ALPHA PRO TECH LTD Leases Disclosure
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11. |
Leases |
Operating Lease Commitments: The Company leases its facilities under non-cancelable operating leases expiring on various dates through December 31, 2034. The Company has operating leases for the Company’s corporate office and manufacturing facilities, which expire at various dates through 2034. The Company’s primary operating lease commitments as of December 31, 2024, related to the Company’s manufacturing facilities in Valdosta, Georgia and Nogales, Arizona, as well as the Company’s corporate headquarters in Aurora, Ontario, Canada.
As of December 31, 2024, the Company had operating lease right-of-use assets of $8,714,000 and operating lease liabilities of $8,775,000. As of December 31, 2024, the Company did have any finance leases recorded on the consolidated balance sheet. Operating lease expenses were approximately $1,650,000 and $1,285,000 for the years ended December 31, 2024 and 2023, respectively.
The aggregate future minimum lease payments and reconciliation to lease liabilities as of December 31, 2024, were as follows:
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December 31, |
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2025 |
$ | 1,471,000 | ||
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2026 |
1,473,000 | |||
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2027 |
1,459,000 | |||
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2028 |
1,489,000 | |||
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2029 |
1,520,000 | |||
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Thereafter |
4,856,000 | |||
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Total future minimum lease payments |
12,268,000 | |||
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Less imputed interest |
(3,493,000 | ) | ||
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Total lease liabilities |
$ | 8,775,000 | ||
As of December 31, 2024, the weighted average remaining lease term of the Company’s operating leases was 10.04 years. During the year ended December 31, 2024, the weighted average discount rate with respect to these leases was 7.00%.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 12, 2025 | Showing above |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2019 | Mar 10, 2020 | |
| 2015 | Mar 3, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.