PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=ITEM%201.%20Financial%20Statements) Unaudited Q2 2022 financial statements show decreased net sales and net income, with positive operating cash flow and increased total assets [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets slightly increased to **$68.0 million** as of June 30, 2022, with shifts in cash, receivables, and inventories Condensed Consolidated Balance Sheet Highlights (Unaudited) | Balance Sheet Item | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $15,342,000 | $16,307,000 | | Accounts receivable, net | $8,049,000 | $4,780,000 | | Inventories | $23,157,000 | $24,969,000 | | Total current assets | $53,666,000 | $52,999,000 | | **Total assets** | **$67,981,000** | **$67,889,000** | | **Liabilities & Equity** | | | | Total current liabilities | $2,602,000 | $2,661,000 | | Total liabilities | $4,745,000 | $5,269,000 | | Total shareholders' equity | $63,236,000 | $62,620,000 | | **Total liabilities and shareholders' equity** | **$67,981,000** | **$67,889,000** | [Condensed Consolidated Statements of Comprehensive Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) Q2 2022 net sales decreased by **2.4%** to **$17.4 million**, with net income dropping **58.5%** to **$0.7 million** Income Statement Summary (Unaudited) | Metric | Q2 2022 | Q2 2021 | 6 Months 2022 | 6 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $17,373,000 | $17,806,000 | $35,034,000 | $40,967,000 | | Gross profit | $5,612,000 | $6,232,000 | $12,054,000 | $15,411,000 | | Income from operations | $1,320,000 | $1,830,000 | $3,244,000 | $6,233,000 | | Net income | $693,000 | $1,671,000 | $2,215,000 | $5,390,000 | | Diluted EPS | $0.05 | $0.12 | $0.17 | $0.40 | [Condensed Consolidated Statements of Shareholders' Equity](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity) Shareholders' equity increased to **$63.2 million** by June 30, 2022, driven by net income despite **$1.7 million** in stock repurchases - For the six months ended June 30, 2022, the company repurchased and retired **395,500 shares** of common stock for a total cost of **$1,716,000**[11](index=11&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating activities generated **$0.9 million** in cash for H1 2022, offsetting cash used in financing and investing, leading to a **$1.0 million** net cash decrease Cash Flow Summary (Unaudited) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $943,000 | $(2,969,000) | | Net cash used in investing activities | $(222,000) | $(1,468,000) | | Net cash used in financing activities | $(1,686,000) | $(3,317,000) | | **Decrease in cash and cash equivalents** | **$(965,000)** | **$(7,754,000)** | [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business segments, revenue recognition, COVID-19 impact, a **41.66%** equity investment, and a **$490,000** lawsuit for undelivered equipment - The company operates in two business segments: Building Supply (construction weatherization products) and Disposable Protective Apparel (garments, face masks, face shields)[17](index=17&type=chunk)[18](index=18&type=chunk) - The positive sales impact from the COVID-19 pandemic has lessened in 2022 compared to 2020 and 2021 as market conditions normalize[19](index=19&type=chunk) - The company holds a **41.66%** ownership interest in Harmony Plastics Private Limited, an unconsolidated affiliate in India that manufactures building products and disposable protective apparel[31](index=31&type=chunk) - On June 7, 2022, the company filed a lawsuit to recover a **$490,000** deposit for undelivered equipment, which was written off as a loss on fixed assets in Q2 2022[60](index=60&type=chunk) Net Sales by Business Segment (Unaudited) | Segment | Q2 2022 | Q2 2021 | 6 Months 2022 | 6 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Building Supply | $10,817,000 | $9,798,000 | $21,054,000 | $18,138,000 | | Disposable Protective Apparel | $6,556,000 | $8,008,000 | $13,980,000 | $22,829,000 | | **Consolidated Net Sales** | **$17,373,000** | **$17,806,000** | **$35,034,000** | **$40,967,000** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=17&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2022 sales decreased **2.4%** due to apparel decline, despite Building Supply growth, with compressed margins and a **$490,000** asset loss impacting net income [Impact of the Novel Coronavirus (COVID-19)](index=19&type=section&id=Impact%20of%20the%20Novel%20Coronavirus%20(COVID-19)) COVID-19's positive impact on PPE demand lessened in 2022, but supply chain constraints and inflationary pressures persist - The company experienced a dramatic increase in revenue from PPE products in 2020 and 2021, but this positive impact has diminished in 2022[74](index=74&type=chunk)[80](index=80&type=chunk) - The company is facing ongoing supply chain challenges, including government-mandated shutdowns, raw material shortages, shipping delays, and inflationary cost pressures, especially in logistics[76](index=76&type=chunk)[77](index=77&type=chunk) [Results of Operations](index=20&type=section&id=Results%20of%20Operations) Q2 2022 consolidated sales decreased **2.4%** to **$17.4 million**, with Building Supply growth offset by a **18.1%** decline in Disposable Protective Apparel