Jerash Holdings (US), Inc.
For the period ended Jun 30, 2025. Filed Aug 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 14, 2025
JRSH$6.10+3.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-12-31; filed 2025-02-12.
0001213900-25-012363
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-14.
0001213900-25-075941
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 74 previous paragraphs and 59 current paragraphs.
29 unchanged; 24 reworded; 5 added; 18 removed; 3 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
***Revenue.***Revenue decreased by approximately $1.3 million, or 3%, to $39.6 million, for the three months ended June 30, 2025, from approximately $40.9 million for the same period in fiscal 2025. The decrease was mainly due to the switching of some of the shipments to Aqaba Port in Jordan to avoid disruptions in Haifa Port that started in late June 2025 that delayed the shipments to July 2025.
Current report
For the three months ended June 30, 2025, we did not purchase more than 10% of our total purchase in garments and raw materials from any supplier.
Current report
Operating expenses. Operating expenses decreased by 6%, or approximately $0.3 million, from approximately $5.5 million for the same period in fiscal 2025, to approximately $5.1 million for the three months ended June 30, 2025. The decrease was primarily due to lower stock-based compensation expenses and lower expenses on repair and maintenance.
Current report
Net income/loss. Net income for the three months ended June 30, 2025, was approximately $0.3 million compared to net loss of approximately $1.4 million for the same period in fiscal 2025. The increase in net income was mainly attributable to lower import logistic costs as more shipments to Aqaba Port in Jordan resumed and a lower level of overtime work with better logistic and production planning, lower stock-based compensation expenses and lower expenses on repair and maintenance, as well as lower interest rates and lower sales to customers with supply chain financing programs resulting in less interest expenses comparing to last year.
Current report
The primary drivers in the decrease in current assets were lower cash balances attributable to some orders not shipped on time in mid-late June 2025 due to the disruption in export through Haifa Port in Israel. The primary driver in the decrease in current liabilities was lower accrual expenses and accounts payable.
Removed paragraphs (18)
Previous report
***Revenue.***Revenue increased by approximately $7.9 million, or 29%, to $35.4 million, for the three months ended December 31, 2024, from approximately $27.5 million for the same period in fiscal 2024. The increase was mainly due to an increase in shipments to two of our major customers and another export customer in the U.S., which is one of our major export markets.
Previous report
During the three months ended December 31, 2024, aggregate sales to China and Hong Kong, Germany, Jordan, and other locations decreased by 15% from $5.1 million to $4.3 million from the same period last year. This decrease was mainly because more production capacity was allocated to U.S. export orders and less local sub-contracting orders were fulfilled in the period.
Previous report
For the three months ended December 31, 2024, we purchased 14% of our total purchase in garments and raw materials from one major supplier.
Previous report
Operating expenses. Operating expenses increased by 14%, or approximately $0.6 million, from approximately $4.1 million for the same period in fiscal 2024, to approximately $4.7 million for the three months ended December 31, 2024. The increase was primarily due to the increase in export logistic costs from the increase of 29% in sales and the increase of $231,000 in stock-based compensation expenses.
Previous report
Net income. Net income for the three months ended December 31, 2024, was approximately $6,000 compared to net income of approximately $232,000 for the same period in fiscal 2024. The decrease in net income was mainly attributable to the increase in stock-based compensation expenses, as well as the tax provision adjustment in GILTI offsetting the increase in gross profit.
Previous report
Nine months ended December 31, 2024 and 2023
Previous report
Revenue. Revenue increased by approximately $20.9 million, or 22%, to $116.6 million, for the nine months ended December 31, 2024, from approximately $95.6 million for the same period in fiscal 2024. The increase was mainly due to the increase in shipments to one of our major customers in the U.S. and another export customer in the U.S., which is one of our major export markets.
Previous report
Revenue by Geographic Area
Previous report
The increase of approximately 22% in sales to the U.S. during the nine months ended December 31, 2024, was mainly attributable to more goods being shipped to one of our major customers and another export customer in the U.S.
Previous report
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $19.3 million, or 24%, to approximately $99.5 million, for the nine months ended December 31, 2024, from approximately $80.2 million for the same period in fiscal 2024. As a percentage of revenue, the cost of goods sold increased by approximately one percentage point to 85% for the nine months ended December 31, 2024 from 84% for the same period in fiscal 2024. The increase in cost of goods sold as a percentage of revenue was primarily attributable to the higher import costs for raw materials and higher labor costs in overtime work resulted from the logistic issues arisen from the geopolitical turmoil in the region.
