Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Mar. 31, 2023 | Jun. 27, 2023 | Sep. 30, 2022 | |
Document Information Line Items | |||
Entity Registrant Name | Jerash Holdings (US), Inc. | ||
Trading Symbol | JRSH | ||
Document Type | 10-K/A | ||
Current Fiscal Year End Date | --03-31 | ||
Entity Common Stock, Shares Outstanding | 12,294,840 | ||
Entity Public Float | $ 31,203,742 | ||
Amendment Flag | true | ||
Amendment Description | Jerash Holdings (US), Inc. (the “Company”) is filing this Amendment No. 1 to the Annual Report on Form 10-K (this “Amendment”) to (i) amend the cover page of the Annual Report on Form 10-K for the fiscal year ended March 31, 2023 (the “Original Form 10-K”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on June 28, 2023 to reflect that the Company is no longer an emerging growth company, (ii) amend the Risk Factors section to remove a risk factor no longer applicable to us, (iii) provide a revised report of the Company’s independent registered public accounting firm for the year ended March 31, 2023, which reflects the addition of critical audit matters, since the Company is no longer an emerging growth company, and (iv) provide updated consents of the Company’s independent registered public accounting firms.Pursuant to Rule 12b-15 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), this Amendment also contains new certifications of the Company’s principal executive officer and principal financial officer.Except as described above, no other changes have been made to the Original Form 10-K and this Amendment does not reflect events occurring after the filing of the Original Form 10-K, and no attempt has been made in this Amendment to modify or update other disclosures as presented in the Original Form 10-K. Accordingly, this Amendment should be read in conjunction with the Original Form 10-K and the Company’s filings made with the SEC subsequent to the Original Form 10-K. | ||
Entity Central Index Key | 0001696558 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Mar. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-38474 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 81-4701719 | ||
Entity Address, Address Line One | 277 Fairfield Road | ||
Entity Address, Address Line Two | Suite 338 | ||
Entity Address, City or Town | Fairfield | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07004 | ||
City Area Code | (201) | ||
Local Phone Number | 285-7973 | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Security Exchange Name | NASDAQ | ||
Entity Interactive Data Current | Yes | ||
Document Financial Statement Error Correction [Flag] | false | ||
Auditor Firm ID | 688 | ||
Auditor Name | Marcum LLP | ||
Auditor Location | Marlton, New Jersey | ||
Auditor 2022 [Member] | |||
Document Information Line Items | |||
Auditor Firm ID | 711 | ||
Auditor Name | Friedman LLP | ||
Auditor Location | New York, New York |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Current Assets: | ||
Cash | $ 17,801,614 | $ 25,176,120 |
Accounts receivable, net | 2,240,537 | 11,049,069 |
Bills receivable | 87,573 | |
Tax recoverable | 16,763 | 374,377 |
Inventories | 32,656,833 | 28,255,179 |
Prepaid expenses and other current assets | 2,947,815 | 3,233,592 |
Investment deposits | 500,000 | |
Advance to suppliers, net | 1,533,091 | 1,284,601 |
Total Current Assets | 57,284,226 | 69,872,938 |
Restricted cash – non-current | 1,609,989 | 1,407,368 |
Long-term deposits | 841,628 | 419,597 |
Deferred tax assets, net | 153,873 | 352,590 |
Property, plant and equipment, net | 22,355,574 | 10,933,147 |
Goodwill | 499,282 | 499,282 |
Right of use assets | 974,761 | 1,826,062 |
Total Assets | 83,719,333 | 85,310,984 |
Current Liabilities: | ||
Credit facilities | ||
Accounts payable | 5,782,570 | 4,840,225 |
Accrued expenses | 2,930,533 | 3,115,953 |
Income tax payable – current | 2,846,201 | 2,861,272 |
Other payables | 1,477,243 | 2,278,816 |
Deferred revenue | 928,393 | |
Amount due to a related party | 300,166 | |
Operating lease liabilities – current | 481,502 | 739,101 |
Total Current Liabilities | 14,446,442 | 14,135,533 |
Operating lease liabilities – non-current | 287,247 | 869,313 |
Income tax payable – non-current | 751,410 | 1,001,880 |
Total Liabilities | 15,485,099 | 16,006,726 |
Commitments and Contingencies (Note 15) | ||
Stockholders’ Equity | ||
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding | ||
Common stock, $0.001 par value; 30,000,000 shares authorized; 12,534,318 and 12,334,318 shares issued; 12,294,840 and 12,334,318 shares outstanding as of March 31, 2023 and 2022, respectively | 12,534 | 12,334 |
Additional paid-in capital | 22,931,046 | 22,517,346 |
Treasury stock, 239,478 and none shares as of March 31, 2023 and 2022, respectively | (1,169,046) | |
Statutory reserve | 410,847 | 379,323 |
Retained earnings | 46,172,082 | 46,268,110 |
Accumulated other comprehensive (loss) gain | (123,229) | 127,145 |
Total Jerash Holdings (US), Inc.’ Stockholders’ Equity | 68,234,234 | 69,304,258 |
Total Liabilities and Stockholders’ Equity | $ 83,719,333 | $ 85,310,984 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Mar. 31, 2023 | Mar. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 500,000 | 500,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 12,534,318 | 12,334,318 |
Common stock, shares outstanding | 12,294,840 | 12,334,318 |
Treasury stock, shares | 239,478 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue, net | $ 138,063,309 | $ 143,354,902 |
Cost of goods sold | 116,273,569 | 116,023,267 |
Gross Profit | 21,789,740 | 27,331,635 |
Selling, general and administrative expenses | 16,960,978 | 15,895,998 |
Stock-based compensation expenses | 413,900 | 947,079 |
Total Operating Expenses | 17,374,878 | 16,843,077 |
Income from Operations | 4,414,862 | 10,488,558 |
Other Income (Expenses): | ||
Interest expenses | (768,131) | (210,576) |
Other income, net | 437,002 | 165,893 |
Total other expenses, net | (331,129) | (44,683) |
Net income before provision for income taxes | 4,083,733 | 10,443,875 |
Income tax expenses | 1,664,110 | 2,524,275 |
Net Income | 2,419,623 | 7,919,600 |
Other Comprehensive Income (Loss): | ||
Foreign currency translation (loss) income | (250,374) | 143,046 |
Comprehensive Income Attributable to Jerash Holdings (US), Inc.’s Common Stockholders | $ 2,169,249 | $ 8,062,646 |
Earnings Per Share Attributable to Common Stockholders: | ||
Basic and diluted (in Dollars per share) | $ 0.19 | $ 0.67 |
Weighted Average Number of Shares | ||
Basic (in Shares) | 12,635,785 | 11,821,779 |
Diluted (in Shares) | 12,675,351 | 11,897,717 |
Dividend per share (in Dollars per share) | $ 0.2 | $ 0.2 |
Consolidated Statements of In_2
Consolidated Statements of Income and Comprehensive Income (Parentheticals) - $ / shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Diluted (in Dollars per share) | $ 0.19 | $ 0.67 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders’ Equity - USD ($) | Preferred Stock | Common Stock | Additional Paid-in Capital | Treasury Stock | Statutory Reserve | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Mar. 31, 2021 | $ 11,333 | $ 15,301,268 | $ 346,315 | $ 40,748,314 | $ (15,901) | $ 56,391,329 | ||
Balance (in Shares) at Mar. 31, 2021 | 11,332,974 | |||||||
Stock-based compensation expense for the restricted stock units issued under stock incentive plan | 947,079 | 947,079 | ||||||
Cashless exercise of warrants | $ 1 | (1) | ||||||
Cashless exercise of warrants (in Shares) | 1,344 | |||||||
Common stock issued net of stock issuance costs of $730,000 | $ 1,000 | 6,269,000 | 6,270,000 | |||||
Common stock issued net of stock issuance costs of $730,000 (in Shares) | 1,000,000 | |||||||
Net income | 7,919,600 | 7,919,600 | ||||||
Dividend payments | (2,366,796) | (2,366,796) | ||||||
Statutory Reserve | 33,008 | (33,008) | ||||||
Foreign currency translation gain (loss) | 143,046 | 143,046 | ||||||
Balance at Mar. 31, 2022 | $ 12,334 | 22,517,346 | 379,323 | 46,268,110 | 127,145 | 69,304,258 | ||
Balance (in Shares) at Mar. 31, 2022 | 12,334,318 | |||||||
Stock-based compensation expense for the restricted stock units issued under stock incentive plan | 413,900 | 413,900 | ||||||
Issuance of common stocks upon vesting of restricted stock units | $ 200 | (200) | ||||||
Issuance of common stocks upon vesting of restricted stock units (in Shares) | 200,000 | |||||||
Share repurchase | (1,169,046) | (1,169,046) | ||||||
Net income | 2,419,623 | 2,419,623 | ||||||
Dividend payments | (2,484,127) | (2,484,127) | ||||||
Statutory Reserve | 31.524 | (31,524) | ||||||
Foreign currency translation gain (loss) | (250,374) | (250,374) | ||||||
Balance at Mar. 31, 2023 | $ 12,534 | $ 22,931,046 | $ (1,169,046) | $ 410,847 | $ 46,172,082 | $ (123,229) | $ 68,234,234 | |
Balance (in Shares) at Mar. 31, 2023 | 12,534,318 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders’ Equity (Parentheticals) | 12 Months Ended |
Mar. 31, 2022 USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Stock issuance costs | $ 730,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 2,419,623 | $ 7,919,600 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 2,430,692 | 2,149,419 |
Stock-based compensation expenses | 413,900 | 947,079 |
Bad debt expense | 221,584 | |
Amortization of operating lease right-of-use assets | 989,220 | 803,056 |
Changes in operating assets: | ||
Accounts receivable | 8,808,532 | 762,614 |
Bills receivable | (87,573) | |
Inventories | (4,401,654) | (3,219,213) |
Prepaid expenses and other current assets | 285,782 | (904,305) |
Advance to suppliers | (248,490) | 1,752,091 |
Deferred tax assets | 198,717 | (203,928) |
Changes in operating liabilities: | ||
Accounts payable | 942,345 | (3,082,614) |
Accrued expenses | (185,421) | 783,087 |
Other payables | (801,574) | 823,608 |
Deferred revenue | 928,393 | |
Operating lease liabilities | (977,584) | (759,919) |
Income tax payable, net of recovery | 92,226 | 971,386 |
Net cash provided by operating activities | 10,807,134 | 8,963,545 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (722,770) | (2,955,328) |
Payments for construction of properties | (5,084,044) | (2,098,323) |
Acquisition of MK Garments | (2,700,000) | |
Acquisition of Ever Winland | (5,100,000) | |
Acquisition deposit | (2,200,000) | (500,000) |
Payment for long-term deposits | (668,337) | (419,597) |
Net cash used in investing activities | (13,775,151) | (8,673,248) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividend payment | (2,484,127) | (2,366,796) |
Share repurchase | (1,169,046) | |
Repayment from short-term loan | (7,197,995) | (612,703) |
Repayment to a related party | (300,166) | (1,763) |
Proceeds from short-term loan | 7,197,995 | |
Net proceeds from issuance of common stock | 6,270,000 | |
Net cash (used in) provided by financing activities | (3,953,339) | 3,288,738 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH | (250,529) | 143,990 |
NET (DECREASE) INCREASE IN CASH AND RESTRICTED CASH | (7,171,885) | 3,723,025 |
CASH, AND RESTRICTED CASH, BEGINNING OF THE YEAR | 26,583,488 | 22,860,463 |
CASH, AND RESTRICTED CASH, END OF THE YEAR | 19,411,603 | 26,583,488 |
CASH, AND RESTRICTED CASH, END OF THE YEAR | 19,411,603 | 26,583,488 |
LESS: NON-CURRENT RESTRICTED CASH | 1,609,989 | 1,407,368 |
CASH, END OF THE YEAR | 17,801,614 | 25,176,120 |
Supplemental disclosure information: | ||
Cash paid for interest | 768,131 | 210,576 |
Income tax paid | 1,747,635 | 1,762,254 |
Non-cash investing and financing activities | ||
Equipment obtained by utilizing long-term deposit | 237,412 | 321,862 |
Acquisition of Kawbab Venus by utilizing long-term deposit | 500,000 | |
Right of use assets obtained in exchange for operating lease obligations | $ 190,654 | $ 1,022,172 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Mar. 31, 2023 | |
Organization and Description of Business [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Jerash Holdings (US), Inc. (“Jerash Holdings”) was incorporated under the laws of the State of Delaware on January 20, 2016. Jerash Holdings is a holding company with no operations. Jerash Holdings and its subsidiaries are herein collectively referred to as the “Company.” Jerash Garments and Fashions Manufacturing Company Limited (“Jerash Garments”) is a wholly owned subsidiary of Jerash Holdings and was established in Amman, the Hashemite Kingdom of Jordan (“Jordan”), as a limited liability company on November 26, 2000 with a declared capital of 150,000 Jordanian Dinar (“JOD”) (approximately US$212,000). Jerash for Industrial Embroidery Company (“Jerash Embroidery”) and Chinese Garments and Fashions Manufacturing Company Limited (“Chinese Garments”) were both established in Amman, Jordan, as limited liability companies on March 11, 2013 and June 13, 2013, respectively, each with a declared capital of JOD 50,000. Jerash Embroidery and Chinese Garments are wholly owned subsidiaries of Jerash Garments. Al-Mutafaweq Co. for Garments Manufacturing Ltd. (“Paramount”) is a contract garment manufacturer that was established in Amman, Jordan, as a limited liability company on October 24, 2004 with a declared capital of JOD 100,000. On December 11, 2018, Jerash Garments and the sole shareholder of Paramount entered into an agreement pursuant to which Jerash Garments acquired all of the outstanding shares of stock of Paramount. Jerash Garments assumed ownership of all of the machinery and equipment owned by Paramount. Paramount had no other significant assets or liabilities and no operating activities or employees at the time of this acquisition, so this transaction was accounted for as an asset acquisition. As of June 18, 2019, Paramount became a subsidiary of Jerash Garments. Jerash The First for Medical Supplies Manufacturing Company Limited (“Jerash The First”) was established in Amman, Jordan, as a limited liability company on July 6, 2020, with a registered capital of JOD 150,000. Jerash The First is engaged in the production of medical supplies in Jordan and is a wholly owned subsidiary of Jerash Garments. Mustafa and Kamal Ashraf Trading Company (Jordan) for the Manufacture of Ready-Make Clothes LLC (“MK Garments”) is a garment manufacturer that was established in Amman, Jordan, as a limited liability company on January 23, 2003 with a declared capital of JOD 100,000. On June 24, 2021, Jerash Garments and the sole shareholder of MK Garments entered into an agreement, pursuant to which Jerash Garments acquired all of the outstanding stock of MK Garments. As of October 7, 2021, MK Garments became a subsidiary of Jerash Garments. Kawkab Venus Dowalyah Lisenaet Albesah (“Kawkab Venus”) was established in Amman, Jordan, as a limited liability company on January 15, 2015 with a declared capital of JOD 