Company: CRWS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001437749-25-034222
Chunk: 7

Company: CROWN CRAFTS INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 7
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 that prioritizes the inputs used to develop those assumptions and measure fair value. The hierarchy requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs in the fair value hierarchy are as follows:   
●   Level 1 – Includes the most reliable sources, and includes quoted prices in active markets for identical assets or liabilities.
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●   Level 2 – Includes observable inputs. Observable inputs include inputs other than quoted prices that are observable for the liability, interest rates and forward rate curves, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the liabilities.
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●   Level 3 – Includes unobservable inputs and should be used only when observable inputs are unavailable.
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   The carrying value of financial instruments reported in the accompanying condensed consolidated balance sheets for cash, which is considered Level 1, accounts receivable, accounts payable, accrued expenses and other liabilities, which are all considered Level 2, approximate fair value due to the immediate or short-term nautre of these financial instruments.   The following table presents fair value of debt as of  September 28, 2025:
    
                                                                                                          Fair Value Measurement Using                                                             
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                                            Quoted Prices in Active Markets for Identical Assets                Significant Other Observable Inputs               Significant Unobservable Inputs  
                               Fair Value   (Level 1)                                                           (Level 2)                                         (Level 3)                        
Term loan                          $5,637   $-                                                                  $5,637                                            $-                               
Revolving line of credit           10,422                                -                                                          10,422                                          -              
Total debt                        $16,059   $-                                                                  $16,059                                           $-                               
    The Company uses a valuation model to determine the fair value of its revolving line of credit and the term loan with CIT. The Company uses a discounted cash flow model to project the future principal and interest payments over the remaining life of the loans. The significant inputs used in the model are observable market data including SOFR Forward Curves.            The aggregate maturities of long-term debt for each of the five years subsequent to  September 28, 2025 are: $1.0 million in fiscal 2026, $2.0 million in fiscal 2027, $2.2 million in fiscal 2028, $500 thousand in fiscal 2029 and $10.7 million in fiscal 2030.