Previous report
For the nine months ended December 31, 2024 and 2023, we purchased 12% and 13%, respectively, of our total purchase in garments and raw materials from one major supplier.
Previous report
Gross profit margin. Gross profit margin was approximately 15% for the nine months ended December 31, 2024, which decreased by one percentage point from 16% for the same period in fiscal 2024. The decrease in gross profit margin was primarily driven by higher logistic costs for import and labor costs in overtime work arisen from the geopolitical turmoil in the region.
Previous report
***Operating expenses.***Operating expenses for the nine months ended December 31, 2024 increased by 23%, or approximately $3.0 million, to approximately $16.1 million, compared to the same period in fiscal 2024. The increase was primarily due to higher export logistic costs attributable to more shipments and the geopolitical turmoil in the region, and also an increase of $0.7 million in stock-based compensation expenses.
Previous report
Other expenses, net. Other expenses, net was approximately $1.0 million for the nine months ended December 31, 2024, as compared to other expenses, net of approximately $571,000 for the same period in fiscal 2024. The increase was primarily due to higher interest expenses from the supply chain financing programs of our customers.
Previous report
***Income tax expenses.***Income tax expenses for the nine months ended December 31, 2024 were approximately $667,000 compared to income tax expenses of approximately $689,000 for the same period in fiscal 2024. The decrease in the income tax expenses was mainly due to the reduced operating profit derived from our Jordanian subsidiaries offsetting by the tax provision adjustment of $274,000 in GILTI, primarily resulting from the retroactive reinstatement of the subpart F income that was enacted for the fiscal years ended March 31, 2023 and 2022. The effective tax rate declined to (2,339.6%) for the nine months ended December 31, 2024, as compared to 38.6% for the nine months ended December 31, 2023.
Previous report
Net (loss)/income. Net loss for the nine months ended December 31, 2024 was approximately $0.7 million compared to net income of approximately $1.1 million for the same period in fiscal 2024. The decrease in net income was mainly attributable to a decrease in profit margin due to higher logistics costs amid the Red Sea turmoil and additional production cost to catch up with customers’ delivery schedules, the higher stock-based compensation expenses during the period in fiscal 2025, as well as the tax provision adjustment in GILTI.
Previous report
The primary drivers in the increase in current assets were the increase in cash from more sales in the period and an increase in short-term bank financing. The primary driver in the increase in current liabilities was an increase in short-term bank financing.
Previous report
Nine months ended December 31, 2024 and 2023
Reworded paragraphs (24)
Previous wording
Since January 2010, all apparel manufactured in Jordan can be exported to the U.S. without customs duty being imposed, pursuant to the United States-Jordan Free Trade Agreement entered into in December 2001. This free trade agreement provides us with substantial competitiveness and benefit that allowed us to expand our garment export business in the U.S.
Current wording
Between January 2010 and March 2025, all apparel manufactured in Jordan could be exported to the U.S. without customs duty being imposed, pursuant to the United States-Jordan Free Trade Agreement entered into in December 2001. This free trade agreement provided us with substantial competitiveness and benefit that allowed us to expand our garment export business in the U.S. Effective from April 5, 2025, the U.S. imposed a baseline tariff of 10% on imports from almost all countries, including Jordan. Then, effective from April 9, 2025, it had announced “reciprocal” tariffs of imports from specified countries, amongst them Jordan with a prevailing rate of then 20%. These “reciprocal” tariffs are postponed for 90 days, whilst the 10% baseline tariff persists. Up to the date of this report, the tariff has been modified to 15% according to an executive order of presidential actions on July 31, 2025. While the payment of the tariff is typically the responsibility of the importer (Jerash’s customers), the impact of the tariff on customers demand would be affected by the comparative levels of the tariffs on imports from Jordan compared to other countries.
Previous wording
The increase of approximately 39% in sales to the U.S. during the three months ended December 31, 2024, was mainly attributable to increases in shipments to two of our major customers and another export customer in the U.S.
Current wording
The decrease of approximately 13% in sales to the U.S. during the three months ended June 30, 2025, was mainly attributable to the delays in shipments because of switching shipping ports to Aqaba Port in Jordan as per customers’ requests in June 2025.
Previous wording
During the nine months ended December 31, 2024, aggregate sales to China and Hong Kong, Germany, Jordan, and other locations increased by 23% from approximately $11.3 million to $13.9 million from the same period last year due to higher demands of our production capacities from those regions in the nine months period.