50,000. It holds land with factory premises, which are leased to MK Garments. On July 14, 2021, Jerash Garments and the sole shareholder of Kawkab Venus entered into an agreement, pursuant to which Jerash Garments acquired all of the outstanding stock of Kawkab Venus. Apart from the land and factory premises, Kawkab Venus had no other significant assets or liabilities and no operation activities or employees at the time of acquisition, so the acquisition was accounted for an asset acquisition. As of August 21, 2022, Kawkab Venus became a subsidiary of Jerash Garments. Treasure Success International Limited (“Treasure Success”) was organized on July 5, 2016 in Hong Kong, the People’s Republic of China (“China”), as a limited liability company for the primary purpose of employing staff from China to support Jerash Garments’ operations and is a wholly-owned subsidiary of Jerash Holdings. Ever Winland Limited (“Ever Winland”) was organized in Hong Kong, China, as a limited liability company. It holds office premises, which are leased to Treasure Success. On June 22, 2022, Treasure Success and the shareholders of Ever Winland entered into an agreement, pursuant to which Treasure Success acquired all of the outstanding stock of Ever Winland. Apart from the office premises used by Treasure Success, Ever Winland had no other significant assets or liabilities and no operating activities or employees at the time of this acquisition, so this transaction was accounted for as an asset acquisition. As of August 29, 2022, Ever Winland became a subsidiary of Treasure Success. Jiangmen Treasure Success Business Consultancy Company Limited (“Jiangmen Treasure Success”) was organized on August 28, 2019 under the laws of China in Guangzhou City of Guangdong Province in China with a total registered capital of 15 million Hong Kong Dollars (“HKD”) (approximately $1.9 million) to provide support in sales and marketing, sample development, merchandising, procurement, and other areas. Treasure Success owns 100% of the equity interests in Jiangmen Treasure Success. Jerash Supplies, LLC (“Jerash Supplies”) was formed under the laws of the State of Delaware on November 20, 2020. Jerash Supplies is engaged in the trading of personal protective equipment products and is a wholly owned subsidiary of Jerash Holdings. The Company is engaged primarily in the manufacturing and exporting of customized, ready-made sportwear and outerwear and personal protective equipment (“PPE”) produced in its facilities in Jordan and sold in the United States, Jordan, and other countries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). The consolidated financial statements include the financial statements of Jerash Holdings and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. Cash The Company’s cash consists of cash on hand and cash deposited in financial institutions. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the original date of purchase to be cash equivalents. As of March 31, 2023 and 2022, the Company had no cash equivalents. Restricted Cash Restricted cash consists of cash used as security deposits to obtain credit facilities from a bank and to secure customs clearance and labor import requirements under the requirements of local regulations. The Company is required to keep certain amounts on deposit that are subject to withdrawal restrictions. These security deposits at the bank are refundable only when the bank facilities are terminated. The restricted cash is classified as a current asset if the Company intends to terminate these bank facilities within one year, and as a non-current asset if otherwise. Accounts Receivable, Net Accounts receivable are recognized and carried at the original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually grants extended payment terms to customers with good credit standing and determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of comprehensive income. Actual amounts received may differ from management’s estimate of creditworthiness and the economic environment. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Inventories Inventories are stated at the lower of cost or net realizable value. Inventories include the cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is determined using the First in, First-out method. The Company periodically reviews its inventories for excess or slow-moving items and makes provisions as necessary to properly reflect inventory value. Advance to Suppliers, Net Advance to suppliers consists of balances paid to suppliers for services or materials purchased that have not been provided or received. Advance to suppliers for services and materials is short-term in nature. Advance to suppliers is reviewed periodically to determine whether its carrying value has become impaired. The Company considers the assets to be impaired if the performance by the suppliers becomes doubtful. The Company uses the aging method to estimate the allowance for the questionable balances. In addition, at each reporting date, the Company generally determines the adequacy of allowance for doubtful accounts by evaluating all available information, and then records specific allowances for those advances based on the specific facts and circumstances. Property, Plant, and Equipment Property, plant, and equipment are recorded at cost, reduced by accumulated depreciation and amortization. Depreciation and amortization expense related to property, plant, and equipment is computed using the straight-line method based on the estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the initial lease term or the estimated useful life of the improvements. The useful life and depreciation method are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property, plant, and equipment. The estimated useful lives of depreciation and amortization of the principal classes of assets are as follows: Useful life Land Infinite Property and buildings 15-25 years Equipment and machinery 3-5 years Office and electronic equipment 3-5 years Automobiles 5 years Leasehold improvements Lesser of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation or amortization of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of comprehensive income. Construction in Progress Construction in Progress (“CIP”) is recorded at cost for property, plant, and equipment where the asset is in construction or development. CIP accumulates cost of construction and transaction costs involved in the progress of acquiring the materials for construction or development. The Company does not commence depreciating the asset in CIP account because the asset has not yet been placed in service. Once an asset is placed in service, all costs associated with the asset that are recorded in the CIP account are transferred to plant, plant, and equipment for the asset. Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors which may indicate potential impairment include a significant underperformance relative to the historical or projected future operating results or a significant negative industry or economic trend. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that asset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset. The fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record any impairment loss during the fiscal years ended March 31, 2023 and 2022. Asset Acquisition An asset acquisition is an acquisition of an asset, or a group of assets, that does not meet the definition of a business, as substantially all of the fair value of the gross assets acquired are concentrated in a single or group of similar, identifiable assets. Asset acquisitions are accounted for by using the cost accumulation model, whereby the cost of the acquisition, including certain transaction costs, is allocated to the assets acquired on a relative fair value basis. Determining and valuing intangible assets requires judgment. Goodwill Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies. Goodwill is not amortized. As of March 31, 2023 and 2022, the carrying amount of goodwill was both $499,282. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential impairment exist, based on the one reporting unit. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. When performing the quantitative impairment test, the Company compares the fair value of its only reporting unit with the carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company concluded that no impairment of its goodwill occurred for the year ended March 31, 2023 and 2022. Revenue Recognition Substantially all of the Company’s revenue is derived from product sales, which consist of sales of the Company’s customized ready-made outerwear for large brand-name retailers and PPE. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year. Virtually all of the Company’s contracts are short term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within seven to 150 days of the invoice date. The contracts do not have significant financing components. Shipping and handling costs associated with outbound freight from Jordan export dock are not an obligation of the Company. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. The Company also derives revenue rendering cutting and making services to other apparel vendors who subcontract order to the Company. Revenue is recognized when the service is rendered. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as a price per unit. All estimates are based on the Company’s historical experience, complete satisfaction of the performance obligation, and the Company’s best judgment at the time the estimate is made. Historically, sales returns have not significantly impacted the Company’s revenue. The Company does not have any contract assets since the Company has an unconditional right to consideration when the Company has satisfied its performance obligation and payment from customers is not contingent on a future event. The Company had contract liabilities of $928,393 and $ nil The Company has one revenue generating reportable geographic segment under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its sales of customized ready-made outerwear. The Company believes disaggregation of revenue by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see “Note 14—Segment Reporting”). As of March 31, 2023 and 2022, there was $928,393 and $ nil Shipping and Handling Proceeds collected from customers for shipping and handling costs are included in revenue. Shipping and handling costs are expensed as incurred and are included in operating expenses, as a part of selling, general, and administrative expenses. Total shipping and handling expenses were $1,856,218 and $1,864,202 for the fiscal years ended March 31, 2023 and 2022, respectively. Income and Sales Taxes The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. Jerash Holdings and Jerash Supplies are incorporated/formed in the State of Delaware and are subject to federal income tax in the United States of America. Treasure Success and Ever Winland are registered in Hong Kong and are subject to profit tax in Hong Kong. Jiangmen Treasure Success is incorporated in China and is subject to corporate income tax in China. Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash The First, MK Garments, and Kawkab Venus are subject to income tax in Jordan, unless an exemption is granted. In accordance with Development Zone law, Jerash Garments and its subsidiaries were subject to corporate income tax in Jordan at a rate of 16% plus a 1% social contribution between January 1, 2021 and December 31, 2021. The income tax rate increased to 18% or 20% plus a 1% social contribution starting from January 1, 2022. Effective January 1, 2023, the income tax rate increased to 19% or 20%, plus a 1% social contribution. Jerash Garments and its subsidiaries are subject to local sales tax of 16% on purchases. Jerash Garments was granted a sales tax exemption from the Jordanian Investment Commission for the period from June 1, 2015 to June 1, 2018 that allowed Jerash Garments to make purchases with no sales tax charge. The exemption has been extended to February 5, 2024. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. ASC 740 clarifies the accounting for uncertainty in tax positions. This interpretation requires that an entity recognize in its financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income. No significant uncertainty in tax positions relating to income taxes were incurred during the fiscal years ended March 31, 2023 and 2022. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar (“US$” or “$”). The Company uses JOD in Jordan companies, HKD in Treasure Success and Ever Winland, and Chinese Yuan (“CNY”) in Jiangmen Treasure Success as functional currency of each above-mentioned entity. The assets and liabilities of the Company have been translated into US$ using the exchange rates in effect at the balance sheet date, equity accounts have been translated at historical rates, and revenue and expenses have been translated into US$ using average exchange rates in effect during the reporting period. Cash flows are also translated at average translation rates for the periods. Therefore, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income or loss. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated statements of comprehensive income as incurred, and the balance of transaction gains and losses were immaterial as of the years ended March 31, 2023 and 2022. The value of JOD against US$ and other currencies may fluctuate and is affected by, among other things, changes in Jordan’s political and economic conditions. Any significant revaluation of JOD, HKD, and CNY may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: March 31, March 31, Period-end spot rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8496 US$1=HKD7.8325 US$1=CNY6.8666 US$1=CNY6.3393 Average rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8383 US$1=HKD7.7844 US$1=CNY6.8506 US$1=CNY6.4180 Stock-Based Compensation The Company measures compensation expense for stock-based awards based upon the awards’ initial grant-date fair value. The estimated grant-date fair value of the award is recognized as expense over the requisite service period using the straight-line method. The Company estimates the fair value of stock options using a Black-Scholes model. This model is affected by the Company’s stock price on the date of the grant as well as assumptions regarding a number of highly complex and subjective variables. These variables include the expected term of the option, expected risk-free rates of return, the expected volatility of the Company’s common stock, and expected dividend yield, each of which is more fully described below. The assumptions for expected term and expected volatility are the two assumptions that significantly affect the grant date fair value. ● Expected Term: the expected term of a warrant or a stock option is the period of time that the warrant or a stock option is expected to be outstanding. ● Risk-free Interest Rate: the Company bases the risk-free interest rate used in the Black-Scholes model on the implied yield at the grant date of the U.S. Treasury zero-coupon issued with an equivalent term to the stock-based award being valued. Where the expected term of a stock-based award does not correspond with the term for which a zero-coupon interest rate is quoted, the Company uses the nearest interest rate from the available maturities. ● Expected Stock Price Volatility: the Company utilizes the expected volatility of the Company’s common stock over the same period of time as the life of the warrant or stock option. When the Company’s own stock volatility information is unavailable for such period of time, the Company utilizes comparable public company volatility. ● Dividend Yield: Stock-based compensation awards granted prior to November 2018 assumed no dividend yield, while any subsequent stock-based compensation awards will be valued using the anticipated dividend yield. Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS (See “Note 13 – Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in JOD or HKD or CNY to US$ is reported in other comprehensive income (loss) in the consolidated statements of comprehensive income. Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 - Quoted prices in active markets for identical assets and liabilities. ● Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash, accounts receivable, bills receivables, other current assets, credit facilities, accounts payable, accrued expenses, income tax payables, other payables, amount due to a related party and operating lease liabilities to approximate the fair value of the respective assets and liabilities at March 31, 2023 and 2022 based upon the short-term nature of these assets and liabilities. Concentrations and Credit Risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2023 and 2022, respectively, $7,264,247 and $12,735,486 of the Company’s cash was on deposit at financial institutions in Jordan, where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of March 31, 2023 and 2022, respectively, $172,939 and $351,255 of the Company’s cash was on deposit at financial institutions in China. Cash maintained in banks within China of less than CNY0.5 million (equivalent to $72,815) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. As of March 31, 2023 and 2022, respectively, $11,700,512 and $13,311,340 of the Company’s cash was on deposit at financial institutions in Hong Kong, which are insured by the Hong Kong Deposit Protection Board subject to certain limitations. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. As of March 31, 2023 and 2022, respectively, $171,496 and $37,342 of the Company’s cash was on deposit in the United States and are insured by the Federal Deposit Insurance Corporation up to $250,000. Accounts receivable are typically unsecured and derived from revenue earned from customers, and therefore are exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. Customer and vendor concentration risk The Company’s sales are made primarily in the United States. Its operating results could be adversely affected by U.S. government policies on importing business, foreign exchange rate fluctuations, and changes in local market conditions. The Company has a concentration of its revenue and purchases with specific customers and suppliers. For the fiscal year ended March 31, 2023 and 2022, two customers accounted for 60% and 17%, and 67% and 24% of the Company’s total revenue, respectively. As of March 31, 2023, four end-customer accounts for 50%, 13%, 10%, and 10%, respectively, of the Company’s total accounts receivable balance. As of March 31, 2022, one end-customer accounted for 89% of the Company’s total accounts receivable balance. For the fiscal year ended March 31, 2023, the Company purchased approximately 11% of its garments from one major supplier. For the fiscal year ended March 31, 2022, the Company purchased approximately 20% and 11% of its garments from two major suppliers, respectively. As of March 31, 2023, accounts payable to the Company’s one major supplier accounted for 36% of the total accounts payable balance. As of March 31, 2022, accounts payable to the Company’s three major suppliers accounted for 11%, 11%, and 10% of the total accounts payable balance, respectively. Risks and Uncertainties The principal operations of the Company are located in Jordan. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in Jordan, as well as by the general state of the Jordanian economy. The Company’s operations in Jordan are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic, and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in Jordan. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Mar. 31, 2023 | |
Recent Accounting Pronouncements [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. In September 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. This ASU requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU requires enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of the Company’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. In November 2019, the FASB issued ASU 2019-10, which amended the effective dates of ASU 2016-13. For public business entities that meet the definition of an SEC filer, excluding entities eligible to be smaller reporting companies (“SRC”) as defined by the SEC, ASU 2016-13 will become effective for the fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other entities, ASU 2016-13 will become effective for the fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. As an SRC, the Company plans to adopt this ASU effective April 1, 2023. The Company is currently evaluating the impact of the adoption of ASU 2016-13 on its consolidated financial statements. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: As of As of March 31, March 31, Trade accounts receivable $ 2,462,120 $ 11,270,652 Less: allowances for doubtful accounts 221,583 221,583 Accounts receivable, net $ 2,240,537 $ 11,049,069 |
Inventories
Inventories | 12 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES Inventories consisted of the following: As of As of March 31, March 31, Raw materials $ 15,240,198 $ 17,714,578 Work-in-progress 2,932,519 2,010,417 Finished goods 14,484,116 8,530,184 Total inventory $ 32,656,833 $ 28,255,179 As of March 31, 2023 and 2022, the Company had $ nil |
Advance to Suppliers, Net
Advance to Suppliers, Net | 12 Months Ended |
Mar. 31, 2023 | |
Advance to Suppliers [Abstract] | |
ADVANCE TO SUPPLIERS, NET | NOTE 6 – ADVANCE TO SUPPLIERS, NET Advance to suppliers consisted of the following: As of As of March 31, March 31, Advance to suppliers $ 1,533,091 $ 1,284,601 Less: allowances for doubtful accounts - - Advance to suppliers, net $ 1,533,091 $ 1,284,601 |
Leases
Leases | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 7 – LEASES The Company has 48 operating leases for manufacturing facilities and offices. Some leases include one or more options to renew, which is typically at the Company’s sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in measurement of the right of use (“ROU”) assets and lease liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. ROU assets and related lease obligations are recognized at commencement date based on the present value of remaining lease payments over the lease term. All of the Company’s leases are classified as operating leases and primarily include office space and manufacturing facilities. Supplemental balance sheet information related to operating leases was as follows: March 31, ROU assets $ 974,761 Operating lease liabilities – current $ 481,502 Operating lease liabilities – non-current 287,247 Total operating lease liabilities $ 768,749 The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of March 31, 2023: Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.6 Weighted average discount rate 6.10 % During the fiscal years ended March 31, 2023 and 2022, the Company incurred total operating lease expenses of $2,696,593 and $2,542,431, respectively. The following is a schedule, by fiscal years, of maturities of lease liabilities as of March 31, 2023: 2024 $ 707,818 2025 227,337 2026 91,825 2027 — 2028 — Thereafter — Total lease payments 1,026,980 Less: imputed interest (52,219 ) Less: prepayments (206,012 ) Present value of lease liabilities $ 768,749 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant, and Equipment, Net [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT, NET | NOTE 8 – PROPERTY, PLANT, AND EQUIPMENT, NET Property, plant, and equipment, net consisted of the following: As of As of March 31, March 31, Land (3) $ 2,200,334 $ 1,831,192 Property and buildings (3) 9,308,426 1,911,818 Equipment and machinery 11,853,445 11,091,566 Office and electric equipment 992,735 915,686 Automobiles 871,756 802,399 Leasehold improvements 4,088,980 4,002,833 Subtotal 29,315,676 20,555,494 Construction in progress (1)(2) 7,182,367 2,098,323 Less: Accumulated depreciation and amortization (14,142,469 ) (11,720,670 ) Property, plant, and equipment, net $ 22,355,574 $ 10,933,147 (1) In January 2022, the Company commenced a construction project of an expansion of the Company’s own premises in Al Tajamouat Industrial City, Jordan. Through March 31, 2023, the Company had paid approximately JOD 803,000 (approximately $1,133,000) and the entire balance was recorded as construction in progress. The estimated construction cost is revised to approximately JOD 870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2024. (2) In April 2022, the Company commenced a construction project to build a dormitory for employees. The construction is built on a land of 4,516 square meters (approximately 48,608 square feet) in Al Tajamouat Industrial City, Jordan, which was acquired by the Company in 2020. The dormitory is expected to cost $8.8 million. Through March 31, 2023, the Company had spent approximately JOD 4.3 million (approximately $6.1 million) for the construction. The dormitory is expected to be completed and ready for use in fiscal 2024. (3) In August 2022, the Company completed the acquisitions of Ever Winland and Kawkab Venus. Ever Winland holds office premises of HK$39.6 million (approximately $5.1 million), which are classified as property and buildings. Kawkab Venus holds land with factory premises, which are classified as land and property and buildings of approximately $370,000 and approximately $2.3 million, respectively. Ever Winland and Kawkab Venus only contain fixed assets (buildings and land) and neither of these two entities have any other assets or liabilities, operations, or employees as of the acquisition date, so the acquisitions of Ever Winland and Kawkab Venus were accounted as asset acquisitions. For the fiscal year ended March 31, 2023 and 2022, depreciation expenses were $2,430,692 and $2,149,419, respectively. |
Equity
Equity | 12 Months Ended |
Mar. 31, 2023 | |
Equity [Abstract] | |
EQUITY | NOTE 9 – EQUITY Preferred Stock The Company has 500,000 shares of preferred stock, par value of $0.001 per share, authorized; none Common Stock The Company had 12,294,840 and 12,334,318 shares of common stock outstanding as of March 31, 2023 and 2022, respectively. On June 24, 2021, the Board of Directors approved the grant of 200,000 Restricted Stock Units (“RSUs”) under the Plan to 32 executive officers and employees of the Company, with a one-year vesting period. All RSUs were vested and 200,000 additional shares were issued on June 30, 2022. On June 13, 2022, the Board of Directors authorized a share repurchase program, under which the Company may repurchase up to $3.0 million of its outstanding shares of common stock. The share repurchase program was effective through March 31, 2023. As of March 31, 2023, 239,478 shares had been repurchased at market rate with a total consideration of $1,169,046. Statutory Reserve In accordance with the Corporate Law in Jordan, Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash The First, and MK Garments and Kawkab Venus are required to make appropriations to certain reserve funds, based on net income determined in accordance with generally accepted accounting principles of Jordan. Appropriations to the statutory reserve are required to be 10% of net income until the reserve is equal to 100% of the entity’s share capital. This reserve is not available for dividend distribution. In addition, PRC companies are required to set aside at least 10% of their after-tax net profits each year, if any, to fund the statutory reserves until the balance of the reserves reaches 50% of their registered capital. The statutory reserves are not distributable in the form of cash dividends to the Company and can be used to make up cumulative prior-year losses. Dividends During the fiscal year ended March 31, 2023, the Board of Directors declared a cash dividend of $0.05 per share of common stock on February 3, 2023, November 4, 2022, August 5, 2022, and May 16, 2022, respectively. The cash dividends of $618,886, $621,809, $626,716, and $616,716 were paid in full on February 21, 2023, November 28, 2022, August 24, 2022, and June 3, 2022, respectively. During the fiscal year ended March 31, 2022, the Board of Directors declared a cash dividend of $0.05 per share of common stock on February 4, 2022, November 2, 2021, August 5, 2021, and May 14, 2021, respectively. The cash dividends of $616,715, $616,716, $566,716, and $566,649 were paid in full on February 22, 2022, November 29, 2021, August 24, 2021, and June 2, 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Mar. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 10 – STOCK-BASED COMPENSATION Warrants issued for services From time to time, the Company issues warrants to purchase its common stock. These warrants are valued using the Black-Scholes model and using the volatility, market price, exercise price, risk-free interest rate, and dividend yield appropriate at the date the warrants were issued. The major assumptions used in the Black Scholes model included the followings: the expected term is five years; risk-free interest rate is 1.8% to 2.8%; and the expected volatility is 50.3% to 52.2%. For fiscal 2023, 137,210 warrants expired. There were 57,200 warrants outstanding as of March 31, 2023 with a weighted average exercise price of $8.75. All of the outstanding warrants were fully vested and exercisable as of March 31, 2023 and 2022. The remaining warrants expired on May 14, 2023. All stock warrants activities are summarized as follows: Option to Weighted Stock warrants outstanding at March 31, 2022 194,410 $ 6.71 Granted - - Exercised - - Expired (137,210 ) 5.86 Stock warrants outstanding at March 31, 2023 57,200 $ 8.75 Stock Options On March 21, 2018, the Board of Directors adopted the Jerash Holdings (US), Inc. 2018 Stock Incentive Plan (the “Plan”), pursuant to which the Company may grant various types of equity awards. 