CROWN CRAFTS INC

There have been no material changes to the risk factors disclosed in Item 1A of Part 1 of the Company’s Annual Report on Form 10-K for the year ended March 31, 2024, except as set forth below.

The imposition of tariffs on imports from China could adversely affect the cost and sourcing of the Company's products, among other things.

The Company sources its products primarily from foreign contract manufacturers, with the largest concentration being in China. On February 1, 2025, President Trump issued executive orders directing the United States to impose new tariffs on imports from several nations, including China, effective February 4, 2025. The new tariffs likely will increase the cost of the products the Company sources from China and affect future shipments from the Company’s Chinese-based suppliers. The Company may not be able to pass along increases in tariffs and freight charges to its customers, and any alterations the Company may make to its business strategy or operations to adapt to the foregoing, including sourcing products from suppliers in other countries, would be time consuming and expensive.

The Company is currently evaluating the potential impact of the imposition of the new tariffs on imports from China to the Company’s business and financial condition. The actual impact of the new tariffs is uncertain because it is subject to a number of factors, including the duration of such tariffs, changes in the amount, scope and nature of the tariffs in the future, any countermeasures that China may take and any mitigating actions that may become available. The actual impact of the new tariffs may have a material adverse effect on the Company’s business, cash flow, results of operations and financial condition.

None.

None.

Not applicable.

ITEM5. OTHER INFORMATION

On* February 10, 2025,the Company and its subsidiaries entered into a letter agreement with CIT to amend the Company's financing agreement with CIT to: (i) waive, with respect to the fiscal year ending March 30, 2025,and through the fiscal year ending March 29, 2026,the Company's obligation to comply with the fixed charge coverage ratio; and (ii) increase the Excess Availability (as defined in the financing agreement) required to be maintained by the Company with respect to its revolving line of credit under the financing agreement from$7,000,000* to*$7,500,000,* until further notice to the Company by CIT. After such notice, the Excess Availability shall be50% of the outstanding balance of the Company's term loan under the financing agreement.

During thethree-month period ended* December 29, 2024,none of the Company’s directors or officers informed the Company of the adoption, modification or termination of a “Rule10*-b5-1 trading arrangement” or “non-Rule10-b5-1 trading arrangement,” as those terms are defined in Item408(a) of Regulation S-K.