Current wording
During the three months ended June 30, 2025, aggregate sales to China and Hong Kong, Germany, Jordan, and other locations increased by 94% from $3.9 million to $7.6 million from the same period last year. This increase was mainly because demand of our capacity increased for customers in those regions.
Previous wording
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $6.9 million, or 30%, to approximately $30.0 million, for the three months ended December 31, 2024, from approximately $23.1 million for the same period in fiscal 2024. As a percentage of revenue, the cost of goods sold increased by approximately 1 percentage point, from 84% for the same period in fiscal 2024 to 85% for the three months ended December 31, 2024. The increase in the cost of goods sold as a percentage of revenue was primarily attributable to higher import costs resulted from the geopolitical turmoil in the region.
Current wording
Cost of goods sold. Following the decrease in sales revenue, our cost of goods sold decreased by approximately $2.8 million, or 8%, to approximately $33.5 million, for the three months ended June 30, 2025, from approximately $36.3 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold decreased by approximately four percentage points, from 89% for the same period in fiscal 2025 to 85% for the three months ended June 30, 2025. The decrease in the cost of goods sold as a percentage of revenue was primarily attributable to lower import logistic costs comparing to last year as more shipments to Aqaba Port in Jordan resumed and lower level of overtime work was required with better logistic and production planning.
Previous wording
For the three months ended December 31, 2023, we purchased 17% and 14% of our total purchase in garments and raw materials from two suppliers, respectively.
Current wording
For the three months ended June 30, 2024, we purchased 12% and 11% of our total purchase in garments and raw materials from two major suppliers, respectively.
Previous wording
Gross profit margin. Gross profit margin was approximately 15% for the three months ended December 31, 2024, which decreased by 1 percentage point from approximately 16% for the same period in fiscal 2024. The decrease in gross profit margin was primarily driven by higher logistic costs for imports arisen from the geopolitical turmoil in the region.
Current wording
Gross profit margin. Gross profit margin was approximately 15% for the three months ended June 30, 2025, which increased by four percentage points from approximately 11% for the same period in fiscal 2025. The increase in gross profit margin was primarily driven by better execution of logistic and production plans with import sea routes resuming to go to Aqaba Port in Jordan that shortened the lead time with lower costs.
Previous wording
Other expenses, net. Other expenses, net were approximately $252,000 for the three months ended December 31, 2024, as compared to other expenses, net of approximately $105,000 for the same period in fiscal 2024. The increase was primarily due to an increase in interest expenses arisen from supply chain financing programs provided by our major customers.
Current wording
Other expenses, net. Other expenses, net were approximately $307,000 for the three months ended June 30, 2025, as compared to other expenses, net of approximately $426,000 for the same period in fiscal 2025. The decrease was primarily due to lower interest rates and lower sales to customers with supply chain financing programs, which caused net interest expenses to be lower.
Previous wording
***Income tax expenses.***Income tax expenses for the three months ended December 31, 2024, were approximately $450,000 compared to income tax expenses of approximately $39,000 for the same period in fiscal 2024. The increase in the income tax expenses was mainly due to a tax provision adjustment of approximately $274,000 in GILTI, primarily resulting from the retroactive reinstatement of the subpart F income that was enacted for the fiscal years ended March 31, 2023 and 2022. The effective tax rate increased to 98.6% for the three months ended December 31, 2024, as compared to 14.2% for the same period in fiscal 2024.
Current wording
***Income tax expenses.***Income tax expenses for the three months ended June 30, 2025, were approximately $329,000 compared to income tax expenses of approximately $112,000 for the same period in fiscal 2025. The increase in the income tax expenses was mainly due to an increase in net profit in Jordan and Hong Kong subsidiaries, offsetting federal tax provision adjustment compared to the same period in fiscal 2025. The effective tax rate increased to 50.4% for the three months ended June 30, 2025, as compared to (8.9%) for the same period in fiscal 2025.
Previous wording
Jerash Holdings is a holding company incorporated in Delaware. As a holding company, we rely on dividends and other distributions from our subsidiaries formed in Jordan and Hong Kong to satisfy our liquidity requirements. Current Jordanian regulations permit our Jordanian subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with Jordanian accounting standards and regulations. In addition, our Jordanian subsidiaries are required to set aside at least 10% of their respective accumulated profits each year, if any, to fund certain reserve funds. These reserves are not distributable as cash dividends. We have relied on direct payments of expenses by our subsidiaries to meet our obligations to date. The subsidiaries generate most of revenue in our group.
