Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Sep. 30, 2022 | Nov. 10, 2022 | |
Document Information Line Items | ||
Entity Registrant Name | Jerash Holdings (US), Inc. | |
Trading Symbol | JRSH | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --03-31 | |
Entity Common Stock, Shares Outstanding | 12,429,492 | |
Amendment Flag | false | |
Entity Central Index Key | 0001696558 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Shell Company | false | |
Entity Ex Transition Period | true | |
Document Quarterly 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 $0.001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Current Assets: | ||
Cash | $ 23,013,797 | $ 25,176,120 |
Accounts receivable, net | 4,030,082 | 11,049,069 |
Tax recoverable | 20,524 | 374,377 |
Inventories | 36,426,607 | 28,255,179 |
Prepaid expenses and other current assets | 2,896,886 | 3,233,592 |
Investment deposits | 500,000 | |
Advance to suppliers, net | 2,271,202 | 1,284,601 |
Total Current Assets | 68,659,098 | 69,872,938 |
Restricted cash - non-current | 1,437,339 | 1,407,368 |
Long-term deposits | 302,941 | 419,597 |
Deferred tax assets, net | 352,590 | 352,590 |
Property, plant and equipment, net | 20,815,727 | 10,933,147 |
Goodwill | 499,282 | 499,282 |
Right of use assets, net | 1,304,530 | 1,826,062 |
Total Assets | 93,371,507 | 85,310,984 |
Current Liabilities: | ||
Credit facilities | 1,106,130 | |
Accounts payable | 10,536,911 | 4,840,225 |
Accrued expenses | 3,795,540 | 3,115,953 |
Income tax payable - current | 3,019,804 | 2,861,272 |
Other payables | 1,528,980 | 2,278,816 |
Deferred revenue | 465,405 | |
Amount due to a related party | 300,166 | |
Operating lease liabilities - current | 685,297 | 739,101 |
Total Current Liabilities | 21,138,067 | 14,135,533 |
Operating lease liabilities - non-current | 494,831 | 869,313 |
Income tax payable - non-current | 751,410 | 1,001,880 |
Total Liabilities | 22,384,308 | 16,006,726 |
Commitments and Contingencies | ||
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; 12,429,492 and 12,334,318 outstanding as of September 30, 2022, and March 31, 2022, respectively | 12,534 | 12,334 |
Additional paid-in capital | 22,811,968 | 22,517,346 |
Treasury stock, cost base (104,826 shares held as of September 30, 2022, and no share held as of March 31, 2022, respectively) | (547,713) | |
Statutory reserve | 379,323 | 379,323 |
Retained earnings | 48,537,812 | 46,268,110 |
Accumulated other comprehensive (loss) income | (206,725) | 127,145 |
Total Jerash Holdings (US), Inc.’s Stockholders’ Equity | 70,987,199 | 69,304,258 |
Total Liabilities and Stockholders’ Equity | $ 93,371,507 | $ 85,310,984 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2022 | 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 | 12,429,492 | 12,334,318 |
Treasury stock, shares | 104,826 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 37,825,695 | $ 45,711,166 | $ 71,262,256 | $ 75,599,858 |
Cost of goods sold | 30,907,908 | 35,606,587 | 57,722,102 | 59,864,337 |
Gross Profit | 6,917,787 | 10,104,579 | 13,540,154 | 15,735,521 |
Selling, general and administrative expenses | 4,308,084 | 4,177,204 | 8,326,782 | 7,462,779 |
Stock-based compensation expenses | 315,296 | 294,822 | 315,813 | |
Total Operating Expenses | 4,308,084 | 4,492,500 | 8,621,604 | 7,778,592 |
Income from Operations | 2,609,703 | 5,612,079 | 4,918,550 | 7,956,929 |
Other Income (Expenses): | ||||
Interest expenses | (163,595) | (45,762) | (251,437) | (74,401) |
Other income (expenses), net | 57,807 | (74,557) | 118,049 | (38,276) |
Total other income (expenses), net | (105,788) | (120,319) | (133,388) | (112,677) |
Net income before provision for income taxes | 2,503,915 | 5,491,760 | 4,785,162 | 7,844,252 |
Income tax expenses | 712,163 | 1,050,330 | 1,272,028 | 1,468,139 |
Net Income | 1,791,752 | 4,441,430 | 3,513,134 | 6,376,113 |
Other Comprehensive Income: | ||||
Foreign currency translation (loss) income | (216,210) | (263) | (333,870) | 79,725 |
Comprehensive Income Attributable to Jerash Holdings (US), Inc.’s Common Stockholders | $ 1,575,542 | $ 4,441,167 | $ 3,179,264 | $ 6,455,838 |
Earnings Per Share Attributable to Common Stockholders: | ||||
Basic and diluted (in Dollars per share) | $ 0.14 | $ 0.39 | $ 0.28 | $ 0.56 |
Weighted Average Number of Shares | ||||
Basic (in Shares) | 12,498,431 | 11,334,318 | 12,416,823 | 11,333,907 |
Diluted (in Shares) | 12,498,431 | 11,512,533 | 12,485,512 | 11,403,931 |
Dividend per share (in Dollars per share) | $ 0.05 | $ 0.05 | $ 0.1 | $ 0.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Earnings Per Share Attributable to Common Stockholders diluted | $ 0.14 | $ 0.39 | $ 0.28 | $ 0.56 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in 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 under stock incentive plan | 315,813 | 315,813 | ||||||
Cashless exercise of warrants | $ 1 | (1) | ||||||
Cashless exercise of warrants (in Shares) | 1,344 | |||||||
Net income | 6,376,113 | 6,376,113 | ||||||
Dividend payments | (1,133,365) | (1,133,365) | ||||||
Foreign currency translation gain (loss) | 79,725 | 79,725 | ||||||
Balance at Sep. 30, 2021 | $ 11,334 | 15,617,080 | 346,315 | 45,991,062 | 63,824 | 62,029,615 | ||
Balance (in Shares) at Sep. 30, 2021 | 11,334,318 | |||||||
Balance at Jun. 30, 2021 | $ 11,334 | 15,301,784 | 346,315 | 42,116,348 | 64,087 | 57,839,868 | ||
Balance (in Shares) at Jun. 30, 2021 | 11,334,318 | |||||||
Stock-based compensation expense for the restricted stock units issued under stock incentive plan | 315,296 | 315,296 | ||||||
Net income | 4,441,430 | 4,441,430 | ||||||
Dividend payments | (566,716) | (566,716) | ||||||
Foreign currency translation gain (loss) | (263) | (263) | ||||||
Balance at Sep. 30, 2021 | $ 11,334 | 15,617,080 | 346,315 | 45,991,062 | 63,824 | 62,029,615 | ||
Balance (in Shares) at Sep. 30, 2021 | 11,334,318 | |||||||
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 | 294,822 | 294,822 | ||||||
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 | |||||||
Shares repurchase | (547,713) | (547,713) | ||||||
Net income | 3,513,134 | 3,513,134 | ||||||
Dividend payments | (1,243,432) | (1,243,432) | ||||||
Foreign currency translation gain (loss) | (333,870) | (333,870) | ||||||
Balance at Sep. 30, 2022 | $ 12,534 | 22,811,968 | (547,713) | 379,323 | 48,537,812 | (206,725) | 70,987,199 | |
Balance (in Shares) at Sep. 30, 2022 | 12,534,318 | |||||||
Balance at Jun. 30, 2022 | $ 12,534 | 22,811,968 | 379,323 | 47,372,776 | 9,485 | 70,586,086 | ||
Balance (in Shares) at Jun. 30, 2022 | 12,534,318 | |||||||
Shares repurchase | (547,713) | (547,713) | ||||||
Net income | 1,791,752 | 1,791,752 | ||||||
Dividend payments | (626,716) | (626,716) | ||||||
Foreign currency translation gain (loss) | (216,210) | (216,210) | ||||||
Balance at Sep. 30, 2022 | $ 12,534 | $ 22,811,968 | $ (547,713) | $ 379,323 | $ 48,537,812 | $ (206,725) | $ 70,987,199 | |
Balance (in Shares) at Sep. 30, 2022 | 12,534,318 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net Income | $ 3,513,134 | $ 6,376,113 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,184,940 | 880,135 |
Stock-based compensation expenses | 294,822 | 315,813 |
Amortization of operating lease right-of-use assets | 548,849 | 356,030 |
Changes in operating assets: | ||
Accounts receivable | 7,018,987 | (1,382,857) |
Inventories | (8,171,427) | 4,475,694 |
Prepaid expenses and other current assets | 336,710 | (504,673) |
Advance to suppliers | (986,600) | 1,149,836 |
Changes in operating liabilities: | ||
Accounts payable | 5,696,686 | (3,387,584) |
Accrued expenses | 679,586 | 1,127,297 |
