Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 01, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 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 | 60 Centurian Drive, Suite 112 | |
Entity Address, City or Town | Markham | |
Entity Address, State or Province | ON | |
Entity Address, Country | CA | |
Entity Address, Postal Zip Code | L3R 9R2 | |
City Area Code | 905 | |
Local Phone Number | 479-0654 | |
Title of 12(b) Security | $0.01 par value | |
Trading Symbol | APT | |
Security Exchange Name | NYSEAMER | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 11,913,206 | |
Entity Central Index Key | 0000884269 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | [1] |
Current assets: | |||
Cash and cash equivalents | $ 15,349,000 | $ 16,290,000 | |
Inventories | 21,971,000 | 24,397,000 | |
Prepaid expenses | 5,421,000 | 4,902,000 | |
Total current assets | 52,262,000 | 52,562,000 | |
Property and equipment, net | 5,671,000 | 5,742,000 | |
Goodwill | 55,000 | 55,000 | |
Definite-lived intangible assets, net | 0 | 1,000 | |
Right-of-use assets | 1,264,000 | 1,725,000 | |
Equity investment in unconsolidated affiliate | 5,089,000 | 4,718,000 | |
Total assets | 64,341,000 | 64,803,000 | |
Current liabilities: | |||
Accounts payable | 653,000 | 674,000 | |
Accrued liabilities | 494,000 | 833,000 | |
Lease liabilities | 777,000 | 899,000 | |
Total current liabilities | 1,924,000 | 2,406,000 | |
Lease liabilities, net of current portion | 532,000 | 875,000 | |
Deferred income tax liabilities, net | 764,000 | 764,000 | |
Total liabilities | 3,220,000 | 4,045,000 | |
Commitments and Contingencies | |||
Shareholders' equity: | |||
Common stock, $.01 par value: 50,000,000 shares authorized; 11,875,556 and 12,226,306 shares outstanding as of June 30, 2023 and December 31, 2022, respectively | 119,000 | 123,000 | |
Retained earnings | 62,333,000 | 62,124,000 | |
Accumulated other comprehensive loss | (1,331,000) | (1,489,000) | |
Total shareholders' equity | 61,121,000 | 60,758,000 | |
Total liabilities and shareholders' equity | 64,341,000 | 64,803,000 | |
Nonrelated Party [Member] | |||
Current assets: | |||
Accounts receivable, net of allowance for doubtful accounts | 8,595,000 | 5,382,000 | |
Related Party [Member] | |||
Current assets: | |||
Accounts receivable, net of allowance for doubtful accounts | $ 926,000 | $ 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. |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Jun. 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) | 11,875,556 | 12,226,306 |
Nonrelated Party [Member] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 35,000 | $ 45,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net sales | $ 16,115,000 | $ 17,373,000 | $ 29,914,000 | $ 35,034,000 |
Cost of goods sold, excluding depreciation and amortization | 10,009,000 | 11,761,000 | 18,826,000 | 22,980,000 |
Gross profit | 6,106,000 | 5,612,000 | 11,088,000 | 12,054,000 |
Operating expenses: | ||||
Selling, general and administrative | 4,575,000 | 4,065,000 | 8,888,000 | 8,371,000 |
Depreciation and amortization | 219,000 | 227,000 | 462,000 | 439,000 |
Total operating expenses | 4,794,000 | 4,292,000 | 9,350,000 | 8,810,000 |
Income from operations | 1,312,000 | 1,320,000 | 1,738,000 | 3,244,000 |
Other income: | ||||
Loss on fixed assets | 0 | (490,000) | 0 | (490,000) |
Equity in income of unconsolidated affiliate | 103,000 | 50,000 | 212,000 | 99,000 |
Interest income, net | 169,000 | 10,000 | 327,000 | 11,000 |
Total other income | 272,000 | (430,000) | 539,000 | (380,000) |
Income before provision for income taxes | 1,584,000 | 890,000 | 2,277,000 | 2,864,000 |
Provision for income taxes | 438,000 | 197,000 | 579,000 | 649,000 |
Net income | $ 1,146,000 | $ 693,000 | $ 1,698,000 | $ 2,215,000 |
Basic earnings per common share (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.14 | $ 0.17 |
Diluted earnings per common share (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.14 | $ 0.17 |