Current wording
Jerash Holdings is a holding company incorporated in Delaware. As a holding company, we rely on dividends and other distributions from our Jordanian and Hong Kong subsidiaries to satisfy our liquidity requirements. Current Jordanian regulations permit our Jordanian subsidiaries to pay dividends to us only out of their accumulated profits, if any, determined in accordance with Jordanian accounting standards and regulations. In addition, our Jordanian subsidiaries are required to set aside at least 10% of their respective accumulated profits each year until the reserve is equal to 100% of the entity’s share capital, if any, to fund certain reserve funds. These reserves are not distributable as cash dividends. We have relied on direct payments of expenses by our subsidiaries to meet our obligations to date. To the extent payments are due in U.S. dollars, we have occasionally paid such amounts in JOD to an entity controlled by our management capable of paying such amounts in U.S. dollars. Such transactions have been made at prevailing exchange rates and have resulted in immaterial losses or gains on currency exchange.
Previous wording
As of December 31, 2024, we had cash of approximately $13.2 million and restricted cash of approximately $1.6 million compared to cash of approximately $12.4 million and restricted cash of approximately $1.6 million as of March 31, 2024. The increase in total cash was mainly a result of more sales in the period and a net increase in short-term bank financing.
Current wording
As of June 30, 2025, we had cash of approximately $5.8 million and restricted cash of approximately $1.7 million compared to cash of approximately $13.3 million and restricted cash of approximately $1.7 million as of March 31, 2025. The total cash decreased mainly because more shipments were completed at the end of June 2025, and the receivables were not collected until early July 2025 through the supply chain financing programs of customers.
Previous wording
Our current assets as of December 31, 2024 were approximately $51.1 million and our current liabilities were approximately $16.3 million, which resulted in a ratio of approximately 3.1 to 1. Our current assets as of March 31, 2024 were approximately $50.9 million, and our current liabilities were approximately $14.8 million, which resulted in a current ratio of approximately 3.4 to 1.
Current wording
Our current assets as of June 30, 2025 were approximately $53.4 million and our current liabilities were approximately $18.8 million, which resulted in a ratio of approximately 2.8 to 1. Our current assets as of March 31, 2025 were approximately $54.4 million, and our current liabilities were approximately $19.8 million, which resulted in a current ratio of approximately 2.7 to 1.
Previous wording
Total equity as of December 31, 2024 was approximately $63.2 million compared to $64.4 million as of March 31, 2024.
Current wording
Total equity as of June 30, 2025 was approximately $62.8 million compared to $62.9 million as of March 31, 2025.
Previous wording
We had net working capital of $34.8 million and $36.1 million as of December 31, 2024 and March 31, 2024, respectively. Based on our current operating plan, we believe that cash on hand and cash generated from operating activities will be sufficient to support our working capital needs for the next 12 months from the date this Quarterly Report is released.
Current wording
We had net working capital of $34.6 million as of June 30, 2025 and March 31, 2025. Based on our current operating plan, we believe that cash on hand and cash generated from operating activities will be sufficient to support our working capital needs for the next 12 months from the date this Quarterly Report is released.
Previous wording
We have funded our working capital needs from our operations. Our working capital requirements are influenced by the level of our operations, the numerical and dollar volume of our sales contracts, the progress of execution on our customer contracts, and the timing of accounts receivable collections.
Current wording
We have funded our working capital needs from operations. Our working capital requirements are influenced by the level of our operations, the numerical and dollar volume of our sales contracts, the progress of execution on our customer contracts, and the timing of accounts receivable collections.
Previous wording
Pursuant to the DBS facility letter dated January 12, 2022, DBSHK provided a bank facility of up to $5.0 million to Treasure Success, which was amended pursuant to a facility letter dated January 4, 2024. Pursuant to the amended agreement, DBSHK agreed to finance cargo receipt, trust receipt, account payable financing, and certain types of import and export invoice financing up to an aggregate of $5.0 million, subject to certain financial covenants. The DBSHK facility bears interest at 1.5% per annum over HIBOR for HKD bills and 1.1% to 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 December 31, 2024 and March 31, 2024, we had $5.0 million and $nil outstanding under this DBSHK facility, respectively.