Other payables | (749,837) | (378,957) |
Deferred revenue | 465,405 | 1,474,932 |
Operating lease liabilities | (455,604) | (241,107) |
Income tax payable, net of recovery | 262,106 | (37,442) |
Net cash provided by operating activities | 9,637,757 | 10,223,230 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (7,679,600) | (1,606,419) |
Payments for construction of properties | (2,641,614) | |
Acquisition deposit | (3,200,000) | |
Payment for long-term deposits | (129,650) | (268,255) |
Net cash used in investing activities | (10,450,864) | (5,074,674) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividend payments | (1,243,432) | (1,133,365) |
Shares repurchase | (547,713) | |
Repayments from short-term loan | (901,055) | (612,703) |
Repayment to a related party | (300,166) | |
Proceeds from short-term loan | 2,007,185 | |
Net cash used in financing activities | (985,181) | (1,746,068) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND RESTRICTED CASH | (334,064) | 79,625 |
NET (DECREASE) INCREASE IN CASH AND RESTRICTED CASH | (2,132,352) | 3,482,113 |
CASH, AND RESTRICTED CASH, BEGINNING OF THE PERIOD | 26,583,488 | 22,860,463 |
CASH, AND RESTRICTED CASH, END OF THE PERIOD | 24,451,136 | 26,342,576 |
CASH, AND RESTRICTED CASH, END OF THE PERIOD | 24,451,136 | 26,342,576 |
LESS: NON-CURRENT RESTRICTED CASH | 1,437,339 | 1,301,588 |
CASH, END OF THE PERIOD | 23,013,797 | 25,040,988 |
Supplemental disclosure information: | ||
Cash paid for interest | 251,437 | 74,401 |
Income tax paid | 1,096,934 | 1,512,215 |
Non-cash financing activities | ||
Equipment obtained by utilizing long-term deposit | 1,111,043 | 321,955 |
Right of use assets obtained in exchange for operating lease obligations | $ 68,932 | $ 353,611 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Sep. 30, 2022 | |
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 JOD50,000. 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 JOD100,000. 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 limited liability company on July 6, 2020, with a registered capital of JOD150,000. 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 JOD100,000. 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 JOD50,000. 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 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 | 6 Months Ended |
Sep. 30, 2022 | |
Organization and Description of Business [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The Company’s unaudited condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the Company’s unaudited condensed consolidated financial statements. The consolidated balance sheet as of March 31, 2022 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022, as filed with the U.S. Securities and Exchange Commission (the “SEC”). The unaudited condensed 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 unaudited condensed 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. The Company’s most significant estimates include allowance for doubtful accounts, valuation of inventory reserve, useful lives of buildings and other property, and the measurement of stock-based compensation expenses. 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 September 30, 2022 and March 31, 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 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 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 credit worthiness 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 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, net 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 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 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, plant, 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 six months ended September 30, 2022 and 2021. 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 September 30, 2022 and March 31, 2022, the carrying amount of goodwill was $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 six months ended September 30, 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 $465,405 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”). 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 $516,614 and $631,414 for the three months ended September 30, 2022 and 2021, respectively. Total shipping and handling expenses were $925,803 and $985,579 for the six months ended September 30, 2022 and 2021, 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 Venue 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. Effective January 1, 2022, the income tax rate increased to 18% 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, 2023. 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 six months ended September 30, 2022 and 2021. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar (“US$” or “$”). The Company uses JOD in Jordan companies, HKD in Treasure Success and Ever Winland, and Chinese Yuan (“CNY”) in Jiangmen Treasure Success as functional currency of each abovementioned entity. The assets and liabilities of the Company have been translated into US$ 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. 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: September 30, March 31, Period-end spot rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8499 US$1=HKD7.8325 US$1=CNY7.1128 US$1=CNY6.3393 Average rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8480 US$1=HKD7.7844 US$1=CNY6.8456 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. 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 in the unaudited condensed 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, including restricted cash, accounts receivable, other current assets, credit facilities, accounts payable, accrued expenses, income tax payables, other payables, amounts due to a related party and operating lease liabilities to approximate the fair value of the respective assets and liabilities at September 30, 2022 and March 31, 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 September 30, 2022, and March 31, 2022, respectively, $11,022,463 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 September 30, 2022, and March 31, 2022, $245,405 and $351,255 of the Company’s cash was on deposit at financial institutions in China, respectively. Cash maintained in banks within China of less than CNY 0.5 million (equivalent to $70,296) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. As of September 30, 2022, and March 31, 2022, $12,789,582 and $13,311,340 of the Company’s cash was on deposit at financial institutions in Hong Kong, respectively, 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 September 30, 2022, and March 31, 2022, $269,505 and $37,342 of the Company’s cash was on deposit in the United States, respectively 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 three and six months ended September 30, 2022, two end-customers accounted for 64% and 11%, and 65% and 16% of the Company’s total revenue, respectively. For the three and six months ended September 30, 2021, two end-customers accounted for 80% and 14%, and 75% and 21% of the Company’s total revenue, respectively. As of September 30, 2022, four end-customers accounted for 28%, 23%, 20%, and 15% of the Company’s total accounts receivable balance, respectively. As of March 31, 2022, one end-customer accounted for 89% of the Company’s total accounts receivable balance. For the three months ended September 30, 2022, the Company purchased approximately 23%, 20%, and 10% of its raw materials from three major suppliers, respectively. For the six months ended September 30, 2022, the Company purchased