Basic weighted average common shares outstanding (in shares) | 11,997,443 | 12,834,332 | 12,072,571 | 12,945,981 |
Diluted weighted average common shares outstanding (in shares) | 12,013,845 | 12,908,223 | 12,103,419 | 13,032,313 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 1,146,000 | $ 693,000 | $ 1,698,000 | $ 2,215,000 |
Other comprehensive income (loss)- foreign currency translation gain (loss) | 21,000 | (265,000) | 158,000 | (418,000) |
Comprehensive income | $ 1,167,000 | $ 428,000 | $ 1,856,000 | $ 1,797,000 |
Condensed Consolidated Statem_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 | 2,215,000 | |||||
Total comprehensive income | (418,000) | |||||
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 | |
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 | |
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 | $ 1,698,000 | |||||
Options exercised (in shares) | 124,250 | |||||
Total comprehensive income | $ 158,000 | |||||
Balance (in shares) at Jun. 30, 2023 | 11,875,556 | 11,875,556 | ||||
Balance at Jun. 30, 2023 | $ 119,000 | 0 | 62,333,000 | (1,331,000) | $ 61,121,000 | |
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 | 11,875,556 | ||||
Balance at Jun. 30, 2023 | $ 119,000 | $ 0 | $ 62,333,000 | $ (1,331,000) | $ 61,121,000 | |
[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. |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash Flows From Operating Activities: | ||
Net income | $ 1,698,000 | $ 2,215,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Stock-based compensation | 44,000 | 87,000 |
Depreciation and amortization | 462,000 | 439,000 |
Equity in income of unconsolidated affiliate | (212,000) | (99,000) |
Operating lease expense, net of accretion | 461,000 | 457,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (3,213,000) | (3,055,000) |
Accounts receivable, related party | 665,000 | (214,000) |
Inventories | 2,426,000 | 1,812,000 |
Prepaid expenses | (519,000) | (175,000) |
Accounts payable and accrued liabilities | (360,000) | (67,000) |
Lease liabilities | (465,000) | (457,000) |
Net cash used in operating activities | 987,000 | 943,000 |
Cash Flows From Investing Activities: | ||
Purchases of property and equipment | (390,000) | (222,000) |
Net cash used in investing activities | (390,000) | (222,000) |
Cash Flows From Financing Activities: | ||
Proceeds from exercise of stock options | 403,000 | 30,000 |
Repurchase of common stock | (1,930,000) | (1,716,000) |
Treasury stock excise tax | (11,000) | 0 |
Net cash used in financing activities | (1,538,000) | (1,686,000) |
Decrease in cash | (941,000) | (965,000) |
Cash and cash equivalents, beginning of the period | 16,290,000 | 16,307,000 |
Cash and cash equivalents, end of the period | $ 15,349,000 | $ 15,342,000 |
Note 1 - The Company
Note 1 - The Company | 6 Months Ended |
Jun. 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.”). |
Note 2 - Basis of Presentation
Note 2 - Basis of Presentation and Revenue Recognition Policy | 6 Months Ended |
Jun. 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 six months ended June 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 June 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. |
Note 3 - Stock-based Compensati
Note 3 - Stock-based Compensation | 6 Months Ended |
Jun. 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 six months ended June 30, 2023 and 2022, no 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 Weighted Average Exercise Price Options Per Option Options outstanding, December 31, 2022 410,615 $ 3.50 Granted to employees and non-employee directors - - Exercised 124,250 3.25 Canceled/expired/forfeited 8,333 3.62 Options outstanding, June 30, 2023 278,032 3.61 Options exercisable, June 30, 2023 263,332 3.58 As of June 30, 2023, $30,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of 4.23 years. |
Note 4 - Recent Accounting Pron
