National Reports submitted under section 13or15 (d) Under section 13or15, the Securities Trading Act as of December 31, 2017 (d) Document Number of the 19-34 Securities Trading Act on the transition period from Commission: 001- 15725___ _ Alpha Technology Co. , Ltd. ( The exact name of the registrant specified in the articles of association) The :-1009183(I. R. S. Employer identity number) Company or organization) , L3R 9R2: the name of each exchange of registered shares, with a face value of $. 1/ShareNYSEAmerican _ noxxxno__ yesxno_x☐☐Filer☐( Reporting Company) ☒☐NoX17 is $40,942,692. On March 2, 2018, the registrant issued 14,290,747 shares of common stock. Final proxy statement for 2018 annual meeting of shareholders, to be held on June 5, 2018, incorporated by reference into Part 3 of this Form 10 --K. About the long-term common stock, related shareholder matters and the purchase of equity by the issuer Statement made under the \"safe harbor\" provisions of the Private Securities Litigation Reform Act of 1995. Forward- The outlook statements relate to the risks, uncertainties and assumptions described from time to time in the company registration statements, annual reports and other periodic reports and filings ( Defined below) To the Securities and Exchange Commission (“SEC”). In addition to statements of historical facts, all statements, which address the company\'s expectations of the source of capital, or express the Company\'s expectations for future financial performance or operational strategies, can be identified as forward-looking -- Look at the report. Therefore, there is no guarantee that the future results of the company will not differ significantly from the \"expectations\", \"estimates\" and \"beliefs\" described in this article, \"forecast\", \"expectation\", \"plan\", \"potential\", \"possible\", \"continue\" or \"should\", or use variations of these words or similar expressions, this reflects the company\'s current view of future events. We remind readers that these The outlook statement is issued only on the date of this agreement. The company hereby expressly disclaims any obligation or commitment to publicly issue an update or amendment to any such declaration to reflect any change or change in the event expected by the company, the conditions or circumstances on which these statements are based. . These and many other factors may affect the company\'s future operating results and financial position and may result in significant differences in actual results from forward-based expectations This document or forward-looking statements made by the company or its representative elsewhere. Based on our public number ( The total market value of our common equity Related companies of the company) The last working day for the second fiscal quarter ended 2017. Since it is a smaller reporting company, we do not need to provide certain disclosures in the Annual Report of Form 10K. Where information is missing or reduced in this annual report in Form 10- Based on our smaller reporting company status, we made a special mark here. 1. Business. ENERAL( \"Alpha expertise\", \"company\", \"we\" or \"we \") Is the parent company of Alpha Pro Tech, Inc. And Alpha Protection Engineering Products Co. , Ltd. The company was registered in Delaware in July 1, 1994 as a successor to a business organized in 1983. Our executive office is located at 60 Centurian Drive 112, L3R 9R2 suite, Markham, Ontario, Canada, and our phone number is (905)479-0654. Our website is located at www. alphaprotech. com. The measurement date for such qualifications was set in 2017 and continued to be eligible to become a smaller reporting company. According to the disclosure requirements of the smaller reporting company, the company has submitted the consolidated balance sheet and consolidated income statements and consolidated income as of December 31, 2017 and 2016 (loss) For each year of the two years ended December 31, 2017, exercise rights and cash flow. Through our wholly owned subsidiary, Alpha Pro Tech, Inc. We also produce a range of building supply building waterproofing products through our wholly owned subsidiary Alpha ProTech Engineering Products Co. , Ltd. Our products are sold under the brand Alpha Pro Tech and private label. (1) The supply part of the building, including the waterproof products of the building, such as the interior packaging and synthetic roof floor, as well as other woven materials; (2) Part of disposable protective clothing, including disposable protective clothing such as shoe covers, shoes and hats, dresses, work clothes, lab coats, dresses and other miscellaneous products; and (3) Infection Control part consisting of face mask and eye mask. All financial information provided here reflects the current breakdown. Al strategy focuses on developing, producing and marketing differentiated, innovative high value products that protect people, products and the environment. Our main sales growth strategy is based on communicating directly with end users and developing innovative products that suit the needs of individual end users. Fety manufacturing environment and medical facilities such as hospitals, laboratories and dental clinics, as well as construction and reconstructionroofing sites. Our products are mainly distributed in the United States ( \"America\" or \"America\"S. ”) Through a network of purchasing groups, national distributors, local distributors, independent sales reps and our own sales and marketing teams. Roduct sprincipal products are divided into three business units: masksshieldsBuilding supply department consists of a series of building supply storm products, that is, indoor packaging and synthetic roof bottom layer and other Weaving This range of products is a natural extension of our core competencies: creating proprietary products designed to protect people and the environment. Building a home and what it takes to reduce costs. House packaging with trademark REX™, Provides a weather barrier for homeowners and reduces energy consumption for many years. Rex™Package and Rex™The Wrap Plus is woven and coated polypropylene micro-perforated weather barrier and REX™Package Futong and Alta swordsman love 360 ° drainage technology™It\'s one-of-a- We believe that a breathable product that uniquely enables drainage in all directions to better protect the building from various elements than traditional home packaging, while reducing waste of site materials, simplify the installation to reduce labor and allow for bringing fewer products to the job site. ™SynFelt has the ability to resist the environment, while the ground floor of the traditional organic roof is prone to rapid degradation and mold growth. We also produce and sell technology. ™And technology™SB, We synthesize the economic version of the underlying roof to occupy market share in the low-end market. Through our joint venture in India, described in more detail in the following article \"manufacturing. Such as shoes, hats, dresses, work clothes, lab coats, dresses and other miscellaneous products. The vast majority of these products are manufactured through our joint ventures in India and other subcontractors in Asia, to a lesser extent through subcontractors in Mexico, as described in more detail under \"manufacturing\" below. \"Certain proprietary products are manufactured using the materials we provide. The infection control section includes masks and eye masks. Our masks have a wide range of filtration efficiency and style. Our patented front face lock®Features provide a customized fit to prevent blow For better protection. The term \"blow- \"By\" is used to describe the possibility of infectious materials entering or escaping the mask without passing through the