Crown Crafts, Inc. Annual report [Section 13 and 15(d), not S-K Item 405]

Note 11 - Income Taxes (Tables)

12 Months Ended

Mar. 30, 2025

	Fiscal year ended March 30, 2025
	Current		Deferred			Total
Income tax expense (benefit) on current year income:
Federal	$	950	$	(3,419	)	$	(2,469	)
State		145		(812	)		(667	)
Foreign		15		-			15
Total income tax expense (benefit) on current year income		1,110		(4,231	)		(3,121	)
Income tax expense - discrete items:
Reserve for unrecognized tax benefits		6		-			6
Adjustment to prior year provision		24		-			24
Tax shortfall related to stock-based compensation		34		-			34
Income tax expense - discrete items		64		-			64
Total income tax expense (benefit)	$	1,174	$	(4,231	)	$	(3,057	)

	Fiscal year ended March 31, 2024
	Current			Deferred			Total
Income tax expense (benefit) on current year income:
Federal	$	2,065		$	(883	)	$	1,182
State		346			(209	)		137
Foreign		14			-			14
Total income tax expense (benefit) on current year income		2,425			(1,092	)		1,333
Income tax expense (benefit) - discrete items:
Reserve for unrecognized tax benefits		43			-			43
Adjustment to prior year provision		(68	)		-			(68	)
Tax shortfall related to stock-based compensation		26			-			26
Income tax expense - discrete items		1			-			1
Total income tax expense (benefit)	$	2,426		$	(1,092	)	$	1,334

	March 30, 2025			March 31, 2024
Deferred income tax assets:
Employee wage and benefit accruals	$	260		$	148
Accounts receivable and inventory reserves		673			585
Operating lease liabilities		3,241			3,892
Intangible assets		3,490			243
State net operating loss carryforwards		704			704
Accrued interest and penalty on unrecognized tax liabilities		20			18
Stock-based compensation		517			469
Total gross deferred income tax assets		8,905			6,059
Less valuation allowance		(704	)		(704	)
Deferred income tax assets after valuation allowance		8,201			5,355

Deferred income tax liabilities:
Prepaid expenses		(488	)		(552	)
Operating lease right of use assets		(3,033	)		(3,700	)
Intangible assets		-			(666	)
Property, plant and equipment		(172	)		(160	)
Total deferred income tax liabilities		(3,693	)		(5,078	)
Net deferred income tax assets	$	4,508		$	277

	2025			2024
Balance at beginning of period	$	394		$	323
Additions related to current year positions		22			43
Additions related to prior year positions		81			28
Revaluations due to change in enacted tax rates		-			-
Reductions for tax positions of prior years		-			-
Reductions due to lapses of the statute of limitations		(86	)		-
Reductions pursuant to judgements and settlements		-			-
Balance at end of period	$	411		$	394

	Fiscal year ended March 30, 2025						Fiscal year ended March 31, 2024
	Amount			Percentage			Amount			Percentage
Income (loss) before income tax expense	$	(12,413	)		100.0	%	$	6,228			100.0	%

Tax expense (benefit) at federal statutory rate	$	(2,607	)		21.0	%	$	1,308			21.0	%
State income taxes, net of Federal income tax benefit		(527	)		4.2	%		108			1.7	%
Tax credits		(14	)		0.1	%		(115	)		-1.8	%
Discrete items		64			-0.5	%		1			0.0	%
Other - net, including foreign		27			-0.2	%		32			0.5	%
Income tax expense (benefit)	$	(3,057	)		24.6	%	$	1,334			21.4	%