Note 4 - Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | 4. Recent Accounting Pronouncements Management periodically reviews new accounting standards that are issued. Management has not identified any new standards that it believes merit further discussion at this time. |
Note 5 - Inventories
Note 5 - Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 5. Inventories As of June 30, 2023 and December 31, 2022, inventories net of reserves consisted of the following: June 30, December 31, 2023 2022 Raw materials $ 11,114,000 $ 13,018,000 Work in process 3,689,000 2,225,000 Finished goods 7,168,000 9,154,000 $ 21,971,000 $ 24,397,000 |
Note 6 - Equity Investment in U
Note 6 - Equity Investment in Unconsolidated Affiliate | 6 Months Ended |
Jun. 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 three one 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 For the three months ended June 30, 2023 and 2022, the Company purchased $4,834,000 and $5,676,000 of inventories, respectively, from Harmony. For the six months ended June 30, 2023 and 2022, the Company purchased $9,870,000 and $11,859,000 of inventories, respectively, from Harmony. For the three months ended June 30, 2023 and 2022, the Company sold $200,000 and $0 of inventories, respectively, to Harmony. For the six months ended June 30, 2023 and 2022, the Company sold $200,000 and $258,000 of inventories, respectively, to Harmony. For the three months ended June 30, 2023 and 2022, the Company recorded equity in income of unconsolidated affiliate of $103,000 and $50,000, respectively, related to Harmony. For the six months ended June 30, 2023 and 2022, the Company recorded equity in income of unconsolidated affiliate of $212,000 and $99,000, respectively, related to Harmony. As of June 30, 2023, the Company’s investment in Harmony was $5,089,000, which consisted of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $5,987,000, less $942,000 in repayments of an advance, $77,000 in payments of dividends, and $1,331,000 in AOCL on foreign currency translations. |
Note 7 - Accrued Liabilities
Note 7 - Accrued Liabilities | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 7. Accrued Liabilities As of June 30, 2023 and December 31, 2022, accrued liabilities consisted of the following: June 30, December 31, 2023 2022 Payroll expenses and taxes payable $ 153,000 $ 138,000 Commissions and bonuses payable and general accrued liabilities 341,000 695,000 Total accrued liabilities $ 494,000 $ 833,000 |
Note 8 - Basic and Diluted Earn
Note 8 - Basic and Diluted Earnings Per Common Share | 6 Months Ended |
Jun. 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 six months ended June 30, 2023 and 2022: For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net income (numerator) $ 1,146,000 $ 693,000 $ 1,698,000 $ 2,215,000 Shares (denominator): Basic weighted average common shares outstanding 11,997,443 12,834,332 12,072,571 12,945,981 Add: dilutive effect of common stock options 16,402 73,891 30,848 86,332 Diluted weighted average common shares outstanding 12,013,845 12,908,223 12,103,419 13,032,313 Earnings per common share: Basic $ 0.10 $ 0.05 $ 0.14 $ 0.17 Diluted $ 0.10 $ 0.05 $ 0.14 $ 0.17 |
Note 9 - Accumulated Other Comp
Note 9 - Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 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 $1,331,000 and $1,489,000 as of June 30, 2023 and December 31, 2022, respectively. |
Note 10 - Activity of Business
Note 10 - Activity of Business Segments | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. Activity of Business Segments The Company operates through two (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 six months ended June 30, 2023 and 2022: For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Building Supply $ 10,537,000 $ 10,817,000 $ 19,167,000 $ 21,054,000 Disposable Protective Apparel 5,578,000 6,556,000 10,747,000 13,980,000 Consolidated net sales $ 16,115,000 $ 17,373,000 $ 29,914,000 $ 35,034,000 The following table presents the reconciliation of consolidated segment income to consolidated net income for the three and six months ended June 