approximately 15% and 13% of its raw materials from two major suppliers, respectively. For the three and six months ended September 30, 2021, the Company purchased approximately 25% and 16%, respectively, of its garments from one major supplier. As of September 30, 2022, accounts payable to the Company’s two major suppliers accounted for 50% and 25%, of its total accounts payable balance, respectively. As of March 31, 2022, accounts payable to the Company’s three major suppliers accounted for 11%, 11%, and 10% of its 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. The spread of COVID-19 around the world since March 2020 has caused significant volatility in U.S. and international markets. However, sales growth of the Company resumed in the fourth quarter of fiscal year 2021 and has extended well into fiscal year 2022. Since fiscal 2022, the Company’s production facilities resumed full operation with additional medical and hygienic measures in place. The Company does not believe the COVID-19 pandemic had a significant impact on its operations during the three and six months ended September 30, 2022. There is still significant uncertainty around the breadth and duration of business disruptions related to the COVID-19 pandemic, as well as its impact on the U.S. and international economies. The Company currently expects that its operation results for the fiscal year ending March 31, 2023 would not be significantly impacted by the COVID-19 pandemic. However, given the dynamic nature of these circumstances, should there be resurgence of COVID-19 cases globally and should the U.S. government or the Jordan government implement new restrictions to contain the spread, the Company’s business would be negatively impacted. Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications had no effect on net income or cash flows as previously reported. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [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 | 6 Months Ended |
Sep. 30, 2022 | |
Credit Loss, Additional Improvements [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 4 – ACCOUNTS RECEIVABLE, NET Accounts receivable consisted of the following: As of (Unaudited) As of Trade accounts receivable $ 4,251,665 $ 11,270,652 Less: allowances for doubtful accounts 221,583 221,583 Accounts receivable, net $ 4,030,082 $ 11,049,069 |
Inventories
Inventories | 6 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 5 – INVENTORIES Inventories consisted of the following: As of (Unaudited) As of Raw materials $ 18,783,134 $ 17,714,578 Work-in-progress 1,976,978 2,010,417 Finished goods 15,666,495 8,530,184 Total inventory $ 36,426,607 $ 28,255,179 As of September 30, 2022, and March 31, 2022, the Company had $ nil |
Advance to Suppliers, Net
Advance to Suppliers, Net | 6 Months Ended |
Sep. 30, 2022 | |
Advance to Suppliers [Abstract] | |
ADVANCE TO SUPPLIERS, NET | NOTE 6 – ADVANCE TO SUPPLIERS, NET Advance to suppliers consisted of the following: As of (Unaudited) As of Advance to suppliers $ 2,271,202 $ 1,284,601 Less: allowances for doubtful accounts - - Advance to suppliers, net $ 2,271,202 $ 1,284,601 |
Leases
Leases | 6 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
LEASES | NOTE 7 – LEASES The Company has 47 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. The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of September 30, 2022: Remaining lease term and discount rate: Weighted average remaining lease term (years) 1.9 Weighted average discount rate 4.06 % During the three months ended September 30, 2022 and 2021, the Company incurred total operation lease expenses of $626,994 and $607,013, respectively. During the six months ended September 30, 2022 and 2021, the Company incurred total operating lease expenses of $1,266,713 and $1,191,750, respectively. The following is a schedule, by fiscal years, of maturities of lease liabilities as of September 30, 2022: 2023 $ 413,183 2024 667,388 2025 190,886 2026 88,155 2027 - Thereafter - Total lease payments 1,359,612 Less: imputed interest (55,082 ) Less: prepayments (124,402 ) Present value of lease liabilities $ 1,180,128 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 6 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT, AND EQUIPMENT, NET | NOTE 8 – PROPERTY, PLANT, AND EQUIPMENT, NET Property, plant, and equipment, net consisted of the following: As of (Unaudited) As of Land $ 2,221,420 $ 1,831,192 Property and buildings 9,287,340 1,911,818 Equipment and machinery 11,667,705 11,091,566 Office and electric equipment 935,840 915,686 Automobiles 858,012 802,399 Leasehold improvements 3,997,654 4,002,833 Subtotal 28,967,971 20,555,494 Construction in progress (1)(2) 4,739,937 2,098,323 Less: Accumulated depreciation and amortization (12,892,181 ) (11,720,670 ) Property, plant, and equipment, net $ 20,815,727 $ 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 September 30, 2022, the Company had paid approximately JOD392,000 (approximately $553,000) and the entire approximately $553,000 was recorded as construction in progress. The estimated construction cost is revised to approximately JOD870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2023. (2) In January 2022, the Company commenced a construction project to build a dormitory for employee. The construction is built on a land of 12,340 square meters (approximately three acres) in Al Tajamouat Industrial City, Jordan, which was acquired by the Company in 2019. The dormitory is expected to cost $8.2 million. Through September 30, 2022, the Company had spent approximately JOD 3.0 million (approximately $4.2 million) for the construction. The dormitory is expected to be completed and ready for use in fiscal 2023. 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 of approximately $390,000 and $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 three months ended September 30, 2022 and 2021, depreciation expenses were $553,941 and $475,609 respectively. For the six months ended September 30, 2022 and 2021, depreciation expenses were $1,184,940 and $880,135, respectively. |
Equity
Equity | 6 Months Ended |
Sep. 30, 2022 | |
Stockholders' Equity Note [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 12,429,492 and 12,334,318 shares of common stock outstanding as of September 30, 2022 and March 31, 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 will be in effect through March 31, 2023. As of September 30, 2022, 104,826 shares had been repurchased at market rate with a total consideration of $547,713. $2,452,287 remaining available for future repurchase. Statutory Reserve In accordance with the corporate laws in Jordan, Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash The First, 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 ending March 31, 2023, on August 5, 2022 and May 16, 2022, the Board of Directors declared a cash dividend of $0.05 per share of common stock, respectively. The cash dividends of $626,716 and $616,716 were paid in full on August 24, 2022 and June 3, 2022, respectively. During the fiscal year ended March 31, 2022, on February 4, 2022, November 2, 2021, August 5, 2021, and May 14, 2021, the Board of Directors declared a cash dividend of $0.05 per share of common stock, 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 | 6 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [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%. 