 decreased by $3,748,000, or 19.6%, to $15,351,000, compared to $19,099,000 for the same period of 2022. This segment decrease was due to a 71.5% decrease in sales of face masks, and an 81.2% decrease in sales of face shields, partially offset by a 7.7% increase in sales of disposable protective garments.

 

Sales of disposable protective garments for the nine months ended September 30, 2023 were up 7.7%, for the reasons as discussed above in the three months ended September 30, 2023 section. Face mask and face shield sales continue to be affected by excess inventories at the distributor level and in the marketplace.

 

The sales mix of the Disposable Protective Apparel segment for the nine months ended September 30, 2023 was 90% for disposable protective garments, 7% for face masks and 3% for face shields. This sales mix is compared to 67% for disposable protective garments, 21% for face masks and 12% for face shields for the nine months ended September 30, 2022.

 

Gross Profit. Gross profit increased by $1,217,000, or 25.3%, to $6,035,000 for the quarter ended September 30, 2023, from $4,818,000 for the quarter ended September 30, 2022. The gross profit margin was 37.6% for the quarter ended September 30, 2023, compared to 32.7% for the quarter ended September 30, 2022.

 

Gross profit increased by $251,000, or 1.5%, to $17,123,000 for the nine months ended September 30, 2023, from $16,872,000 for the same period of 2022. The gross profit margin was 37.3% for the nine months ended September 30, 2023, compared to 33.9% for the same period of 2022.

 

The gross profit margin in 2023 has been positively affected by ocean freight rates which have come down since the latter part of 2022. Management expects the gross profit margin to be in a similar range throughout the balance of 2023, although the sales mix could affect gross margin.

 

Selling, General and Administrative Expenses. Selling, general and administrative expenses increased by $417,000, or 10.5%, to $4,387,000 for the quarter ended September 30, 2023, from $3,970,000 for the quarter ended September 30, 2022. As a percentage of net sales, selling, general and administrative expenses increased to 27.3% for the quarter ended September 30, 2023, from 27.0% for the same period of 2022.

 

The change in expenses by segment for the quarter ended September 30, 2023 was as follows: Disposable Protective Apparel expenses were down $24,000, or 2.1%; Building Supply expenses were up $324,000, or 20.1%; and corporate unallocated expenses were up $117,000, or 9.6%. The decrease in the Disposable Protective Apparel segment expenses was primarily related to decreased employee compensation. The increase in the Building Supply segment expenses was primarily related to increased employee compensation, insurance, travel expenses, commission and general factory expenses, partially offset by general office expenses. The increase in corporate unallocated expenses was primarily due to employee compensation.

 

Selling, general and administrative expenses increased by $934,000, or 7.6%, to $13,275,000 for the nine months ended September 30, 2023, from $12,341,000 for the nine months ended September 30, 2022. As a percentage of net sales, selling, general and administrative expenses increased to 28.9% for the nine months ended September 30, 2023, up from 24.8% for the same period of 2022.

 

The change in expenses by segment for the nine months ended September 30, 2023 was as follows: Disposable Protective Apparel expenses were down $80,000, or 2.2%; Building Supply expenses were up $909,000, or 18.6%; and corporate unallocated expenses were up $105,000, or 2.8%. The decrease in the Disposable Protective Apparel segment expenses was primarily related to decreased employee compensation, partially offset by increased marketing expenses. The increase in the Building Supply segment expenses was related to increased employee compensation, marketing, travel, insurance and general factory expenses, partially offset by decreased commission and general office expenses. The increase in corporate unallocated expenses was primarily due to increased professional fees and general office expenses, partially offset by decreased insurance expenses.

 

In accordance with the terms of his employment agreement, the Company’s current President and Chief Executive Officer is entitled to an annual bonus equal to 5% of the pre-tax profits of the Company, excluding bonus expense, up to a maximum of $1.0 million. A bonus amount of $96,000 was accrued for the three months ended September 30, 2023, compared to $36,000 for the three months ended September 30, 2022. A total of $216,000 has been accrued for the nine months ended September 30, 2023, compared to $186,000 for the same period of 2022.

 

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Depreciation and Amortization. Depreciation and amortization expense increased by $24,000, or 11.9%, to $225,000 for the quarter ended September 30, 2023, from $201,000 for the quarter ended September 30, 2022. Depreciation and amortization expense increased by $46,000, or 7.2%, to $687,000 for the nine months ended September 30, 2023, from $641,000 for the same period of 2022. The increase was primarily attributable to increased depreciation for machinery and equipment in the Building Supply segment.

 

Income from Operations. Income from operations increased by $776,000, or 119.9%, to $1,423,000 for the quarter ended September 30, 2023, compared to $647,000 for the quarter ended September 30, 2022. The increased income from operations was primarily due to an increase in gross profit of $1,217,000, partially offset by an increase in selling, general and administrative expenses of $417,000 and an increase in depreciation and amortization expense of $24,000. Income from operations as a percentage of net sales for the quarter ended September 30, 2023 was 8.9%, compared to 4.4% for the same period of 2022.

 

Income from operations decreased by $729,000, or 18.7%, to $3,161,000 for the nine months ended September 30, 2023, compared to $3,890,000 for the same period of 2022. The decreased income from operations was primarily due to an increase in selling, general and administrative expenses of $934,000 and an increase in depreciation and amortization expense of $46,000, partially offset by an increase in gross profit of $251,000. Income from operations as a percentage of net sales for the nine months ended September 30, 2023 was 6.9%, compared to 7.8% for the same period of 2022.

 

Other Income. Other income increased by $387,000, to $402,000 for the quarter ended September 30, 2023, compared to $15,000 for the same period of 2022. The increase was primarily due to an increase in equity in income of unconsolidated affiliate of $193,000 and an increase in interest income of $194,000.

 

Other income increased by $1,305,000, to $941,000 for the nine months ended September 30, 2023, from a loss of $364,000 for the same period of 2022. The increase was primarily due to an increase in equity in income of unconsolidated affiliate of $305,000 and an increase in interest income of $510,000. In addition, there was a loss on fixed assets of $490,000 in 2022 due to equipment for the Disposable Protective Apparel segment that was not delivered. The Company has filed a lawsuit in this matter (see Part II, Item 1, “Legal Proceedings,” for more information).

 

Income before Provision for Income Taxes. Income before provision for income taxes for the quarter ended September 30, 2023 was $1,825,000, compared to income before provision for income taxes of $662,000 for the same period of 2022, representing an increase of $1,163,000, or 175.7%. This increase in income before provision for income taxes was due to an increase in income from operations of $776,000 and an increase in other income of $387,000.

 

Income before provision for income taxes for the nine months ended September 30, 2023 was $4,102,000, compared to income before provision for income taxes of $3,526,000 for the same period of 2022, representing an increase of $576,000, or 16.3%. This increase in income before provision for income taxes was due to an increase in other income of $1,305,000, partially offset by a decrease in income from operations of $729,000.

 

Provision for Income Taxes. The provision for income taxes for the quarter ended September 30, 2023 was $395,000, compared to $159,000 for the same period of 2022. The estimated effective tax rate was 21.6% for the quarter ended September 30, 2023, compared to 24.0% for the quarter ended September 30, 2022. The Company does not record a tax provision on equity in income of unconsolidated affiliate, which reduces the effective tax rate.

 

The provision for income taxes for the nine months ended September 30, 2023 was $974,000, compared to $808,000 for the same period of 2022. The estimated effective tax rate was 23.7% for the nine months ended September 30, 2023, compared to 22.9% for the nine months ended September 30, 2022. The Company does not record a tax provision on equity in income of unconsolidated affiliate, which reduces the effective tax rate.

 

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Net Income. Net income for the quarter ended September 30, 2023 was $1,430,000, compared to net income of $503,000 for the same period of 2022, representing an increase of $927,000, or 184.3%. The net income increase between the third quarters of 2023 and 2022 was due to an increase in income before provision for income taxes of $1,163,000, partially offset by an increase in provision for income taxes of $236,000. Net income as a percentage of net sales for the quarter ended September 30, 2023 was 8.9%, and net income as a percentage of net sales for the same period of 2022 was 3.4%. Basic and diluted earnings per common share for the quarter ended September 30, 2023 and 2022 were $0.12 and $0.04, respectively.

 

Net income for the nine months ended September 30, 2023 was $3,128,000, compared to net income of $2,718,000 for the same period of 2022, representing an increase of $410,000, or 15.1%. The net income increase between the 2023 and 2022 periods was due to an increase in income before provision for income taxes of $576,000, partially offset by an increase in provision for income taxes of $166,000. Net income as a percentage of net sales for the nine months ended September 30, 2023 was 6.8%, and net income as a percentage of net sales for the same period of 2022 was 5.5%. Basic and diluted earnings per common share for the nine months ended September 30, 2023 and 2022 were $0.26 and $0.21, respectively.