30, 2023 and 2022: For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Building Supply $ 1,527,000 $ 1,915,000 $ 2,483,000 $ 3,582,000 Disposable Protective Apparel 1,324,000 223,000 2,108,000 1,923,000 Total segment income 2,851,000 2,138,000 4,591,000 5,505,000 Unallocated corporate overhead expenses 1,267,000 1,248,000 2,314,000 2,641,000 Provision for income taxes 438,000 197,000 579,000 649,000 Consolidated net income $ 1,146,000 $ 693,000 $ 1,698,000 $ 2,215,000 The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of June 30, 2023 and December 31, 2022: June 30, December 31, 2023 2022 Building Supply $ 3,420,000 $ 3,395,000 Disposable Protective Apparel 1,269,000 1,327,000 Total segment assets 4,689,000 4,722,000 Unallocated corporate assets 1,037,000 1,076,000 Total consolidated assets $ 5,726,000 $ 5,798,000 |
Note 11 - Financial Information
Note 11 - Financial Information about Geographic Areas | 6 Months Ended |
Jun. 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 six months ended June 30, 2023 and 2022: For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net sales by geographic region United States $ 16,061,000 $ 16,740,000 $ 29,754,000 $ 33,815,000 International 54,000 633,000 160,000 1,219,000 Consolidated net sales $ 16,115,000 $ 17,373,000 $ 29,914,000 $ 35,034,000 Net sales by geographic region are based on the countries in which our customers are located. For the three months ended June 30, 2023 and 2022, the Company generated approximately $53,000 and $542,000, respectively, in sales from Canada. For the six months ended June 30, 2023 and 2022, the Company generated approximately $98,000 and $1,016,000, 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 June 30, 2023 and December 31, 2022: June 30, December 31, 2023 2022 Long-lived assets by geographic region United States $ 4,384,000 $ 4,380,000 International 1,287,000 1,362,000 Consolidated total long-lived assets $ 5,671,000 $ 5,742,000 |
Note 12 - Related Party Transac
Note 12 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 12. Related Party Transactions As of June 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). |
Note 13 - Leases
Note 13 - Leases | 6 Months Ended |
Jun. 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 2025. The Company’s primary operating lease commitments as of June 30, 2023 related to the Company’s manufacturing facilities in Valdosta, Georgia; Nogales, Arizona; and Salt Lake City, Utah. As of June 30, 2023, the Company had operating lease right-of-use assets of $1,264,000 and operating lease liabilities of $1,309,000. As of June 30, 2023, the Company did not The aggregate future minimum lease payments and reconciliation to lease liabilities as of June 30, 2023 were as follows: June 30, 2023 Remaining six months of 2023 $ 511,000 2024 484,000 2025 365,000 Total future minimum lease payments 1,360,000 Less imputed interest (51,000 ) Total lease liabilities $ 1,309,000 As of June 30, 2023, the weighted average remaining lease term of the Company’s operating leases was 1.6 years. During the six months ended June 30, 2023, the weighted average discount rate with respect to these leases was 4.07%. |
Note 14 - Income Taxes
Note 14 - Income Taxes | 6 Months Ended |
Jun. 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. |
Note 15 - Contingencies
Note 15 - Contingencies | 6 Months Ended |
Jun. 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 June 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 in 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 June 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. |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 6 Months Ended |
Jun. 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 June 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. |
Note 3 - Stock-based Compensa_2
Note 3 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 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 - - Exercised 124,250 3.25 Canceled/expired/forfeited 8,333 3.62 Options outstanding, June 30, 2023 278,032 3.61 Options exercisable, June 30, 2023 263,332 3.58 |