Current wording
Pursuant to the DBS facility letter dated January 12, 2022, DBSHK provided a bank facility of up to $5.0 million to Treasure Success, which was amended pursuant to a facility letter dated January 4, 2024. Pursuant to the amended agreement, DBSHK agreed to finance cargo receipt, trust receipt, account payable financing, and certain types of import and export invoice financing up to an aggregate of $5.0 million, subject to certain financial covenants. The DBSHK facility bears interest at 1.5% per annum over HIBOR for HKD bills and 1.1% to 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 June 30, 2025 and March 31, 2025, we had $4.8 million and $4.5 million outstanding under this DBSHK facility, respectively.
Previous wording
Net cash used in operating activities was approximately $581,000 for the nine months ended December 31, 2024, compared to cash provided by operating activities of approximately $7.9 million for the same period in fiscal 2024. For the nine months ended December 31, 2024, the decrease in net cash provided by operating activities was primarily attributable to the forecasted increased shipments in the subsequent quarters, summarized with the following factors:
Current wording
Net cash used in operating activities was approximately $6.5 million for the three months ended June 30, 2025, compared to cash used in operating activities of approximately $2.2 million for the same period in fiscal 2025. For the three months ended June 30, 2025, the increase in net cash used in operating activities was primarily attributable to an increase in accounts receivable and a decrease in inventory, partially offset by higher net profit, and a decrease in accounts payable, summarized with the following factors:
Previous wording
For the nine months ended December 31, 2023, the cash provided by operating activities was primarily attributable to a decrease of $16.7 million in inventory, offsetting an increase of $6.0 million in accounts receivable and a decrease of $3.4 million in accounts payable.
Current wording
For the three months ended June 30, 2025, the cash used in operating activities was primarily attributable to the increase in accounts receivable and the decreases in accrual expenses, accounts payable, and other payables.
Previous wording
Net cash used in investing activities was approximately $1.7 million for the nine months ended December 31, 2024, compared to approximately $4.3 million in the same period in fiscal 2024. The net cash used in investing activities during the nine months ended December 31, 2024 was mainly for investment in property, plant, and machinery and construction of a dormitory. The net cash used in investing activities in the nine months ended December 31, 2023 was mainly used in investment in property, plant, and machinery including the ongoing construction of a dormitory and factory expansion.
Current wording
Net cash used in investing activities was approximately $0.7 million for the three months ended June 30, 2025, compared to approximately $0.4 million in the same period in fiscal 2025. The net cash used in investing activities during the three months ended June 30, 2025 and 2024 was mainly for purchases of property, plant, and machineries, and deposit payments for fixed assets.
Previous wording
Net cash provided by financing activities was approximately $3.1 million for the nine months ended December 31, 2024, which was the net effect of proceeds from the DBSHK facility of approximately $5.0 million and the payments of $1.8 million of dividend. Net cash used in financing activities was approximately $1.8 million for the nine months ended December 31, 2023, which was dividend payments in the period.
Current wording
Net cash used in financing activities was approximately $0.4 million for the three months ended June 30, 2025, which was the net proceeds of short-term loan of $0.3 million and $0.6 million of dividend payment. Net cash provided by financing activities was approximately $1.5 million for the three months ended June 30, 2024, which was the net proceeds from short-term loan of $2.1 million and $0.6 million dividend payment in the period.
Previous wording
Total restricted net assets accounted for approximately 0.66% of our consolidated net assets as of December 31, 2024. As our subsidiaries in Jordan are only required to set aside 10% of net profits to fund the statutory reserves, we believe the potential impact of such restricted net assets on our liquidity is limited.
Current wording
Total restricted net assets accounted for approximately 0.66% of our consolidated net assets as of June 30, 2025. As our subsidiaries in Jordan are only required to set aside 10% of net profits to fund the statutory reserves with the maximum reserve equal to 100% of the entity’s declared capital, we believe the potential impact of such restricted net assets on our liquidity is limited.
Previous wording
We had capital expenditures of approximately $1.7 million and $4.3 million for the nine months ended December 31, 2024 and 2023, for plant and machinery and the construction of a dormitory in both periods. For the nine months ended December 31, 2024, payments for additional plant and machinery and the construction of a dormitory amounted to approximately $1.1 million and $0.6 million respectively. For the nine months ended December 31, 2023, payments for additional plant and machinery, and construction of a dormitory and factory expansion, amounted to approximately $1.1 million and $3.2 million, respectively.