 

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of September 30, 2023, the Company had cash and cash equivalents (“cash”) of $18,163,000 and working capital of $50,705,000. As of September 30, 2023, the Company’s current ratio (current assets/current liabilities) was 27:1, compared to a current ratio of 22:1 as of December 31, 2022. Cash increased by 11.5%, or $1,873,000 to $18,163,000 as of September 30, 2023, compared to $16,290,000 as of December 31, 2022, and working capital increased by $549,000 from $50,156,000 as of December 31, 2022. The increase in cash from December 31, 2022, was due to cash provided by operating activities of $4,929,000, partially offset by cash used in investing activities of $487,000 and cash used in financing activities of $2,569,000.

 

Net cash provided by operating activities of $4,929,000 for the nine months ended September 30, 2023 was due to net income of $3,128,000, as adjusted primarily by the following: stock-based compensation expense of $68,000, depreciation and amortization expense of $687,000, equity in income of unconsolidated affiliate of $392,000, operating lease expense net of accretion of $515,000, an increase in accounts receivable of $2,066,000, a decrease in accounts receivable related party of $599,000, an increase in prepaid expenses of $344,000, a decrease in inventory of $2,871,000, a decrease in accounts payable and accrued liabilities of $302,000, and a decrease in lease liabilities of $523,000, all compared to December 31, 2022.

 

Accounts receivable increased by $1,467,000, or 21.0%, to $8,440,000 as of September 30, 2023, from $6,973,000 as of December 31, 2022. The increase in accounts receivable was primarily related to higher sales in September 2023 compared to December 2022. The number of days that sales remained outstanding as of September 30, 2023, calculated by using an average of accounts receivable outstanding and annual revenue, was 44 days, compared to 35 days as of December 31, 2022.

 

Inventory decreased by $2,871,000, or 11.8%, to $21,526,000 as of September 30, 2023, from $24,397,000 as of December 31, 2022. The decrease was due to a decrease in inventory for the Disposable Protective Apparel segment of $516,000, or 3.6%, to $13,869,000 and a decrease in inventory for the Building Supply segment of $2,355,000, or 23.5%, to $7,657,000.

 

Prepaid expenses decreased by $344,000, or 7.0%, to $4,558,000 as of September 30, 2023, from $4,902,000 as of December 31, 2022. The decrease was primarily due to decreased prepaid inventory.

 

Right-of-use assets as of September 30, 2023, decreased by $515,000 to $1,210,000 from $1,725,000 as of December 31, 2022, as a result of amortization of the balance.

 

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Lease liabilities as of September 30, 2023, decreased by $523,000 to $1,251,000 from $1,774,000 as of December 31, 2022. The decrease in lease liabilities was the result of lease payments made during the nine months ended September 30, 2023.

 

Accounts payable and accrued liabilities as of September 30, 2023, decreased by $302,000, or 20.0%, to $1,205,000, from $1,507,000 as of December 31, 2022. The decrease was primarily due to a decrease in trade payable.

 

Net cash used in investing activities was $487,000 for the nine months ended September 30, 2023, compared to net cash used in investing activities of $349,000 for the same period of 2022. Investing activities for the nine months ended September 30, 2023 and 2022 consisted of the purchase of property and equipment.

 

Net cash used in financing activities was $2,569,000 for the nine months ended September 30, 2023, compared to net cash used in financing activities of $2,772,000 for the same period of 2022. Net cash used in financing activities for the nine months ended September 30, 2023 resulted from the payment of $2,979,000 for the repurchase of common stock and $30,000 for treasury stock excise tax, partially offset by $440,000 in proceeds from the exercise of stock options. Net cash used in financing activities for the nine months ended September 30, 2022 resulted from the payment of $2,832,000 for the repurchase of common stock, partially offset by $60,000 in proceeds from the exercise of stock options.

 

As of September 30, 2023, we had $1,217,000 available for additional stock purchases under our stock repurchase program. During the nine months ended September 30, 2023, we repurchased 724,110 shares of common stock at a cost of $2,979,000. As of September 30, 2023, we had repurchased a total of 20,384,727 shares of common stock at a cost of approximately $49,337,000 through our repurchase program which commenced in 1999. We retire all stock upon repurchase. Future repurchases are expected to be funded from cash on hand and cash flows from operating activities.

 

We believe that our current cash balance and expected cash flow from operations will be sufficient to satisfy our projected working capital and planned capital expenditures for the foreseeable future.

 

Recent Accounting Pronouncements

 

In August 2020, the FASB issued ASU 2020-06 Debt --Debt with Conversion and Other Options (Subtopic 470 and Derivatives and Hedging --Contracts in Entity's Own Equity (Subtopic 815: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which is intended to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity's own equity. The guidance allows for either full retrospective adoption or modified retrospective adoption. The guidance is effective for the Company January 1, 2024 and early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its condensed consolidated financial statements.

 

In June 2016, the FASB issued ASU 2016-13, Financial Instruments --Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. Public business entities classified as smaller reporting companies are required to apply the provision of ASU 2016-13 with annual reporting periods after December 15, 2022. The Company adopted Topic 326 effective January 1, 2023, which did not have a material impact on the Company’s condensed consolidated financial statements.

 

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.

 

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a smaller reporting company, we are not required to provide the information otherwise required by this Item.

 

ITEM 4. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures.

 

Under the supervision and with the participation of our management, including our President and Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial officer), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of September 30, 2023, pursuant to the evaluation of these controls and procedures required by Rule 13a-15 of the Exchange Act. Disclosure controls and procedures are the controls and other procedures that we have designed to ensure that we record, process, summarize and report in a timely manner the information that we must disclose in reports that we file with or submit to the SEC under the Exchange Act, and such controls include, without limitation, controls and procedures designed to ensure that information required to be disclosed is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow for timely decisions regarding required disclosure.

 

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In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives and that we are required to apply our judgment in evaluating the cost-benefit relationship of possible controls and procedures.

 

Based on the evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective at the reasonable assurance level as of the end of the period covered by this report.

 

Changes in Internal Control Over Financial Reporting

 

During the quarter to which this report relates, there was no change in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) and Rule 15d-15(f) under the Exchange Act) that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II. OTHER INFORMATION

 

ITEM 1. LEGAL PROCEEDINGS

 

On June 7, 2022, the Company filed a lawsuit (the “Lawsuit”) in Utah naming as defendants the vendors from which the Company ordered equipment for its facility in Utah (collectively the “Defendants”). The Lawsuit relates to certain equipment ordered from Defendants and paid for by the Company, which Defendants never delivered. In the Lawsuit the Company is seeking the following relief: compensatory damages in the amount $490,000, representing the money the Company paid for the machines it never received, lost profits in the form of mask sales it could have made if Defendants had delivered the machines on the promised date, and other monetary and equitable relief. As of September 30, 2023, the Company has written off the $490,000 balance of the deposit paid for the equipment, pending any recovery in the Lawsuit. As of the date hereof, no counterclaims have been asserted against the Company. The Company believes there would not be any meritorious claims against the Company related to the Lawsuit. The Lawsuit remains unresolved and the final outcome, including the potential amount of any recovery for the Company’s claims, is uncertain. Any potential recovery represents a gain contingency in accordance with ASC 450, Contingencies, that has not been recorded as the matter was not resolved as of September 30, 2023. Any recovery will be recorded when received. 

 

The Company is subject to various pending and threatened litigation actions in the ordinary course of business. Although it is not possible to determine with certainty at this point in time what liability, if any, the Company will have as a result of such litigation, based on consultation with legal counsel, management does not anticipate that the ultimate liability, if any, resulting from such litigation will have a material effect on the Company’s financial condition and results of operations.

 

ITEM 1A. RISK FACTORS

 

A list of factors that could materially affect our business, financial condition or operating results is described in Part I, Item 1A, “Risk Factors” in the 2022 Form 10-K. There have been no material changes to our risk factors from those disclosed in Part I, Item 1A, “Risk Factors” in the 2022 Form 10-K.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

ISSUER PURCHASES OF EQUITY SECURITIES

 

---

The following table sets forth purchases made by or on behalf of the Company or any “affiliated purchaser,” as defined in Rule 10b-18(a)(3) of the Exchange Act:

 

		Issuer Purchases of Equity Securities
Period		Total Number of Shares Purchased				Average Price Paid per Share				Total Number of Shares Purchased as Part of Publicly Announced Program (1)				Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1)
July 1 - 31, 2023			56,600			$	3.93				56,600			$	2,042,000
August 1 - 31, 2023			48,600				4.00				48,600				1,876,000
September 1 - 30, 2023			143,910				4.33				143,910				1,217,000
			249,110			$	4.13				249,110

 

(1) On June 22, 2023, the Company announced that the Board of Directors had authorized a $2,000,000 expansion of the Company’s existing share repurchase program. All the shares included in this table were purchased pursuant to this program. Since the inception of the share repurchase program in 1999, the Company has authorized the repurchase of $50,520,000 of common stock, of which $1,217,000 was available for repurchase as of September 30, 2023. The share repurchase plan expires on December 15, 2024.

