Company: CRWS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001437749-25-034222
Chunk: 9

Company: CROWN CRAFTS INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 9
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 Tangible assets:                           
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Accounts receivable                               $3,764
Inventories                                        1,989
Prepaid expenses and other current assets            354
Total tangible assets                              6,107
Amortizable intangible assets:                          
Tradename                                            350
Licensing relationships                            4,600
Total amortizable intangible assets                4,950
Goodwill                                           5,840
Total acquired assets                             16,897
Liabilities assumed:                                    
Accounts payable                                     601
Total liabilities assumed                            601
Net acquisition cost                             $16,296
    Based upon the initial allocation of the acquisition cost, the Company recognized $5.3 million of goodwill as of the Closing Date, the entirety of which was assigned to the reporting unit of the Company that produces and markets infant and toddler bedding and diaper bags, and the entirety of which is expected to be deductible for income tax purposes. The goodwill recognized primarily consists of synergies expected from combining operations of Baby Boom and the Company and intangible assets acquired that do not qualify for separate recognition. The following table represents adjustments made to the amount of goodwill during the fiscal year ended  March 30, 2025 (in thousands):    
Amount of goodwill recognized based upon the preliminary allocation of the acquisition cost     $5,319     
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Adjustments made during the fiscal year ended March 30, 2025:                                              
Increase to pre-acquisition accounts payable                                                         10    
Decrease to tradename as of the Closing Date                                                         70    
Decrease to licensing relationships as of the Closing Date                                          500    
Settlement of working capital adjustment                                                            (59   )
Net adjustments made during the fiscal year ended March 30, 2025                                    521    
    Amortization expense associated with the acquired amortizable intangible assets was $88 thousand and $65 thousand for the three months ended  September 28, 2025 and  September 29, 2024, respectively, and $176 thousand and $65 thousand for the six months ended  September 28, 2025 and  September 29,2024, respectively, which is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of income. Amortization is calculated using the straight-line method over the estimated useful lives of the assets, which are 15 years for the tradename, 14 years for the customer and licensing relationships and 14 years on a weighted-average basis for the grouping taken together.