filter due to gaps or openings in the mask. Our Magic arch®The feature keeps the mask away from the nose and mouth, creating a comfortable breathing room. One of our masks contains a face lock on the front. ®Signature and magic arch®The feature is N- 95-particle respirator mask recommended by the Centers for Disease Control and Prevention (“CDC”) The spread of the H1N1 flu epidemic in 2009. an optical- Grade polyester film, permanent defensefog feature. This provides the wearer with extremely lightweight deformation Free protection can be worn for a few hours, eye shield does not fog due to humidity and/or sweat. An important feature of all masks, eye masks and masks is one-time use, which eliminates the possibility of cross-infection between patients and saves users such as hospitals, sterilization costs after each use. During the outbreak of infectious diseases such as H1N1 in 2009 and Ebola in 2014, demand increased. \"Our masks are mainly made at a factory in Salt Lake City, Utah. Our eye shield was produced at our factory in Norfolk, Arizona and assembled by a subcontractor in Mexico. In the activities of the business segment, you can find related to these three segments (Note 14) Notes to Consolidated Financial Statements. ARKETSproducts is sold to the following markets: construction products ( Building Supply products Sold to construction suppliers and roofing dealers, disposable protective clothing and infection control products are sold to the industrial, clean room, medical and dental markets. Target customers include building supply and roofing dealers, pharmaceutical, bio Pharmaceutical manufacturing, medical device manufacturing, experimental animal research, high-tech electronic manufacturing ( Including half. Conductor Market) Medical and Dental dealers. ISTRIBUTIONrely mainly relies on a separate dealer network to sell our products. There is usually no backlog order as the order is usually shipped within 30 days. Maintain proper inventory level to supply distributors in a timely manner. From time to time, we will reserve inventory for periods of unusually high demand. Net within 30 days from the date of shipment. All prices and payments for our products are in the United StatesS. dollars. Authorized returns must be placed in the original carton in good condition and can be returned within 90 days of the original shipment date. All authorized returns are subject to a restocking fee of 20% of the original invoice. Geographic information is the company\'s net sales by geographical region over the past two years. All amounts are rounded up to the nearest thousand. 7 and 2016, except for the United States, the company has not generated sales from any one country that are significant to the Company\'s consolidated net sales. Long term of the company Living assets by geographical region as of December 31, 2017 and 2016. Alpha ProTech Engineering Products Co. , Ltd, a wholly owned subsidiary of Alpha facturing The company produces and distributes a range of building storm products for the building supply sector, mainly including indoor packaging and synthetic roof floors, operate Valdosta, GA in a 165,400-square-foot facility located at 301 South Blanchard Street Indian manufacturer associates for the production of some products supplied by the building, such as semi-packaged House packaging and synthetic roof liner products Finished Product Status, and production of one-time protective clothing subdivision products. The name of the joint venture is harmony plastic private Co. , Ltd (“Harmony”). Harmony has four facilities in India, three of which are self-owned and one is rented. A factory is a 113,000 square foot building for building products. There is a 73,000 square foot facility for sewing of coated materials and proprietary disposable protective clothing. There is also a 16,000 square foot facility for sewing of proprietary disposable protective clothing. The rented building is a 93,000 square foot building that supplies some of the products. Cut, warehouse and ship disposable protective clothing products at the 60,000 square foot factory located at 1287 Nogales West Fairway Avenue, Arizona. Most of these products were made by sub-contractors in Asia and by sub-contractors in Mexico. These goods are manufactured in accordance with our specifications and quality assurance guidelines. Some proprietary products are made in Asia using the materials we provide. Mask production facilities is located in Utah Salt Lake City West 34,500 North 236 of a 2200 square feet of building in. We provide. We do not expect to have any problems with the source and availability of these proprietary materials required to produce our products. Our business is not affected by seasonal factors, although we must have sufficient raw materials and stock. Competitors come from many companies, including many with more marketing and financial resources. Our main competitor in the building waterproofing market is DuPont. Used for synthetic roof laying. Our main competitor in the medical and dental markets is Kimberly- Clark, Fort Worth, Texas Other large competitors include 3 m Company, Johnson & Johnson company and White Knight engineering products ( Pharmaceutical Products Co. , Ltd. ) Cardinal Health Limited And Medline Industries. Our main competitor in the industrial and clean room market is our former largest distributor, Kimberly VWR International, LLC- Clark Company, 3 m Company, Kappler company DuPont and loyal healthcare. Cardinal Health And Medline Industries. It\'s also a distributor of our products. No US regulatory approval requiredS. Food and Drug Administration (“FDA”) About the sale of our products. However, our products must comply with the good manufacturing specifications defined by the FDA, and our manufacturing facilities are inspected by the FDA every two years to ensure that these good manufacturing specifications are met. We\'re marketing an N- 95-particle respirator mask meeting the Occupational Safety and Health Administration (OSHA) Respirator guidelines, approved by the National Institute of Occupational Safety and Health (NIOSH). This product is designed to help prevent the inhalation of tuberculosis bacteria. Atent and TRADEMARKSpolicy are protecting our intellectual property, products, designs and processes by filing patents in the United States and, as appropriate, in Canada and other countries. Currently, we have 15 US patents related to several of our products. In addition, we have a US patent on the method of folding and wearing sterile clothing. We believe that our patents can provide a competitive advantage, but there is no guarantee that any patents that have been issued or are in progress will not be circumvented or invalidated. We also rely on trade secrets and know-how. How to maintain and develop our business position. 