Alpha Pro Tech (APT) 10-Q 3 Nov 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 31, 2016
Document Information [Line Items]
Entity Registrant Name	ALPHA PRO TECH LTD
Entity Central Index Key	884,269
Trading Symbol	apt
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		16,301,054
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash	$ 11,772,000	$ 9,681,000	[1]
Investments	617,000	656,000	[1]
Accounts receivable, net of allowance for doubtful accounts of $59,000 and $46,000 as of September 30, 2016 and December 31, 2015, respectively	4,715,000	2,762,000	[1]
Accounts receivable, unconsolidated affiliate	19,000	8,000
Inventories	11,854,000	16,398,000	[1]
Prepaid expenses and other current assets	2,901,000	3,092,000	[1]
Deferred income tax assets	484,000	484,000	[1]
Total current assets	32,362,000	33,081,000	[1]
Property and equipment, net	2,704,000	2,907,000	[1]
Goodwill	55,000	55,000	[1]
Definite-lived intangible assets, net	39,000	51,000	[1]
Equity investment in unconsolidated affiliate	3,473,000	3,040,000
Total assets	38,633,000	39,134,000	[1]
Current liabilities:
Accounts payable	1,257,000	1,027,000	[1]
Accrued liabilities	1,713,000	1,128,000	[1]
Total current liabilities	2,970,000	2,155,000	[1]
Deferred income tax liabilities	835,000	867,000	[1]
Total liabilities	3,805,000	3,022,000	[1]
Shareholders' equity:
Common stock, $.01 par value: 50,000,000 shares authorized; 16,301,056 and 17,850,456 shares outstanding as of September 30, 2016 and December 31, 2015, respectively	163,000	178,000	[1]
Additional paid-in capital	12,984,000	16,526,000	[1]
Accumulated other comprehensive loss	(198,000)	(148,000)	[1]
Retained earnings	21,879,000	19,556,000	[1]
Total shareholders' equity	34,828,000	36,112,000	[1]
Total liabilities and shareholders' equity	$ 38,633,000	$ 39,134,000	[1]
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Allowance for doubtful accounts	$ 59,000	$ 46,000	[1]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	[1]
Common stock, shares authorized (in shares)	50,000,000	50,000,000	[1]
Common stock, shares outstanding (in shares)	16,301,056	17,850,456
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net sales	$ 11,779,000	$ 12,176,000	$ 36,334,000	$ 34,925,000
Cost of goods sold, excluding depreciation and amortization	7,263,000	7,370,000	23,032,000	22,379,000
Gross profit	4,516,000	4,806,000	13,302,000	12,546,000
Operating expenses:
Selling, general and administrative	3,158,000	3,882,000	9,950,000	10,979,000
Depreciation and amortization	153,000	206,000	425,000	527,000
Total operating expenses	3,311,000	4,088,000	10,375,000	11,506,000
Income from operations	1,205,000	718,000	2,927,000	1,040,000
Other income (loss):
Equity in income (loss) of unconsolidated affiliate	242,000	(165,000)	433,000	50,000
Interest income, net	1,000		3,000	15,000
Total other income (loss)	243,000	(165,000)	436,000	65,000
Income before provision for income taxes	1,448,000	553,000	3,363,000	1,105,000
Provision for income taxes	429,000	247,000	1,040,000	364,000
Net income	$ 1,019,000	$ 306,000	$ 2,323,000	$ 741,000
Basic earnings per common share (in dollars per share)	$ 0.06	$ 0.02	$ 0.14	$ 0.04
Diluted earnings per common share (in dollars per share)	$ 0.06	$ 0.02	$ 0.14	$ 0.04
Basic weighted average common shares outstanding (in shares)	16,695,059	18,276,616	17,190,073	18,261,747
Diluted weighted average common shares outstanding (in shares)	16,706,532	18,299,279	17,190,073	18,359,725

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 1,019,000	$ 306,000	$ 2,323,000	$ 741,000
Other comprehensive income (loss):
Change in unrealized gain (loss) on marketable securities, net of tax	28,000	(452,000)	(50,000)	(1,321,000)
Comprehensive income (loss)	$ 1,047,000	$ (146,000)	$ 2,273,000	$ (580,000)

