Company: CRWS
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0001437749-25-026346
Chunk: 2

Company: CROWN CRAFTS INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 2
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):    
                                                   Three-Month Periods Ended               
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                                        June 29, 2025                   June 30, 2024      
Net sales                               $15,478                         $16,212            
Less:                                                                                      
Cost of products sold                            11,960                          12,246    
Marketing and administrative expenses             4,717                           4,263    
Interest expense, net and other         184                             89                 
Income tax benefit                                 (279      )                      (64   )
Segment net loss                        $(1,104              )          $(322             )
    Included in the profit or loss measure above are the following: Depreciation expense and amortization expense were $198,000 and $214,000, respectively, for the three months ended  June 29, 2025 while for the three months ended  June 30, 2024, depreciation and amortization expenses were $184,000 and $148,000, respectively. 

 Note 4 – Licensing Agreements
   The Company has entered into licensing agreements that provide for royalty payments based on a percentage of sales with certain minimum guaranteed amounts. These royalty amounts are accrued based upon historical sales rates adjusted for current sales. Royalty expense is included in cost of products sold in the accompanying unaudited condensed consolidated statements of operations and amounted to $1.0 million and $1.1 million for the three months ended  June 29, 2025 and  June 30, 2024, respectively.  Note 5 – Income Taxes
   The Company files income tax returns in many jurisdictions in which it operates, including the U.S., several U.S. states and the People’s Republic of China. The statute of limitations varies by jurisdiction; tax years open to examination or other adjustment as of  June 29, 2025 were the fiscal years ended  March 30, 2025,  March 31, 2024,  April 2, 2023,  April 3, 2022,  March 28, 2021, and  March 29, 2020.
   Although management believes that the calculations and positions taken on its filed income tax returns are reasonable and justifiable, the outcome of an examination could result in an adjustment to the position that the Company took on such income tax returns. Such adjustment could also lead to adjustments to one or more other state income tax returns, or to income tax returns for subsequent fiscal years, or both. To the extent that