 

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

We did not sell any unregistered equity securities during the periods covered by this Quarterly Report on Form 10-Q.

 

---

ITEM 6. EXHIBITS

 

3.1.1(P)	Certificate of Incorporation of Alpha Pro Tech, Ltd., incorporated by reference to Exhibit 3(f) to Form 10-K for the year ended December 31, 1994, filed on March 31, 1995 (File No. 000-19893).
3.1.2(P)	Certificate of Amendment of Certificate of Incorporation of Alpha Pro Tech, Ltd., incorporated by reference to Exhibit 3(j) to Form 10-K for the year ended December 31, 1994, filed on March 31, 1995 (File No. 000-19893).
3.1.3(P)	Certificate of Ownership and Merger (BFD Industries, Inc. into Alpha Pro Tech, Ltd.), incorporated by reference to Exhibit 3(l) to Form 10-K for the year ended December 31, 1994, filed on March 31, 1995 (File No. 000-19893).
3.2	Amended and Restated Bylaws of Alpha Pro Tech, Ltd., incorporated by reference to Exhibit 3.1 to Form 8-K, filed on December 19, 2022 (File No. 001-15725).
31.1	Certification of President and Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the Securities Exchange Act, as amended.
32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – President and Chief Executive Officer.
32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 – Chief Financial Officer.
101	Interactive Data Files for Alpha Pro Tech, Ltd.’s Form 10-Q for the period ended September 30, 2023, formatted in Inline XBRL.
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
	(P) Indicates a paper filing with the SEC.

 

---

SIGNATURES

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

			ALPHA PRO TECH, LTD.
DATE:	November 8, 2023		BY:	/s/Lloyd Hoffman
			Lloyd Hoffman
			President and Chief Executive Officer
DATE:	November 8, 2023		BY:	/s/Colleen McDonald
			Colleen McDonald
			Chief Financial Officer

 

Alpha Pro Tech, Ltd.

 

 

Certification Under Exchange Act Rules 13a – 14(a) and 15d – 14(a)

EXHIBIT 31.1

                  

 

I, Lloyd Hoffman, certify that:

 

1.	I have reviewed this Quarterly Report on Form 10-Q of Alpha Pro Tech, Ltd.;

 

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

DATE:	November 8, 2023		BY:	/s/Lloyd Hoffman
			Lloyd Hoffman
			President and Chief Executive Officer
			(Principal Executive Officer)

 

Alpha Pro Tech, Ltd.

 

 

Certification Under Exchange Act Rules 13a – 14(a) and 15d – 14(a)

EXHIBIT 31.2

 

I, Colleen McDonald, certify that:

 

1.	I have reviewed this Quarterly Report on Form 10-Q of Alpha Pro Tech, Ltd.;

 

2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4.

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5.	The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

 

DATE:	November 8, 2023		BY:	/s/Colleen McDonald
			Colleen McDonald
			Chief Financial Officer
			(Principal Financial and Accounting Officer)

 

Alpha Pro Tech, Ltd.

 

EXHIBIT 32.1

 

 

Alpha Pro Tech, Ltd.

 

CERTIFICATION PURSUANT TO

 

18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO

 

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of Alpha Pro Tech, Ltd. (the “Company”) on Form 10-Q for the quarter ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lloyd Hoffman, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

DATE:	November 8, 2023		BY:	/s/Lloyd Hoffman
			Lloyd Hoffman
			President and Chief Executive Officer

 

Alpha Pro Tech, Ltd.

 

EXHIBIT 32.2

 

 

 

Alpha Pro Tech, Ltd.

 

CERTIFICATION PURSUANT TO

 

18 U.S.C. SECTION 1350,

 

AS ADOPTED PURSUANT TO

 

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Quarterly Report of Alpha Pro Tech, Ltd. (the “Company”) on Form 10-Q for the quarter ended September 30, 2023, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Colleen McDonald, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

 

 

 

DATE:	November 8, 2023		BY:	/s/Colleen McDonald
			Colleen McDonald
			Chief Financial Officer

 

v3.23.3

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2023	Nov. 01, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Document Transition Report	false
Entity File Number	001-15725
Entity Registrant Name	Alpha Pro Tech, Ltd.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	63-1009183
Entity Address, Address Line One	53 Wellington Street East
Entity Address, Postal Zip Code	L4G 1H6
Entity Address, City or Town	Aurora
Entity Address, State or Province	ON
Entity Address, Country	CA
City Area Code	905
Local Phone Number	479-0654
Title of 12(b) Security	Common Stock
Trading Symbol	APT
Security Exchange Name	NYSEAMER
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		11,647,096
Entity Central Index Key	0000884269
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

v3.23.3

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2023	Dec. 31, 2022	[1]
Cash and cash equivalents	$ 18,163,000	$ 16,290,000
Inventories	21,526,000	24,397,000
Prepaid expenses	4,558,000	4,902,000
Total current assets	52,687,000	52,562,000
Property and equipment, net	5,543,000	5,742,000
Goodwill	55,000	55,000
Definite-lived intangible assets, net	0	1,000
Right-of-use assets	1,210,000	1,725,000
Equity investment in unconsolidated affiliate	5,116,000	4,718,000
Total assets	64,611,000	64,803,000
Current liabilities:
Accounts payable	320,000	674,000
Accrued liabilities	885,000	833,000
Lease liabilities	777,000	899,000
Total current liabilities	1,982,000	2,406,000
Lease liabilities, net of current portion	474,000	875,000
Deferred income tax liabilities, net	764,000	764,000
Total liabilities	3,220,000	4,045,000
Shareholders' equity:
Common stock, $.01 par value: 50,000,000 shares authorized; 11,636,446 and 12,226,306 shares outstanding as of September 30, 2023 and December 31, 2022, respectively	117,000	123,000
Retained earnings	62,757,000	62,124,000
Accumulated other comprehensive loss	(1,483,000)	(1,489,000)
Total shareholders' equity	61,391,000	60,758,000
Total liabilities and shareholders' equity	64,611,000	64,803,000
Nonrelated Party [Member]
Accounts receivable, net of allowance for doubtful accounts	7,448,000	5,382,000
Related Party [Member]
Accounts receivable, net of allowance for doubtful accounts	$ 992,000	$ 1,591,000
[1] The condensed consolidated balance sheet as of December 31, 2022, has been prepared using information from the audited consolidated balance sheet as of that date.

v3.23.3

Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Common Stock, Par or Stated Value Per Share (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized (in shares)	50,000,000	50,000,000
Common Stock, Shares, Outstanding (in shares)	11,636,446	12,226,306
Nonrelated Party [Member]
Accounts Receivable, Allowance for Credit Loss, Current	$ 35,000	$ 45,000

v3.23.3

Condensed Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net sales	$ 16,053,000	$ 14,722,000	$ 45,967,000	$ 49,756,000
Cost of goods sold, excluding depreciation and amortization	10,018,000	9,904,000	28,844,000	32,884,000
Gross profit	6,035,000	4,818,000	17,123,000	16,872,000
Operating expenses:
Selling, general and administrative	4,387,000	3,970,000	13,275,000	12,341,000
Depreciation and amortization	225,000	201,000	687,000	641,000
Total operating expenses	4,612,000	4,171,000	13,962,000	12,982,000
Income from operations	1,423,000	647,000	3,161,000	3,890,000
Other income (loss):
Loss on fixed assets	0	0	0	(490,000)
Equity in income (loss) of unconsolidated affiliate	180,000	(13,000)	392,000	87,000
Interest income, net	222,000	28,000	549,000	39,000
Total other income (loss)	402,000	15,000	941,000	(364,000)
Income before provision for income taxes	1,825,000	662,000	4,102,000	3,526,000
Provision for income taxes	395,000	159,000	974,000	808,000
Net income	$ 1,430,000	$ 503,000	$ 3,128,000	$ 2,718,000
Basic earnings per common share (in dollars per share)	$ 0.12	$ 0.04	$ 0.26	$ 0.21
Diluted earnings per common share (in dollars per share)	$ 0.12	$ 0.04	$ 0.26	$ 0.21
Basic weighted average common shares outstanding (in shares)	11,781,071	12,615,187	11,974,336	12,834,505
Diluted weighted average common shares outstanding (in shares)	11,781,071	12,688,381	11,974,336	12,909,870

