Company: CULP
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0000950170-25-035191
Chunk: 152

Company: CULP INC
Filing Date: 2025-03-07
Form: 10-Q
Item: Item 8
Chunk 152
---

        Less: interest

        (467
        )

        Present value of lease liabilities
         
        $
        5,152

I-30

 As of January 26, 2025, the weighted average remaining lease term and discount rate for our operating leases follows: 

        January  26, 2025

        Weighted average lease term (in years)
         
        3.24

        Weighted average discount rate

        5.50
        %

18. Commitments and ContingenciesLitigationThe company is involved from time to time in legal proceedings and claims which arise in the ordinary course of business. Management has determined that it is not reasonably possible that any pending actions, when ultimately concluded and settled, will have a material adverse effect upon the consolidated financial position, consolidated results of operations, or consolidated cash flows of the company.Accounts Payable – Capital ExpendituresAs of January 26, 2025, January 28, 2024, and April 28, 2024, we had amounts due regarding capital expenditures totaling $439,000, $19,000, and $343,000, respectively, which pertained to outstanding vendor invoices, none of which were financed.Purchase Commitments – Capital ExpendituresAs of January 26, 2025, we had open purchase commitments to acquire equipment for our mattress fabrics segment totaling $600,000.

19. Statutory ReservesOur subsidiary located in China was required to transfer 10% of its net income, as determined in accordance with the People’s Republic of China (PRC) accounting rules and regulations, to a statutory surplus reserve fund until such reserve balance reached 50% of the company’s registered capital. As of January 26, 2025, the statutory surplus reserve fund represents the 50% registered capital requirement, and therefore, our subsidiary located in China is no longer required to transfer 10% of its net income in accordance with PRC accounting rules and regulations. The transfer to this reserve must be made before distributions of any dividend to shareholders. As of January 26, 2025, the company’s statutory surplus reserve was $4.0 million. The statutory surplus reserve fund is non-distributable other than during liquidation and can be used to fund previous years’ losses, if any. The statutory surplus reserve fund may be utilized for business expansion or converted into share capital by issuing new shares to existing shareholders in proportion to their shareholding or by increasing