Note 5 - Inventories (Tables)
Note 5 - Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, 2023 2022 Raw materials $ 11,114,000 $ 13,018,000 Work in process 3,689,000 2,225,000 Finished goods 7,168,000 9,154,000 $ 21,971,000 $ 24,397,000 |
Note 7 - Accrued Liabilities (T
Note 7 - Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | June 30, December 31, 2023 2022 Payroll expenses and taxes payable $ 153,000 $ 138,000 Commissions and bonuses payable and general accrued liabilities 341,000 695,000 Total accrued liabilities $ 494,000 $ 833,000 |
Note 8 - Basic and Diluted Ea_2
Note 8 - Basic and Diluted Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net income (numerator) $ 1,146,000 $ 693,000 $ 1,698,000 $ 2,215,000 Shares (denominator): Basic weighted average common shares outstanding 11,997,443 12,834,332 12,072,571 12,945,981 Add: dilutive effect of common stock options 16,402 73,891 30,848 86,332 Diluted weighted average common shares outstanding 12,013,845 12,908,223 12,103,419 13,032,313 Earnings per common share: Basic $ 0.10 $ 0.05 $ 0.14 $ 0.17 Diluted $ 0.10 $ 0.05 $ 0.14 $ 0.17 |
Note 10 - Activity of Busines_2
Note 10 - Activity of Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Building Supply $ 10,537,000 $ 10,817,000 $ 19,167,000 $ 21,054,000 Disposable Protective Apparel 5,578,000 6,556,000 10,747,000 13,980,000 Consolidated net sales $ 16,115,000 $ 17,373,000 $ 29,914,000 $ 35,034,000 |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 Building Supply $ 1,527,000 $ 1,915,000 $ 2,483,000 $ 3,582,000 Disposable Protective Apparel 1,324,000 223,000 2,108,000 1,923,000 Total segment income 2,851,000 2,138,000 4,591,000 5,505,000 Unallocated corporate overhead expenses 1,267,000 1,248,000 2,314,000 2,641,000 Provision for income taxes 438,000 197,000 579,000 649,000 Consolidated net income $ 1,146,000 $ 693,000 $ 1,698,000 $ 2,215,000 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | June 30, December 31, 2023 2022 Building Supply $ 3,420,000 $ 3,395,000 Disposable Protective Apparel 1,269,000 1,327,000 Total segment assets 4,689,000 4,722,000 Unallocated corporate assets 1,037,000 1,076,000 Total consolidated assets $ 5,726,000 $ 5,798,000 |
Note 11 - Financial Informati_2
Note 11 - Financial Information about Geographic Areas (Tables) | 6 Months Ended |
Jun. 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 Six Months Ended June 30, June 30, 2023 2022 2023 2022 Net sales by geographic region United States $ 16,061,000 $ 16,740,000 $ 29,754,000 $ 33,815,000 International 54,000 633,000 160,000 1,219,000 Consolidated net sales $ 16,115,000 $ 17,373,000 $ 29,914,000 $ 35,034,000 June 30, December 31, 2023 2022 Long-lived assets by geographic region United States $ 4,384,000 $ 4,380,000 International 1,287,000 1,362,000 Consolidated total long-lived assets $ 5,671,000 $ 5,742,000 |
Note 13 - Leases (Tables)
Note 13 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Notes Tables | |
Lessee, Operating Lease, Liability, to be Paid, Maturity [Table Text Block] | June 30, 2023 Remaining six months of 2023 $ 511,000 2024 484,000 2025 365,000 Total future minimum lease payments 1,360,000 Less imputed interest (51,000 ) Total lease liabilities $ 1,309,000 |
Note 3 - Stock-based Compensa_3
Note 3 - Stock-based Compensation (Details Textual) - USD ($) Pure in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross | 0 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | ||
Share-Based Payment Arrangement, Option [Member] | |||
Share-Based Payment Arrangement, Expense | $ 7,000 | $ 87,000 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 30,000 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 years 2 months 23 days | ||
Restricted Stock [Member] | |||
Share-Based Payment Arrangement, Expense | $ 37,000 | $ 54,000 | |
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 26,000 | ||