v3.23.3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net income	$ 1,430,000	$ 503,000	$ 3,128,000	$ 2,718,000
Other comprehensive income (loss)- foreign currency translation gain (loss)	(152,000)	(137,000)	6,000	(554,000)
Comprehensive income	$ 1,278,000	$ 366,000	$ 3,134,000	$ 2,164,000

v3.23.3

Condensed Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
Balance (in shares) at Dec. 31, 2021	13,115,341
Balance at Dec. 31, 2021	$ 132,000	$ 0	$ 62,488,000	$ (869,000)	$ 61,751,000
Net income			1,522,000	0	1,522,000
Common stock repurchased and retired (in shares)	(170,000)
Common stock repurchased and retired	$ (2,000)	(55,000)	(699,000)	0	(756,000)
Stock-based compensation expense		55,000		0	55,000
Total comprehensive income	$ 0	0	0	(153,000)	(153,000)
Common stock repurchased and retired		(55,000)		0	(55,000)
Balance (in shares) at Mar. 31, 2022	12,945,341
Balance at Mar. 31, 2022	$ 130,000	0	63,311,000	(1,022,000)	62,419,000
Balance (in shares) at Dec. 31, 2021	13,115,341
Balance at Dec. 31, 2021	$ 132,000	0	62,488,000	(869,000)	61,751,000
Net income					2,718,000
Balance (in shares) at Sep. 30, 2022	12,477,305
Balance at Sep. 30, 2022	$ 126,000	0	62,559,000	(1,424,000)	61,261,000
Balance (in shares) at Mar. 31, 2022	12,945,341
Balance at Mar. 31, 2022	$ 130,000	0	63,311,000	(1,022,000)	62,419,000
Net income			693,000	0	693,000
Common stock repurchased and retired (in shares)	(225,500)
Common stock repurchased and retired	$ (2,000)	(62,000)	(896,000)	0	(960,000)
Stock-based compensation expense		32,000		0	32,000
Options exercised (in shares)	8,332
Options exercised		30,000		0	30,000
Total comprehensive income	$ 0	0	0	(265,000)	(265,000)
Common stock repurchased and retired		(32,000)		0	(32,000)
Balance (in shares) at Jun. 30, 2022	12,728,173
Balance at Jun. 30, 2022	$ 128,000	0	63,108,000	(1,287,000)	61,949,000
Net income			503,000	0	503,000
Common stock repurchased and retired (in shares)	(259,200)
Common stock repurchased and retired	$ (2,000)	(62,000)	(1,052,000)	0	(1,116,000)
Stock-based compensation expense		32,000		0	32,000
Options exercised (in shares)	8,332
Options exercised		30,000		0	30,000
Total comprehensive income	$ 0	0	0	(137,000)	(137,000)
Common stock repurchased and retired		(32,000)		0	(32,000)
Balance (in shares) at Sep. 30, 2022	12,477,305
Balance at Sep. 30, 2022	$ 126,000	0	62,559,000	(1,424,000)	$ 61,261,000
Balance (in shares) at Dec. 31, 2022	12,226,306				12,226,306
Balance at Dec. 31, 2022	$ 123,000	0	62,124,000	(1,489,000)	$ 60,758,000	[1]
Net income			552,000	0	552,000
Common stock repurchased and retired (in shares)	(200,000)
Common stock repurchased and retired	$ (2,000)	(371,000)	(460,000)	0	(833,000)
Stock-based compensation expense		22,000		0	22,000
Options exercised (in shares)	109,250
Options exercised	$ 1,000		0	0	350,000
Total comprehensive income	$ 0	0	0	137,000	137,000
Common stock repurchased and retired		(22,000)		0	(22,000)
Balance (in shares) at Mar. 31, 2023	12,135,556
Balance at Mar. 31, 2023	$ 122,000	0	62,216,000	(1,352,000)	$ 60,986,000
Balance (in shares) at Dec. 31, 2022	12,226,306				12,226,306
Balance at Dec. 31, 2022	$ 123,000	0	62,124,000	(1,489,000)	$ 60,758,000	[1]
Net income					$ 3,128,000
Options exercised (in shares)					134,250
Balance (in shares) at Sep. 30, 2023	11,636,446				11,636,446
Balance at Sep. 30, 2023	$ 117,000	0	62,757,000	(1,483,000)	$ 61,391,000
Balance (in shares) at Mar. 31, 2023	12,135,556
Balance at Mar. 31, 2023	$ 122,000	0	62,216,000	(1,352,000)	60,986,000
Net income			1,146,000	0	1,146,000
Common stock repurchased and retired (in shares)	(275,000)
Common stock repurchased and retired	$ (3,000)	(65,000)	(1,029,000)		(1,097,000)
Stock-based compensation expense		22,000	0	(0)	22,000
Options exercised (in shares)	15,000
Options exercised		54,000		0	54,000
Total comprehensive income	$ 0	0	0	21,000	21,000
Common stock repurchased and retired		(22,000)	0	0	(22,000)
Treasury Stock Acquired, Purchase Price Significantly in Excess of Current Fair Value, Description		(11,000)			(11,000)
Balance (in shares) at Jun. 30, 2023	11,875,556
Balance at Jun. 30, 2023	$ 119,000	0	62,333,000	(1,331,000)	61,121,000
Net income			1,430,000	0	1,430,000
Common stock repurchased and retired (in shares)	(249,110)
Common stock repurchased and retired	$ (2,000)	(41,000)	(1,006,000)		(1,049,000)
Stock-based compensation expense		24,000	0	(0)	24,000
Options exercised (in shares)	10,000
Options exercised		36,000		0	36,000
Total comprehensive income	$ 0	0	0	(152,000)	(152,000)
Common stock repurchased and retired		(24,000)	0	0	(24,000)
Treasury Stock Acquired, Purchase Price Significantly in Excess of Current Fair Value, Description		(19,000)			$ (19,000)
Balance (in shares) at Sep. 30, 2023	11,636,446				11,636,446
Balance at Sep. 30, 2023	$ 117,000	$ 0	$ 62,757,000	$ (1,483,000)	$ 61,391,000
[1] The condensed consolidated balance sheet as of December 31, 2022, has been prepared using information from the audited consolidated balance sheet as of that date.

v3.23.3

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash Flows From Operating Activities:
Net income	$ 3,128,000	$ 2,718,000
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	68,000	119,000
Depreciation and amortization	687,000	641,000
Equity in income of unconsolidated affiliate	(392,000)	(87,000)
Operating lease expense, net of accretion	515,000	689,000
Changes in operating assets and liabilities:
Accounts receivable, net	(2,066,000)	(2,680,000)
Accounts receivable, related party	599,000	161,000
Inventories	2,871,000	(155,000)
Prepaid expenses	344,000	2,374,000
Accounts payable and accrued liabilities	(302,000)	(759,000)
Lease liabilities	(523,000)	(690,000)
Net cash provided by operating activities	4,929,000	2,331,000
Cash Flows From Investing Activities:
Purchases of property and equipment	(487,000)	(349,000)
Net cash used in investing activities	(487,000)	(349,000)
Cash Flows From Financing Activities:
Proceeds from exercise of stock options	440,000	60,000
Repurchase of common stock	(2,979,000)	(2,832,000)
Treasury stock excise tax	(30,000)	0
Net cash used in financing activities	(2,569,000)	(2,772,000)
Increase (decrease) in cash and cash equivalents	1,873,000	(790,000)
Cash and cash equivalents, beginning of the period	16,290,000	16,307,000
Cash and cash equivalents, end of the period	$ 18,163,000	$ 15,517,000

v3.23.3

Note 1 - The Company	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Nature of Operations [Text Block]	1. The Company   Alpha Pro Tech, Ltd. (“Alpha Pro Tech,” the “Company,” “we”, “us” or “our”) is in the business of protecting people, products and environments. The Company accomplishes this by developing, manufacturing and marketing a line of building supply products for the new home and re-roofing markets and a line of disposable protective apparel for the cleanroom, industrial, pharmaceutical, medical and dental markets.   The Building Supply segment consists of construction weatherization products, such as housewrap, housewrap accessories, namely tape and flashing, and synthetic roof underlayment, as well as other woven material.   The Disposable Protective Apparel segment consists of a complete line of disposable protective garments (shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats), face masks and face shields. All of our disposable protective apparel products, including face masks and face shields, are sold through similar distribution channels, are single-use and disposable, have the purpose of 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 as well as under private label and are predominantly sold in the United States of America (“U.S.”).

