ALPHA PRO TECH LTD MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q) | MarketScreener

2022-08-08 11:38:32 By : Mr. Min Duan

Special Note Regarding Forward-Looking Statements

? 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

? We rely on suppliers and contractors, and our business could be seriously

? Risks associated with international manufacturing could have a significant

? 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

? 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

? Our joint venture may present risks that are only present when third parties

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.

? 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

Special Note Regarding Smaller Reporting Company Status

Critical Accounting Policies and Estimates

Impact of the Novel Coronavirus (COVID-19)

Management will continue to carefully monitor the current dynamic market conditions and work to respond to them swiftly and effectively.

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

Three months ended June 30, 2022 compared to three months ended June 30, 2021

Sales. Consolidated sales for the three months ended June 30, 2022 decreased to $17,373,000, from $17,806,000 for the three months ended June 30, 2021, representing a decrease of $433,000, or 2.4%. This decrease consisted of decreased sales in the Disposable Protective Apparel segment of $1,452,000, partially offset by increased sales in the Building Supply segment of $1,019,000.

Sales of face mask sales in the second quarter of 2022 were basically flat compared to the same quarter of 2021. Sales of face masks continue to be somewhat aided by the Omicron variants of COVID-19 and are still higher than pre-pandemic levels but, are expected to be low in the coming months as the market is saturated with face masks.

Six months ended June 30, 2022 compared to six months ended June 30, 2021

Consolidated sales for the six months ended June 30, 2022 decreased to $35,034,000 from $40,967,000 for the six months ended June 30, 2021, representing a decrease of $5,933,000, or 14.5%. This decrease consisted of decreased sales in the Disposable Protective Apparel Segment of $8,849,000, partially offset by increased sales in the Building Supply segment of $2,916,000.

Right-of-use assets as of June 30, 2022 decreased by $457,000 to $2,191,000 from $2,648,000 as of December 31, 2021 as a result of amortization of the balance.

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.

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