What changed in this filing

/stocks — the workspaceLOADING

Item 3. Legal Proceedings

2024-04-01 compared with 2023-03-31 · 28 added, 28 removed, 11 unchanged (84% of the section changed)

From time to time, we are notified

that we may be a party to a lawsuit or that a claim is being made against us.

It is our policy to not disclose the specifics of any claim

or threatened lawsuit until the summons and complaint are actually served on us.

After carefully assessing the claim, and assuming we

determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend any lawsuit filed against

time to time, we are notified that we may be a party to a lawsuit or that a claim is being made against us.

It is our policy to not disclose

the specifics of any claim or threatened lawsuit until the summons and complaint are actually served on us.

After carefully assessing

the claim, and assuming we determine that we are not at fault or we disagree with the damages or relief demanded, we vigorously defend

any lawsuit filed against us.

We record a liability when losses are deemed probable and reasonably estimable.

When losses are deemed reasonably possible but not

probable, we determine whether it is possible to provide an estimate of the amount of the loss or range of possible losses for the claim,

if material for disclosure.

In evaluating matters for accrual and disclosure purposes, we take into consideration factors such as our

historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood of our prevailing,

the availability of insurance, and the severity of any potential loss.

We reevaluate and update accruals as matters progress over time.

While the ultimate resolution

is unknown, we do not expect that these lawsuits will individually, or in the aggregate, have a material adverse effect to our results

of operations, financial condition or cash flows.

However, the outcome of any litigation is inherently uncertain and there can be no assurance

that any expense, liability or damages that may ultimately result from the resolution of these matters will be covered by our insurance

or will not be in excess of amounts recognized or provided by insurance coverage and will not have a material adverse effect on our operating

results, financial condition or cash flows.

When losses are deemed

reasonably possible but not probable, we determine whether it is possible to provide an estimate of the amount of the loss or range of

possible losses for the claim, if material for disclosure.

In evaluating matters for accrual and disclosure purposes, we take into consideration

factors such as our historical experience with matters of a similar nature, the specific facts and circumstances asserted, the likelihood

of our prevailing, the availability of insurance, and the severity of any potential loss.

We reevaluate and update accruals as matters

progress over time.

the ultimate resolution is unknown, we do not expect that these lawsuits will individually, or in the aggregate, have a material adverse

effect to our results of operations, financial condition or cash flows.

However, the outcome of any litigation is inherently uncertain

and there can be no assurance that any expense, liability or damages that may ultimately result from the resolution of these matters

will be covered by our insurance or will not be in excess of amounts recognized or provided by insurance coverage and will not have a

material adverse effect on our operating results, financial condition or cash flows.

May 31, 2022, the Company filed a lawsuit against Culp McAuley, Inc.

7 unchanged sentences

any and all liability.

We have not concluded that a material loss related to the allegations is probable, nor have we accrued a liability

related to these claims.

Although we believe a loss could be reasonably possible (as defined in ASC 450), we do not have sufficient information

to determine the amount or range of reasonably possible loss with respect to the potential damages given that the dispute is yet to enter

the discovery process.

We will continue to vigorously pursue these claims, and we continue to believe that we have valid grounds for

recovery of the disputed deliverables.

However, there can be no assurances as to the outcome of the dispute.

During the second quarter of 2023, we concluded that a $1.8 million loss related to the allegations is probable,

with no conclusion on the remaining $2.2 million being a probable loss related to these claims.

Although we believe a further loss could

be reasonably possible (as defined in ASC 450), we do not have sufficient information to determine the amount or range of reasonably

possible loss with respect to the potential damages given that the dispute is yet to enter the discovery process.

We will continue to

vigorously pursue these claims, and we continue to believe that we have valid grounds for recovery of the disputed deliverables.

there can be no assurances as to the outcome of the dispute.

Safety Disclosures.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 3. Legal Proceedings