1 to 8 years before expiration. Our products are sold in a variety of trademarks and trade names, including Alpha Pro Tech. We believe that many of our trademarks and trade names have been significantly recognized in our major markets, and we have taken habitual steps to register or otherwise protect us in trademarks and goods 2018, we have 112 full- Time staff, including 15 of our main executive offices in Macham, Ontario, Canada; Our 9 employees at the mask production plant in Salt Lake City, Utah; Our 28 employees in the cutting, warehouse and transportation facilities of the disposable protective clothing department in Nogales, Arizona; Our 38 staff in the building supply department facilities in Valdosta, GA; 19 employees of our sales and marketing team, distributed across the United States; There are 3 employees in China. Our employees must abide by the collective bargaining agreement. Our most recent Annual Report on Form 10 K. our recent Quarterly Report on Form 10 Q: Any Current Report on Form 8 K provided or submitted since our most recent Form 10 annual report K and make any changes to such reports as soon as possible after submitting such reports to SEC electronics. These reports are also available on the SEC website (). You can read and copy our report submitted at the SEC public information room on NE 100 F Street, DCC. 20549, the official working day from 10: 00 in the morning to 3: 00 in the afternoon. Information about the operation of public data rooms can be reached by calling SEC 1-800-SEC-0330. Press releases for the past three years have also been posted on the company\'s website. In addition, we should also request free electronic or paper copies of our submission. Annual report on this form 10K. tem 1A. Risk Factors. The results of the operation may be negatively affected, the market price of our common stock may drop, and you may lose all or part of your investment. In addition, in terms of any information in this annual report regarding table 10, K constitutes forward- Outlook statement, the risk factors listed below are also statements of caution, pointing out important factors that may lead to significant differences in the Company\'s actual results from those expressed in any forward-looking statement Statements made by or on behalf of the company. Business and financial performance. Favorable economic conditions, including the impact of the recession and the general recession in the United States and around the world, may have a negative impact on the company\'s business and financial results. These economic conditions may have a negative impact (i) Demand for our products ,(ii) The combination of our product sales ,(iii) We are able to collect accounts receivable from certain customers in a timely manner and (iv) The ability of certain suppliers to meet orders for our raw materials or other goods and services. A prolonged recession could lead to a decline in income, profit margins and income. One or more big customers. Our customers are under no obligation on the contract to purchase any fixed quantity of products and they can stop placing orders with us at any time. We are at risk of losing our big customers or causing them to lose their sales significantly. to Asia. These goods are manufactured in accordance with our specifications and quality assurance guidelines. Some proprietary products are made in Asia using the materials we provide. A large part of the sales of our products will come from the sales of the products we subcontracted to Asia, however, we are not sure if we can keep this subcontracting at the current level. If our ability to subcontract some manufacturing to Asia has dropped significantly, our business, operational results and financial position may be significantly adversely affected. The international manufacturing industry faces a range of risks, including the following: Es and brand names, including Alpha Pro Tech, through a combination of patents, trademarks, trade secrets and unfair competition laws. Certain of our employees, consultants and suppliers generally control the access and distribution of our proprietary information. Despite these precautions, third parties may, without authorization, copy or otherwise obtain and use our proprietary information, or independently develop similar information. This may affect our ability to expand our customer base and create sales. Competitive conditions and customer preferences affect the performance of the company. Products that affect revenue and profit margins are subject (i) The development of introducing competitive products(ii) In order to remain competitive, the company\'s response to the price reduction; (iii) Changes in customer order patterns, such as changes in inventory levels maintained by customers and timing of customer purchases; and (iv) Changes in customer preferences for our products, including the success of the products offered by competitors, and changes in customer design of competitors\' products, which may affect the needs of the company\'s products. Its growth target depends largely on the timing and market acceptance of new products to market, including its ability to constantly update new product channels and bring them to market. The information technology infrastructure of the company may interfere with the operation of the company, damage the information of the company and its customers and suppliers, and make the company liable, which may adversely affect the Company\'s business and reputation. S. information technology networks and infrastructure may be vulnerable to damage, disruption or closure due to hacking, vandalism, employee errors or malpractices, power outages, computer viruses, telecom or utility failures, natural disasters or other catastrophic events. While we have not encountered any significant loss to date in connection with cyber attacks or information security breaches, any such incident may result in legal claims or litigation, liability or punishment under privacy laws, disruption of operations, the company\'s reputation is damaged and may adversely affect the Company\'s business. Future results may be affected by various legal and regulatory procedures and legal compliance risks. and otherwise. The results of these legal proceedings may be different from the expectations of the company, as the results of the proceedings, including regulatory matters, are often difficult to reliably predict. Various factors or developments may result in the company, where applicable, changing the current estimates of liabilities and related insurance receivables, or making such estimates of matters that were not previously susceptible to reasonable estimates, such as major judicial decisions or changes in judgments, settlements, regulatory developments or applicable laws. Future adverse rulings, settlements or adverse developments may result in charges that may have a significant adverse effect on the company\'s operating results or cash flow for any given period. Government agencies and similar organizations; S and other effects of legal and administrative proceedings, claims, settlements and judgments; In an open trading entity with unstable stock prices, this can cause huge losses to the company. The common stock of the entity has been unstable and we expect it to continue to be unstable as it is a publicly traded stock. In particular, the common stock of the entity may have significant fluctuations due to various factors, including but not limited to: it provides services; Entity or its competitors; Sales of future common stock or other securities; andits control. We may not be able to sell our investment in publicly traded entities at a price higher than we paid, which may result in significant losses. 