Note 11 - Leases

12 Months Ended

Dec. 31, 2024

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 not 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:

	December 31,
2025	$	1,471,000
2026		1,473,000
2027		1,459,000
2028		1,489,000
2029		1,520,000
Thereafter		4,856,000
Total future minimum lease payments		12,268,000
Less imputed interest		(3,493,000	)
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%.

ALPHA PRO TECH LTD 10-K