Share-Based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 4 months 17 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 | 0 | 0 | 5,009,750 |
Note 3 - Stocked-based Compensa
Note 3 - Stocked-based Compensation - Stock Option Activity (Details) - $ / shares | 6 Months Ended |
Jun. 30, 2023 | |
Options outstanding, Options (in shares) | 410,615 |
Options outstanding, Weighted average price (in dollars per share) | $ 3.50 |
Granted, Options (in shares) | 0 |
Granted, Weighted average price (in dollars per share) | $ 0 |
Exercised, Options (in shares) | (124,250) |
Exercised, Weighted average price (in dollars per share) | $ 3.25 |
Canceled/expired/forfeited, Options (in shares) | 8,333 |
Canceled/expired/forfeited, Weighted average price (in dollars per share) | $ 3.62 |
Options, Options (in shares) | 278,032 |
Options outstanding, Weighted average price (in dollars per share) | $ 3.61 |
Options exercisable, Options (in shares) | 263,332 |
Options exercisable, Weighted average price (in dollars per share) | $ 3.58 |
Note 5 - Inventories - Inventor
Note 5 - Inventories - Inventories (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | |
Raw materials | $ 11,114,000 | $ 13,018,000 | |
Work in process | 3,689,000 | 2,225,000 | |
Finished goods | 7,168,000 | 9,154,000 | |
Inventory, Net | $ 21,971,000 | $ 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. |
Note 6 - Equity Investment in_2
Note 6 - Equity Investment in Unconsolidated Affiliate (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2023 USD ($) ft² | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) ft² | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2005 | |
Expense To Acquire Inventory | $ 4,834,000 | $ 5,676,000 | $ 9,870,000 | $ 11,859,000 | ||
Proceeds from Sale of Productive Assets | 200,000 | 0 | 200,000 | 258,000 | ||
Income (Loss) from Equity Method Investments | $ 103,000 | $ 50,000 | 212,000 | $ 99,000 | ||
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 | $ 5,089,000 | 5,089,000 | ||||
Equity Method Investment, Aggregate Cost | 1,450,000 | 1,450,000 | ||||
Cumulative Equity In Income Of Unconsolidated Affiliate | $ 5,987,000 | 5,987,000 | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 942,000 | |||||
Proceeds from Equity Method Investment, Distribution | $ 1,331,000 | |||||
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% |
Note 7 - Accrued Liabilities -
Note 7 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | |
Payroll expenses and taxes payable | $ 153,000 | $ 138,000 | |
Commissions and bonuses payable and general accrued liabilities | 341,000 | 695,000 | |
Accrued liabilities | $ 494,000 | $ 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. |
Note 8 - Basic and Diluted Ea_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 | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net income | $ 1,146,000 | $ 552,000 | $ 693,000 | $ 1,522,000 | $ 1,698,000 | $ 2,215,000 |
Shares (denominator): | ||||||
Basic weighted average common shares outstanding (in shares) | 11,997,443 | 12,834,332 | 12,072,571 | 12,945,981 | ||
Add: dilutive effect of common stock options (in shares) | 16,402 | 73,891 | 30,848 | 86,332 | ||
Diluted weighted average common shares outstanding (in shares) | 12,013,845 | 12,908,223 | 12,103,419 | 13,032,313 | ||
Earnings per common share: | ||||||
Basic earnings per common share (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.14 | $ 0.17 | ||
Diluted earnings per common share (in dollars per share) | $ 0.10 | $ 0.05 | $ 0.14 | $ 0.17 |
Note 9 - Accumulated Other Co_2
Note 9 - Accumulated Other Comprehensive Loss (Details Textual) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (1,331,000) | $ (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. |
Note 10 - Activity of Busines_3
Note 10 - Activity of Business Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2023 | |
Number of Operating Segments | 2 |
Note 10 - Activity of Busines_4
Note 10 - Activity of Business Segments - Consolidated Net Sales (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Net sales | $ 16,115,000 | $ 17,373,000 | $ 29,914,000 | $ 35,034,000 |