1,484,250 shares of common stock of the Company were reserved for issuance under the Plan. In addition, on July 19, 2019, the Board of Directors approved an amendment and restatement of the Plan, which was approved by the Company’s stockholders at its annual meeting of stockholders on September 16, 2019. The amended and restated Plan increased the number of shares reserved for issuance under the Plan by 300,000, to 1,784,250, among other changes. On March 31, 2023, the Company had 42,650 of shares remaining available for future issuance under the Plan. On April 9, 2018, the Board of Directors approved the issuance of 989,500 nonqualified stock options under the Plan to 13 executive officers and employees of the Company in accordance with the Plan at an exercise price of $7.00 per share, and a term of five years. The fair value of these options was estimated as of the grant date using the Black-Scholes model with the major assumptions that expected terms are five years; risk-free interest rate is 2.6%; and the expected volatility is 50.3%. On August 3, 2018, the Board of Directors granted the Company’s then Chief Financial Officer and Head of U.S. Operations a total of 150,000 nonqualified stock options under the Plan in accordance with the Plan at an exercise price of $6.12 per share and a term of 10 years. The fair value of these options was estimated as of the grant date using the Black-Scholes model with the major assumptions that the expected terms are 10 years; risk-free interest rate is 2.95%; and the expected volatility is 50.3%. On November 27, 2019, the Board of Directors granted the Company’s Chief Financial Officer 50,000 nonqualified stock options under the amended and restated Plan in accordance with the amended and restated Plan at an exercise price of $6.50 per share and a term of 10 years. All these outstanding options became fully vested and exercisable in May 2020. The fair value of the options was estimated as of the grant date using the Black-Scholes model with the major assumptions of the expected term of 10 years; risk-free interest rate of 1.77%; expected volatility of 48.59%; and dividend yield of 3.08%. All these outstanding options were fully vested and exercisable. As of March 31, 2023, there were 1,136,500 stock options outstanding. The weighted average remaining life of the options is within one year. All stock option activities are summarized as follows: Option to Weighted Stock options outstanding at March 31, 2022 1,136,500 $ 6.90 Granted — — Exercised — — Forfeited — — Stock options outstanding at March 31, 2023 1,136,500 $ 6.90 Restricted Stock Units On June 24, 2021, the Board of Directors approved the grant of 200,000 RSUs under the Plan to 32 executive officers and employees of the Company, with a one-year vesting period. The fair value of these RSUs on June 24, 2021 was $1,266,000, based on the market price of the Company’s common stock as of the date of the grant. On June 30, 2022, all 200,000 RSUs were vested. On February 9, 2023, the Board of Directors approved the grant of 405,800 RSUs under the Plan to 37 executive officers and employees of the Company, with a two-year vesting period. The fair value of these RSUs on February 15, 2023 was $1,937,695, based on the market price of the Company’s common stock as of the date of the grant. As of March 31, 2023, there were $1,815,275 unrecognized stock-based compensation expenses to be recognized in the future. 700 RSUs were forfeited during the fiscal year and 405,100 RSUs remained as of March 31, 2023. Total expenses related to the RSU issued were $413,900 and $947,079 for the years ended March 31, 2023 and 2022, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 11 – RELATED PARTY TRANSACTIONS The relationship and the nature of related party transactions are summarized as follow: Name of Related Party Relationship to the Company Nature of Transactions Yukwise Limited (“Yukwise”) Wholly owned by the Company’s President, Chief Executive Officer, and Chairman, and a significant stockholder Consulting Services Multi-Glory Corporation Limited (“Multi-Glory”) Wholly owned by a significant stockholder Consulting Services Jiangmen V-Apparel Manufacturing Limited Affiliate, subsidiary of Ford Glory Holdings (“FGH”), which is 49% indirectly owned by the Company’s President, Chief Executive Officer, and Chairman, and a significant stockholder Operating Lease Victory Apparel (Jordan) Manufacturing Company Limited (“Victory Apparel”) Affiliate, controlled by the Company’s President, Chief Executive Officer, Chairman, and a significant stockholder and another significant stockholder Borrowings a. Related party lease and purchases agreement On July 1, 2020, Jiangmen Treasure Success and Jiangmen V-Apparel Manufacturing Limited entered into a factory lease agreement for office and sample production purposes in Jiangmen, China from Jiangmen V-Apparel Manufacturing Limited for a monthly rent in the amount of CNY 28,300 (approximately $4,100). The lease had a one-year term and could be renewed with a one-month notice. On April 30, 2021, the factory lease agreement between Jiangmen Treasure Success and Jiangmen V-apparel Manufacturing Limited was terminated. b. Consulting agreements On January 12, 2018, Treasure Success and Yukwise entered into a consulting agreement, pursuant to which Mr. Choi will serve as Chief Executive Officer and provide high-level advisory and general management services for $300,000 per annum. The agreement renews automatically for one-month terms. This agreement became effective as of January 1, 2018. Total consulting fees under this agreement were $300,000 for the fiscal years ended March 31, 2023 and 2022. On January 16, 2018, Treasure Success and Multi-Glory entered into a consulting agreement, pursuant to which Multi-Glory will provide high-level advisory, marketing, and sales services to the Company for $300,000 per annum. The agreement renews automatically for one-month terms. The agreement became effective as of January 1, 2018. Total consulting fees under this agreement were $300,000 for the fiscal years ended March 31, 2023 and 2022. c. Borrowings from a related party As of March 31, 2023 and 2022, the Company had outstanding balances due to Victory Apparel of $ nil |
Credit Facilities
Credit Facilities | 12 Months Ended |
Mar. 31, 2023 | |
Credit Facilities [Abstract] | |
CREDIT FACILITIES | NOTE 12 – CREDIT FACILITIES On January 31, 2019, Standard Chartered Bank (Hong Kong) Limited (“SCBHK”) offered to provide an import facility of up to $3.0 million to Treasure Success pursuant to a facility letter dated June 15, 2018. Pursuant to the agreement, SCBHK agreed to finance import invoice financing and pre-shipment financing of export orders up to an aggregate of $3.0 million. The SCBHK facility bears interest at 1.3% per annum over SCBHK’s cost of funds. As of March 31, 2023 and 2022, the Company had $ nil Starting from May and October 2021, the Company has participated in a financing program with two customers, in which the Company may receive early payments for approved sales invoices submitted by the Company through the bank the customer cooperates with. For any early payments received, the Company is subject to an early payment charge imposed by the customer’s bank, for which the rate is based on London Interbank Offered Rate (“LIBOR”) plus a spread. In certain scenarios, the Company submits the sales invoice and receives payments prior to the shipment of the relative products. In that case, instead of recording the cash receipts as a reduction to accounts receivables, the Company records the cash receipts as receipts in advance from a customer until products are entitled to transfer. The Company records the early payment charge in interest expenses on the consolidated statements of comprehensive income. For the years ended March 31, 2023 and 2022, the early payment charge was $647,906 and $210,576, respectively. On January 12, 2022, DBS Bank (Hong Kong) Limited (“DBSHK”) offered to provide a banking facility of up to $5.0 million to Treasure Success pursuant to a facility letter dated January 12, 2022. Pursuant to the facility, DBSHK agreed to finance cargo receipt, trust receipt, account payable financing, and certain type of import invoice financing up to an aggregate of $5.0 million, with certain financial covenants. The DBSHK facility bears interest at 1.5% per annum over Hong Kong Interbank Offered Rate (“HIBOR”) for HKD bills and 1.3% per annum over DBSHK’s cost of funds for foreign currency bills. The facility is guaranteed by Jerash Holdings and became available to the Company on June 17, 2022. As of March 31, 2023 and 2022, the Company had $ nil |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 13 – EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the fiscal years ended March 31, 2023 and 2022. As of March 31, 2023, 1,598,800 RSUs, warrants, and stock options were outstanding. For the fiscal years ended March 31, 2023 and 2022, 1,193,700 and 1,043,700 warrants and stock options were excluded from the EPS calculation, respectively, as they were anti-dilutive. Fiscal Year Ended March 31, (in $000s except share and per share information) 2023 2022 Numerator: Net income attributable to Jerash Holdings (US), Inc.’s Common Stockholders $ 2,420 $ 7,920 Denominator: Denominator for basic earnings per share (weighted-average shares) 12,635,785 11,821,779 Dilutive securities – unexercised warrants and options 39,566 75,938 Denominator for diluted earnings per share (adjusted weighted-average shares) 12,675,351 11,897,717 Basic and diluted earnings per share $ 0.19 $ 0.67 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | NOTE 14 – SEGMENT REPORTING ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments and major customers in financial statements for details on the Company’s business segments. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operation results by the revenue of the Company’s products. The Company’s major product is outerwear. For the fiscal years ended March 31, 2023 and 2022, outerwear accounted for approximately 94.1% and 93.4% of total revenue. Based on management’s assessment, the Company has determined that it has only one operating segment as defined by ASC 280. The following table summarizes sales by geographic areas for the fiscal years ended March 31, 2023 and 2022, respectively. For the Fiscal Year Ended 2023 2022 United States $ 122,318,376 $ 136,067,702 Hong Kong 9,474,112 3,279,777 Jordan 4,891,883 1,950,408 Others 1,378,938 2,057,015 Total $ 138,063,309 $ 143,354,902 70.7% and 28.2% of long-lived assets were located in Jordan and Hong Kong, respectively, as of March 31, 2023. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 15 – COMMITMENTS AND CONTINGENCIES Commitments On August 28, 2019, Jiangmen Treasure Success was incorporated under the laws of the People’s Republic of China in Jiangmen City, Guangdong Province, China, with a total registered capital of HKD 3 million (approximately $385,000). On December 9, 2020, shareholders of Jiangmen Treasure Success approved to increase its registered capital to HKD 15 million (approximately $1.9 million). The Company’s subsidiary, Treasure Success, as a shareholder of Jiangmen Treasure Success, is required to contribute HKD 15 million (approximately $1.9 million) as paid-in capital in exchange for 100% ownership interest in Jiangmen Treasure Success. As of March 31, 2023, Treasure Success had made capital contribution of HKD 10 million (approximately $1.3 million). Pursuant to the articles of incorporation of Jiangmen Treasure Success, Treasure Success is required to complete the remaining capital contribution before December 31, 2029 as Treasure Success’ available funds permit. Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would not have a material adverse impact on the Company’s consolidated financial position, results of operations, and cash flows. |
Income Tax
Income Tax | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax [Abstact] | |
INCOME TAX | NOTE 16 – INCOME TAX Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash the First, MK Garments, and Kawkab Venus are subject to the regulations of the Income Tax Department in Jordan. In accordance with the Investment Encouragement Law, Jerash Garments’ export sales to overseas customers were entitled to a 100% income tax exemption for a period of 10 years commencing on the first day of production. This exemption had been extended for five years until December 31, 2018. Effective January 1, 2019, the Jordanian government reclassified the area where Jerash Garments and its subsidiaries are to a Development Zone. In accordance with the Development Zone law, Jerash Garments and its subsidiaries were subject to income tax at income tax rate 16% plus a 1% social contribution between January 1, 2021 and December 31, 2021. The income tax rate increased to 18% or 20% plus a 1% social contribution starting from January 1, 2022. Effective January 1, 2023, the income tax rate increased to 19% or 20%, plus a 1% social contribution. On December 22, 2017, the U.S. Tax Cuts and Jobs Act (the “Tax Act”) was enacted. The Tax Act imposed tax on previously untaxed accumulated earnings and profits (“E&P”) of foreign subsidiaries (the “Toll Charge”). The Toll Charge is based in part of the amount of E&P held in cash and other specific assets as of December 31, 2017. The Toll Charge can be paid over an eight-year period, starting in 2018, and will not accrue interest. Additionally, under the provisions of the Tax Act, for taxable years beginning after December 31, 2017, the foreign earnings of Jerash Garments and its subsidiaries are subject to U.S. taxation at the Jerash Holdings level under the new Global Intangible Low-Taxed Income (“GILTI”) regime. Income tax payable consisted of the following: As of As of Income tax payable – current $ 2,846,201 $ 2,861,272 Income tax payable – non-current 751,410 1,001,880 $ 3,597,611 $ 3,863,152 The provision for income taxes consisted of the following: For the fiscal years ended 2023 2022 Domestic and foreign components of income (loss) before income taxes Domestic $ (1,761,439 ) $ (2,508,655 ) Foreign 5,845,172 12,952,530 Total $ 4,083,733 $ 10,443,875 For the fiscal years ended 2023 2022 Provision (benefit) for income taxes Current tax: U.S. federal $ — $ (147 ) U.S. state and local 750 700 Foreign 1,464,643 2,727,650 Total Current Tax 1,465,393 2,728,203 Deferred tax: U.S. federal 198,717 (203,928 ) Total deferred tax 198,717 (203,928 ) Total tax $ 1,664,110 $ 2,524,275 Effective tax rates 40.7 % 24.2 % A reconciliation of the effective tax rate was as follows: For the fiscal years ended 2023 2022 Tax at statutory rate $ 857,052 $ 2,193,499 State tax, net of federal benefit 593 593 Non-deductible expenses 85,589 431 Non-taxable income — (474 ) Global Intangible Low-Taxed Income 846,116 1,783,313 Tax Credits (558,642 ) (1,455,812 ) Foreign tax rate differential 237,688 159,053 Valuation Allowance — (151,246 ) Provision to return adjustments 195,714 (5,082 ) Total $ 1,664,110 $ 2,524,275 The Company’s deferred tax assets and liabilities as of March 31, 2023 and 2022 consisted of the following: Deferred tax assets As of As of Stock-based compensation $ 154,227 $ 352,590 Deferred tax liabilities (354 ) — Net operating losses carried forward — — Less: valuation allowance — — Deferred tax assets, net $ 153,873 $ 352,590 Deferred tax assets are reduced by a valuation allowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. As of March 31, 2023 and 2022, the allowance for deferred tax assets was $ nil As of March 31, 2023, the Company had cumulative book-tax basis differences in its foreign subsidiaries of approximately $18.0 million. The Company has not recorded a U.S. deferred tax liability for the book-tax basis in its foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. The reversal of this temporary difference would occur upon the sale or liquidation of the Company’s foreign subsidiaries, and the estimated impact of the reversal of this temporary difference is approximately $3.8 million. The Company files income tax returns in the U.S. federal jurisdiction, and various states and foreign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to April 1, 2016. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS On May 23, 2023, the Board of Directors approved the payment of a dividend of $0.05 per share, payable on June 9, 2023, to stockholders of record as of the close of business as of June 2, 2023. J&B International Limited (“J&B”) is a joint venture company established in Hong Kong on January 10, 2023. On March 20, 2023, Treasure Success and P. T. Eratex (Hong Kong) Limited entered into a Joint Venture and Shareholders’ Agreement, pursuant to which Treasure Success acquired 51% of the equity interests in J&B on April 11, 2023. J&B engages in the garment trading and manufacturing business for orders from customers. Jerash Garments recently received documents from Capital Bank of Jordan for a credit facility of $10 million. Our board of directors has reviewed the documents and approved to enter into the credit facility on June 1, 2023. Execution is still in process and the credit facility has not been effective as of the date of this annual report. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Company’s consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”). The consolidated financial statements include the financial statements of Jerash Holdings and its subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from these estimates. |
Cash | Cash The Company’s cash consists of cash on hand and cash deposited in financial institutions. The Company considers all highly liquid investment instruments with an original maturity of three months or less from the original date of purchase to be cash equivalents. As of March 31, 2023 and 2022, the Company had no cash equivalents. |
Restricted Cash | Restricted Cash Restricted cash consists of cash used as security deposits to obtain credit facilities from a bank and to secure customs clearance and labor import requirements under the requirements of local regulations. The Company is required to keep certain amounts on deposit that are subject to withdrawal restrictions. These security deposits at the bank are refundable only when the bank facilities are terminated. The restricted cash is classified as a current asset if the Company intends to terminate these bank facilities within one year, and as a non-current asset if otherwise. |
Accounts Receivable, Net | Accounts Receivable, Net Accounts receivable are recognized and carried at the original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually grants extended payment terms to customers with good credit standing and determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the consolidated statements of comprehensive income. Actual amounts received may differ from management’s estimate of creditworthiness and the economic environment. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Inventories include the cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is determined using the First in, First-out method. The Company periodically reviews its inventories for excess or slow-moving items and makes provisions as necessary to properly reflect inventory value. |
Advance to Suppliers, Net | Advance to Suppliers, Net Advance to suppliers consists of balances paid to suppliers for services or materials purchased that have not been provided or received. Advance to suppliers for services and materials is short-term in nature. Advance to suppliers is reviewed periodically to determine whether its carrying value has become impaired. The Company considers the assets to be impaired if the performance by the suppliers becomes doubtful. The Company uses the aging method to estimate the allowance for the questionable balances. In addition, at each reporting date, the Company generally determines the adequacy of allowance for doubtful accounts by evaluating all available information, and then records specific allowances for those advances based on the specific facts and circumstances. |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment are recorded at cost, reduced by accumulated depreciation and amortization. Depreciation and amortization expense related to property, plant, and equipment is computed using the straight-line method based on the estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the initial lease term or the estimated useful life of the improvements. The useful life and depreciation method are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property, plant, and equipment. The estimated useful lives of depreciation and amortization of the principal classes of assets are as follows: Useful life Land Infinite Property and buildings 15-25 years Equipment and machinery 3-5 years Office and electronic equipment 3-5 years Automobiles 5 years Leasehold improvements Lesser of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation or amortization of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of comprehensive income. |
Construction in Progress | Construction in Progress Construction in Progress (“CIP”) is recorded at cost for property, plant, and equipment where the asset is in construction or development. CIP accumulates cost of construction and transaction costs involved in the progress of acquiring the materials for construction or development. The Company does not commence depreciating the asset in CIP account because the asset has not yet been placed in service. Once an asset is placed in service, all costs associated with the asset that are recorded in the CIP account are transferred to plant, plant, and equipment for the asset. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors which may indicate potential impairment include a significant underperformance relative to the historical or projected future operating results or a significant negative industry or economic trend. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that asset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset. The fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record any impairment loss during the fiscal years ended March 31, 2023 and 2022. |
Asset Acquisition | Asset Acquisition An asset acquisition is an acquisition of an asset, or a group of assets, that does not meet the definition of a business, as substantially all of the fair value of the gross assets acquired are concentrated in a single or group of similar, identifiable assets. Asset acquisitions are accounted for by using the cost accumulation model, whereby the cost of the acquisition, including certain transaction costs, is allocated to the assets acquired on a relative fair value basis. Determining and valuing intangible assets requires judgment. |
Goodwill | Goodwill Goodwill represents the excess purchase price paid over the fair value of the net assets of acquired companies. Goodwill is not amortized. As of March 31, 2023 and 2022, the carrying amount of goodwill was both $499,282. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential impairment exist, based on the one reporting unit. The Company has the option to perform a qualitative assessment to determine whether it is necessary to perform the quantitative goodwill impairment test. When performing the quantitative impairment test, the Company compares the fair value of its only reporting unit with the carrying amounts. The Company would recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. The Company concluded that no impairment of its goodwill occurred for the year ended March 31, 2023 and 2022. |
Revenue Recognition | Revenue Recognition Substantially all of the Company’s revenue is derived from product sales, which consist of sales of the Company’s customized ready-made outerwear for large brand-name retailers and PPE. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year. Virtually all of the Company’s contracts are short term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within seven to 150 days of the invoice date. The contracts do not have significant financing components. Shipping and handling costs associated with outbound freight from Jordan export dock are not an obligation of the Company. Returns and allowances are not a significant aspect of the revenue recognition process as historically they have been immaterial. The Company also derives revenue rendering cutting and making services to other apparel vendors who subcontract order to the Company. Revenue is recognized when the service is rendered. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as a price per unit. All estimates are based on the Company’s historical experience, complete satisfaction of the performance obligation, and the Company’s best judgment at the time the estimate is made. Historically, sales returns have not significantly impacted the Company’s revenue. The Company does not have any contract assets since the Company has an unconditional right to consideration when the Company has satisfied its performance obligation and payment from customers is not contingent on a future event. The Company had contract liabilities of $928,393 and $ nil The Company has one revenue generating reportable geographic segment under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its sales of customized ready-made outerwear. The Company believes disaggregation of revenue by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see “Note 14—Segment Reporting”). As of March 31, 2023 and 2022, there was $928,393 and $ nil |
Shipping and Handling | Shipping and Handling Proceeds collected from customers for shipping and handling costs are included in revenue. Shipping and handling costs are expensed as incurred and are included in operating expenses, as a part of selling, general, and administrative expenses. Total shipping and handling expenses were $1,856,218 and $1,864,202 for the fiscal years ended March 31, 2023 and 2022, respectively. |
Income and Sales Taxes | Income and Sales Taxes The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. Jerash Holdings and Jerash Supplies are incorporated/formed in the State of Delaware and are subject to federal income tax in the United States of America. Treasure Success and Ever Winland are registered in Hong Kong and are subject to profit tax in Hong Kong. Jiangmen Treasure Success is incorporated in China and is subject to corporate income tax in China. Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash The First, MK Garments, and Kawkab Venus are subject to income tax in Jordan, unless an exemption is granted. In accordance with Development Zone law, Jerash Garments and its subsidiaries were subject to corporate income tax in Jordan at a rate of 16% plus a 1% social contribution between January 1, 2021 and December 31, 2021. The income tax rate increased to 18% or 20% plus a 1% social contribution starting from January 1, 2022. Effective January 1, 2023, the income tax rate increased to 19% or 20%, plus a 1% social contribution. Jerash Garments and its subsidiaries are subject to local sales tax of 16% on purchases. Jerash Garments was granted a sales tax exemption from the Jordanian Investment Commission for the period from June 1, 2015 to June 1, 2018 that allowed Jerash Garments to make purchases with no sales tax charge. The exemption has been extended to February 5, 2024. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. ASC 740 clarifies the accounting for uncertainty in tax positions. This interpretation requires that an entity recognize in its financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of comprehensive income. No significant uncertainty in tax positions relating to income taxes were incurred during the fiscal years ended March 31, 2023 and 2022. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar (“US$” or “$”). The Company uses JOD in Jordan companies, HKD in Treasure Success and Ever Winland, and Chinese Yuan (“CNY”) in Jiangmen Treasure Success as functional currency of each above-mentioned entity. The assets and liabilities of the Company have been translated into US$ using the exchange rates in effect at the balance sheet date, equity accounts have been translated at historical rates, and revenue and expenses have been translated into US$ using average exchange rates in effect during the reporting period. Cash flows are also translated at average translation rates for the periods. Therefore, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income or loss. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the consolidated statements of comprehensive income as incurred, and the balance of transaction gains and losses were immaterial as of the years ended March 31, 2023 and 2022. The value of JOD against US$ and other currencies may fluctuate and is affected by, among other things, changes in Jordan’s political and economic conditions. Any significant revaluation of JOD, HKD, and CNY may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: March 31, March 31, Period-end spot rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8496 US$1=HKD7.8325 US$1=CNY6.8666 US$1=CNY6.3393 Average rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8383 US$1=HKD7.7844 US$1=CNY6.8506 US$1=CNY6.4180 |