Current wording
We had capital expenditures of approximately $0.7 million and $0.4 million for the three months ended June 30, 2025 and 2024, respectively. For the three months ended June 30, 2025, our capital expenditures in payments for additional plant and machinery were approximately $0.7 million. For the three months ended June 30, 2024, payments for additional plant and machinery and construction of properties amounted to approximately $370,000 and $15,000, respectively.
Previous wording
On August 7, 2019, we completed a transaction to acquire 12,340 square meters (approximately three acres) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employees with aggregate purchase price JOD 863,800 (approximately $1,218,303). Management has revised the plan to construct both dormitory and production facilities on the land in order to capture the increasing demand for our capacity. We are conducting engineering design and study on this project with the business growth potential brought about by the new business collaboration with Busana Apparel Group. On February 6, 2020, we completed a transaction to acquire 4,516 square meters (approximately 48,608 square feet) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employee with aggregate purchase price JOD 313,501 (approximately $442,162). The dormitory was completed in second quarter of fiscal 2025. We have spent approximately $10.1 million in capital expenditures to build the dormitory. The dormitory’s kitchen is under construction at an estimated cost of approximately $0.9 million.
Current wording
On August 7, 2019, we completed a transaction to acquire 12,340 square meters (approximately three acres) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employees with aggregate purchase price JOD 863,800 (approximately $1,218,303). Management has revised the plan to construct both dormitory and production facilities on the land in order to capture the increasing demand for our capacity. We are conducting engineering design and study on this project with the business growth prospect of new customers to be introduced in the coming few years. On February 6, 2020, we completed a transaction to acquire 4,516 square meters (approximately 48,608 square feet) of land in Al Tajamouat Industrial City, Jordan, from a third party to construct a dormitory for our employee with aggregate purchase price JOD 313,501 (approximately $442,162). The dormitory and dormitory kitchen were completed in the second quarter and the fourth quarter of fiscal year 2025, respectively. We have spent approximately $10.6 million in capital expenditures to build the dormitory and the dormitory kitchen.
Previous wording
We project that there will be an aggregate of approximately $2.2 million and $8.8 million of capital expenditures in the fiscal years ending March 31, 2025 and 2026, respectively, for further enhancement of production capacity to meet future sales growth. The realization of these investments depends on the progress of our business development, including expanding our client base and securing increased commitments from existing customers. We expect that our capital expenditures will increase in the future as our business continues to develop and expand. We have used cash generated from operations of our subsidiaries to fund our capital commitments in the past and anticipate using such funds to fund capital expenditure commitments in the future.
Current wording
We project that there will be an aggregate of approximately $1.3 million and $7.8 million of capital expenditures in the fiscal years ending March 31, 2026 and 2027, respectively, for further enhancement of production capacity to meet future sales growth. The realization of these investments depends on the progress of our business development, including expanding our client base and securing increased commitments from existing customers. We expect that our capital expenditures will increase in the future as our business continues to develop and expand. We have used cash generated from operations of our subsidiaries to fund our capital commitments in the past and anticipate using such funds to fund capital expenditure commitments in the future.
Previous wording
We prepare our consolidated financial statements in conformity with accounting principles generally accepted by the United States of America (“U.S. GAAP”), which require us to make judgments, estimates, and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past three years, we continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates. We have not identified any critical accounting estimates.
Current wording
We prepare our consolidated financial statements in conformity with accounting principles generally accepted by the United States of America (“U.S. GAAP”), which require us to make judgments, estimates, and assumptions that affect our reported amount of assets, liabilities, revenue, costs and expenses, and any related disclosures. Although there were no material changes made to the accounting estimates and assumptions in the past two years, we continually evaluate these estimates and assumptions based on the most recently available information, our own historical experience and various other assumptions that we believe to be reasonable under the circumstances. Since the use of estimates is an integral component of the financial reporting process, actual results could differ from our expectations as a result of changes in our estimates. We have not identified any critical accounting estimates.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Three months ended June 30, 2025 and 2024
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
The following table summarizes the results of our operations during the nine-month periods ended December 31, 2024 and 2023, and provides information regarding the dollar and percentage increase or (decrease) during such periods.
Previous report — wording carried elsewhere
The following table outlines the dollar amount and percentage of total sales to our customers for the nine months ended December 31, 2024 and 2023, respectively.
Previous report — wording carried elsewhere
Since January 2010, all apparel manufactured in Jordan can be exported to the U.S. without customs duty being imposed, pursuant to the United States-Jordan Free Trade Agreement entered into in December 2001. This free trade agreement provides us with substantial competitiveness and benefit that allowed us to expand our garment export business in the U.S.