v3.23.3

Note 2 - Basis of Presentation and Revenue Recognition Policy	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Significant Accounting Policies [Text Block]	2. Basis of Presentation and Revenue Recognition Policy   The interim financial information included in this report is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for the fair presentation of the consolidated financial position, results of operations and cash flows for the interim periods reflected herein. These interim condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) and, therefore, omit certain information and note disclosures that would be necessary to present the statements in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings, as well as the Company’s consolidated financial statements for the year ended December 31, 2022, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”), filed with the SEC on March 16, 2023. The results of operations for the three and nine months ended September 30, 2023 in this Quarterly Report on Form 10-Q are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet as of December 31, 2022 was prepared using information from the audited consolidated balance sheet contained in the 2022 Form 10-K; however, it does not include all disclosures required by U.S. GAAP for annual consolidated financial statements.   Net sales include revenue from products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Our customer contracts have a single performance obligation: transfer control of products to customers. Revenue is measured as the amount of consideration that we expect to receive in exchange for transferring control of products. All revenue is recognized when we satisfy our performance obligations under the applicable contract. We recognize revenue in connection with transferring control of the promised products to the customer, with revenue being recognized at the point in time when the customer obtains control of the products, which is generally when title passes to the customer upon delivery to a third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements, at which time a receivable is created for the invoice sent to the customer. Shipping and handling activities are performed prior to the customer obtaining control of the goods and are accounted for as fulfillment activities and are not a promised good or service. Shipping and handling charges billed to customers are included in revenue. Shipping and handling costs, associated with the distribution of the Company’s product to the customers, are recorded in cost of goods sold and are recognized when control of the product is transferred to the customer, which is generally when title passes to the customer upon delivery to a third party carrier for FOB shipping point arrangements and to the customer for FOB destination arrangements. We estimate product returns based on historical return rates and estimate rebates based on contractual agreements. Using probability assessments, we estimate sales incentives expected to be paid over the term of the contract. Sales taxes and value added taxes in foreign and domestic jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and, therefore, are excluded from net sales. The Company manufactures certain private label goods for customers and has determined that control does not pass to the customer at the time of manufacture, based upon the nature of the private labeling. The Company has determined as of September 30, 2023 that it had no material contract assets and concluded that its contract liabilities (primarily rebates) had the right of offset against customer receivables. See Note 10 and Note 11 of these Notes to Condensed Consolidated Financial Statements (Unaudited) for information on revenue disaggregated by type and by geographic region.

v3.23.3

Note 3 - Stock-based Compensation	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Share-Based Payment Arrangement [Text Block]	3. Stock-Based Compensation   The Company previously granted stock options to employees and non-employee directors under a stock option plan (the “2004 Option Plan”). Stock options have been granted with exercise prices at or above the fair market value of the underlying shares of common stock on the date of grant. Options vest and expire according to terms established at the grant date. The 2004 Option Plan provided for a total of 5,000,000 common shares eligible for issuance. Under the 2004 Option Plan, approximately 5,009,750 options (taking into account cancelled and expired options that were added back to the plan reserve) had been granted as of December 31, 2020.   At the Company’s 2020 Annual Meeting of Shareholders, the Company’s shareholders approved the Alpha Pro Tech, Ltd. 2020 Omnibus Incentive Plan (the “2020 Incentive Plan”). The 2020 Incentive Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, awards of restricted stock and restricted stock units, performance share awards, cash awards and other equity-based awards to employees (including officers), consultants and non-employee directors of the Company and its affiliates. A total of 1,800,000 shares of the Company’s common stock are reserved for issuance under the 2020 Incentive Plan, plus the number of shares underlying any award granted under the 2004 Option Plan that expires, terminates or is cancelled or forfeited under the terms of the 2004 Option Plan. As a result of the approval of the 2020 Incentive Plan, no future equity awards will be made pursuant to the 2004 Option Plan. Although no new awards may be granted under the 2004 Option Plan, all previously granted awards under the 2004 Option Plan will continue to be governed by the terms of the 2004 Option Plan.   The Company records compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options and restricted stock awards, over the determined requisite service period, which is generally ratably over the vesting term.   For the nine months ended September 30, 2023 and 2022, 46,400 and 19,600 stock options were granted under the 2020 Incentive Plan, respectively. The Company recognized $10,000 and $39,000 in stock-based compensation expense for the nine months ended September 30, 2023 and 2022, respectively, related to outstanding options previously granted under the 2004 Option Plan. For the nine months ended September 30, 2023 and 2022, 227,600 and 13,600 restricted stock awards were granted under the 2020 Incentive Plan, respectively. The Company recognized $58,000 and $80,000 in compensation expense associated with outstanding restricted stock awards for the nine months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, $966,000 of total unrecognized compensation cost related to outstanding restricted stock awards was expected to be recognized over a weighted-average remainder period of 2.86 years.   The Company uses the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the expected life of the options. The risk-free interest rate for periods within the contractual life of an award is based on the US Treasury yield curve in effect at the time of grant. The estimated volatility is based on historical volatility and management’s expectations of future volatility. The Company uses an estimated dividend payout of zero, as the Company has not paid dividends in the past and, at this time, does not expect to do so in the future. The Company accounts for option forfeitures as they occur. The following table summarizes stock option activity for the nine months ended September 30, 2023:               Weighted Average               Exercise Price       Options     Per Option                     Options outstanding, December 31, 2022     410,615     $ 3.50   Granted to employees and non-employee directors     46,400       4.23   Exercised     134,250       3.27   Canceled/expired/forfeited     13,333       3.61   Options outstanding, September 30, 2023     309,432       3.70   Options exercisable, September 30, 2023     253,231       3.59     As of September 30, 2023, $161,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of 2.75 years.

v3.23.3

Note 4 - Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Accounting Standards Update and Change in Accounting Principle [Text Block]	4. Recent Accounting Pronouncements   In August 2020, the FASB issued ASU 2020-06 Debt --Debt with Conversion and Other Options (Subtopic 470 and Derivatives and Hedging --Contracts in Entity's Own Equity (Subtopic 815: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which is intended to simplify the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity's own equity. The guidance allows for either full retrospective adoption or modified retrospective adoption. The guidance is effective for the Company January 1, 2024 and early adoption is permitted. The Company is evaluating the impact the adoption of this guidance will have on its condensed consolidated financial statements.   In June 2016, the FASB issued ASU 2016-13, Financial Instruments --Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. Public business entities classified as smaller reporting companies are required to apply the provision of ASU 2016-13 with annual reporting periods after December 15, 2022. The Company adopted Topic 326 effective January 1, 2023, which did not have a material impact on the Company’s condensed consolidated financial statements.   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.

v3.23.3

Note 5 - Inventories	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Inventory Disclosure [Text Block]	5. Inventories   As of September 30, 2023 and December 31, 2022, inventories net of reserves consisted of the following:       September 30,     December 31,       2023     2022                     Raw materials   $ 11,220,000     $ 13,018,000   Work in process     2,594,000       2,225,000   Finished goods     7,712,000       9,154,000       $ 21,526,000     $ 24,397,000

v3.23.3

Note 6 - Equity Investment in Unconsolidated Affiliate	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	6. 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 of 41.66% owned by Alpha ProTech Engineered Products, Inc. and 58.34% 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 extrusion coated fabrics. In addition, the joint venture now supplies products for the Company’s Disposable Protective Apparel segment.   The capital from the initial funding and a bank loan, which is guaranteed exclusively by the individual shareholders of Maple Industries and associates and collateralized by the assets of Harmony, were utilized to purchase the original manufacturing facility in India. Harmony currently has four facilities in India (three owned and one rented), consisting of: (1) a 139,000 square foot building for manufacturing building products; (2) a 121,000 square foot building for manufacturing coated material and sewing proprietary disposable protective apparel; (3) a 23,000 square foot facility for sewing proprietary disposable protective apparel; and (4) a 159,000 square foot facility (rented) for manufacturing Building Supply segment products. All additions have been financed by Harmony with no guarantees from the Company.   In accordance with ASC 810, Consolidation, the Company assesses whether or not related entities are variable interest entities (“VIEs”). For those related entities that qualify as VIEs, ASC 810 requires the Company to determine whether the Company is the primary beneficiary of the VIE, and, if so, to consolidate the VIE. The Company has determined that Harmony is not a VIE and is, therefore, considered to be an unconsolidated 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 that no impairment was required as of September 30, 2023, or December 31, 2022. 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, 2023 and 2022, the Company purchased $5,001,000 and $7,786,000 of inventories, respectively, from Harmony. For the nine months ended September 30, 2023 and 2022, the Company purchased $14,871,000 and $19,645,000 of inventories, respectively, from Harmony. The Company sold $66,000 of inventories to Harmony for each of the three months ended September 30, 2023 and 2022. For the nine months ended September 30, 2023 and 2022, the Company sold $266,000 and $280,000 of inventories, respectively, to Harmony.   For the three months ended September 30, 2023 and 2022, the Company recorded equity in income of unconsolidated affiliate of $180,000 and loss in income from unconsolidated affiliate of $13,000, respectively, related to Harmony. For the nine months ended September 30, 2023 and 2022, the Company recorded equity in income of unconsolidated affiliate of $392,000 and $87,000, respectively, related to Harmony.   As of September 30, 2023, the Company’s investment in Harmony was $5,116,000, which consisted of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $6,168,000, less $942,000 in repayments of an advance, $77,000 in payments of dividends, and $1,483,000 in AOCL on foreign currency translations.