Stock-Based Compensation | Stock-Based Compensation The Company measures compensation expense for stock-based awards based upon the awards’ initial grant-date fair value. The estimated grant-date fair value of the award is recognized as expense over the requisite service period using the straight-line method. The Company estimates the fair value of stock options using a Black-Scholes model. This model is affected by the Company’s stock price on the date of the grant as well as assumptions regarding a number of highly complex and subjective variables. These variables include the expected term of the option, expected risk-free rates of return, the expected volatility of the Company’s common stock, and expected dividend yield, each of which is more fully described below. The assumptions for expected term and expected volatility are the two assumptions that significantly affect the grant date fair value. ● Expected Term: the expected term of a warrant or a stock option is the period of time that the warrant or a stock option is expected to be outstanding. ● Risk-free Interest Rate: the Company bases the risk-free interest rate used in the Black-Scholes model on the implied yield at the grant date of the U.S. Treasury zero-coupon issued with an equivalent term to the stock-based award being valued. Where the expected term of a stock-based award does not correspond with the term for which a zero-coupon interest rate is quoted, the Company uses the nearest interest rate from the available maturities. ● Expected Stock Price Volatility: the Company utilizes the expected volatility of the Company’s common stock over the same period of time as the life of the warrant or stock option. When the Company’s own stock volatility information is unavailable for such period of time, the Company utilizes comparable public company volatility. ● Dividend Yield: Stock-based compensation awards granted prior to November 2018 assumed no dividend yield, while any subsequent stock-based compensation awards will be valued using the anticipated dividend yield. |
Earnings per Share | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS (See “Note 13 – |
Comprehensive Income | Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in JOD or HKD or CNY to US$ is reported in other comprehensive income (loss) in the consolidated statements of comprehensive income. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: ● Level 1 - Quoted prices in active markets for identical assets and liabilities. ● Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash, accounts receivable, bills receivables, other current assets, credit facilities, accounts payable, accrued expenses, income tax payables, other payables, amount due to a related party and operating lease liabilities to approximate the fair value of the respective assets and liabilities at March 31, 2023 and 2022 based upon the short-term nature of these assets and liabilities. |
Concentrations and Credit Risk | Concentrations and Credit Risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of March 31, 2023 and 2022, respectively, $7,264,247 and $12,735,486 of the Company’s cash was on deposit at financial institutions in Jordan, where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of March 31, 2023 and 2022, respectively, $172,939 and $351,255 of the Company’s cash was on deposit at financial institutions in China. Cash maintained in banks within China of less than CNY0.5 million (equivalent to $72,815) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. As of March 31, 2023 and 2022, respectively, $11,700,512 and $13,311,340 of the Company’s cash was on deposit at financial institutions in Hong Kong, which are insured by the Hong Kong Deposit Protection Board subject to certain limitations. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. As of March 31, 2023 and 2022, respectively, $171,496 and $37,342 of the Company’s cash was on deposit in the United States and are insured by the Federal Deposit Insurance Corporation up to $250,000. Accounts receivable are typically unsecured and derived from revenue earned from customers, and therefore are exposed to credit risk. The risk is mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding balances. Customer and vendor concentration risk The Company’s sales are made primarily in the United States. Its operating results could be adversely affected by U.S. government policies on importing business, foreign exchange rate fluctuations, and changes in local market conditions. The Company has a concentration of its revenue and purchases with specific customers and suppliers. For the fiscal year ended March 31, 2023 and 2022, two customers accounted for 60% and 17%, and 67% and 24% of the Company’s total revenue, respectively. As of March 31, 2023, four end-customer accounts for 50%, 13%, 10%, and 10%, respectively, of the Company’s total accounts receivable balance. As of March 31, 2022, one end-customer accounted for 89% of the Company’s total accounts receivable balance. For the fiscal year ended March 31, 2023, the Company purchased approximately 11% of its garments from one major supplier. For the fiscal year ended March 31, 2022, the Company purchased approximately 20% and 11% of its garments from two major suppliers, respectively. As of March 31, 2023, accounts payable to the Company’s one major supplier accounted for 36% of the total accounts payable balance. As of March 31, 2022, accounts payable to the Company’s three major suppliers accounted for 11%, 11%, and 10% of the total accounts payable balance, respectively. |
Risks and Uncertainties | Risks and Uncertainties The principal operations of the Company are located in Jordan. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in Jordan, as well as by the general state of the Jordanian economy. The Company’s operations in Jordan are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic, and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory, and social conditions in Jordan. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets | Useful life Land Infinite Property and buildings 15-25 years Equipment and machinery 3-5 years Office and electronic equipment 3-5 years Automobiles 5 years Leasehold improvements Lesser of useful life and lease term |
Schedule of currency exchange rates used in creating consolidated financial statements | March 31, March 31, Period-end spot rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8496 US$1=HKD7.8325 US$1=CNY6.8666 US$1=CNY6.3393 Average rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8383 US$1=HKD7.7844 US$1=CNY6.8506 US$1=CNY6.4180 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable, Net [Abstract] | |
Schedule of accounts receivable | As of As of March 31, March 31, Trade accounts receivable $ 2,462,120 $ 11,270,652 Less: allowances for doubtful accounts 221,583 221,583 Accounts receivable, net $ 2,240,537 $ 11,049,069 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Inventories [Abstract] | |
Schedule of inventories | As of As of March 31, March 31, Raw materials $ 15,240,198 $ 17,714,578 Work-in-progress 2,932,519 2,010,417 Finished goods 14,484,116 8,530,184 Total inventory $ 32,656,833 $ 28,255,179 |
Advance to Suppliers, Net (Tabl
Advance to Suppliers, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Advance to Suppliers [Abstract] | |
Schedule of advance to suppliers | As of As of March 31, March 31, Advance to suppliers $ 1,533,091 $ 1,284,601 Less: allowances for doubtful accounts - - Advance to suppliers, net $ 1,533,091 $ 1,284,601 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of supplemental balance sheet information related to operating leases | March 31, ROU assets $ 974,761 Operating lease liabilities – current $ 481,502 Operating lease liabilities – non-current 287,247 Total operating lease liabilities $ 768,749 |
Schedule of weighted average remaining lease terms and discount rates of operating leases | Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.6 Weighted average discount rate 6.10 % |
Schedule of maturities of lease liabilities | 2024 $ 707,818 2025 227,337 2026 91,825 2027 — 2028 — Thereafter — Total lease payments 1,026,980 Less: imputed interest (52,219 ) Less: prepayments (206,012 ) Present value of lease liabilities $ 768,749 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Property, Plant, and Equipment, Net [Abstract] | |
Schedule of property, plant, and equipment | As of As of March 31, March 31, Land (3) $ 2,200,334 $ 1,831,192 Property and buildings (3) 9,308,426 1,911,818 Equipment and machinery 11,853,445 11,091,566 Office and electric equipment 992,735 915,686 Automobiles 871,756 802,399 Leasehold improvements 4,088,980 4,002,833 Subtotal 29,315,676 20,555,494 Construction in progress (1)(2) 7,182,367 2,098,323 Less: Accumulated depreciation and amortization (14,142,469 ) (11,720,670 ) Property, plant, and equipment, net $ 22,355,574 $ 10,933,147 (1) In January 2022, the Company commenced a construction project of an expansion of the Company’s own premises in Al Tajamouat Industrial City, Jordan. Through March 31, 2023, the Company had paid approximately JOD 803,000 (approximately $1,133,000) and the entire balance was recorded as construction in progress. The estimated construction cost is revised to approximately JOD 870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2024. (2) In April 2022, the Company commenced a construction project to build a dormitory for employees. The construction is built on a land of 4,516 square meters (approximately 48,608 square feet) in Al Tajamouat Industrial City, Jordan, which was acquired by the Company in 2020. The dormitory is expected to cost $8.8 million. Through March 31, 2023, the Company had spent approximately JOD 4.3 million (approximately $6.1 million) for the construction. The dormitory is expected to be completed and ready for use in fiscal 2024. (3) In August 2022, the Company completed the acquisitions of Ever Winland and Kawkab Venus. Ever Winland holds office premises of HK$39.6 million (approximately $5.1 million), which are classified as property and buildings. Kawkab Venus holds land with factory premises, which are classified as land and property and buildings of approximately $370,000 and approximately $2.3 million, respectively. Ever Winland and Kawkab Venus only contain fixed assets (buildings and land) and neither of these two entities have any other assets or liabilities, operations, or employees as of the acquisition date, so the acquisitions of Ever Winland and Kawkab Venus were accounted as asset acquisitions. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Stock-Based Compensation [Abstract] | |
Schedule of stock warrants activities | Option to Weighted Stock warrants outstanding at March 31, 2022 194,410 $ 6.71 Granted - - Exercised - - Expired (137,210 ) 5.86 Stock warrants outstanding at March 31, 2023 57,200 $ 8.75 |
Schedule of stock option activities | Option to Weighted Stock options outstanding at March 31, 2022 1,136,500 $ 6.90 Granted — — Exercised — — Forfeited — — Stock options outstanding at March 31, 2023 1,136,500 $ 6.90 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of relationship and the nature of related party transactions | Name of Related Party Relationship to the Company Nature of Transactions Yukwise Limited (“Yukwise”) Wholly owned by the Company’s President, Chief Executive Officer, and Chairman, and a significant stockholder Consulting Services Multi-Glory Corporation Limited (“Multi-Glory”) Wholly owned by a significant stockholder Consulting Services Jiangmen V-Apparel Manufacturing Limited Affiliate, subsidiary of Ford Glory Holdings (“FGH”), which is 49% indirectly owned by the Company’s President, Chief Executive Officer, and Chairman, and a significant stockholder Operating Lease Victory Apparel (Jordan) Manufacturing Company Limited (“Victory Apparel”) Affiliate, controlled by the Company’s President, Chief Executive Officer, Chairman, and a significant stockholder and another significant stockholder Borrowings |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | Fiscal Year Ended March 31, (in $000s except share and per share information) 2023 2022 Numerator: Net income attributable to Jerash Holdings (US), Inc.’s Common Stockholders $ 2,420 $ 7,920 Denominator: Denominator for basic earnings per share (weighted-average shares) 12,635,785 11,821,779 Dilutive securities – unexercised warrants and options 39,566 75,938 Denominator for diluted earnings per share (adjusted weighted-average shares) 12,675,351 11,897,717 Basic and diluted earnings per share $ 0.19 $ 0.67 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of summarizes sales by geographic areas | For the Fiscal Year Ended 2023 2022 United States $ 122,318,376 $ 136,067,702 Hong Kong 9,474,112 3,279,777 Jordan 4,891,883 1,950,408 Others 1,378,938 2,057,015 Total $ 138,063,309 $ 143,354,902 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income tax payable | As of As of Income tax payable – current $ 2,846,201 $ 2,861,272 Income tax payable – non-current 751,410 1,001,880 $ 3,597,611 $ 3,863,152 |
Schedule of provision for income taxes | For the fiscal years ended 2023 2022 Domestic and foreign components of income (loss) before income taxes Domestic $ (1,761,439 ) $ (2,508,655 ) Foreign 5,845,172 12,952,530 Total $ 4,083,733 $ 10,443,875 For the fiscal years ended 2023 2022 Provision (benefit) for income taxes Current tax: U.S. federal $ — $ (147 ) U.S. state and local 750 700 Foreign 1,464,643 2,727,650 Total Current Tax 1,465,393 2,728,203 Deferred tax: U.S. federal 198,717 (203,928 ) Total deferred tax 198,717 (203,928 ) Total tax $ 1,664,110 $ 2,524,275 Effective tax rates 40.7 % 24.2 % |
Schedule of reconciliation of the effective tax rate | For the fiscal years ended 2023 2022 Tax at statutory rate $ 857,052 $ 2,193,499 State tax, net of federal benefit 593 593 Non-deductible expenses 85,589 431 Non-taxable income — (474 ) Global Intangible Low-Taxed Income 846,116 1,783,313 Tax Credits (558,642 ) (1,455,812 ) Foreign tax rate differential 237,688 159,053 Valuation Allowance — (151,246 ) Provision to return adjustments 195,714 (5,082 ) Total $ 1,664,110 $ 2,524,275 |
Schedule of deferred tax assets and liabilities | Deferred tax assets As of As of Stock-based compensation $ 154,227 $ 352,590 Deferred tax liabilities (354 ) — Net operating losses carried forward — — Less: valuation allowance — — Deferred tax assets, net $ 153,873 $ 352,590 |
Organization and Description _2