1B. The employee\'s opinion was not resolved. one. 2. Properties. Y\'s main executive office is located at 60 Centurian Drive, 112, L3R 9R2 suite, Markham, Ontario, Canada. According to the lease due on February 28, 2021, the rent is approximately $2,800 per month and the rent is 4,200 square feet. Working in the chief executive office is Lloyd Hoffman, president and CEO, and Colleen McDonald, chief financial officer. The average monthly rent of 36,000 square feet is $165,400. This lease expires on January 1, 2024. The disposable protective clothing department has Cutting, warehousing and transportation facilities at 1287 Fairway Avenue, Nogales, Arizona. The monthly rent of 25,000 square feet is $60,000. This lease expires on December 31, 2018. Make surgical masks in Salt Lake City West 236 North 2200, Utah. The monthly rent of 16,000 square feet is $34,500. This lease expires on July 31, 2019. It is considered that these arrangements are appropriate and sufficient to meet its current needs, and other places can be provided at any time if necessary. On August and 2017, the court ruled on the company\'s claim against its competitors. The competitor, as the winning party to these claims, then filed a motion to recover more than $2 million in attorney fees and fees from the company, which was approved by the court. In November of 2017 the company consultation of new litigation lawyer proposed re-consideration of lawyer Cost of reward. The court heard the hearing on the review in February 20. At the hearing, the court encouraged the parties to try to resolve the matter before making a decision on the re-examination motion. The two sides are currently working to arrange mediation in 2018. The company has accumulated in its financial statements that management has determined as a reasonable amount after the matter is expected to be resolved, and management intends to participate in the mediation in good faith in an attempt to reach a solution that is as beneficial to the company as possible. Regardless of the outcome of the pending mediation, and regardless of the motion to reconsider, the company expects that the amount of any attorney fee award will be significantly reduced than the amount requested. The company is also working with current litigation lawyers to assess possible avenues for recovering any payments that the company has finally paid, including possible claims against former litigation lawyers. It is not currently possible to reasonably estimate any amount that may be recovered in connection with any such claim. 4. Information disclosure of mine safety. The common shares of the company, related shareholder matters and the purchase of equity securities by the issuer. Arket information common stock transactions on the New York Stock Exchange ( Former New York Stock Exchange, New York Stock Exchange and US stock exchange)( New York Stock Exchange, USA \") In \"APT. \"As reported by the US division of the New York Stock Exchange, the Company\'s common shares were low and high selling prices during the period under review. In March 1, 2018, the Company\'s common stock was held by 147 registered shareholders and some 5,100 beneficial owners. The ordinary shares of IVIDEND boyycompany may receive such dividends, announcing that the board of directors of the company pays from time to time in legal funds. The company has never announced or paid any dividends of outstanding shares of any of its common stock. The board\'s current policy is not to pay dividends, but to use existing funds to buy back common shares in accordance with the company\'s repurchase plan and to fund the company\'s continued development and growth. Therefore, the company does not currently have a plan to pay a cash dividend in the foreseeable future. Any \"associated purchaser\" defined in Rule 10b\"18 (a)(3) The Securities Trading Act of 1934, 2017. Share Repurchase Plan, December 22, 2017, the company announced that the board of directors has authorized the company\'s existing share repurchase plan to expand by $2,000,000. All shares included in this table are purchased under this plan. Since the launch of the share repurchase program, the company has authorized the repurchase of $31,520,000 of common stock, of which $2,279,000 can be repurchased as of December 31, 2017. Registered sales of equity securities covered in this annual report and use of litigation procedures, see Form 10-K. Item. 7. Management Discussion and Analysis of Financial Position and operational results. Together with consolidated financial statements and consolidated notes to financial statements in other parts of this report. Forward- Looking ahead- Forward-looking statements include statements about our plans, objectives, strategies, future events, future earnings or performance, capital expenditures, financing needs, plans or intentions related to potential acquisitions and other non-historical information. When words such as \"estimate\", \"expectation\", \"forecast\", \"plan\", \"intention\" are used in this report, variations of \"believe\" and such words or similar expressions are intended to identify forward- Look at the report. We may do more forwarding. View reports from time to time. All forward- Whether it is written or oral, whether it is made by us or on our behalf, forward-looking statements clearly meet the conditions of this special note. . These and many other factors may affect the company\'s future operating results and financial position and may result in significant differences in actual results from forward-based expectations This document or forward-looking statements made by the company or its representative elsewhere. Based on our public number ( Total market value of ordinary shares of the company not held by the company Related companies of the company) The last working day for the second fiscal quarter ended 2017. As a smaller reporting company, we were allowed and chose to omit certain information from management\'s discussion and analysis of the financial position and results of operations; However, we have provided all the information that we believe will help to understand the appropriate and necessary period of the current consolidated financial situation, changes in the company\'s financial position and operating results. and EstimatesU. S. Principles of recognized accounting (“U. S. GAAP”) We are required to make estimates and assumptions about the amount of assets and liabilities reported, to disclose or have assets and liabilities on the date of the financial statements and the reported amount of net sales and expenses during the reporting period. We make estimates based on past experience and various other assumptions that are considered reasonable in this case. These accounting policies are applied on a consistent basis, enabling us to provide timely and reliable financial information. Our important accounting policies and estimates are more adequately described in Note 2-summary of important accounting policies in the notes to item 8 consolidated financial statements. Our key accounting policies and estimates include the following: Accounts receivable are accounted for at the invoice amount and do not count interest. Suspicious accounts allowance is the company\'s best estimate of the amount of credit losses that may occur in the company\'s existing accounts receivable; However, changes in accounts receivable-related circumstances may result in the need for additional allowances in the future. The Company determines the allowance according to the historical record- Experience and known conditions regarding the customer\'s current ability to pay. When a potential recovery is considered remote, the account balance is deducted from the allowance. Shipping included in stock- In materials, labor, and overhead costs, expressed in the lower of the cost or net realizable value. Slow allowance record Stock moves, is out of date or is unavailable. We evaluate whether our inventory has an estimated out-of-date or unsalable inventory and, based on assumptions about future sales and supply, write down the difference between the cost of inventory and the estimated net realizable value Hand if needed. If the actual market situation is not as favorable as the management expects, the additional inventory reduction- Ups and downs may be required. : For sales transactions, we comply with the provisions of the Securities and Exchange Commission (“SEC”) Employee accounting Announcement No. 104, income recognition, which stipulates that income should be recognized when all of the following income recognition criteria are met :(1) A persuasive evidence of the existence of an