Company: CRWS
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001437749-25-034222
Chunk: 4

Company: CROWN CRAFTS INC
Filing Date: 2025-11-12
Form: 10-Q
Item: Item 1
Chunk 4
---
 the existence of quantities on hand which  may not reasonably be expected to be sold within the Company’s normal operating cycle. To the extent that any of these conditions is believed to exist or the market value of the inventory expected to be realized in the ordinary course of business is otherwise no longer as great as its carrying value, an allowance against the inventory value is established. To the extent that this allowance is established or increased during an accounting period, an expense is recorded in cost of products sold in the Company’s consolidated statements of income.   As of  September 28, 2025 and  March 30, 2025, the Company’s balances of inventory were $32.6 million and $27.8 million, respectively, net of an inventory obsolescence reserve of $967 thousand and $997 thousand, respectively.       7 Note 6 – Property, Plant and Equipment
   Net property, plant and equipment consisted of the following (amounts in thousands):    
                                             September 28, 2025      March 30, 2025 
------------------------------------------------------------------------------------
Property, plant and equipment - at cost:                                            
Machinery and equipment                                    6,162               5,845
Leasehold improvements                                       571                 562
Furniture and fixtures                                       518                 518
Property, plant and equipment - gross                      7,251               6,925
Less accumulated depreciation                              5,426               5,037
Property, plant and equipment - net                        1,825               1,888
    Depreciation expense amounted to $191 thousand and $158 thousand for the three months ended  September 28, 2025 and  September 29, 2024, respectively, and amounted to $389 thousand and $342 thousand for the six months ended  September 28, 2025 and  September 29, 2024, respectively. 

 Note 7 – Financing Arrangements
   Factoring Agreements:  To reduce its exposure to credit losses, the Company assigns the majority of its trade accounts receivable to The CIT Group/Commercial Services, Inc. (“CIT”), a subsidiary of First Citizens Bank, pursuant to factoring agreements, which have expiration dates that are coterminous with that of the financing agreement described below. Under the terms of the factoring agreements, CIT remits customer payments to the Company as such payments are received by CIT. As such, the Company does not take advances on the factoring agreements.   CIT