Operating Segments [Member] | Building Supply [Member] | ||||
Net sales | 10,537,000 | 10,817,000 | 19,167,000 | 21,054,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ||||
Net sales | $ 5,578,000 | $ 6,556,000 | $ 10,747,000 | $ 13,980,000 |
Note 9 - Activity of Business S
Note 9 - Activity of Business Segments - Reconciliation of Total Segment Income to Total Consolidated Net Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income | $ 1,146,000 | $ 552,000 | $ 693,000 | $ 1,522,000 | $ 1,698,000 | $ 2,215,000 |
Provision for income taxes | 438,000 | 197,000 | 579,000 | 649,000 | ||
Operating Segments [Member] | ||||||
Income | 2,851,000 | 2,138,000 | 4,591,000 | 5,505,000 | ||
Operating Segments [Member] | Building Supply [Member] | ||||||
Income | 1,527,000 | 1,915,000 | 2,483,000 | 3,582,000 | ||
Operating Segments [Member] | Disposable Protective Apparel [Member] | ||||||
Income | 1,324,000 | 223,000 | 2,108,000 | 1,923,000 | ||
Corporate, Non-Segment [Member] | ||||||
Income | $ 1,267,000 | $ 1,248,000 | $ 2,314,000 | $ 2,641,000 |
Note 10 - Activity of Busines_5
Note 10 - Activity of Business Segments - Consolidated Net Property and Equipment, Goodwill and Intangible Assets (Details) - USD ($) | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | $ 5,726,000 | $ 5,798,000 |
Operating Segments [Member] | ||
Assets | 4,689,000 | 4,722,000 |
Operating Segments [Member] | Building Supply [Member] | ||
Assets | 3,420,000 | 3,395,000 |
Operating Segments [Member] | Disposable Protective Apparel [Member] | ||
Assets | 1,269,000 | 1,327,000 |
Corporate, Non-Segment [Member] | ||
Assets | $ 1,037,000 | $ 1,076,000 |
Note 11 - Financial Informati_3
Note 11 - Financial Information about Geographic Areas (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer, Including Assessed Tax | $ 16,115,000 | $ 17,373,000 | $ 29,914,000 | $ 35,034,000 |
CANADA | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 53,000 | $ 542,000 | $ 98,000 | $ 1,016,000 |
Note 11 - Financial Informati_4
Note 11 - Financial Information about Geographic Areas - Consolidated Net Sales and Long-lived Asset Information by Geographic Area (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenues | $ 16,115,000 | $ 17,373,000 | $ 29,914,000 | $ 35,034,000 | |
Reportable Geographical Components [Member] | |||||
Long-lived assets | 5,671,000 | 5,671,000 | $ 5,742,000 | ||
UNITED STATES | Reportable Geographical Components [Member] | |||||
Revenues | 16,061,000 | 16,740,000 | 29,754,000 | 33,815,000 | |
Long-lived assets | 4,384,000 | 4,384,000 | 4,380,000 | ||
International Member | Reportable Geographical Components [Member] | |||||
Revenues | 54,000 | $ 633,000 | 160,000 | $ 1,219,000 | |
Long-lived assets | $ 1,287,000 | $ 1,287,000 | $ 1,362,000 |
Note 13 - Leases (Details Textu
Note 13 - Leases (Details Textual) - USD ($) | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | [1] | |
Operating Lease, Right-of-Use Asset | $ 1,264,000 | $ 1,725,000 | |
Operating Lease, Liability, Total | 1,309,000 | ||
Finance Lease, Liability, Total | 0 | ||
Operating Lease, Expense | $ 548,000 | ||
Operating Lease, Weighted Average Remaining Lease Term (Year) | 1 year 7 months 6 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.07% | ||
[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. |
Note 13 - Leases - Future Minim
Note 13 - Leases - Future Minimum Lease Payment (Details) | Jun. 30, 2023 USD ($) |
Remaining nine months of 2023 | $ 511,000 |
2024 | 484,000 |
2025 | 365,000 |
Total future minimum lease payments | 1,360,000 |
Less imputed interest | (51,000) |
Total lease liabilities | $ 1,309,000 |
Note 15 - Contingencies (Detail
Note 15 - Contingencies (Details Textual) - Lawsuit With Defendants in Utah for Undelivered Equipment [Member] - USD ($) | Jun. 07, 2022 | Jun. 30, 2023 |
Loss Contingency, Damages Sought, Value | $ 490,000 | |
Deposit Paid for Equipment, Write-off | $ 490,000 |