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2016 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	AOCI Attributable to Parent [Member]	Retained Earnings [Member]	Total
Balance (in shares) at Dec. 31, 2015	17,850,456				17,850,456
Balance at Dec. 31, 2015	$ 178,000	$ 16,526,000	$ (148,000)	$ 19,556,000	$ 36,112,000	[1]
Common stock repurchased and retired (in shares)	(1,564,400)
Common stock repurchased and retired	$ (15,000)	(3,674,000)			(3,689,000)
Stock-based compensation expense		115,000			$ 115,000
Options exercised (in shares)	15,000				15,000
Options exercised		17,000			$ 17,000
Net income				2,323,000	2,323,000
Other comprehensive loss			(50,000)		$ (50,000)
Balance (in shares) at Sep. 30, 2016	16,301,056				16,301,056
Balance at Sep. 30, 2016	$ 163,000	$ 12,984,000	$ (198,000)	$ 21,879,000	$ 34,828,000
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016		Sep. 30, 2015
Cash Flows From Operating Activities:
Net income	$ 2,323,000		$ 741,000
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation expense	115,000		18,000
Depreciation and amortization	425,000		527,000
Equity in income of unconsolidated affiliate	(433,000)		(50,000)
Changes in assets and liabilities:
Accounts receivable, net	(1,953,000)		208,000
Accounts receivable, unconsolidated affiliate	(11,000)		249,000
Inventories	4,544,000		(1,317,000)
Prepaid expenses and other current assets	191,000		1,761,000
Accounts payable and accrued liabilities	815,000		(80,000)
Net cash provided by operating activities	6,016,000		2,057,000
Cash Flows From Investing Activities:
Purchase of property and equipment	(212,000)		(189,000)
Purchase of marketable securities	(41,000)		(36,000)
Net cash used in investing activities	(253,000)		(225,000)
Cash Flows From Financing Activities:
Repurchase of common stock	(3,689,000)		(1,518,000)
Proceeds from exercise of stock options	17,000		765,000
Net cash used in financing activities	(3,672,000)		(753,000)
Increase in cash	2,091,000		1,079,000
Cash, beginning of the period	9,681,000	[1]	5,495,000
Cash, end of the period	$ 11,772,000		$ 6,574,000
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Note 1 - The Company

Note 1 - The Company	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Nature of Operations [Text Block]	1. The Company Alpha Pro Tech, Ltd. (“Alpha Pro Tech” or the “Company”) 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; a line of disposable protective apparel for the cleanroom, industrial and pharmaceutical markets; and a line of infection control products for the medical and dental markets. The Building Supply segment consists of construction weatherization products, such as housewrap and synthetic roof underlayment, as well as other woven material. The Disposable Protective Apparel segment consists of a complete line of shoecovers, bouffant caps, coveralls, gowns, frocks and lab coats. The Infection Control segment consists of a line of face masks and eye shields. The Company’s products are sold under the "Alpha Pro Tech" brand name and under private label, and are predominantly sold in the United States of America (“US”).

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	2. Basis of Presentation The interim financial information included herein 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. 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 necessary to present the statements in accordance with US generally accepted accounting principles (“US GAAP”). The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings on Form 10-Q and Form 8-K, as well as the consolidated financial statements for the year ended December 31, 2015, which are included in the Company’s Annual Report on Form 10-K (the “2015 Form 10-K”), which was filed on March 3, 2016. The results of operations for the nine months ended September 30, 2016 reported in this 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, 2015 was prepared using information from the audited consolidated balance sheet contained in the 2015 Form 10-K, and does not include all disclosures required by US GAAP for annual consolidated financial statements.