v3.23.3

Note 7 - Accrued Liabilities	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	7. Accrued Liabilities   As of September 30, 2023 and December 31, 2022, accrued liabilities consisted of the following:       September 30,     December 31,       2023     2022                     Payroll expenses and taxes payable   $ 298,000     $ 138,000   Commissions and bonuses payable and general accrued liabilities     587,000       695,000   Total accrued liabilities   $ 885,000     $ 833,000

v3.23.3

Note 8 - Basic and Diluted Earnings Per Common Share	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Earnings Per Share [Text Block]	8. Basic and Diluted Earnings Per Common Share   The following table provides a reconciliation of both net income and the number of shares used in the computation of “basic” earnings per common share (“EPS”), which utilizes the weighted average number of common shares outstanding without regard to dilutive shares, and “diluted” EPS, which includes all such dilutive shares, for the three and nine months ended September 30, 2023 and 2022:       For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Net income (numerator)   $ 1,430,000     $ 503,000     $ 3,128,000     $ 2,718,000                                     Shares (denominator):                                 Basic weighted average common shares outstanding     11,781,071       12,615,187       11,974,336       12,834,505   Add: dilutive effect of common stock options     -       73,194       -       75,365                                     Diluted weighted average common shares outstanding     11,781,071       12,688,381       11,974,336       12,909,870                                     Earnings per common share:                                 Basic   $ 0.12     $ 0.04     $ 0.26     $ 0.21   Diluted   $ 0.12     $ 0.04     $ 0.26     $ 0.21

v3.23.3

Note 9 - Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Comprehensive Income (Loss) Note [Text Block]	9. Accumulated Other Comprehensive Loss   Accumulated other comprehensive loss (“AOCL”), a component of shareholders' equity, consists of foreign currency translation adjustments related to foreign currency gains or losses on our unconsolidated affiliate as its functional currency is other than the U.S. dollar. The resulting foreign currency translation gains or losses are deferred as AOCL and reclassified to earnings only upon sale or liquidation of that business. The accumulated other comprehensive loss on equity in unconsolidated affiliate was $1,483,000 and $1,489,000 as of September 30, 2023 and December 31, 2022, respectively.

v3.23.3

Note 10 - Activity of Business Segments	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	10. Activity of Business Segments   The Company operates through two business segments:   (1) Building Supply: consisting of a line of construction supply weatherization products. The construction supply weatherization products consist of housewrap and housewrap accessories including window and door flashing and seam tape, and synthetic roof underlayment, as well as other woven material. The majority of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Building Supply segment.   (2) Disposable Protective Apparel: consisting of a complete line of disposable protective garments, including shoecovers (including the Aqua Trak® and spunbond shoecovers), bouffant caps, coveralls, frocks, lab coats, gowns and hoods, as well as face masks and face shields for the pharmaceutical, cleanroom, industrial, medical and dental markets. A portion of the Company’s equity in income of unconsolidated affiliate (Harmony) is included in the total segment income for the Disposable Protective Apparel segment.   Segment data excludes charges allocated to the principal executive office and other unallocated corporate overhead expenses and income tax. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales.   The accounting policies of the segments are the same as those described previously under Summary of Significant Accounting Policies (see Note 2).   The following table presents consolidated net sales for each segment for the three and nine months ended September 30, 2023 and 2022:       For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Building Supply   $ 11,449,000     $ 9,604,000     $ 30,616,000     $ 30,657,000   Disposable Protective Apparel     4,604,000       5,118,000       15,351,000       19,099,000   Consolidated net sales   $ 16,053,000     $ 14,722,000     $ 45,967,000     $ 49,756,000     The following table presents the reconciliation of consolidated segment income to consolidated net income for the three and nine months ended September 30, 2023 and 2022:       For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Building Supply   $ 1,973,000     $ 1,386,000     $ 4,456,000     $ 4,968,000   Disposable Protective Apparel     982,000       489,000       3,090,000       2,412,000   Total segment income     2,955,000       1,875,000       7,546,000       7,380,000                                     Unallocated corporate overhead expenses     1,130,000       1,213,000       3,444,000       3,854,000   Provision for income taxes     395,000       159,000       974,000       808,000   Consolidated net income   $ 1,430,000     $ 503,000     $ 3,128,000     $ 2,718,000     The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of September 30, 2023 and December 31, 2022:       September 30,     December 31,       2023     2022                     Building Supply   $ 3,316,000     $ 3,395,000   Disposable Protective Apparel     1,246,000       1,327,000   Total segment assets     4,562,000       4,722,000                     Unallocated corporate assets     1,036,000       1,076,000   Total consolidated assets   $ 5,598,000     $ 5,798,000

v3.23.3

Note 11 - Financial Information about Geographic Areas	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Financial Information about Geographic Areas [Text Block]	11. Financial Information about Geographic Areas   The following table summarizes the Company’s net sales by geographic region for the three and nine months ended September 30, 2023 and 2022:       For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Net sales by geographic region                                 United States   $ 15,928,000     $ 14,569,000     $ 45,682,000     $ 48,385,000   International     125,000       153,000       285,000       1,371,000                                     Consolidated net sales   $ 16,053,000     $ 14,722,000     $ 45,967,000     $ 49,756,000     Net sales by geographic region are based on the countries in which our customers are located. For the three months ended September 30, 2023 and 2022, the Company generated approximately $42,000 and $103,000, respectively, in sales from Canada. For the nine months ended September 30, 2023 and 2022, the Company generated approximately $140,000 and $1,119,000, respectively, in sales from Canada. No country other than the United States was significant to the Company’s consolidated net sales.   The following table summarizes the locations of the Company’s long-lived assets by geographic region as of September 30, 2023 and December 31, 2022:       September 30,     December 31,       2023     2022   Long-lived assets by geographic region                 United States   $ 4,283,000     $ 4,380,000   International     1,260,000       1,362,000                     Consolidated total long-lived assets   $ 5,543,000     $ 5,742,000

v3.23.3

Note 12 - Related Party Transactions	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	12. Related Party Transactions   As of September 30, 2023, the Company had no related party transactions, other than the Company’s transactions with its unconsolidated affiliate, Harmony. See Note 6 of these Notes to Condensed Consolidated Financial Statements (Unaudited).

v3.23.3

Note 13 - Leases	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Lessee, Operating Leases [Text Block]	13. Leases   The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2026. The Company’s primary operating lease commitments as of September 30, 2023 related to the Company’s corporate office in Aurora, Canada and its manufacturing facilities in Valdosta, Georgia; Nogales, Arizona; and Salt Lake City, Utah.   As of September 30, 2023, the Company had operating lease right-of-use assets of $1,210,000 and operating lease liabilities of $1,251,000. As of September 30, 2023, the Company did not have any finance leases recorded on the Company’s condensed consolidated balance sheet. Operating lease expense was approximately $922,000 during the nine months ended September 30, 2023.   The aggregate future minimum lease payments and reconciliation to lease liabilities as of September 30, 2023 were as follows:       September 30,       2023   Remaining three months of 2023   $ 281,000   2024     551,000   2025     434,000   2026     47,000   Total future minimum lease payments     1,313,000   Less imputed interest     (62,000 ) Total Lease liabilities   $ 1,251,000     As of September 30, 2023, the weighted average remaining lease term of the Company’s operating leases was 2.2 years. During the nine months ended September 30, 2023, the weighted average discount rate with respect to these leases was 4.55%.