137,210 warrants expired for the six months ended September 30, 2022 and there were 57,200 warrants outstanding as of September 30, 2022 with a weighted average exercise price of $8.75. All of the outstanding warrants were fully vested and exercisable as of September 30, 2022 and March 31, 2022. All stock warrants activities are summarized as follows: Option to Weighted Acquire Exercise Stock warrants outstanding at March 31, 2022 194,410 $ 6.71 Granted - - Exercised - - Expired (137,210 ) 5.86 Stock warrants outstanding at September 30, 2022 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 September 30, 2022, the Company had 394,750 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 is 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 expected terms is 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 that 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 September 30, 2022, there were 1,136,500 stock options outstanding. All stock option activities are summarized as follows: Option to Weighted Acquire Exercise Stock options outstanding at March 31, 2022 1,136,500 $ 6.90 Granted - - Exercised - - Forfeited - - Stock options outstanding at September 30, 2022 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. Total expenses related to the restricted stock units issued were $ nil |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Sep. 30, 2022 | |
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 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 $4,400). The lease had 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 $75,000 and $150,000 for the three and six months ended September 30, 2022 and 2021, respectively. 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 $75,000 and $150,000 for the three and six months ended September 30, 2022 and 2021, respectively. c. Borrowings from a related party As of September 30, 2022 and March 31, 2022, the Company had outstanding balances due to Victory Apparel of $ nil |
Credit Facilities
Credit Facilities | 6 Months Ended |
Sep. 30, 2022 | |
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 September 30, 2022 and March 31, 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 consolidated statements of comprehensive income. For the three and six months ended September 30, 2022, the early payment charge was $163,595 and $251,437, respectively. As of September 30, 2022, there was $465,405 in receipts in advance from a customer. The Company recorded the receipts in advance as deferred revenue on the unaudited condensed consolidated balance sheet as of September 30, 2022. 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 agreement, 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. The DBSHK facility bears interest at 1.5% per annum over Hong Kong Interbank Offered Rate 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 September 30, 2022 and March 31, 2022, the Company had $1,106,130 and $ nil |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Sep. 30, 2022 | |
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 three and six months ended September 30, 2022 and 2021. As of September 30, 2022, 1,193,700 warrants and stock options were outstanding. For the three and six months ended September 30, 2022 and 2021, all warrants and stock options were excluded from the EPS calculation, respectively, as the result would be anti-dilutive. Three Months Ended (Unaudited) Six Months Ended (Unaudited) 2022 2021 2022 2021 Numerator: Net income attributable to Jerash Holdings (US), Inc.’s Common Stockholders $ 1,791,752 $ 4,441,430 $ 3,513,134 $ 6,376,113 Denominator: Denominator for basic earnings per share (weighted-average shares) 12,498,431 11,334,318 12,416,823 11,333,907 Dilutive securities – unexercised RSUs, warrants, and options - 178,215 68,689 70,024 Denominator for diluted earnings per share (adjusted weighted-average shares) 12,498,431 11,512,533 12,485,512 11,403,931 Basic and diluted earnings per share $ 0.14 $ 0.39 $ 0.28 $ 0.56 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Sep. 30, 2022 | |
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 three months ended September 30, 2022 and 2021, outerwear accounted for approximately 93.8% and 96.4% of the Company’s total revenue, respectively. For the six months ended September 30, 2022 and 2021, outerwear accounted for approximately 93.6% and 97.2% of the Company’s total revenue, respectively. 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 three months ended September 30, 2022 and 2021, respectively. For the Three Months Ended (Unaudited) 2022 2021 United States $ 35,101,055 $ 44,241,524 Jordan 1,278,313 141,001 Others 1,446,327 1,328,641 Total $ 37,825,695 $ 45,711,166 The following table summarizes sales by geographic areas for the six months ended September 30, 2022 and 2021, respectively. For the Six Months Ended (Unaudited) 2022 2021 United States $ 66,508,460 $ 73,693,401 Jordan 2,755,527 300,840 Others 1,998,269 1,605,617 Total $ 71,262,256 $ 75,599,858 67.6% and 31.1% of long-lived assets were located in Jordan and Hong Kong, respectively, as of September 30, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [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 September 30, 2022, 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 | 6 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | NOTE 16 – INCOME TAX Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash The First, MK Garments, and Kawkab Venue 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 of 16% plus a 1% social contribution between January 1, 2021 and December 31, 2021. Effective from January 1, 2022, the income tax rate raised to 18% or 20% plus 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. Interim income tax expenses or benefit is recognized based on the Company’s estimated annual effective tax rate, which is based upon the tax rate expected for the full fiscal year applied to the pretax income or loss of the interim period. The Company’s consolidated effective tax rate for the three and six months ended September 30, 2022 was 28.4% and 26.6%, respectively, and differed from the effective statutory federal income tax rate of 21.0%, primarily due to GILTI adjustments, foreign tax rate differentials, and valuation allowance adjustments. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 17 – SUBSEQUENT EVENTS The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to November 14, 2022, the date that the unaudited condensed consolidated financial statements were issued. The Company did not identify any subsequent events that would have required adjustment or disclosure in the financial statement, except for the following: On November 4, 2022, the Board of Directors approved the payment of a dividend of $0.05 per share, payable on or about November 28, 2022 to stockholders of record as of the close of business on November 18, 2022. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 6 Months Ended |
Sep. 30, 2022 | |
Organization and Description of Business [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The Company’s unaudited condensed consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included in the Company’s unaudited condensed consolidated financial statements. The consolidated balance sheet as of March 31, 2022 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2022, as filed with the U.S. Securities and Exchange Commission (the “SEC”). The unaudited condensed 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 unaudited condensed 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. The Company’s most significant estimates include allowance for doubtful accounts, valuation of inventory reserve, useful lives of buildings and other property, and the measurement of stock-based compensation expenses. 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 September 30, 2022 and March 31, 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 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 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 credit worthiness 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 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, net | Property, Plant, and Equipment, net 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 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 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, plant, 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 six months ended September 30, 2022 and 2021. |