arrangement; (2) Transfer of Ownership and risk of loss to customers; (3) The selling price is fixed or determinable; and (4) The collection of the resulting accounts receivable is reasonably guaranteed. These standards are met when the product is shipped and the sales are recognized accordingly. Returns, returns, and allowances: any expected sales returns, rebates, and allowances will decrease sales based on historical experience. Since our return policy is only 90 days, our products are generally not susceptible to external factors such as outdated technology or significant changes in demand, and we are able to make reasonable estimates of returns. We offer end- Select the distributor\'s user product specific and sales rebate. Our rebate is calculated based on actual sales and is accumulated on a monthly basis. - Basic compensation: Company stock account- Committee on the use of Financial Accounting Standards (“FASB”) Compilation of accounting standards (“ASC”) 718. Stock compensation (“ASC 718”). ASC 718 requires the company to record the cost of value compensation for all outstanding and unvested shares Base payments including employee stock options and similar rewards. option- Pricing model and based on the following assumptions: stock price volatility, risk-based on historical data and management expectations for future volatility- Publication of free interest rates from sources, based on the expected period of historical data, there is no dividend yield as the board currently has no plans to pay dividends in the foreseeable future. When the option is lost, the company will explain it. The Black-Scholes option- A pricing model has been developed to estimate the fair value of trading options that are not subject to attribution restrictions and are fully transferable. Also, options- Pricing models need to input highly subjective assumptions, including expected stock price fluctuations. Our stock options have significantly different features from trading options, and changes in subjective input assumptions can have a significant impact on the fair value of such options. The supply part of the building, including the waterproof products of the building, such as the interior packaging and synthetic roof floor, as well as other woven materials; Part of disposable protective clothing, including disposable protective clothing such as shoe covers, shoes and hats, dresses, work clothes, lab coats, dresses and other miscellaneous products; Infection Control part consisting of a mask and eye mask. All financial information provided here reflects the current breakdown. Including pharmaceutical manufacturing, biology Pharmaceutical manufacturing, medical device manufacturing, experimental animal research, high-tech electronic manufacturing ( Including half. Conductor Market) Medical and Dental dealers, building, building supplies and roof dealers. And construction and reconstructionroofing sites. Our products are mainly sold in the United States through a network of purchasing groups, national distributors, local distributors, independent sales reps and our own sales and marketing teams. Show Year: 2017 compared with fiscal 2016, the annual consolidated sales as of December 31, 2017 fell from $44,025,000 in December 31, 2016 to $46,176,000, a decrease of $2,151,000, or 4. 7%. This decrease includes a $2,702,000 decrease in sales in the construction supply segment, an increase in sales in the infection control segment of $520,000, and an increase in sales in the disposable protective clothing segment of $31,000, partially offsetting this increase. The year ended December 31, 2017 decreased by $2,702,000, or 9. 9% dollar to 24,641,000 dollar and 27,343,000 dollars for 2016 dollars. This decrease is mainly due to 23. Sales of synthetic roof liners decreased by 4% ( Including Rex. ™, Popply™Our new technology®) , Partially offset by 8. Sales grew by 2% per cent at housewrap and 38 per cent. Sales of Other woven materials increased by 7%. For the year ended December 31, 2017, the sales portfolio of the building supply sector was 50% on the ground floor of the synthetic roof, 41% on home packaging and 9% on other woven materials. In contrast, for the year ended December 31, 2016, 51% of the ground floor of the synthetic roof, 41% of the House packaging, and 8% of other woven materials. We believe that at the same time as reducing waste of site materials, each direction can better protect the building from various factors, simplify the installation to reduce the labor force, and allow to bring fewer products to the job site. This new product is now competing for the home packaging market that has not been developed in history, and we expect it to provide us with significant growth opportunities in the future. 2017, as they are working to cope with the general decline in overall building sales. In addition, sales of another smaller private label dealer declined due to a change in strategy in 2016. These two distributors accounted for about 75% of the total decline in the construction supply sector in 2017. Despite the decline in sales in 2017, we believe that our synthetic roof base will be the driving force for growth in the coming year. An increase of $31,000, or 0, for the year ended December 31, 2017. 2% dollar to 14,250,000 dollar and 14,219,000 dollars for 2016 dollars. This increase is mainly due to increased sales to our major international supply chain partners, partially offset by reduced sales to our national and regional distributors. The year ended December 31, 2017 increased by $520,000, or 11. 3% dollar to 5,134,000 dollar and 4,614,000 dollars for 2016 dollars. Mask sales increased by 10. Monthly sales of 8%, $347,000, $3,558,000 and shield rose. Between $ 3% and $173,000, or $1,576,000. Gross profit increased by $468,000 or 2. $ 8%, $ December 31, 2017 for the year ending 17,452,000 and $16,984,000 for the year ending 2016. Gross margin is 39. The year ended December 31, 2017 was 6% per cent, compared to 36 per cent. 8% for 2016. Some disposable protective clothing segments duty-free in the United States in 2017S. General preferential system for Customs and Border Protection (GSP) As the government plan is not updated, tax exemption will no longer be available in 2018. As a result, the management expects the gross profit margin to decline in 2018, but it is still at a high of 30%. Sales, general and administrative expenses increased by $1,187,000, or 9. $ 3%, $ December 31, 2017 for the year ending 13,955,000 and $12,768,000 for the year ending 2016. Sales, general and administrative expenses increased to 31 as a percentage of net sales. The year ended December 31, 2017 was 7% per cent, from 27 per cent. 7% for 2016. About half of the increase was due to the accumulation of $619,000 related to the death allowance provided in the employment agreement of former president and president Alexander Miller, who died in December 2017. In addition, sales and marketing expenses increased by $399,000 as we expanded our sales team and strengthened our marketing plan to support future growth. Results of 2017 Up $532,000, or $12. 5%; The price of disposable protective clothing fell $109,000, or 3. 1%; Infection control fell $1,000, or 0. 3%; Unallocated expenses of the company increased by $765,000, or 17. 