Note 3 - Stock-based Compensati

Note 3 - Stock-based Compensation	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	3. Stock-Based Compensation The Company maintains a stock option plan under which the Company may grant incentive stock options and non-qualified stock options to employees and non-employee directors. 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 Company records compensation expense for the fair value of stock-based awards determined as of the grant date, including employee stock options. For the nine months ended September 30, 2016, 810,000 stock options were granted under the Company’s option plan. For the nine months ended September 30, 2015, no stock options were granted under the Company’s option plan. The Company recognized $115,000 and $18,000 in stock-based compensation expense for the nine months ended September 30, 2016 and 2015, respectively, related to the vesting of previously issued options. Stock options to purchase 1,020,000 shares of common stock were outstanding as of September 30, 2016, and stock options to purchase 225,000 shares of common stock were outstanding as of December 31, 2015. The Company uses the Black-Scholes option-pricing model to value the options. The Company uses historical data to estimate the life of the options. The risk-free interest rate for periods within the contractual life of the 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 following table summarizes stock option activity for the nine months ended September 30, 2016: Weighted Average Exercise Price Shares Per Option Options outstanding, December 31, 2015 225,000 $ 1.52 Granted to employees and non-employee directors 810,000 2.12 Exercised (15,000 ) 1.15 Canceled/expired/forfeited - - Options outstanding, September 30, 2016 1,020,000 2.00 Options exercisable, September 30, 2016 50,000 1.51 As of September 30, 2016, $802,000 of total unrecognized compensation cost related to stock options was expected to be recognized over a weighted average period of 2.64 years.

Note 4 - Investments

Note 4 - Investments	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]	4. Investments As of September 30, 2016 and December 31, 2015, investments totaled $617,000 and $656,000 respectively, which consisted of marketable securities. The following provides information regarding the Company’s marketable securities as of September 30, 2016 and December 31, 2015: September 30, December 31 2016 2015 Cost basis $ 543,000 $ 502,000 Gains previously recognized on warrants 380,000 380,000 Gross loss included in accumulated other comprehensive income (loss) (306,000 ) (226,000 ) Fair value $ 617,000 $ 656,000 No marketable securities were sold during the nine months ended September 30, 2016 and the year ended December 31, 2015. The change in unrealized gain of $28,000 and unrealized loss of $452,000 for the three months ended September 30, 2016 and 2015, respectively, in the statements of comprehensive income (loss) are presented net of tax for the quarters ended September 30, 2016 and 2015, respectively. The tax expense on the unrealized gain was $15,000, and the tax benefit on the unrealized loss was $238,000 for the quarters ended September 30, 2016 and 2015, respectively. The change in unrealized loss of $50,000 and $1,321,000 for the nine months ended September 30, 2016 and 2015, respectively, in the statements of comprehensive income (loss) are presented net of tax for the nine months ended September 30, 2016 and 2015. The tax benefit on the unrealized loss was $31,000 and $728,000 for the nine months ended September 30, 2016 and 2015, respectively.

Note 5 - Recent Accounting Pron

Note 5 - Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	5. Recent Accounting Pronouncements Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, Income Taxes Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation 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.

Note 6 - Inventories

Note 6 - Inventories	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	6. Inventories As of September 30, 2016 and December 31, 2015, inventories consisted of the following: September 30, December 31, 2016 2015 Raw materials $ 4,630,000 $ 6,456,000 Work in process 2,826,000 4,143,000 Finished goods 4,398,000 5,799,000 $ 11,854,000 $ 16,398,000

Note 7 - Equity Investments in

Note 7 - Equity Investments in Unconsolidated Affiliate	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	7 . 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 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% by Alpha ProTech Engineered Products, Inc. and 58.34% 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 Disposable Protective Apparel segment. The capital from the initial funding and a bank loan, which loan 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 five facilities in India (three owned and two rented), consisting of: (1) a 102,000 square foot building for manufacturing building products; (2) a 71,500 square foot building for manufacturing coated material and sewing proprietary disposable protective apparel; (3) a 16,000 square foot facility for sewing proprietary disposable protective apparel; (4) a 12,000 square foot rented facility for coating material; and (5) a 93,000 square foot rented facility for the manufacturing of building products. All additions have been financed by Harmony with no guarantees from the Company. The Company assesses whether or not related entities are variable interest entities (“VIEs”). For those related entities that qualify as VIEs, the Company determines whether or not it is the primary beneficiary of the VIE, and, if so, the Company will 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 condensed 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 condensed 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, 2016. For the three months ended September 30, 2016 and 2015, Alpha Pro Tech purchased $3,716,000 and $3,443,000 of inventories, respectively, related to Harmony. For the nine months ended September 30, 2016 and 2015, Alpha Pro Tech purchased $9,646,000 and $11,920,000 of inventories, respectively, related to Harmony. For the three months ended September 30, 2016, the Company recorded equity in income of unconsolidated affiliate of $242,000 and in the same period of 2015 recorded equity in loss of unconsolidated affiliate of $165,000 related to Harmony. For the nine months ended September 30, 2016 and 2015, the Company recorded equity in income of unconsolidated affiliate of $433,000 and $50,000, respectively, related to Harmony. As of September 30, 2016, the Company’s investment in Harmony was $3,473,000, which consisted of its original $1,450,000 investment and cumulative equity in income of unconsolidated affiliate of $3,042,000, less $942,000 in repayments of the advance and $77,000 in dividends.