v3.23.3

Note 14 - Income Taxes	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Income Tax Disclosure [Text Block]	14. Income taxes   The Company accounts for income taxes using the asset and liability method. A valuation allowance is recorded to reduce the carrying amounts of deferred income tax assets unless it is more likely than not that such assets will be realized. The Company’s policy is to record any interest and penalties assessed by the Internal Revenue Service as a component of the provision for income taxes. The Company provides allowances for uncertain income tax positions when it is more likely than not that the position will not be sustained upon examination by the tax authority.   Alpha Pro Tech, Ltd. and its subsidiaries file income tax returns in the U.S. federal jurisdiction, and in various state and foreign jurisdictions.   An employer generally does not claim a corporate income tax deduction (which would be in an amount equal to the amount of income recognized by the employee) upon the exercise of its employee's incentive stock options (“ISOs”) unless the employee does not meet the holding period requirements and sells early, making a disqualifying disposition, or if the options otherwise do not qualify as ISOs under applicable tax laws. With non-qualified stock options (“NQSOs”), on the other hand, the employer is typically eligible to claim a deduction upon its employee's exercise of the NQSOs.

v3.23.3

Note 15 - Contingencies	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	15. Contingencies   On June 7, 2022, the Company filed a lawsuit (the “Lawsuit”) in Utah naming as defendants the vendors from which the Company ordered equipment for its facility in Utah (collectively the “Defendants”). The Lawsuit relates to certain equipment ordered from Defendants and paid for by the Company, which Defendants never delivered. In the Lawsuit the Company is seeking the following relief: compensatory damages in the amount $490,000, representing the money the Company paid for the machines it never received, lost profits in the form of mask sales it could have made if Defendants had delivered the machines on the promised date, and other monetary and equitable relief. As of September 30, 2023, the Company has written off the $490,000 balance of the deposit paid for the equipment, pending any recovery in the Lawsuit. As of the date hereof, no counterclaims have been asserted against the Company. The Company believes there would not be any meritorious claims against the Company related to the Lawsuit. The Lawsuit has not been resolved and the final outcome, including the potential amount of any recovery for the Company’s claims, is uncertain. Any potential recovery represents a gain contingency in accordance with ASC 450, Contingencies, that has not been recorded as the matter was not resolved as of September 30, 2023. Any recovery will be recorded when received.   The Company is subject to various pending and threatened litigation actions in the ordinary course of business. Although it is not possible to determine with certainty at this point in time what liability, if any, the Company will have as a result of such litigation, based on consultation with legal counsel, management does not anticipate that the ultimate liability, if any, resulting from such litigation will have a material effect on the Company’s financial condition and results of operations.

v3.23.3

Note 16 - Subsequent Events	9 Months Ended
	Sep. 30, 2023
Notes to Financial Statements
Subsequent Events [Text Block]	16. Subsequent Events   The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of September 30, 2023 through the filing date of this Quarterly Report on Form 10-Q that would require accounting or disclosure and has concluded that there are no such subsequent events.

v3.23.3

Note 3 - Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Tables
Share-Based Payment Arrangement, Option, Activity [Table Text Block]	Weighted Average               Exercise Price       Options     Per Option                     Options outstanding, December 31, 2022     410,615     $ 3.50   Granted to employees and non-employee directors     46,400       4.23   Exercised     134,250       3.27   Canceled/expired/forfeited     13,333       3.61   Options outstanding, September 30, 2023     309,432       3.70   Options exercisable, September 30, 2023     253,231       3.59

v3.23.3

Note 5 - Inventories (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30,     December 31,       2023     2022                     Raw materials   $ 11,220,000     $ 13,018,000   Work in process     2,594,000       2,225,000   Finished goods     7,712,000       9,154,000       $ 21,526,000     $ 24,397,000

v3.23.3

Note 7 - Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	September 30,     December 31,       2023     2022                     Payroll expenses and taxes payable   $ 298,000     $ 138,000   Commissions and bonuses payable and general accrued liabilities     587,000       695,000   Total accrued liabilities   $ 885,000     $ 833,000

v3.23.3

Note 8 - Basic and Diluted Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Net income (numerator)   $ 1,430,000     $ 503,000     $ 3,128,000     $ 2,718,000                                     Shares (denominator):                                 Basic weighted average common shares outstanding     11,781,071       12,615,187       11,974,336       12,834,505   Add: dilutive effect of common stock options     -       73,194       -       75,365                                     Diluted weighted average common shares outstanding     11,781,071       12,688,381       11,974,336       12,909,870                                     Earnings per common share:                                 Basic   $ 0.12     $ 0.04     $ 0.26     $ 0.21   Diluted   $ 0.12     $ 0.04     $ 0.26     $ 0.21

v3.23.3

Note 10 - Activity of Business Segments (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Building Supply   $ 11,449,000     $ 9,604,000     $ 30,616,000     $ 30,657,000   Disposable Protective Apparel     4,604,000       5,118,000       15,351,000       19,099,000   Consolidated net sales   $ 16,053,000     $ 14,722,000     $ 45,967,000     $ 49,756,000
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Building Supply   $ 1,973,000     $ 1,386,000     $ 4,456,000     $ 4,968,000   Disposable Protective Apparel     982,000       489,000       3,090,000       2,412,000   Total segment income     2,955,000       1,875,000       7,546,000       7,380,000                                     Unallocated corporate overhead expenses     1,130,000       1,213,000       3,444,000       3,854,000   Provision for income taxes     395,000       159,000       974,000       808,000   Consolidated net income   $ 1,430,000     $ 503,000     $ 3,128,000     $ 2,718,000
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	September 30,     December 31,       2023     2022                     Building Supply   $ 3,316,000     $ 3,395,000   Disposable Protective Apparel     1,246,000       1,327,000   Total segment assets     4,562,000       4,722,000                     Unallocated corporate assets     1,036,000       1,076,000   Total consolidated assets   $ 5,598,000     $ 5,798,000

v3.23.3

Note 11 - Financial Information about Geographic Areas (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Tables
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block]	For the Three Months Ended     For the Nine Months Ended       September 30,     September 30,       2023     2022     2023     2022   Net sales by geographic region                                 United States   $ 15,928,000     $ 14,569,000     $ 45,682,000     $ 48,385,000   International     125,000       153,000       285,000       1,371,000                                     Consolidated net sales   $ 16,053,000     $ 14,722,000     $ 45,967,000     $ 49,756,000       September 30,     December 31,       2023     2022   Long-lived assets by geographic region                 United States   $ 4,283,000     $ 4,380,000   International     1,260,000       1,362,000                     Consolidated total long-lived assets   $ 5,543,000     $ 5,742,000

v3.23.3

Note 13 - Leases (Tables)	9 Months Ended
	Sep. 30, 2023
Notes Tables
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block]	September 30,       2023   Remaining three months of 2023   $ 281,000   2024     551,000   2025     434,000   2026     47,000   Total future minimum lease payments     1,313,000   Less imputed interest     (62,000 ) Total Lease liabilities   $ 1,251,000

v3.23.3

Note 3 - Stock-based Compensation (Details Textual) - USD ($) Pure in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	46,400
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate	0.00%
Share-Based Payment Arrangement, Option [Member]
Share-Based Payment Arrangement, Expense	$ 10,000	$ 39,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 161,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 9 months
Restricted Stock [Member]
Share-Based Payment Arrangement, Expense	$ 58,000	$ 80,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total	$ 966,000
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year)	2 years 10 months 9 days
Incentive Plan 2020 [Member]
Common Stock, Capital Shares Reserved for Future Issuance	1,800,000
The2004 Plan Member
Share-Based Compensation Arrangement by Share-Based Payment Award, Number of Shares Available for Grant	5,000,000
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross			5,009,750
Incentive Plan 2020 [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	46,400	19,600
Incentive Plan 2020 [Member] | Restricted Stock [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other than Options, Grants in Period	227,600	13,600

v3.23.3

Note 3 - Stocked-based Compensation - Stock Option Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2023
Options outstanding, Options (in shares)	410,615
Options outstanding, Weighted average price (in dollars per share)	$ 3.50
Granted, Options (in shares)	46,400
Granted, Weighted average price (in dollars per share)	$ 4.23
Exercised, Options (in shares)	(134,250)
Exercised, Weighted average price (in dollars per share)	$ 3.27
Canceled/expired/forfeited, Options (in shares)	13,333
Canceled/expired/forfeited, Weighted average price (in dollars per share)	$ 3.61
Options, Options (in shares)	309,432
Options outstanding, Weighted average price (in dollars per share)	$ 3.70
Options exercisable, Options (in shares)	253,231
Options exercisable, Weighted average price (in dollars per share)	$ 3.59

v3.23.3

Note 5 - Inventories - Inventories (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Raw materials	$ 11,220,000	$ 13,018,000
Work in process	2,594,000	2,225,000
Finished goods	7,712,000	9,154,000
Inventory, Net	$ 21,526,000	$ 24,397,000	[1]
[1] The condensed consolidated balance sheet as of December 31, 2022, has been prepared using information from the audited consolidated balance sheet as of that date.