3%, as noted above, the record associated with the accumulation of death benefits is $619,000. The president and chief executive, as well as the former president and chairman, are entitled to a 5% bonus equivalent to the former president and chief executive. The tax profit of the company that does not include the bonus fee. The beneficiaries of the President, the chief executive and the former president voluntarily decided to reduce the bonus by 2017. Executive Bonus $118,000 for the year ended December 31, 2017, $232,000 for the same period- The company\'s tax profit, excluding bonus fees, is paid up to $1,000,000 as shown in the Company\'s audited consolidated income statement for the fiscal year. Al Millar, former president and chairman of the company, died in December 2017 and he was entitled to a similar 5% pre- Tax profit bonus under his employment agreement. For 2017, Mr. Hoffman and Mr. The beneficiary of Miller voluntarily decided to accept a 2017 reduction bonus. As of December 31, 2017, the company had accumulated $118,000 for these bonuses, compared to $232,000 for $2016. Depreciation and amortization costs increased by $27,000, or 5. $ 0%, $ December 31, 2017 for the year ending 571,000 and $544,000 for the year ending 2016. Revenue from the business decreased by $746,000, or 20. 3%, for the year ended December 31, 2017, it was $2,926,000, compared with $3,672,000 for 2016. The decrease in operating income was mainly due to an increase of $1,187,000 in sales, general and administrative expenses, an increase of $27,000 in depreciation and amortization expenses and an increase in gross profit of $468,000, partially offset. Excluding the accrued death allowance of $619,000 for the former president and president, operating income decreased by $127,000, or 3. 5%. Although the exclusion of this project does not comply with the United States regulationsS. Management believes that this information is useful in presenting one aspect The time impact of the accrual system on the company\'s 2017 performance. For the year ended December 31, 2017, other income increased by $241,000 to $744,000 and $503,000 to $2016. Other income includes equity in income from unincorporated affiliates, proceeds from the sale of property and interest income. Other income mainly includes an unincorporated affiliate income of $355,000 in equity, proceeds from the sale of property of $385,000 and interest income of $4,000 for the year ended December 31, 2017. Other income mainly includes equity of $498,000 in unincorporated affiliate income for the year ended December 31, 2016 and interest income of $5,000. Due to the high gross profit margin and more revenue related to the government incentive plan, the income rights of unincorporated affiliates increased significantly in 2016. The income tax pre-provision income for the year ended December 31, 2017 was $3,670,000, while the income pre-provision income for 4,175,000 was $2016, a decrease of $505,000, or 12. 1%. The decrease in income before income tax provision was mainly due to a decrease of $746,000 in business income, partially offset by an increase of $241,000 in other income. Excluding the accumulated death benefits of the former president and president, $619,000 was included, and income before income tax provision increased by $114,000, or 2. 7%. Although the exclusion of this project does not comply with the United States regulationsS. Management believes that this information is useful in presenting one aspect The time impact of the accrual system on the company\'s 2017 performance. s. Income tax allocations for the year ended December 31, 2017 amounted to $1,037,000, compared to $1,007,000 for 2016. The effective tax rate is expected to be 28. The year ended December 31, 2017 was 3% per cent, compared to 24 per cent. 1% for 2016. In the fourth quarter of 2017, the Company recorded Due to the United States, the time tax for repatriation tax is $89,000. S. Tax reform and federal tax rates fell from 53,000 to $ 35% in tax incentives of 21%, and net tax expenditures increased by $36,000. If the tax is not increased, the actual tax rate is 27. For the year ended December 31, 2017, it was 3%. In the fourth quarter of 2016, the company received $194,000 in tax concessions from reversing the uncertain tax positions accumulated in 2012. Excluding this tax benefit, the actual tax rate should be 28. For the year ended December 31, 2016, it was 8%. We believe that these figures are useful for comparing the results of 2017 with those of 2016. The exclusion of tax- The relevant items discussed in this section do not comply with US regulationsS. Management believes that this information is useful in presenting one aspect The time impact of these events. Net income for the year ended December 31, 2017 was $2,633,000, while net income for 3,168,000 was $2016, a decrease of $535,000, or 16. 9%. The decrease in net income was due to a decrease of $505,000 in income before the income tax reserve and an increase of $30,000 in income tax reserve. Net income for the year ended December 31, 2017 as a percentage of net sales was 6. 0%, net income as a percentage of net sales was 2016 per cent, 6 per cent. 9%. Basic and diluted earnings per share as of December 31, 2017 and 2016 were $0. 18 and $0. 19 respectively. Excluding the death benefits of the former president and president, the $619,000 accrued, that is, $451,000 after tax deduction, and net tax expenditures in the United StatesS. The $36,000 tax reform was originally $3,120,000. Net income for 2016 was $194,000, excluding a $2,974,000 tax offer from 2012 to reverse uncertain tax conditions. Does not include the above- The time adjustment for 2017 and 2016 annual net income was $3,120,000 and $2,974,000 respectively, an increase of $146,000 or 4. 9%. The basic and diluted earnings of $2017 per share of common stock will be $0. 21, compared to $0. 18 for 2016. We believe that these figures are useful for comparing the results of 2017 with those of 2016. The exclusion of tax- The relevant items discussed in this section do not comply with US regulationsS. Management believes that this information is useful in presenting one aspect The time impact of these events. In December 31, 2017, we had $8,763,000 in cash and $24,177,000 in working capital, which meant a decrease of 11 in working capital. 1%, or $3,021,000 in December 31, 2016. Our current rate as of December 31, 2017 ( Current Assets/current liabilities) Compared to the 12:1 Current ratio as of December 31, 2016, it is 10:1. Cash reduction 7. $ 3%, or $693,000, was $8,763,000 as at December 31, 2017, compared to $9,456,000 as at December 31, 2016. The decrease in cash is due to the fact that cash used for financing activities is $4,016,000 and cash used for investment activities is $685,000, offset by cash provided for operating activities of $4,008,000. On December 31, 2017, the preferential interest rate was 4. 50%. The credit line was renewed on May 2016 and expired on May 2018. The amount of credit available is based on the formula for eligible accounts receivable and inventory. As of December 31, 2017, our borrowing capacity on the line of credit was $3,500,000. As of December 31, 2017, we did not borrow any money under this credit arrangement and are not expected to use it in the near future. 4,008,000 Net income for the year ended December 31, 2017 was $2,633,000, mainly affected: Compensation costs of $296,000, depreciation and amortization costs of $571,000, income equity of $355,000 unincorporated affiliates, property sale proceeds of $385,000, deferred income tax changes of $378,000, accounts receivable increased by $136,000, prepaid expenses decreased by $681,000, inventory decreased by $745,000, and accounts payable and accrued liabilities increased by $336,000. 833,000 Net income for the year ended December 31, 2016 was $3,168,000, mainly affected: Compensation costs of $190,000, depreciation and amortization costs of $544,000, income equity of unincorporated affiliates of $498,000, deferred income tax changes of $21,000, and an increase of $2,052,000 in accounts receivable, prepaid expenses increased by $254,000, inventory decreased by $5,404,000, and accounts payable and accrued liabilities increased by $310,000. 