Organization and Description of Business (Details) $ in Millions | Jul. 06, 2020 JOD (JD) | Aug. 28, 2019 USD ($) | Aug. 28, 2019 HKD ($) | Jan. 15, 2015 JOD (JD) | Jun. 13, 2013 JOD (JD) | Mar. 11, 2013 JOD (JD) | Oct. 24, 2004 JOD (JD) | Jan. 23, 2003 JOD (JD) | Nov. 26, 2000 USD ($) | Nov. 26, 2000 JOD (JD) |
Hashemite Kingdom of Jordan [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Capital | $ 212,000 | JD 150,000 | ||||||||
Chinese Garments [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Capital | JD 50,000 | JD 50,000 | ||||||||
Jerash The First [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Capital | JD 150,000 | |||||||||
Jiangmen Treasure Success [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Total registered capital | $ 1,900,000 | $ 15 | ||||||||
Series of Individually Immaterial Business Acquisitions [Member] | Jiangmen Treasure Success [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Ownership percentage | 100% | 100% | ||||||||
Paramount [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Capital | JD 100,000 | |||||||||
MK Garments [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Capital | JD 100,000 | |||||||||
Kawkab Venus [Member] | ||||||||||
Organization and Description of Business (Details) [Line Items] | ||||||||||
Capital | JD 50,000 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ in Millions | 12 Months Ended | |||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 AFN (؋) | Mar. 31, 2023 CNY (¥) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Carrying amount of goodwill | $ 499,282 | $ 499,282 | ||
Contract liabilities | ؋ | ؋ 928,393 | |||
Deferred revenue | 928,393 | |||
Customer advances | $ 928,393 | |||
Income tax, description | In accordance with Development Zone law, Jerash Garments and its subsidiaries were subject to corporate income tax in Jordan at a rate of 16% plus a 1% social contribution between January 1, 2021 and December 31, 2021. The income tax rate increased to 18% or 20% plus a 1% social contribution starting from January 1, 2022. Effective January 1, 2023, the income tax rate increased to 19% or 20%, plus a 1% social contribution. | |||
Local sales tax | 16% | |||
Recognized income tax positions percentage | 50% | 50% | 50% | |
Shipping and Handling [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total shipping and handling expenses | $ 1,856,218 | $ 1,864,202 | ||
Customer Two [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenue percentage | 67% | 24% | 67% | 67% |
Total revenue | 13% | |||
Customer One [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenue percentage | 60% | 17% | 60% | 60% |
Supplier One [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenue | 50% | |||
Customer three [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenue | 10% | |||
Customer four [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total revenue | 10% | |||
Accounts Receivable [Member] | Customer Two [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Contract liabilities | ||||
Accounts Receivable [Member] | Customer One [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total accounts receivable balance percentage | 89% | |||
Jordan [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Deposits | $ 7,264,247 | 12,735,486 | ||
China [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Deposits | 172,939 | 351,255 | ||
Cash maintained in banks | 72,815 | ¥ 0.5 | ||
Hong Kong [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Deposits | 11,700,512 | 13,311,340 | ||
United States [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Deposits | 171,496 | $ 37,342 | ||
FDIC insured amount | $ 250,000 | |||
Supplier One [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Purchased garments percentage | 11% | 20% | ||
Total accounts payable balance percentage | 11% | |||
Supplier One [Member] | Accounts Payable [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total accounts payable balance percentage | 36% | |||
Supplier Two [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Purchased garments percentage | 11% | |||
Total accounts payable balance percentage | 11% | |||
Supplier Three [Member] | ||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||
Total accounts payable balance percentage | 10% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets | 12 Months Ended |
Mar. 31, 2023 | |
Land [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives, description | Infinite |
Property and buildings [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives | 15 years |
Property and buildings [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives | 25 years |
Equipment and machinery [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives | 3 years |
Equipment and machinery [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives | 5 years |
Office and electronic equipment [Member] | Minimum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives | 3 years |
Office and electronic equipment [Member] | Maximum [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives | 5 years |
Automobiles [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives | 5 years |
Leasehold improvements [Member] | |
Summary of Significant Accounting Policies (Details) - Schedule of estimated useful lives of depreciation and amortization of the principal classes of assets [Line Items] | |
Estimated useful lives, description | Lesser of useful life and lease term |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Details) - Schedule of currency exchange rates used in creating consolidated financial statements | Mar. 31, 2023 | Mar. 31, 2022 |
JOD [Member] | Period-end spot rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 0.709 | 0.709 |
JOD [Member] | Average rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 0.709 | 0.709 |
HKD [Member] | Period-end spot rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 7.8496 | 7.8325 |
HKD [Member] | Average rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 7.8383 | 7.7844 |
CNY [Member] | Period-end spot rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 6.8666 | 6.3393 |
CNY [Member] | Average rate [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 6.8506 | 6.418 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of accounts receivable [Abstract] | ||
Trade accounts receivable | $ 2,462,120 | $ 11,270,652 |
Less: allowances for doubtful accounts | 221,583 | 221,583 |
Accounts receivable, net | $ 2,240,537 | $ 11,049,069 |
Inventories (Details)
Inventories (Details) - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Inventories [Abstract] | ||
Inventory valuation reserve (in Dollars) | ||
Inventory based orders received percentage | 93.40% | 90% |
Inventories held on hand unfulfilled sales orders, percentage | 6.60% | 10% |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 15,240,198 | $ 17,714,578 |
Work-in-progress | 2,932,519 | 2,010,417 |
Finished goods | 14,484,116 | 8,530,184 |
Total inventory | $ 32,656,833 | $ 28,255,179 |
Advance to Suppliers, Net (Deta
Advance to Suppliers, Net (Details) - Schedule of advance to suppliers - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of advance to suppliers [Abstract] | ||
Advance to suppliers | $ 1,533,091 | $ 1,284,601 |
Less: allowances for doubtful accounts | ||
Advance to suppliers, net | $ 1,533,091 | $ 1,284,601 |
Leases (Details)
Leases (Details) | 12 Months Ended | |
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Leases [Abstract] | ||
Number of operating leases | 48 | |
Total operating lease expenses | $ 2,696,593 | $ 2,542,431 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of supplemental balance sheet information related to operating leases - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Supplemental Balance Sheet Information Related To Operating Leases Abstract | ||
ROU assets | $ 974,761 | $ 1,826,062 |
Operating lease liabilities – current | 481,502 | 739,101 |
Operating lease liabilities – non-current | 287,247 | $ 869,313 |
Total operating lease liabilities | $ 768,749 |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of weighted average remaining lease terms and discount rates of operating leases | Mar. 31, 2023 |
Remaining lease term and discount rate: | |
Weighted average remaining lease term (years) | 1 year 7 months 6 days |
Weighted average discount rate | 6.10% |
Leases (Details) - Schedule o_3
Leases (Details) - Schedule of maturities of lease liabilities | Mar. 31, 2023 USD ($) |
Schedule of maturities of lease liabilities [Abstract] | |
2024 | $ 707,818 |
2025 | 227,337 |
2026 | 91,825 |
2027 | |
2028 | |
Thereafter | |
Total lease payments | 1,026,980 |
Less: imputed interest | (52,219) |
Less: prepayments | (206,012) |
Present value of lease liabilities | $ 768,749 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Aug. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 JOD (JD) | Aug. 31, 2022 HKD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2022 m² | Apr. 30, 2022 ft² | |
Property, Plant, and Equipment, Net [Abstract] | ||||||||
Estimated construction cost, description | Through March 31, 2023, the Company had paid approximately JOD 803,000 (approximately $1,133,000) and the entire balance was recorded as construction in progress. The estimated construction cost is revised to approximately JOD 870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2024. | |||||||
Construction in progress, paid | $ 1,133,000 | JD 803,000 | ||||||
Estimated construction cost | 1,200,000 | 870,000 | ||||||
Construction built on land | 4,516 | 48,608 | ||||||
Construction spent amount | $ 39.6 | $ 8,800,000 | ||||||
Construction amount | 6,100,000 | JD 4,300,000 | ||||||
Acquisitions cost | $ 5,100,000 | |||||||
Depreciation expenses | $ 2,430,692 | $ 2,149,419 | ||||||
Land [Member] | ||||||||
Property, Plant, and Equipment, Net [Abstract] | ||||||||
Acquisition amount | 370,000 | |||||||
Building [Member] | ||||||||
Property, Plant, and Equipment, Net [Abstract] | ||||||||
Acquisition amount | $ 2,300,000 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net (Details) - Schedule of property, plant, and equipment - USD ($) | 12 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | |||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | $ 29,315,676 | $ 20,555,494 | ||
Construction in progress | [1],[3] | 7,182,367 | [2] | 2,098,323 |
Less: Accumulated depreciation and amortization | (14,142,469) | (11,720,670) | ||
Property, plant, and equipment, net | 22,355,574 | 10,933,147 | ||
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | [2] | 2,200,334 | 1,831,192 | |
Property and buildings [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | [2] | 9,308,426 | 1,911,818 | |
Equipment and machinery [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | 11,853,445 | 11,091,566 | ||
Office and electric equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | 992,735 | 915,686 | ||
Automobiles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | 871,756 | 802,399 | ||
Leasehold improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Subtotal | $ 4,088,980 | $ 4,002,833 | ||
[1] In April 2022, the Company commenced a construction project to build a dormitory for employees. The construction is built on a land of 4,516 square meters (approximately 48,608 square feet) in Al Tajamouat Industrial City, Jordan, which was acquired by the Company in 2020. The dormitory is expected to cost $8.8 million. Through March 31, 2023, the Company had spent approximately JOD 4.3 million (approximately $6.1 million) for the construction. The dormitory is expected to be completed and ready for use in fiscal 2024. In August 2022, the Company completed the acquisitions of Ever Winland and Kawkab Venus. Ever Winland holds office premises of HK$39.6 million (approximately $5.1 million), which are classified as property and buildings. Kawkab Venus holds land with factory premises, which are classified as land and property and buildings of approximately $370,000 and approximately $2.3 million, respectively. Ever Winland and Kawkab Venus only contain fixed assets (buildings and land) and neither of these two entities have any other assets or liabilities, operations, or employees as of the acquisition date, so the acquisitions of Ever Winland and Kawkab Venus were accounted as asset acquisitions. In January 2022, the Company commenced a construction project of an expansion of the Company’s own premises in Al Tajamouat Industrial City, Jordan. Through March 31, 2023, the Company had paid approximately JOD 803,000 (approximately $1,133,000) and the entire balance was recorded as construction in progress. The estimated construction cost is revised to approximately JOD 870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2024. |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||||||||||||
Jun. 03, 2022 | Jun. 02, 2021 | Feb. 21, 2023 | Nov. 28, 2022 | Aug. 24, 2022 | Feb. 22, 2022 | Nov. 29, 2021 | Aug. 24, 2021 | Mar. 31, 2023 | Feb. 03, 2023 | Nov. 04, 2022 | Aug. 05, 2022 | Jun. 30, 2022 | Jun. 13, 2022 | May 16, 2022 | Mar. 31, 2022 | Feb. 04, 2022 | Nov. 02, 2021 | Aug. 05, 2021 | Jun. 24, 2021 | May 14, 2021 | |
Equity (Details) [Line Items] | |||||||||||||||||||||
Preferred stock, shares authorized | 500,000 | 500,000 | |||||||||||||||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | |||||||||||||||||||
Preferred stock, shares issued | |||||||||||||||||||||
Preferred stock, shares outstanding | |||||||||||||||||||||
Common stock, shares outstanding | 12,294,840 | 12,334,318 | |||||||||||||||||||
Repurchase market shares | 239,478 | ||||||||||||||||||||
Total consideration amount | $ 1,169,046 | ||||||||||||||||||||
Statutory reserve, description | Appropriations to the statutory reserve are required to be 10% of net income until the reserve is equal to 100% of the entity’s share capital. This reserve is not available for dividend distribution. In addition, PRC companies are required to set aside at least 10% of their after-tax net profits each year, if any, to fund the statutory reserves until the balance of the reserves reaches 50% of their registered capital. | ||||||||||||||||||||
Dividend payable, amount per share | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |||||||||||||
Cash dividends | $ 616,716 | $ 566,649 | $ 618,886 | $ 621,809 | $ 626,716 | $ 616,715 | $ 616,716 | $ 566,716 | |||||||||||||
RSU [Member] | |||||||||||||||||||||
Equity (Details) [Line Items] | |||||||||||||||||||||
Shares issued | 200,000 | 200,000 | |||||||||||||||||||
Board of Directors [Member] | |||||||||||||||||||||
Equity (Details) [Line Items] | |||||||||||||||||||||
Common stock, shares outstanding | 3,000,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||