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 September 30, 2022 and March 31, 2022, the carrying amount of goodwill was $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 six months ended September 30, 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 $465,405 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”). |
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 $516,614 and $631,414 for the three months ended September 30, 2022 and 2021, respectively. Total shipping and handling expenses were $925,803 and $985,579 for the six months ended September 30, 2022 and 2021, 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 Venue 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. Effective January 1, 2022, the income tax rate increased to 18% 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, 2023. 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 six months ended September 30, 2022 and 2021. |
Foreign Currency Translation | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar (“US$” or “$”). The Company uses JOD in Jordan companies, HKD in Treasure Success and Ever Winland, and Chinese Yuan (“CNY”) in Jiangmen Treasure Success as functional currency of each abovementioned entity. The assets and liabilities of the Company have been translated into US$ 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. 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: September 30, March 31, Period-end spot rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8499 US$1=HKD7.8325 US$1=CNY7.1128 US$1=CNY6.3393 Average rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8480 US$1=HKD7.7844 US$1=CNY6.8456 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. 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 in the unaudited condensed 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, including restricted cash, accounts receivable, other current assets, credit facilities, accounts payable, accrued expenses, income tax payables, other payables, amounts due to a related party and operating lease liabilities to approximate the fair value of the respective assets and liabilities at September 30, 2022 and March 31, 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 September 30, 2022, and March 31, 2022, respectively, $11,022,463 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 September 30, 2022, and March 31, 2022, $245,405 and $351,255 of the Company’s cash was on deposit at financial institutions in China, respectively. Cash maintained in banks within China of less than CNY 0.5 million (equivalent to $70,296) per bank are covered by “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. As of September 30, 2022, and March 31, 2022, $12,789,582 and $13,311,340 of the Company’s cash was on deposit at financial institutions in Hong Kong, respectively, 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 September 30, 2022, and March 31, 2022, $269,505 and $37,342 of the Company’s cash was on deposit in the United States, respectively 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 three and six months ended September 30, 2022, two end-customers accounted for 64% and 11%, and 65% and 16% of the Company’s total revenue, respectively. For the three and six months ended September 30, 2021, two end-customers accounted for 80% and 14%, and 75% and 21% of the Company’s total revenue, respectively. As of September 30, 2022, four end-customers accounted for 28%, 23%, 20%, and 15% of the Company’s total accounts receivable balance, respectively. As of March 31, 2022, one end-customer accounted for 89% of the Company’s total accounts receivable balance. For the three months ended September 30, 2022, the Company purchased approximately 23%, 20%, and 10% of its raw materials from three major suppliers, respectively. For the six months ended September 30, 2022, the Company purchased approximately 15% and 13% of its raw materials from two major suppliers, respectively. For the three and six months ended September 30, 2021, the Company purchased approximately 25% and 16%, respectively, of its garments from one major supplier. As of September 30, 2022, accounts payable to the Company’s two major suppliers accounted for 50% and 25%, of its total accounts payable balance, respectively. As of March 31, 2022, accounts payable to the Company’s three major suppliers accounted for 11%, 11%, and 10% of its 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. The spread of COVID-19 around the world since March 2020 has caused significant volatility in U.S. and international markets. However, sales growth of the Company resumed in the fourth quarter of fiscal year 2021 and has extended well into fiscal year 2022. Since fiscal 2022, the Company’s production facilities resumed full operation with additional medical and hygienic measures in place. The Company does not believe the COVID-19 pandemic had a significant impact on its operations during the three and six months ended September 30, 2022. There is still significant uncertainty around the breadth and duration of business disruptions related to the COVID-19 pandemic, as well as its impact on the U.S. and international economies. The Company currently expects that its operation results for the fiscal year ending March 31, 2023 would not be significantly impacted by the COVID-19 pandemic. However, given the dynamic nature of these circumstances, should there be resurgence of COVID-19 cases globally and should the U.S. government or the Jordan government implement new restrictions to contain the spread, the Company’s business would be negatively impacted. |
Reclassification | Reclassification Certain prior period amounts have been reclassified to conform to the current period presentation. Such reclassifications had no effect on net income or cash flows as previously reported. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Organization and Description of Business [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 |
Schedule of currency exchange rates used in creating consolidated financial statements | September 30, March 31, Period-end spot rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8499 US$1=HKD7.8325 US$1=CNY7.1128 US$1=CNY6.3393 Average rate US$1=JOD0.7090 US$1=JOD0.7090 US$1=HKD7.8480 US$1=HKD7.7844 US$1=CNY6.8456 US$1=CNY6.4180 |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Receivables [Abstract] | |
Schedule of accounts receivable | As of (Unaudited) As of Trade accounts receivable $ 4,251,665 $ 11,270,652 Less: allowances for doubtful accounts 221,583 221,583 Accounts receivable, net $ 4,030,082 $ 11,049,069 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Schedule of inventories [Abstract] | |
Schedule of inventories | As of (Unaudited) As of Raw materials $ 18,783,134 $ 17,714,578 Work-in-progress 1,976,978 2,010,417 Finished goods 15,666,495 8,530,184 Total inventory $ 36,426,607 $ 28,255,179 |
Advance to Suppliers, Net (Tabl
Advance to Suppliers, Net (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Advance to Suppliers [Abstract] | |