Note 8 - Accrued Liabilities

Note 8 - Accrued Liabilities	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Accounts Payable and Accrued Liabilities Disclosure [Text Block]	8. Accrued Liabilities As of September 30, 2016 and December 31, 2015, accrued liabilities consisted of the following: September 30, December 31, 2016 2015 Payroll expenses and tax payable $ 1,330,000 $ 727,000 Bonuses payable 189,000 207,000 Uncertain tax position liability 194,000 194,000 $ 1,713,000 $ 1,128,000

Note 9 - Basic and Diluted Earn

Note 9 - Basic and Diluted Earnings Per Common Share	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	9. 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, 2016 and 2015. For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Net income (numerator) $ 1,019,000 $ 306,000 $ 2,323,000 $ 741,000 Shares (denominator): Basic weighted average common shares outstanding 16,695,059 18,276,616 17,190,073 18,261,747 Add: dilutive effect of common stock options 11,473 22,663 - 97,978 Diluted weighted average common shares outstanding 16,706,532 18,299,279 17,190,073 18,359,725 Earnings per common share: Basic $ 0.06 $ 0.02 $ 0.14 $ 0.04 Diluted $ 0.06 $ 0.02 $ 0.14 $ 0.04

Note 10 - Activity of Business

Note 10 - Activity of Business Segments	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	10. Activity of Business Segments The Company operates through three business segments: Building Supply Disposable Protective Apparel Infection Control Segment data excludes charges allocated to the principal executive office and other unallocated expenses and income tax. The Company evaluates the performance of its segments and allocates resources to them based primarily on net sales. The following table presents consolidated net sales for each segment for the three and nine months ended September 30, 2016 and 2015: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Building Supply $ 7,022,000 $ 7,436,000 $ 21,700,000 $ 20,320,000 Disposable Protective Apparel 3,698,000 3,689,000 11,147,000 11,174,000 Infection Control 1,059,000 1,051,000 3,487,000 3,431,000 Consolidated net sales $ 11,779,000 $ 12,176,000 $ 36,334,000 $ 34,925,000 The following table presents the reconciliation of consolidated segment income to consolidated net income for the three and nine months ended September 30, 2016 and 2015: For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Building Supply $ 1,618,000 $ 1,241,000 $ 4,287,000 $ 2,876,000 Disposable Protective Apparel 617,000 734,000 1,327,000 1,272,000 Infection Control 375,000 314,000 1,211,000 1,095,000 Total segment income 2,610,000 2,289,000 6,825,000 5,243,000 Unallocated corporate overhead expenses 1,162,000 1,736,000 3,462,000 4,138,000 Provision for income taxes 429,000 247,000 1,040,000 364,000 Consolidated net income $ 1,019,000 $ 306,000 $ 2,323,000 $ 741,000 The following table presents the consolidated net property and equipment, goodwill and definite-lived intangible assets (“consolidated assets”) by segment as of September 30, 2016 and December 31, 2015: September 30, December 31, 2016 2015 Building Supply $ 2,255,000 $ 2,410,000 Disposable Protective Apparel 356,000 394,000 Infection Control 148,000 166,000 Total segment assets 2,759,000 2,970,000 Unallocated corporate assets 39,000 43,000 Total consolidated assets $ 2,798,000 $ 3,013,000

Note 11 - Related Party Transac

Note 11 - Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	11. Related Party Transactions The Company uses a law firm whose majority member is also a member of the Company’s Board of Directors. For the three months ended September 30, 2016 and 2015, the Company expensed $95,000 and $60,000, respectively, for legal services from this related party. For the nine months ended September 30, 2016 and 2015, the Company expensed $145,000 and $224,000, respectively, for legal services from this related party. As of September 30, 2016 and December 31, 2015, the Company’s outstanding balance to this related party was $275,000 and $280,000, respectively.