sales Key Operational Data as a Percentage of Net Sales | Metric | Q2 2022 | Q2 2021 | 6 Months 2022 | 6 Months 2021 | | :--- | :--- | :--- | :--- | :--- | | Gross profit | 32.3% | 35.0% | 34.4% | 37.6% | | Income from operations | 7.6% | 10.3% | 9.3% | 15.2% | | Net income | 4.0% | 9.4% | 6.3% | 13.2% | - Building Supply segment sales increased **10.4%** in Q2 2022 to a record **$10.8 million**, driven by a **7.7%** increase in housewrap sales and a **116.4%** increase in other woven material sales[86](index=86&type=chunk) - Disposable Protective Apparel segment sales decreased **18.1%** in Q2 2022, primarily due to a **28.9%** drop in disposable protective garment sales as COVID-19 related demand normalized[93](index=93&type=chunk) - Gross profit margin is expected to remain under pressure from significant increases in ocean freight, transportation, raw material, and labor costs, with price increases planned for late Q3 2022 to mitigate this[104](index=104&type=chunk) - Q2 2022 net income was significantly impacted by a **$490,000** loss on fixed assets related to undelivered equipment for which the company has filed a lawsuit[114](index=114&type=chunk)[118](index=118&type=chunk) [Liquidity and Capital Resources](index=25&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with **$15.3 million** in cash and **$51.1 million** working capital, despite **$1.7 million** in stock repurchases - The company maintained a strong balance sheet with **$15.3 million** in cash and cash equivalents and **$51.1 million** in working capital as of June 30, 2022[120](index=120&type=chunk) - During the first six months of 2022, the company used **$1,716,000** for the repurchase of common stock[125](index=125&type=chunk) - As of June 30, 2022, **$2,362,000** remained available for stock purchases under the company's repurchase program[126](index=126&type=chunk) - The company has committed to a **~$4.0 million** investment in new equipment to increase production capacity for the Building Supply segment, with delivery of a key piece of equipment expected in late Q3 2022[127](index=127&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=26&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exempt from providing market risk disclosures as a smaller reporting company - The company is not required to provide quantitative and qualitative disclosures about market risk as it qualifies as a smaller reporting company[130](index=130&type=chunk) [Controls and Procedures](index=26&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls - Based on an evaluation as of June 30, 2022, the principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective[133](index=133&type=chunk) - No changes occurred in the company's internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, these controls[134](index=134&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=27&type=section&id=ITEM%201.%20Legal%20Proceedings) The company filed a lawsuit on June 7, 2022, seeking **$490,000** in damages for undelivered equipment, which has been written off - The company filed a lawsuit on June 7, 2022, against vendors who failed to deliver equipment, seeking **$490,000** in compensatory damages plus lost profits[135](index=135&type=chunk) - The company has written off the **$490,000** balance of the deposit paid for the equipment, pending any recovery from the lawsuit[135](index=135&type=chunk) [Risk Factors](index=27&type=section&id=ITEM%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported since the 2021 Annual Report on Form 10-K - No material changes to the risk factors disclosed in the 2021 Form 10-K have occurred[136](index=136&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2022, the company repurchased **225,500** shares for **$0.95 million**, with **$2.36 million** remaining in the expanded repurchase program Issuer Purchases of Equity Securities (Q2 2022) | Period | Total Shares Purchased | Average Price Paid | Total Cost (Approx.) | | :--- | :--- | :--- | :--- | | April 2022 | 80,600 | $4.19 | $337,714 | | May 2022 | 56,400 | $4.07 | $229,548 | | June 2022 | 88,500 | $4.35 | $384,975 | | **Total** | **225,500** | **$4.22** | **$952,237** | - On June 23, 2022, the Board of Directors authorized a **$2,000,000** expansion of the existing share repurchase program, which expires on December 15, 2022[139](index=139&type=chunk) [Exhibits](index=29&type=section&id=ITEM%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including CEO/CFO certifications and XBRL data files [Signatures](index=30&type=section&id=SIGNATURES) The report is signed by the President and CEO, Lloyd Hoffman, and CFO, Colleen McDonald, on August 5, 2022

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 01-15725 Alpha Pro Tech, Ltd. (Exact Name of Registrant as Specified in Its Charter) Delaware, U.S.A. 63-1009183 (State or Other Jurisdiction ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 01-15725 Alpha Pro Tech, Ltd. (Exact Name of Registrant as Specified in Its Charter) Delaware, U.S.A. 63-1009183 (State or Other Jurisdiction of In ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File No. 01-15725 Alpha Pro Tech, Ltd. (Exact Name of Registrant as Specified in Its Charter) Delaware, U.S.A. 63-1009183 (State or Other Jurisdiction of I ...