Schedule of advance to suppliers | As of (Unaudited) As of Advance to suppliers $ 2,271,202 $ 1,284,601 Less: allowances for doubtful accounts - - Advance to suppliers, net $ 2,271,202 $ 1,284,601 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
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) 1.9 Weighted average discount rate 4.06 % |
Schedule of maturities of lease liabilities | 2023 $ 413,183 2024 667,388 2025 190,886 2026 88,155 2027 - Thereafter - Total lease payments 1,359,612 Less: imputed interest (55,082 ) Less: prepayments (124,402 ) Present value of lease liabilities $ 1,180,128 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment, net | As of (Unaudited) As of Land $ 2,221,420 $ 1,831,192 Property and buildings 9,287,340 1,911,818 Equipment and machinery 11,667,705 11,091,566 Office and electric equipment 935,840 915,686 Automobiles 858,012 802,399 Leasehold improvements 3,997,654 4,002,833 Subtotal 28,967,971 20,555,494 Construction in progress (1)(2) 4,739,937 2,098,323 Less: Accumulated depreciation and amortization (12,892,181 ) (11,720,670 ) Property, plant, and equipment, net $ 20,815,727 $ 10,933,147 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of stock warrants activities | Option to Weighted Acquire Exercise Stock warrants outstanding at March 31, 2022 194,410 $ 6.71 Granted - - Exercised - - Expired (137,210 ) 5.86 Stock warrants outstanding at September 30, 2022 57,200 $ 8.75 |
Schedule of stock option activities | Option to Weighted Acquire Exercise Stock options outstanding at March 31, 2022 1,136,500 $ 6.90 Granted - - Exercised - - Forfeited - - Stock options outstanding at September 30, 2022 1,136,500 $ 6.90 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
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) | 6 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | Three Months Ended (Unaudited) Six Months Ended (Unaudited) 2022 2021 2022 2021 Numerator: Net income attributable to Jerash Holdings (US), Inc.’s Common Stockholders $ 1,791,752 $ 4,441,430 $ 3,513,134 $ 6,376,113 Denominator: Denominator for basic earnings per share (weighted-average shares) 12,498,431 11,334,318 12,416,823 11,333,907 Dilutive securities – unexercised RSUs, warrants, and options - 178,215 68,689 70,024 Denominator for diluted earnings per share (adjusted weighted-average shares) 12,498,431 11,512,533 12,485,512 11,403,931 Basic and diluted earnings per share $ 0.14 $ 0.39 $ 0.28 $ 0.56 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of summarizes sales by geographic areas | For the Three Months Ended (Unaudited) 2022 2021 United States $ 35,101,055 $ 44,241,524 Jordan 1,278,313 141,001 Others 1,446,327 1,328,641 Total $ 37,825,695 $ 45,711,166 For the Six Months Ended (Unaudited) 2022 2021 United States $ 66,508,460 $ 73,693,401 Jordan 2,755,527 300,840 Others 1,998,269 1,605,617 Total $ 71,262,256 $ 75,599,858 |
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) | 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 0 | ||||||||
Jerash The First [Member] | |||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||
Capital | JD 0 | ||||||||
Jiangmen Treasure Success [Member] | |||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||
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 0 | ||||||||
MK Garments [Member] | |||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||
Capital | JD 0 | ||||||||
Kawkab Venus [Member] | |||||||||
Organization and Description of Business (Details) [Line Items] | |||||||||
Capital | JD 0 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) ¥ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2022 CNY (¥) | |
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Carrying amount of goodwill (in Dollars) | $ 499,282 | $ 499,282 | $ 499,282 | |||
Contract liabilities (in Dollars) | 465,405 | |||||
Deferred revenue (in Dollars) | $ 465,405 | |||||
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. Effective January 1, 2022, the income tax rate increased to 18% or 20%, plus a 1% social contribution. | |||||
Local sales tax | 16% | |||||
Recognized income tax positions percentage | 50% | 50% | 50% | |||
Customer One [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total revenue | 64% | 80% | 65% | 75% | ||
Customer Two [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total revenue | 11% | 14% | 16% | 21% | ||
Shipping and Handling [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total shipping and handling expenses (in Dollars) | $ 516,614 | $ 631,414 | $ 925,803 | $ 985,579 | ||
Supplier One [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Purchased garments percentage | 23% | |||||
Garments and raw materials percentage | 25% | 15% | 16% | |||
Total accounts payable balance percentage | 50% | |||||
Supplier Two [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Purchased garments percentage | 20% | |||||
Garments and raw materials percentage | 13% | |||||
Total accounts payable balance percentage | 25% | |||||
Supplier Three [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Purchased garments percentage | 10% | |||||
Accounts Receivable [Member] | Customer One [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total accounts receivable balance percentage | 28% | 89% | ||||
Accounts Receivable [Member] | Customer Two [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total accounts receivable balance percentage | 23% | |||||
Accounts Receivable [Member] | Customer three [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total accounts receivable balance percentage | 20% | |||||
Accounts Receivable [Member] | Customer four [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total accounts receivable balance percentage | 15% | |||||
Accounts Payable [Member] | Supplier One [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total accounts payable balance percentage | 11% | |||||
Accounts Payable [Member] | Supplier Two [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total accounts payable balance percentage | 11% | |||||
Accounts Payable [Member] | Supplier Three [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Total accounts payable balance percentage | 10% | |||||
Jordan [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Deposits (in Dollars) | $ 11,022,463 | $ 11,022,463 | $ 12,735,486 | |||
China [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Deposits (in Dollars) | 245,405 | 245,405 | 351,255 | |||
Cash maintained in banks | 70,296 | 70,296 | ¥ 0.5 | |||
Hong Kong [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Deposits (in Dollars) | 12,789,582 | 12,789,582 | 13,311,340 | |||
United States [Member] | ||||||
Summary of Significant Accounting Policies (Details) [Line Items] | ||||||
Deposits (in Dollars) | 269,505 | 269,505 | $ 37,342 | |||
FDIC insured amount (in Dollars) | $ 250,000 | $ 250,000 |
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 | 6 Months Ended |
Sep. 30, 2022 | |
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 | Sep. 30, 2022 | Mar. 31, 2022 |
Period-end spot rate [Member] | JOD [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 |
Period-end spot rate [Member] | HKD [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 7.8499 | 7.8325 |
Period-end spot rate [Member] | CNY [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 7.1128 | 6.3393 |
Average rate [Member] | JOD [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 |
Average rate [Member] | HKD [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 7.848 | 7.7844 |
Average rate [Member] | CNY [Member] | ||
