Alpha Pro Tech Ltd Liquidation Value

Alpha Pro Tech (APT) presents a positive liquidation recovery posture as of March 31, 2026, driven primarily by a large cash position and substantial net working capital relative to a minimal debt load. Total assets of $73.0M are overwhelmingly comprised of high-quality liquid assets: cash of $16.9M (100% recovery), accounts receivable of $9.3M (90-95% recovery, ~$8.4-8.8M), and inventory of $22.0M (60% recovery, ~$13.2M). PP&E net of $8.1M warrants a 50-70% haircut, yielding $4.1-5.7M in recovery. The equity investment in unconsolidated affiliate Harmony ($5.4M) carries uncertain recovery—this is an illiquid 41.7% minority stake in a private Indian manufacturer, and forced-sale value would likely be a fraction of book; effectively treat as zero to negligible in a distress scenario. Right-of-use assets ($7.5M) extinguish on winding up but the corresponding operating lease liability ($7.6M) survives at face value. Goodwill ($55K) is zero. Total face-value liabilities are modest at $10.0M, of which operating lease obligations account for $7.6M. Applying standard haircuts: estimated liquidation recovery to equity is approximately $30-35M against book equity of $63.0M, consistent with MFFAIS's operating liquidation value estimate of ~$29.6M. No financial debt outstanding. The IEEPA tariff refund claim (filed with CBP, material but not yet recognized as an asset) represents a contingent upside not reflected on the balance sheet; filing explicitly states recovery is not probable or reasonably estimable. Inventory decreased $1.6M QoQ from December 31, 2025 ($23.6M to $22.0M), reflecting deliberate pullback in purchasing given elevated tariff-burdened stock. AR increased $1.2M to $9.3M on higher Q1 2026 sales. Lease liability declined $238K to $7.6M through regular amortization. The AOCL on the Harmony investment widened by $299K to -$2.2M, reflecting INR/USD currency translation pressure, reducing the carrying value of the equity investment. No new debt, no pension obligations, no restructuring charges, no goodwill impairment. The balance sheet structure is simple and asset-quality is sound; the primary liquidation risk factors are inventory haircut magnitude and the non-monetizable Harmony minority stake.