136,000, or 2. 8%, from $4,958,000 in December 31, 2017 to $4,822,000 in December 31, 2016. The increase in accounts receivable was mainly related to sales in 2017, which was higher than in 2016. As of December 31, 2017, the number of days that sales have not been completed, using the average of outstanding accounts receivable and annual income, is 41 days, compared to 30 days as of December 31, 2016. 745,000, or 6. 8%, from $10,249,000 in December 31, 2017 to $10,994,000 in December 31, 2016. The main reason for the reduction was the reduction in inventory in the one-time protective clothing department by $272,000, or $7. 3%, to $3,464,000, a decrease of $340,000, or 6, in the building supply segment. 9%, to $4,569,000, the share of infection control stocks decreased by $133,000, or 5. 7% to $2,216,000. Due to management\'s decision to reduce inventory days, there has been a decrease in inventory in all departments. $681,000 or 20 less. 4%, from $2,665,000 in December 31, 2017 to $3,346,000 in December 31, 2016. The main reason for the reduction is the reduction in deposits for purchasing inventory and prepaid taxes. An increase of $336,000, or 13, was made in December 31, 2017. 6%, from $2,801,000 in December 31, 2016 to $2,465,000. This change is mainly due to an increase in trade payables and an increase in accrued liabilities. For the year ended December 31, 2017, it was 685,000 per cent, while for 308,000, net cash for investment activities was $2016. Investment activities for the year ended December 31, 2017 included the purchase of $1,222,000 in property and equipment, offset by proceeds from the sale of $537,000 in property. Investment activities for the year ended December 31, 2016 included the purchase of $267,000 in property and equipment and the purchase of $41,000 in securities. For the year ended December 31, 2017, it was 4,016,000 per cent, while for 6,750,000, net cash for financing activities was $2016. The net cash used for financing activities for the year ended December 31, 2017 was due to the payment of $4,226,000 for the repurchase of common shares, partially offset by the proceeds of $210,000 obtained from the exercise of stock options. The net cash used for financing activities for the year ended December 31, 2016 came from the payment of $6,773,000 to repurchase common shares, partially offset by the exercise of stock options earning $17,000 and the excess tax income of $6,000 to exercise stock options. In December 31, 2017, we had $2,279,000 available for additional stock purchases under our stock repurchase program. For the year ended December 31, 2017, we have repurchased 1,232,476 ordinary shares for $4,226,000. As of December 31, 2017, we have repurchased a total of 16,204,007 ordinary shares at a price of $29,241,000 through the repurchase program. After the stock is bought back, we take it all back. Future repurchases are expected to be funded by cash on hand and cash flow from operating activities. E Company used a law firm, a majority of which is also a member of the board of directors of the Company. The amount charged by the law firm is charged at the normal billing rate of the law firm. The terms of this guide have been evaluated, and at this time it has been determined that the adoption of this guide will have a limited impact on the company\'s financial position and results of operations. Simplify the measurement of inventory (“ASU 2015-11”) Applicable to the determination of inventory firstin, first-out (\"FIFO\") Or average cost Under the guidance of the update, the company should measure the inventory within the scope at a lower cost and net realizable value, which is the estimated selling price in the normal business process, the reasonably predictable cost of completion, disposal and transportation is lower rather than lower cost or lower market. This guidance is valid for the year and mid-term beginning after December 15, 2016 and allows early adoption at the beginning of the interim or annual reporting period. The company adopted this guidance in 2017. The guide also changes certain disclosure requirements related to the fair value of financial instruments. These changes will require the entity to measure the equity securities investment and other proprietary interests of the entity at fair value and to confirm changes in the fair value in net income. The guide is valid for the fiscal year and medium term beginning after December 15, 2017. Since January 1, 2018, the company will record the accumulation after adopting this guide- The unrealized net tax loss of the company\'s marketable securities investment was adjusted at the beginning of the period of $458,000. Unrealized gains and losses for saleable securities investments will be recorded within the expected net income range. Financial status or operating results. -Subject of credit loss 326, requiring entity to use new forward Looking for the \"expected loss\" model, which usually results in early confirmation of the loss allowance. This guidance is valid for the annual period beginning after December 15, 2019, including the interim period for that year. Early adoption is allowed. Management is evaluating the requirements of this guide, but has not yet determined the impact of the adoption of this guide on the company\'s financial position or results of operations. at this time. 7A. Quantitative and qualitative disclosure of market risks. Products from China and Mexico, and established joint ventures in India. In addition, our main executive office is located in Canada with 15 employees. We don\'t think we have significant foreign exchange risks because our purchase agreements with Chinese, Indian and Mexican companies are settled in the United StatesS dollars. In addition, all sales transactions are in the United States. S. dollars. In Canada, our foreign exchange risk is not important as we are not doing manufacturing operations in Canada. Our risk is limited to the salary expenditure of the Canadian branch. Do not expect that inflation, interest rates or exchange rate fluctuations will have any significant impact on our consolidated operating results. We do not hedge interest rates or foreign exchange risks. Financial statements and supplementary information. Consolidated financial statements or notes. The Financial Reporting internal control reporting Securities Trading Act of 1934 is a procedure designed or supervised by our main executives and key financial personnel, and effective by our board of directors, management and other personnel to provide a reasonable guarantee to ensure the reliability of the financial report, and prepare external financial statements in accordance with the provisions of the United StatesS. Recognized accounting principles, including policies and procedures related to the maintenance of records that reflect our transactions in reasonable detail, accurately and fairly; Provide reasonable assurance to ensure that transaction records are made, if necessary, in order to prepare financial statements as required by the United StatesS. Recognized accounting principles, our revenues and expenditures are made only on the authorization of management and directors; And provide reasonable guarantee for preventing or timely discovering unauthorized acquisition, use or disposal of our assets that may have a significant impact on the financial statements. . 