Note 12 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

12. Commitments and Contingencies

Operating

Lease

Commitments:

The Company leases its facilities under non-cancelable operating leases expiring on various dates through

January 1, 2024.

The following summarizes future minimum lease payments required under non-cancelable operating lease

agreements:

	Future Minimum
Years Ending December 31,	Lease Payments
2018	$	958,000
2019		615,000
2020		485,000
2021		456,000
2022		450,000
Thereafter		450,000
	$	3,414,000

Total rent expense under operating leases for the years ended

December 31,

20

17

and

2016

was

$1,047,000

and

$1,031,000,

respectively.

Legal Proceedings

:

The Company is presently involved in protracted litigation against a competitor in an action styled Alpha Pro Tech, Inc. v. VWR International, LLC, pending in the U.S. District Court for the Eastern District of Pennsylvania, CV

12

-

1615,

wherein the Company originally sought damages for unfair trade practices and false advertising against the competitor, and the competitor counterclaimed asserting similar claims against the Company.

  In

August

of

2017,

the court ruled against the Company on its claims against the competitor. The competitor, as the prevailing party with respect to those claims, subsequently filed a motion seeking to recover from the Company an amount in excess of

$2

million in attorneys’ fees and costs, which motion was granted by the court. In

November

of

2017,

the Company, in consultation with new litigation counsel, filed a motion to reconsider the attorneys’ fee award. The court heard arguments on the motion to reconsider at a hearing in

February

of

2018.

At the hearing, the court encouraged the parties to attempt to resolve the matter in advance of a ruling on the motion to reconsider. The parties are currently working to schedule a mediation to occur during

March

of

2018.

The Company has accrued in its financial statements an amount that management has determined to be reasonable in anticipation of a resolution of the matter, and management intends to participate in good faith in the mediation to attempt to reach a resolution of the matter that is as favorable to the Company as possible. Regardless of the outcome of the pending mediation or the motion to reconsider, the Company expects that the amount of any attorneys’ fee award will be significantly reduced from what is being requested. The Company is also in the process of evaluating, with current litigation counsel, possible avenues for recovery of any amount ultimately paid by the Company to resolve the matter, including possible claims against former litigation counsel. Any amount that might be recovered in connection with any such claims cannot be reasonably estimated at this time.

The Company is subject to various pending and threatened litigation actions in the ordinary course of business. Although it is

not

possible to determine with certainty at this point in time what liability, if any, the Company will have as a result of such litigation, based on consultation with legal counsel, management does

not

anticipate that the ultimate liability, if any, resulting from such litigation will have a material effect on the Company's financial condition and results of operations.