Company: CRWS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026346
Chunk: 1

Company: CROWN CRAFTS INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 1
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, Income Statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40) -  Disaggregation of Income Statement Expenses, the objective of which is to enhance the transparency and usefulness of financial statements by requiring public business entities to provide more detailed disclosures about their expenses. The amendments in ASU No. 2024-03 are required to be adopted for annual reporting periods beginning after  December 15, 2026, and for interim periods within annual reporting periods beginning after  December 15, 2027, and early adoption is permitted. The Company is evaluating the guidance of the ASU No. 2024-03 against its existing disclosures related to income statement expenses.   The Company has determined that all other ASUs issued which had become effective as of  June 29, 2025, or which will become effective at some future date, are not expected to have a material impact on the Company’s consolidated financial statements.   Loss Per Share: Due to the net loss incurred by the Company in the three-month periods ended  June 29, 2025 and  June 30, 2024, diluted shares used in the calculation of the diluted loss per share represented basic shares because the inclusion of the potentially dilutive effect of the exercisable stock options would have resulted in anti-dilution.  Note 2 – Advertising Costs
   Advertising expense is included in marketing and administrative expenses in the accompanying unaudited condensed consolidated statements of operations and amounted to $396,000 and $127,000 for the three months ended  June 29, 2025 and  June 30, 2024, respectively.       5 Note 3 – Segment Reporting
   The Company’s operations are managed and reported to its Chief Executive Officer, the Company’s chief operating decision maker (“CODM”), on a consolidated basis. The Company operates primarily in one principal segment, infant, toddler and juvenile products. These products consist of infant and toddler bedding, diaper bags, bibs, toys and disposable products. The CODM assesses performance and allocates resources based on the Company’s consolidated statements of operations, which requires the CODM to manage and evaluate the results of the Company in a consolidated manner to drive efficiencies and develop uniform strategies. Segment asset information is not used by the CODM to allocate resources.   As a single reportable segment entity, the Company’s segment performance measure is net income (loss). The following table presents information about the Company’s reportable segment (in thousands