17. the effectiveness of our internal control over financial reporting. This assessment is based on the criteria established in accordance with internal controls Comprehensive Framework issued by the Committee of Sponsoring Organizations of the tredeway Committee (2013 framework). Based on this assessment, our management has concluded that our internal controls on financial reporting will take effect from December 31, 2017. Equity and cash flow for the year that then ended, and related notes ( Collectively referred to as \"Financial Statements \"). We believe that the financial statements show fairly, in all important respects, the Company\'s consolidated financial position as of December 31, 2017 and 2016, the combined results of its operations and the cash flow for subsequent years are consistent with the situation in the United StatesS. Recognized accounting principles. ’s management. Our responsibility is to make comments on the company\'s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting supervision committee (United States)(“PCAOB”) And required to remain independent in the company in accordance with U. S. regulationsS. Federal securities laws and applicable rules and regulations of the Securities and Exchange Commission and PCAOB. These criteria require us to plan and execute audits to obtain reasonable assurance as to whether there is no material misstatement in the financial statements, whether due to errors or fraud. Companies do not need and do not need to audit internal controls on their financial reports. As part of the audit, we need to understand the internal control of the financial report, but not to express our opinion on the effectiveness of the company\'s internal control of the financial report. Therefore, we have not expressed such opinions. We believe that our audit provides a reasonable basis for our opinion. Audit since 2011. The company, as well as other woven materials. shields. The products are sold in the brand name and private label of Alpha Pro Tech, mainly in the United States (“U. S. ”). Summary of corporate important accounting policies consolidated financial statements include accounts of the company and its wholly owned subsidiary, Alpha Pro Tech, Inc. And Alpha Protection Engineering Products Co. , Ltd. In the merger, all important inter-company accounts and transactions were canceled. 17 until the date of submission of these financial statements to the Securities and Exchange Commission (“SEC”) These factors were taken into account in the preparation of these financial statements. Decoration that meets American standardsS. Principles of recognized accounting (“U. S. GAAP”) Management is required to make estimates and assumptions that affect the amount of assets and liabilities reported and the date of the financial statements or the disclosure of assets and liabilities and the amount of income and expenditure reported during the reporting period. The actual results may be different from those estimates. In addition to sharing data, the current amount has been rounded up to the nearest thousand. The company obtained the qualifications of the smaller reporting company that determined such qualifications on the measurement date. According to the disclosure requirements of the small reporting company, the Company has included in recent years the balance sheet as of the end of 20 and the income, consolidated income statements, and in recent years the equity and cash flow of shareholders. And stock securities. These investments are classifiedfor- Sales according to US regulationsS. GAAP. The company has not made any investment in securities classified as heldto- Due or trading. Available-for- Sales investment is carried out at fair value, using active market quotations of the same securities, and unrealized gains and losses deducted from Deferred income tax, which have been reported as an integral part of accumulated other comprehensive income (loss). Realized gains and losses, as well as losses seen as other valuesthan- Available temporarily-for- Confirm sales investment in net income. The cost of selling securities is based on specific identification methods. The company intends to hold more than one year of investment classified as long-term investment Regular investment in the accompanying balance sheet. D. non-investment Transaction warrants for the purchase of common shares in publicly traded entities. These warrants are derivatives held at fair value on the accompanying balance sheet. The profit and loss of the change in the fair value of the warrants is confirmed in the accompanying income statement during its occurrence. Suspicious accounts allowance is the company\'s best estimate of the amount of credit losses that may occur in the company\'s existing accounts receivable; However, circumstances related to the account have changed, resulting in the need for additional allowances in the future. The Company determines the allowance according to the historical record- Experience and known conditions regarding the customer\'s current ability to pay. When management determines that the collection probability is remote, the account balance will be deducted from the allowance. Net realizable value. Slow allowance record Inventory that is moving, out of date, or unusable. The Company evaluates the inventory of estimated out-of-date or unsalable products and, based on assumptions about future sales and supply, writes down the difference between inventory costs and estimated net realizable valuehand. Equipment is represented by cost minus accumulated depreciation and amortization. Once the initial planning of the software project is completed, the cost of developing the internal use of the software is capitalized. Depreciation or amortization of property and equipment One line of the shorter terms of the asset\'s respective useful life or related lease terms is as follows: Assetsdefinite- According to the Financial Accounting Standards Committee (“FASB”) Compilation of accounting standards (“ASC”) 350. Intangible assets-Goodwill and others. Goodwill is not modified, but impairment tests are conducted annually. Intangible assets with limited life are amortized over their service life (see Note6). The company\'s patents and trademarks are recorded on a cost basis and are used straight- Their line method for estimating service life17years. It cannot be determined precisely. The company\'s financial instruments mainly include cash and securities. Tradable securities are classifiedfor- Sales, and according to the market quotation in a fair market value. Long- The Livedassetsit business situation indicates that the book amount of these assets may not be fully recovered. If it is determined that the undiscounted future net cash flow is not sufficient to recover the book value of the asset, the impairment loss is confirmed as the book value exceeds the fair value of the asset. The Company believes that future undiscounted net cash flow received from it for a long time The living assets exceed the book value of the assets and, as a result, the company is not aware of any impairment losses for 31 years, the company and 2016. Identification is recognized when the following criteria are met :(1) A persuasive evidence of the existence of an arrangement; (2) Transfer of Ownership and risk of loss to customers; (3) The selling price is fixed or determinable; and (4) The collection of the resulting accounts receivable is reasonably guaranteed. These standards are met when the product is shipped. S sales cost record for distributors. - Based on compensation. share- Stock compensation according to ASC718. Asc718 requires the company to record the value compensation fee for all outstanding and unvested shares- Basic rewards including employee stock options. 17and2016, according to the Company\'s option plan, 85, 000 and 855000 stock options were granted respectively. The company confirmed $296 per share and $190 per share The annual compensation expenses related to outstanding options are 31, 2016, respectively. Use the asset liability method.