Aug. 03, 2018 | Apr. 09, 2018 | Nov. 27, 2019 | Mar. 31, 2023 | Mar. 31, 2022 | Feb. 15, 2023 | Feb. 09, 2023 | Jun. 30, 2022 | Jun. 24, 2021 | Mar. 21, 2018 | |
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Weighted average remaining contractual term | 10 years | 5 years | 10 years | 5 years | ||||||
Risk-free interest rate | 2.95% | 2.60% | 1.77% | |||||||
Expected volatility | 50.30% | 50.30% | 48.59% | |||||||
Warrants expired | 137,210 | |||||||||
Warrants outstanding | 57,200 | |||||||||
weighted average exercise price (in Dollars per share) | $ 8.75 | |||||||||
Expired date | May 14, 2023 | |||||||||
Shares remaining available for future issuance | 42,650 | 1,484,250 | ||||||||
Stock options | 150,000 | 989,500 | 50,000 | |||||||
Weighted average exercise price (in Dollars per share) | $ 6.12 | $ 7 | $ 6.5 | |||||||
Dividend yield | 3.08% | |||||||||
Stock options outstanding | 1,136,500 | |||||||||
Weighted average remaining life | 1 year | |||||||||
Restricted stock expense (in Dollars) | $ 1,937,695 | |||||||||
Unrecognized stock-based compensation expenses (in Dollars) | $ 200,000 | |||||||||
Unrecognized expenses (in Dollars) | $ 1,815,275 | |||||||||
Forfeited of shares | 700 | |||||||||
RSU remaining number of shares | 405,100 | |||||||||
Restricted stock units expenses (in Dollars) | $ 413,900 | $ 947,079 | ||||||||
Minimum [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Risk-free interest rate | 1.80% | |||||||||
Expected volatility | 50.30% | |||||||||
Number of shares authorized | 300,000 | |||||||||
Maximum [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Risk-free interest rate | 2.80% | |||||||||
Expected volatility | 52.20% | |||||||||
Number of shares authorized | 1,784,250 | |||||||||
Board of Directors [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Weighted average remaining contractual term | 10 years | 5 years | ||||||||
Chief Financial Officer [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Weighted average remaining contractual term | 10 years | |||||||||
Restricted Stock Units [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Restricted stock unit grant | 405,800 | 200,000 | ||||||||
Restricted stock expense (in Dollars) | $ 1,266,000 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of stock warrants activities - Sock Warrants [Member] | 12 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Schedule of stock warrants activities [Abstract] | |
Option to Acquire Shares, Stock warrants outstanding, Beginning | shares | 194,410 |
Weighted Average Exercise Price, Stock warrants outstanding, Beginning | $ / shares | $ 6.71 |
Option to Acquire Shares, Granted | shares | |
Weighted Average Exercise Price, Granted | $ / shares | |
Option to Acquire Shares, Exercised | shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Option to Acquire Shares, Expired | shares | (137,210) |
Weighted Average Exercise Price, Expired | $ / shares | $ 5.86 |
Option to Acquire Shares, Stock warrants outstanding, Ending | shares | 57,200 |
Weighted Average Exercise Price, Stock warrants outstanding, Ending | $ / shares | $ 8.75 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of stock option activities - Stock Option [Member] | 12 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Schedule of stock option activities [Abstract] | |
Option to Acquire Shares, Stock options outstanding, Beginning | shares | 1,136,500 |
Weighted Average Exercise Price, Stock options outstanding, Beginning | $ / shares | $ 6.9 |
Option to Acquire Shares, Granted | shares | |
Weighted Average Exercise Price, Granted | $ / shares | |
Option to Acquire Shares, Exercised | shares | |
Weighted Average Exercise Price, Exercised | $ / shares | |
Option to Acquire Shares, Forfeited | shares | |
Weighted Average Exercise Price, Forfeited | $ / shares | |
Option to Acquire Shares, Stock options outstanding, Ending | shares | 1,136,500 |
Weighted Average Exercise Price, Stock options outstanding, Ending | $ / shares | $ 6.9 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 12 Months Ended | ||||
Jul. 01, 2020 USD ($) | Jul. 01, 2020 CNY (¥) | Jan. 12, 2018 USD ($) | Jan. 16, 2018 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | |
Related Party Transactions (Details) [Line Items] | ||||||
Operating lease expense | $ 2,696,593 | $ 2,542,431 | ||||
Outstanding balances due | 300,166 | |||||
Jiangmen V-Apparel Manufacturing Limited [Member] | ||||||
Related Party Transactions (Details) [Line Items] | ||||||
Operating lease expense | $ 4,100 | ¥ 28,300 | ||||
Treasure Success and Yukwise [Member] | ||||||
Related Party Transactions (Details) [Line Items] | ||||||
High-level advisory and general management services per annum | $ 300,000 | |||||
Total consulting fees | 300,000 | 300,000 | ||||
Treasure Success and Multi-Glory [Member] | ||||||
Related Party Transactions (Details) [Line Items] | ||||||
Total consulting fees | $ 300,000 | $ 300,000 | ||||
High-level advisory, marketing, and sales services per annum | $ 300,000 |
Related Party Transactions (D_2
Related Party Transactions (Details) - Schedule of relationship and the nature of related party transactions | 12 Months Ended |
Mar. 31, 2023 | |
Yukwise Limited (“Yukwise”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Wholly owned by the Company’s President, Chief Executive Officer, and Chairman, and a significant stockholder |
Nature of Transactions | Consulting Services |
Multi-Glory Corporation Limited (“Multi-Glory”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Wholly owned by a significant stockholder |
Nature of Transactions | Consulting Services |
Jiangmen V-Apparel Manufacturing Limited [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Affiliate, subsidiary of Ford Glory Holdings (“FGH”), which is 49% indirectly owned by the Company’s President, Chief Executive Officer, and Chairman, and a significant stockholder |
Nature of Transactions | Operating Lease |
Victory Apparel (Jordan) Manufacturing Company Limited (“Victory Apparel”) [Member] | |
Related Party Transaction [Line Items] | |
Relationship to the Company | Affiliate, controlled by the Company’s President, Chief Executive Officer, Chairman, and a significant stockholder and another significant stockholder |
Nature of Transactions | Borrowings |
Credit Facilities (Details)
Credit Facilities (Details) | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) customer | Mar. 31, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jan. 12, 2022 USD ($) | Jan. 31, 2019 USD ($) | |
Credit Facilities (Details) [Line Items] | |||||
Number of customer participated in financing program (in customer) | customer | 2 | ||||
Payment charge | $ 647,906 | $ 210,576 | |||
SCBHK Credit Facility [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Import invoice financing and pre-shipment financing of export orders | $ 3,000,000 | ||||
SCBHK Credit Facility [Member] | Treasure Success [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Credit facility borrowing capacity | $ 3,000,000 | ||||
Line of credit facility outstanding | $ 0 | ||||
SCBHK Credit Facility [Member] | Treasure Success [Member] | Hong Kong Interbank Offered Rate [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Credit facility bears interest, percentage | 1.30% | ||||
DBSHK facility [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Import invoice financing and pre-shipment financing of export orders | $ 5,000,000 | ||||
Credit facility bears interest, percentage | 1.50% | ||||
Outstanding amount | |||||
DBSHK facility [Member] | Hong Kong Interbank Offered Rate [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Credit facility bears interest, percentage | 1.30% | ||||
DBSHK facility [Member] | Treasure Success [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Credit facility borrowing capacity | $ 5,000,000 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share (Details) [Line Items] | ||
Warrants and stock options | 1,598,800 | |
Warrant [Member] | ||
Earnings Per Share (Details) [Line Items] | ||
Warrants and stock options | 1,193,700 | 1,043,700 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of computation of basic and diluted earnings per share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||
Net income attributable to Jerash Holdings (US), Inc.’s Common Stockholders (in Dollars) | $ 2,420 | $ 7,920 |
Denominator: | ||
Denominator for basic earnings per share (weighted-average shares) | 12,635,785 | 11,821,779 |
Dilutive securities – unexercised warrants and options | 39,566 | 75,938 |
Denominator for diluted earnings per share (adjusted weighted-average shares) | 12,675,351 | 11,897,717 |
Basic and diluted earnings per share (in Dollars per share) | $ 0.19 | $ 0.67 |
Earnings Per Share (Details) _2
Earnings Per Share (Details) - Schedule of computation of basic and diluted earnings per share (Parentheticals) - $ / shares | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of computation of basic and diluted earnings per share [Abstract] | ||
Diluted earnings per share | $ 0.19 | $ 0.67 |
Segment Reporting (Details)
Segment Reporting (Details) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting (Details) [Line Items] | ||
Total revenue percentage | 94.10% | 93.40% |
Jordan [Member] | ||
Segment Reporting (Details) [Line Items] | ||
Long lived assets percentage | 70.70% | |
Hong Kong [Member] | ||
Segment Reporting (Details) [Line Items] | ||
Long lived assets percentage | 28.20% |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of summarizes sales by geographic areas - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 138,063,309 | $ 143,354,902 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 122,318,376 | 136,067,702 |
Hong Kong [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 9,474,112 | 3,279,777 |
Jordan [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | 4,891,883 | 1,950,408 |
Others [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total | $ 1,378,938 | $ 2,057,015 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2023 USD ($) | Mar. 31, 2023 HKD ($) | Dec. 09, 2020 USD ($) | Dec. 09, 2020 HKD ($) | Aug. 28, 2019 USD ($) | Aug. 28, 2019 HKD ($) |
Commitments and Contingencies (Details) [Line Items] | ||||||
Total registered capital | $ 15 | $ 15 | $ 3 | |||
Capital contribution | $ 10 | |||||
Jiangmen Treasure Success [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Paid in capital | $ 1,900,000 | |||||
Treasure Success Paid [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Capital | $ 1,300,000 | |||||
Jiangmen Treasure Success [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Equity method investment, ownership percentage | 100% | 100% | ||||
China [Member] | Jiangmen Treasure Success [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Capital | $ 1,900,000 | $ 385,000 |
Income Tax (Details)
Income Tax (Details) - USD ($) $ in Millions | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax, description | Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash the First, MK Garments, and Kawkab Venus are subject to the regulations of the Income Tax Department in Jordan. In accordance with the Investment Encouragement Law, Jerash Garments’ export sales to overseas customers were entitled to a 100% income tax exemption for a period of 10 years commencing on the first day of production. This exemption had been extended for five years until December 31, 2018. Effective January 1, 2019, the Jordanian government reclassified the area where Jerash Garments and its subsidiaries are to a Development Zone. In accordance with the Development Zone law, Jerash Garments and its subsidiaries were subject to income tax at income tax rate 16% plus a 1% social contribution between January 1, 2021 and December 31, 2021. The income tax rate increased to 18% or 20% plus a 1% social contribution starting from January 1, 2022. Effective January 1, 2023, the income tax rate increased to 19% or 20%, plus a 1% social contribution. | |
Deferred tax asset | ||
Foreign subsidiaries | $ 18 | |
Reversal temporary difference, description | The reversal of this temporary difference would occur upon the sale or liquidation of the Company’s foreign subsidiaries, and the estimated impact of the reversal of this temporary difference is approximately $3.8 million. |
Income Tax (Details) - Schedule
Income Tax (Details) - Schedule of income tax payable - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule Of Income Tax Payable [Abstract] | ||
Income tax payable – current | $ 2,846,201 | $ 2,861,272 |
Income tax payable – non-current | 751,410 | 1,001,880 |
Income tax payable, total | $ 3,597,611 | $ 3,863,152 |
Income Tax (Details) - Schedu_2
Income Tax (Details) - Schedule of provision for income taxes - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Domestic and foreign components of income (loss) before income taxes | ||
Domestic | $ (1,761,439) | $ (2,508,655) |
Foreign | 5,845,172 | 12,952,530 |
Total | 4,083,733 | 10,443,875 |
Current tax: | ||
U.S. federal | (147) | |
U.S. state and local | 750 | 700 |
Foreign | 1,464,643 | 2,727,650 |
Total Current Tax | 1,465,393 | 2,728,203 |
Deferred tax: | ||
U.S. federal | 198,717 | (203,928) |
Total deferred tax | 198,717 | (203,928) |
Total tax | $ 1,664,110 | $ 2,524,275 |
Effective tax rates | 40.70% | 24.20% |
Income Tax (Details) - Schedu_3
Income Tax (Details) - Schedule of reconciliation of the effective tax rate - USD ($) | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of reconciliation of the effective tax rate [Abstract] | ||
Tax at statutory rate | $ 857,052 | $ 2,193,499 |
State tax, net of federal benefit | 593 | 593 |
Non-deductible expenses | 85,589 | 431 |
Non-taxable income | (474) | |
Global Intangible Low-Taxed Income | 846,116 | 1,783,313 |
Tax Credits | (558,642) | (1,455,812) |
Foreign tax rate differential | 237,688 | 159,053 |
Valuation Allowance | (151,246) | |
Provision to return adjustments | 195,714 | (5,082) |
Total | $ 1,664,110 | $ 2,524,275 |
Income Tax (Details) - Schedu_4
Income Tax (Details) - Schedule of deferred tax assets and liabilities - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Schedule of deferred tax assets and liabilities [Abstract] | ||
Stock-based compensation | $ 154,227 | $ 352,590 |
Deferred tax liabilities | (354) | |
Net operating losses carried forward | ||
Less: valuation allowance | ||
Deferred tax assets, net | $ 153,873 | $ 352,590 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | |
Mar. 20, 2023 | May 23, 2023 | |
Subsequent Events (Details) [Line Items] | ||
Credit facility received | $ 10 | |
Subsequent Event [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Dividends payable, per share | $ 0.05 | |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Subsequent Events (Details) [Line Items] | ||
Equity interests percentage | 51% |