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items] | ||
Foreign currency exchange rate | 6.8456 | 6.418 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - Schedule of accounts receivable - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Schedule Of Accounts Receivable Abstract | ||
Trade accounts receivable | $ 4,251,665 | $ 11,270,652 |
Less: allowances for doubtful accounts | 221,583 | 221,583 |
Accounts receivable, net | $ 4,030,082 | $ 11,049,069 |
Inventories (Details)
Inventories (Details) - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Inventory Disclosure [Abstract] [Standard Label] | ||
Inventory valuation reserves |
Inventories (Details) - Schedul
Inventories (Details) - Schedule of inventories - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Schedule of inventories [Abstract] | ||
Raw materials | $ 18,783,134 | $ 17,714,578 |
Work-in-progress | 1,976,978 | 2,010,417 |
Finished goods | 15,666,495 | 8,530,184 |
Total inventory | $ 36,426,607 | $ 28,255,179 |
Advance to Suppliers, Net (Deta
Advance to Suppliers, Net (Details) - Schedule of advance to suppliers - USD ($) | Sep. 30, 2022 | Mar. 31, 2022 |
Schedule Of Advance To Suppliers Abstract | ||
Advance to suppliers | $ 2,271,202 | $ 1,284,601 |
Less: allowances for doubtful accounts | ||
Advance to suppliers, net | $ 2,271,202 | $ 1,284,601 |
Leases (Details)
Leases (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Leases [Abstract] | ||||
Number of operating leases | 47 | |||
Total operating lease expenses | $ 626,994 | $ 607,013 | $ 1,266,713 | $ 1,191,750 |
Leases (Details) - Schedule of
Leases (Details) - Schedule of weighted average remaining lease terms and discount rates of operating leases | Sep. 30, 2022 |
Remaining lease term and discount rate: | |
Weighted average remaining lease term (years) | 1 year 10 months 24 days |
Weighted average discount rate | 4.06% |
Leases (Details) - Schedule o_2
Leases (Details) - Schedule of maturities of lease liabilities | Sep. 30, 2022 USD ($) |
Schedule Of Maturities Of Lease Liabilities Abstract | |
2023 | $ 413,183 |
2024 | 667,388 |
2025 | 190,886 |
2026 | 88,155 |
2027 | |
Thereafter | |
Total lease payments | 1,359,612 |
Less: imputed interest | (55,082) |
Less: prepayments | (124,402) |
Present value of lease liabilities | $ 1,180,128 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net (Details) JD in Millions | 3 Months Ended | 6 Months Ended | |||||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 JOD (JD) | Sep. 30, 2022 m² | Sep. 30, 2022 a | |
Property, Plant and Equipment [Abstract] | |||||||
Estimated construction cost description | Through September 30, 2022, the Company had paid approximately JOD392,000 (approximately $553,000) and the entire approximately $553,000 was recorded as construction in progress. The estimated construction cost is revised to approximately JOD870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2023. | ||||||
Construction built on land | 12,340 | 3 | |||||
Construction spent amount | $ 8,200,000 | $ 8,200,000 | JD 39.6 | ||||
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | 4,200,000 | 4,200,000 | JD 3 | ||||
Acquisitions cost | 5,100,000 | ||||||
Payments to Acquire Land | 390,000 | $ 2,300,000 | |||||
Depreciation expenses | $ 553,941 | $ 475,609 | $ 1,184,940 | $ 880,135 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, Net (Details) - Schedule of property, plant and equipment, net - USD ($) | 6 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Mar. 31, 2022 | ||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 28,967,971 | $ 20,555,494 | |
Construction in progress | [1],[2] | 4,739,937 | 2,098,323 |
Less: Accumulated depreciation and amortization | (12,892,181) | (11,720,670) | |
Property, plant, and equipment, net | 20,815,727 | 10,933,147 | |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 2,221,420 | 1,831,192 | |
Property and buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 9,287,340 | 1,911,818 | |
Equipment and machinery [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 11,667,705 | 11,091,566 | |
Office and electric equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 935,840 | 915,686 | |
Automobiles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | 858,012 | 802,399 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Subtotal | $ 3,997,654 | $ 4,002,833 | |
[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 September 30, 2022, the Company had paid approximately JOD392,000 (approximately $553,000) and the entire approximately $553,000 was recorded as construction in progress. The estimated construction cost is revised to approximately JOD870,000 (approximately $1.2 million). The project is expected to be completed and ready to use in fiscal 2023.[2]In January 2022, the Company commenced a construction project to build a dormitory for employee. The construction is built on a land of 12,340 square meters (approximately three acres) in Al Tajamouat Industrial City, Jordan, which was acquired by the Company in 2019. The dormitory is expected to cost $8.2 million. Through September 30, 2022, the Company had spent approximately JOD3.0 million (approximately $4.2 million) for the construction. The dormitory is expected to be completed and ready for use in fiscal 2023. |
Equity (Details)
Equity (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |||||||||||
Jun. 03, 2022 | Jun. 02, 2021 | Aug. 24, 2022 | Feb. 22, 2022 | Nov. 29, 2021 | Aug. 24, 2021 | Sep. 30, 2022 | Aug. 05, 2022 | Jun. 13, 2022 | May 16, 2022 | Mar. 31, 2022 | Aug. 05, 2021 | May 14, 2021 | |
Equity (Details) [Line Items] | |||||||||||||
Preferred stock, shares authorized (in Shares) | 500,000 | 500,000 | |||||||||||
Preferred stock, par value (in Dollars per share) | $ 0.001 | $ 0.001 | |||||||||||
Preferred stock, shares issued | |||||||||||||
Preferred stock, shares outstanding (in Shares) | |||||||||||||
Common stock, shares outstanding (in Shares) | 12,429,492 | 12,334,318 | |||||||||||
Equity, description | 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. | ||||||||||||
Common stock, shares outstanding (in Shares) | 12,429,492 | 12,334,318 | |||||||||||
Repurchase market shares (in Shares) | 104,826 | ||||||||||||
Total consideration amount | $ 547,713 | ||||||||||||
Future repurchase amount | $ 2,452,287 | ||||||||||||
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 (in Dollars per share) | $ 0.05 | $ 0.05 | $ 0.05 | $ 0.05 | |||||||||
Cash dividends | $ 616,716 | $ 566,649 | $ 626,716 | $ 616,715 | $ 616,716 | $ 566,716 | |||||||
Board of Directors [Member] | |||||||||||||
Equity (Details) [Line Items] | |||||||||||||
Common stock, shares outstanding (in Shares) | 3,000,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||
Aug. 03, 2018 | Apr. 09, 2018 | Jun. 24, 2021 | Nov. 27, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | 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 exercised (in Shares) | 137,210 | |||||||||
Warrants outstanding (in Shares) | 57,200 | 57,200 | ||||||||
weighted average exercise price (in Dollars per share) | $ 8.75 | $ 8.75 | ||||||||
Shares remaining available for future issuance (in Shares) | 394,750 | 394,750 | 1,484,250 | |||||||
Stock options (in Shares) | 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 (in Shares) | 1,136,500 | 1,136,500 | ||||||||
Description of vesting period | 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. | |||||||||
Unrecognized stock-based compensation expenses (in Dollars) | $ 200,000 | |||||||||
Restricted stock units expenses (in Dollars) | $ 315,296 | $ 294,822 | $ 315,813 | |||||||
