Company: CRWS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026346
Chunk: 7

Company: CROWN CRAFTS INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 7
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 The amortization of the debt issuance costs was charged to interest expense. The amount of debt issuance costs included in interest expense were $3,000 and $0 for the three months ended  June 29, 2025 and  June 30, 2024, respectively.       9
  
  The aggregate maturities of long-term debt for each of the five years subsequent to  June 29, 2025 are: $1.5 million in 2026, $2.0 million in 2027, $2.2 million in 2028, $500,000 in 2029 and $7.7 million in 2030.
 

 Note 9 – Goodwill
   Goodwill represents the excess of the purchase price over the fair value of net identifiable assets acquired in business combinations. For the purpose of presenting and measuring for impairment of goodwill, the Company has two reporting units: one that produces and markets bedding and diaper bags and another that produces and markets bibs, toys and disposable products. The Company measures for impairment of the goodwill within its reporting units annually as of the first day of the Company’s fiscal year. The Company reported goodwill net of impairment charges of $7.9 million at  June 30, 2024. For the fiscal year ended  March 30, 2025, the Company determined that a triggering event occurred in relation to the depressed market price of the Company’s common stock and corresponding significant decline in the Company’s market capitalization. As a result, the Company performed a quantitative goodwill impairment test. Based on the goodwill impairment analysis performed, the Company determined that the estimated fair values of its reporting units were lower than the carrying value, indicating the goodwill within these reporting units had been impaired. Consequently, the Company recorded a non-cash goodwill impairment charge of $13.8 million during the three-month period ended  March 30, 2025. The Company reported no goodwill at  June 29, 2025.
 

 Note 10 – Concentrations
   Product Sourcing: Foreign and domestic contract manufacturers produce most of the Company’s products, with the largest concentration being in China. The Company makes sourcing decisions on the basis of quality, timeliness of delivery and price, including the impact of ocean freight and duties. Although the Company maintains relationships with a limited number of suppliers, the Company believes that its products  may be readily manufactured by several alternative sources in quantities sufficient to meet the Company’s requirements. The Company’s management and quality assurance