Note 12 - Subsequent Events

Note 12 - Subsequent Events	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	12. Subsequent Events The Company has reviewed and evaluated whether subsequent events have occurred from the condensed consolidated balance sheet date of September 30, 2016 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.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The interim financial information included herein 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. 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 necessary to present the statements in accordance with US generally accepted accounting principles (“US GAAP”). The interim condensed consolidated financial statements should be read in conjunction with the Company’s current year SEC filings on Form 10-Q and Form 8-K, as well as the consolidated financial statements for the year ended December 31, 2015, which are included in the Company’s Annual Report on Form 10-K (the “2015 Form 10-K”), which was filed on March 3, 2016. The results of operations for the nine months ended September 30, 2016 reported in this 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, 2015 was prepared using information from the audited consolidated balance sheet contained in the 2015 Form 10-K, and does not include all disclosures required by US GAAP for annual consolidated financial statements.
New Accounting Pronouncements, Policy [Policy Text Block]	Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, Income Taxes Balance Sheet Classification of Deferred Taxes In January 2016, the FASB issued ASU 2016-01, Financial Instruments - Overall Recognition and Measurement of Financial Assets and Financial Liabilities In February 2016, the FASB issued ASU 2016-02, Leases In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation 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.

Note 3 - Stock-based Compensa21

Note 3 - Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Average Exercise Price Shares Per Option Options outstanding, December 31, 2015 225,000 $ 1.52 Granted to employees and non-employee directors 810,000 2.12 Exercised (15,000 ) 1.15 Canceled/expired/forfeited - - Options outstanding, September 30, 2016 1,020,000 2.00 Options exercisable, September 30, 2016 50,000 1.51

Note 4 - Investments (Tables)

Note 4 - Investments (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Available-for-sale Securities Reconciliation [Table Text Block]	September 30, December 31 2016 2015 Cost basis $ 543,000 $ 502,000 Gains previously recognized on warrants 380,000 380,000 Gross loss included in accumulated other comprehensive income (loss) (306,000 ) (226,000 ) Fair value $ 617,000 $ 656,000

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, December 31, 2016 2015 Raw materials $ 4,630,000 $ 6,456,000 Work in process 2,826,000 4,143,000 Finished goods 4,398,000 5,799,000 $ 11,854,000 $ 16,398,000

Note 8 - Accrued Liabilities (T

Note 8 - Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Accrued Liabilities [Table Text Block]	September 30, December 31, 2016 2015 Payroll expenses and tax payable $ 1,330,000 $ 727,000 Bonuses payable 189,000 207,000 Uncertain tax position liability 194,000 194,000 $ 1,713,000 $ 1,128,000

Note 9 - Basic and Diluted Ea25

Note 9 - Basic and Diluted Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 2015 2016 2015 Net income (numerator) $ 1,019,000 $ 306,000 $ 2,323,000 $ 741,000 Shares (denominator): Basic weighted average common shares outstanding 16,695,059 18,276,616 17,190,073 18,261,747 Add: dilutive effect of common stock options 11,473 22,663 - 97,978 Diluted weighted average common shares outstanding 16,706,532 18,299,279 17,190,073 18,359,725 Earnings per common share: Basic $ 0.06 $ 0.02 $ 0.14 $ 0.04 Diluted $ 0.06 $ 0.02 $ 0.14 $ 0.04