Minimum [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Risk-free interest rate | 1.80% | |||||||||
Expected volatility | 50.30% | |||||||||
Number of shares authorized (in Shares) | 300,000 | 300,000 | ||||||||
Maximum [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Risk-free interest rate | 2.80% | |||||||||
Expected volatility | 52.20% | |||||||||
Number of shares authorized (in Shares) | 1,784,250 | 1,784,250 | ||||||||
Restricted Stock Units [Member] | ||||||||||
Stock-Based Compensation (Details) [Line Items] | ||||||||||
Restricted stock expense (in Dollars) | $ 1,266,000 | |||||||||
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 |
Stock-Based Compensation (Det_2
Stock-Based Compensation (Details) - Schedule of stock warrants activities - Sock Warrants [Member] | 6 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Stock-Based Compensation (Details) - Schedule of stock warrants activities [Line Items] | |
Option to Acquire Shares , Stock warrants outstanding, beginning | shares | 194,410 |
Weighted Average Exercise Price, 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, ending | $ / shares | $ 8.75 |
Stock-Based Compensation (Det_3
Stock-Based Compensation (Details) - Schedule of stock option activities - Stock options [Member] | 6 Months Ended |
Sep. 30, 2022 $ / shares shares | |
Stock-Based Compensation (Details) - Schedule of stock option activities [Line Items] | |
Option to Acquire Shares , Stock options outstanding, beginning | shares | 1,136,500 |
Weighted Average Exercise Price, 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, ending | $ / shares | $ 6.9 |
Related Party Transactions (Det
Related Party Transactions (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Jul. 01, 2020 USD ($) | Jul. 01, 2020 CNY (¥) | Jan. 12, 2018 USD ($) | Jan. 16, 2018 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Mar. 31, 2022 USD ($) | |
Related Party Transactions (Details) [Line Items] | |||||||||
Operating lease expense | $ 626,994 | $ 607,013 | $ 1,266,713 | $ 1,191,750 | |||||
Agreement renews term | 1 month | ||||||||
Outstanding balances due | $ 300,166 | ||||||||
Jiangmen V-Apparel Manufacturing Limited [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Operating lease expense | $ 4,400 | ¥ 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 | 75,000 | 150,000 | 75,000 | 150,000 | |||||
Treasure Success and Multi-Glory [Member] | |||||||||
Related Party Transactions (Details) [Line Items] | |||||||||
Total consulting fees | $ 75,000 | $ 150,000 | $ 75,000 | $ 150,000 | |||||
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 | 6 Months Ended |
Sep. 30, 2022 | |
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) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jan. 12, 2022 USD ($) | Jan. 31, 2019 USD ($) | |
Credit Facilities (Details) [Line Items] | |||||
Credit facility borrowing capacity | $ 3,000,000 | ||||
Number of customer participated in financing program | 2 | ||||
Early payment charge | $ 163,595 | $ 251,437 | |||
Receipts in advance customer | 465,405 | 465,405 | |||
Hong Kong Interbank Offered Rate [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Credit facility bears interest, percentage | 1.30% | ||||
SCBHK Credit Facility [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Import invoice financing and pre-shipment financing of export orders | $ 3,000,000 | ||||
Line of credit facility outstanding | 0 | 0 | |||
SCBHK Credit Facility [Member] | Treasure Success [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Line of credit facility outstanding | |||||
SCBHK Credit Facility [Member] | Hong Kong Interbank Offered Rate [Member] | Treasure Success [Member] | |||||
Credit Facilities (Details) [Line Items] | |||||
Credit facility bears interest, percentage | 1.30% | 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% | ||||
Credit facility outstanding amount | $ 1,106,130 | ||||
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) | 6 Months Ended |
Sep. 30, 2022 shares | |
Warrants [Member] | |
Earnings Per Share (Details) [Line Items] | |
Warrants and stock options | 1,193,700 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of computation of basic and diluted earnings per share - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net income attributable to Jerash Holdings (US), Inc.’s Common Stockholders (in Dollars) | $ 1,791,752 | $ 4,441,430 | $ 3,513,134 | $ 6,376,113 |
Denominator: | ||||
Denominator for basic earnings per share (weighted-average shares) | 12,498,431 | 11,334,318 | 12,416,823 | 11,333,907 |
Dilutive securities – unexercised RSUs, warrants, and options | 178,215 | 68,689 | 70,024 | |
Denominator for diluted earnings per share (adjusted weighted-average shares) | 12,498,431 | 11,512,533 | 12,485,512 | 11,403,931 |
Basic and diluted earnings per share (in Dollars per share) | $ 0.14 | $ 0.39 | $ 0.28 | $ 0.56 |
Segment Reporting (Details)
Segment Reporting (Details) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting (Details) [Line Items] | ||||
Total revenue percentage | 93.80% | 96.40% | 93.60% | 97.20% |
Jordan [Member] | ||||
Segment Reporting (Details) [Line Items] | ||||
Long lived assets percentage | 67.60% | |||
Hong Kong [Member] | ||||
Segment Reporting (Details) [Line Items] | ||||
Long lived assets percentage | 31.10% |
Segment Reporting (Details) - S
Segment Reporting (Details) - Schedule of summarizes sales by geographic areas - USD ($) | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $ 37,825,695 | $ 45,711,166 | $ 71,262,256 | $ 75,599,858 |
United States [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 35,101,055 | 44,241,524 | 66,508,460 | 73,693,401 |
Jordan [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | 1,278,313 | 141,001 | 2,755,527 | 300,840 |
Others [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Total | $ 1,446,327 | $ 1,328,641 | $ 1,998,269 | $ 1,605,617 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2022 USD ($) | Sep. 30, 2022 HKD ($) | Dec. 09, 2020 USD ($) | Dec. 09, 2020 HKD ($) | Aug. 28, 2019 USD ($) | Aug. 28, 2019 HKD ($) |
Jiangmen Treasure Success [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Equity method investment, ownership percentage | 100% | 100% | ||||
Jiangmen Treasure Success [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Paid in capital | $ 1,900,000 | $ 15 | ||||
Treasure Success Paid [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Capital | $ 1,300,000 | $ 10 | ||||
China [Member] | Jiangmen Treasure Success [Member] | ||||||
Commitments and Contingencies (Details) [Line Items] | ||||||
Capital | $ 1,900,000 | $ 15 | $ 385,000 | $ 3 |
Income Tax (Details)
Income Tax (Details) | 3 Months Ended | 6 Months Ended |
Sep. 30, 2022 | Sep. 30, 2022 | |
Income Tax (Details) [Line Items] | ||
Income tax, description | 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 of 16% plus a 1% social contribution between January 1, 2021 and December 31, 2021. Effective from January 1, 2022, the income tax rate raised to 18% or 20% plus 1% social contribution. | |
Effective statutory federal income tax rate | 26.60% | 28.40% |
Minimum [Member] | ||
Income Tax (Details) [Line Items] | ||
Effective statutory federal income tax rate | 21% |
Subsequent Events (Details)
Subsequent Events (Details) | Nov. 04, 2022 |
Subsequent Event [Member] | |
Subsequent Events (Details) [Line Items] | |
Description of board of directors | On November 4, 2022, the Board of Directors approved the payment of a dividend of $0.05 per share, payable on or about November 28, 2022 to stockholders of record as of the close of business on November 18, 2022. |