v3.23.3

Note 6 - Equity Investment in Unconsolidated Affiliate (Details Textual)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2023 USD ($) ft²	Sep. 30, 2022 USD ($)	Sep. 30, 2023 USD ($) ft²	Sep. 30, 2022 USD ($)	Dec. 31, 2022 USD ($)	Dec. 31, 2005
Expense To Acquire Inventory	$ 5,001,000	$ 7,786,000	$ 14,871,000	$ 19,645,000
Proceeds from Sale of Productive Assets	66,000	66,000	266,000	280,000
Income (Loss) from Equity Method Investments	$ 180,000	$ (13,000)	392,000	$ 87,000
Harmony [Member]
Proceeds from Equity Method Investment, Distribution			$ 77,000
INDIA | Harmony [Member]
Number of Stores	4		4
Number Of Stores Owned	3		3
Number Of Stores Rented	1		1
INDIA | Harmony [Member] | Manufacturing Building Products [Member]
Area of Real Estate Property (Square Foot) | ft²	139,000		139,000
INDIA | Harmony [Member] | Manufacturing Coated Material and Sewing Proprietary Disposable Protective Apparel [Member]
Area of Real Estate Property (Square Foot) | ft²	121,000		121,000
INDIA | Harmony [Member] | Sewing Proprietary Disposable Protective Apparel [Member]
Area of Real Estate Property (Square Foot) | ft²	23,000		23,000
INDIA | Harmony [Member] | Manufacturing Of Building Products [Member]
Area of Real Estate Property (Square Foot) | ft²	159,000		159,000
Harmony [Member]
Equity Method Investment, Other than Temporary Impairment			$ 0		$ 0
Equity Method Investments	$ 5,116,000		5,116,000
Equity Method Investment, Aggregate Cost	1,450,000		1,450,000
Cumulative Equity In Income Of Unconsolidated Affiliate	$ 6,168,000		6,168,000
Proceeds from Equity Method Investment, Distribution, Return of Capital			942,000
Proceeds from Equity Method Investment, Distribution			$ 1,483,000
Harmony [Member] | Alpha Pro Tech Engineered Products [Member]
Equity Method Investment, Ownership Percentage						41.66%
Harmony [Member] | Maple Industries and Associates [Member]
Equity Method Investment, Ownership Percentage						58.34%

v3.23.3

Note 7 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Payroll expenses and taxes payable	$ 298,000	$ 138,000
Commissions and bonuses payable and general accrued liabilities	587,000	695,000
Total accrued liabilities	$ 885,000	$ 833,000	[1]
[1] The condensed consolidated balance sheet as of December 31, 2022, has been prepared using information from the audited consolidated balance sheet as of that date.

v3.23.3

Note 8 - Basic and Diluted Earnings Per Common Share - Reconciliation of Net Income and Number of Shares Used in Computations of Basic and Diluted EPS (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Net income	$ 1,430,000	$ 1,146,000	$ 552,000	$ 503,000	$ 693,000	$ 1,522,000	$ 3,128,000	$ 2,718,000
Basic weighted average common shares outstanding (in shares)	11,781,071			12,615,187			11,974,336	12,834,505
Add: dilutive effect of common stock options (in shares)	0			73,194			0	75,365
Diluted weighted average common shares outstanding (in shares)	11,781,071			12,688,381			11,974,336	12,909,870
Basic earnings per common share (in dollars per share)	$ 0.12			$ 0.04			$ 0.26	$ 0.21
Diluted earnings per common share (in dollars per share)	$ 0.12			$ 0.04			$ 0.26	$ 0.21

v3.23.3

Note 9 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (1,483,000)	$ (1,489,000)	[1]
[1] The condensed consolidated balance sheet as of December 31, 2022, has been prepared using information from the audited consolidated balance sheet as of that date.

v3.23.3

Note 10 - Activity of Business Segments (Details Textual)	9 Months Ended
	Sep. 30, 2023
Number of Operating Segments	2

v3.23.3

Note 10 - Activity of Business Segments - Consolidated Net Sales (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Net sales	$ 16,053,000	$ 14,722,000	$ 45,967,000	$ 49,756,000
Operating Segments [Member] | Building Supply [Member]
Net sales	11,449,000	9,604,000	30,616,000	30,657,000
Operating Segments [Member] | Disposable Protective Apparel [Member]
Net sales	$ 4,604,000	$ 5,118,000	$ 15,351,000	$ 19,099,000

v3.23.3

Note 9 - Activity of Business Segments - Reconciliation of Total Segment Income to Total Consolidated Net Income (Details) - USD ($)	3 Months Ended						9 Months Ended
	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2022	Jun. 30, 2022	Mar. 31, 2022	Sep. 30, 2023	Sep. 30, 2022
Income	$ 1,430,000	$ 1,146,000	$ 552,000	$ 503,000	$ 693,000	$ 1,522,000	$ 3,128,000	$ 2,718,000
Provision for income taxes	395,000			159,000			974,000	808,000
Operating Segments [Member]
Income	2,955,000			1,875,000			7,546,000	7,380,000
Operating Segments [Member] | Building Supply [Member]
Income	1,973,000			1,386,000			4,456,000	4,968,000
Operating Segments [Member] | Disposable Protective Apparel [Member]
Income	982,000			489,000			3,090,000	2,412,000
Corporate, Non-Segment [Member]
Income	$ 1,130,000			$ 1,213,000			$ 3,444,000	$ 3,854,000

v3.23.3

Note 10 - Activity of Business Segments - Consolidated Net Property and Equipment, Goodwill and Intangible Assets (Details) - USD ($)	Sep. 30, 2023	Dec. 31, 2022
Assets	$ 5,598,000	$ 5,798,000
Operating Segments [Member]
Assets	4,562,000	4,722,000
Operating Segments [Member] | Building Supply [Member]
Assets	3,316,000	3,395,000
Operating Segments [Member] | Disposable Protective Apparel [Member]
Assets	1,246,000	1,327,000
Corporate, Non-Segment [Member]
Assets	$ 1,036,000	$ 1,076,000

v3.23.3

Note 11 - Financial Information about Geographic Areas (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenue from Contract with Customer, Including Assessed Tax	$ 16,053,000	$ 14,722,000	$ 45,967,000	$ 49,756,000
CANADA
Revenue from Contract with Customer, Including Assessed Tax	$ 42,000	$ 103,000	$ 140,000	$ 1,119,000

v3.23.3

Note 11 - Financial Information about Geographic Areas - Consolidated Net Sales and Long-lived Asset Information by Geographic Area (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022	Dec. 31, 2022
Revenues	$ 16,053,000	$ 14,722,000	$ 45,967,000	$ 49,756,000
Reportable Geographical Components [Member]
Long-lived assets	5,543,000		5,543,000		$ 5,742,000
UNITED STATES | Reportable Geographical Components [Member]
Revenues	15,928,000	14,569,000	45,682,000	48,385,000
Long-lived assets	4,283,000		4,283,000		4,380,000
International Member | Reportable Geographical Components [Member]
Revenues	125,000	$ 153,000	285,000	$ 1,371,000
Long-lived assets	$ 1,260,000		$ 1,260,000		$ 1,362,000

v3.23.3

Note 13 - Leases (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2023	Dec. 31, 2022	[1]
Operating Lease, Right-of-Use Asset	$ 1,210,000	$ 1,725,000
Operating Lease, Liability, Total	1,251,000
Finance Lease, Liability, Total	0
Operating Lease, Expense	$ 922,000
Operating Lease, Weighted Average Remaining Lease Term (Year)	2 years 2 months 12 days
Operating Lease, Weighted Average Discount Rate, Percent	4.55%
[1] The condensed consolidated balance sheet as of December 31, 2022, has been prepared using information from the audited consolidated balance sheet as of that date.

v3.23.3

Note 13 - Leases - Future Minimum Lease Payment (Details)	Sep. 30, 2023 USD ($)
Remaining nine months of 2023	$ 281,000
2024	551,000
2025	434,000
2026	47,000
Total future minimum lease payments	1,313,000
Less imputed interest	(62,000)
Total lease liabilities	$ 1,251,000

v3.23.3

Note 15 - Contingencies (Details Textual) - Lawsuit With Defendants in Utah for Undelivered Equipment [Member] - USD ($)	Jun. 07, 2022	Sep. 30, 2023
Loss Contingency, Damages Sought, Value	$ 490,000
Deposit Paid for Equipment, Write-off		$ 490,000

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