Note 10 - Activity of Busines26

Note 10 - Activity of Business Segments (Tables)	9 Months Ended
	Sep. 30, 2016
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, 2016 2015 2016 2015 Building Supply $ 7,022,000 $ 7,436,000 $ 21,700,000 $ 20,320,000 Disposable Protective Apparel 3,698,000 3,689,000 11,147,000 11,174,000 Infection Control 1,059,000 1,051,000 3,487,000 3,431,000 Consolidated net sales $ 11,779,000 $ 12,176,000 $ 36,334,000 $ 34,925,000
Reconciliation of Revenue from Segments to Consolidated [Table Text Block]	For the Three Months Ended For the Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Building Supply $ 1,618,000 $ 1,241,000 $ 4,287,000 $ 2,876,000 Disposable Protective Apparel 617,000 734,000 1,327,000 1,272,000 Infection Control 375,000 314,000 1,211,000 1,095,000 Total segment income 2,610,000 2,289,000 6,825,000 5,243,000 Unallocated corporate overhead expenses 1,162,000 1,736,000 3,462,000 4,138,000 Provision for income taxes 429,000 247,000 1,040,000 364,000 Consolidated net income $ 1,019,000 $ 306,000 $ 2,323,000 $ 741,000
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	September 30, December 31, 2016 2015 Building Supply $ 2,255,000 $ 2,410,000 Disposable Protective Apparel 356,000 394,000 Infection Control 148,000 166,000 Total segment assets 2,759,000 2,970,000 Unallocated corporate assets 39,000 43,000 Total consolidated assets $ 2,798,000 $ 3,013,000

Note 3 - Stock-based Compensa27

Note 3 - Stock-based Compensation (Details Textual) - USD ($)	6 Months Ended	9 Months Ended
	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	810,000	810,000	0
Allocated Share-based Compensation Expense		$ 115,000	$ 18,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number		1,020,000		225,000
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate		0.00%
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized		$ 802,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years 233 days

Note 3 - Stock-based Compensa28

Note 3 - Stock-based Compensation - Stock Option Activity (Details) - $ / shares	6 Months Ended	9 Months Ended
	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Options outstanding (in shares)	225,000	225,000
Options outstanding, weighted average exercise price (in dollars per share)	$ 1.52	$ 1.52
Granted to employees and non-employee directors (in shares)	810,000	810,000	0
Granted to employees and non-employee directors, weighted average exercise price (in dollars per share)		$ 2.12
Exercised (in shares)		(15,000)
Exercised, weighted average exercise price (in dollars per share)		$ 1.15
Canceled/expired/forfeited (in shares)
Canceled/expired/forfeited, weighted average exercise price (in dollars per share)
Options outstanding (in shares)		1,020,000
Options outstanding, weighted average exercise price (in dollars per share)		$ 2
Options exercisable (in shares)		50,000
Options exercisable, weighted average exercise price (in dollars per share)		$ 1.51

Note 4 - Investments (Details T

Note 4 - Investments (Details Textual) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Proceeds from Sale and Maturity of Marketable Securities			$ 0			$ 0
Available-for-sale Securities, Current	$ 617,000			$ 617,000		$ 656,000	[1]
Marketable Securities, Unrealized Gain (Loss)	28,000	$ (452,000)		(50,000)	$ (1,321,000)
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax	$ 15,000	$ (238,000)		$ 31,000	$ 728,000
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Note 4 - Investments - Availabl

Note 4 - Investments - Available-for-Sale Marketable Securities (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Marketable Securities [Member]
Cost basis	$ 543,000	$ 502,000
Gains previously recognized on warrants	380,000	380,000
Gross loss included in accumulated other comprehensive income (loss)	(306,000)	(226,000)
Available-for-sale Securities, Current	617,000	656,000
Available-for-sale Securities, Current	$ 617,000	$ 656,000	[1]
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Note 6 - Inventories - Inventor

Note 6 - Inventories - Inventories (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Raw materials	$ 4,630,000	$ 6,456,000
Work in process	2,826,000	4,143,000
Finished goods	4,398,000	5,799,000
	$ 11,854,000	$ 16,398,000	[1]
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Note 7 - Equity Investments i32

Note 7 - Equity Investments in Unconsolidated Affiliate (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		120 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2005
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%
Harmony [Member]
Equity Method Investment, Other than Temporary Impairment			$ 0
Equity Method Investments	$ 3,473,000		3,473,000
Equity Method Investment, Aggregate Cost						$ 1,450,000
Cumulative Equity In Income Of Unconsolidated Affiliate	3,042,000		3,042,000
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital					$ 942,000
Proceeds from Equity Method Investment, Dividends or Distributions					$ 77,000
Expense To Acquire Inventory	3,716,000	$ 3,443,000	9,646,000	$ 11,920,000
Income (Loss) from Equity Method Investments	$ 242,000	$ (165,000)	$ 433,000	$ 50,000

Note 8 - Accrued Liabilities -

Note 8 - Accrued Liabilities - Accrued Liabilities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Payroll expenses and tax payable	$ 1,330,000	$ 727,000
Bonuses payable	189,000	207,000
Uncertain tax position liability	194,000	194,000
	$ 1,713,000	$ 1,128,000	[1]
[1]	The condensed consolidated balance sheet as of December 31, 2015 has been prepared using information from the audited consolidated balance sheet as of that date.

Note 9 - Basic and Diluted Ea34

Note 9 - 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, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income (numerator)	$ 1,019,000	$ 306,000	$ 2,323,000	$ 741,000
Shares (denominator):
Basic weighted average common shares outstanding (in shares)	16,695,059	18,276,616	17,190,073	18,261,747
Add: dilutive effect of common stock options (in shares)	11,473	22,663		97,978
Diluted weighted average common shares outstanding (in shares)	16,706,532	18,299,279	17,190,073	18,359,725
Earnings per common share:
Basic (in dollars per share)	$ 0.06	$ 0.02	$ 0.14	$ 0.04
Diluted (in dollars per share)	$ 0.06	$ 0.02	$ 0.14	$ 0.04

Note 10 - Activity of Busines35

Note 10 - Activity of Business Segments (Details Textual)	6 Months Ended
	Jun. 30, 2016
Number of Operating Segments	3

Note 10 - Activity of Busines36

Note 10 - Activity of Business Segements - Consolidated Net Sales (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Building Supply [Member] | Operating Segments [Member]
Consolidated net sales	$ 7,022,000	$ 7,436,000	$ 21,700,000	$ 20,320,000
Disposable Protective Apparel [Member] | Operating Segments [Member]
Consolidated net sales	3,698,000	3,689,000	11,147,000	11,174,000
Infection Control [Member] | Operating Segments [Member]
Consolidated net sales	1,059,000	1,051,000	3,487,000	3,431,000
Consolidated net sales	$ 11,779,000	$ 12,176,000	$ 36,334,000	$ 34,925,000

Note 10 - Activity of Busines37

Note 10 - Activity of Business Segements - Reconciliation of Total Segment Income to Total Consolidated Net Income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating Segments [Member] | Building Supply [Member]
Consolidated net income	$ 1,618,000	$ 1,241,000	$ 4,287,000	$ 2,876,000
Operating Segments [Member] | Disposable Protective Apparel [Member]
Consolidated net income	617,000	734,000	1,327,000	1,272,000
Operating Segments [Member] | Infection Control [Member]
Consolidated net income	375,000	314,000	1,211,000	1,095,000
Operating Segments [Member]
Consolidated net income	2,610,000	2,289,000	6,825,000	5,243,000
Corporate, Non-Segment [Member]
Consolidated net income	1,162,000	1,736,000	3,462,000	4,138,000
Consolidated net income	1,019,000	306,000	2,323,000	741,000
Provision for income taxes	$ 429,000	$ 247,000	$ 1,040,000	$ 364,000

Note 10 - Activity of Busines38

Note 10 - Activity of Business Segements - Consolidated Net Property and Equipment, Goodwill and Intangible Assets (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Operating Segments [Member] | Building Supply [Member]
Consolidated assets	$ 2,255,000	$ 2,410,000
Operating Segments [Member] | Disposable Protective Apparel [Member]
Consolidated assets	356,000	394,000
Operating Segments [Member] | Infection Control [Member]
Consolidated assets	148,000	166,000
Operating Segments [Member]
Consolidated assets	2,759,000	2,970,000
Corporate, Non-Segment [Member]
Consolidated assets	39,000	43,000
Consolidated assets	$ 2,798,000	$ 3,013,000

Note 11 - Related Party Trans39

Note 11 - Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Director [Member] | Legal Services, Related Party [Member]
Related Party Transaction, Expenses from Transactions with Related Party	$ 95,000	$ 60,000	$ 145,000	$ 224,000
Due to Related Parties	$ 275,000		$ 275,000		$ 280,000