Jerash Holdings (US), Inc.
For the period ended Jun 30, 2026. Filed Aug 12, 2026.
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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, 2026 · Filed Aug 12, 2026
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 2025-12-31; filed 2026-02-10.
0001213900-26-014379
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-12.
0001213900-26-088344
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 76 previous paragraphs and 64 current paragraphs.
29 unchanged; 25 reworded; 9 added; 18 removed; 4 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 (9)
Current report
During the three months ended June 30, 2026, aggregate sales to China and Hong Kong, Korea, Jordan, and other locations increased by 50% from $7.6 million to $11.3 million from the same period last year. This increase was mainly because of our effort in diversification of client base in bringing in new buyers and expanding businesses with buyers in multiple regions.
Current report
Selling, general and administrative expenses. Operating expenses increased by 10%, or approximately $0.5 million, from approximately $5.1 million for the same period in fiscal 2026, to approximately $5.6 million for the three months ended June 30, 2026. The increase was primarily due to an increase in delivery expenses to customers following sales growth, and an increase in headcounts and related expenses and maintenance to cope with growth in business.
Current report
The primary drivers in the decrease in current assets were a decrease of $3.4 million in inventory due to more shipments completed in the period which was partially offset by an increase in cash of $1.6 million. The primary driver in the decrease in current liabilities was a decrease of $4.0 million in accounts payable due to introduction of new suppliers catering for new businesses that typically started with stricter payment terms.
Current report
Credit Facilities and Bank Loan
Current report
Housing Bank Credit Facility and Bank Loan
Current report
On January 15, 2026, Housing Bank offered to provide a credit facility of up to $14.0 million to Jerash Garments. Pursuant to the facility, Housing Bank agreed to finance import invoices of up to $14.0 million, with condition that such invoices are secured by letter of credit issued by customers. The facility bears an interest rate SOFR plus a spread. As of June 30, 2026 and March 31, 2026, the Company had $0.4 million and $nil outstanding under the Housing Bank facility, respectively. The Housing Bank facility is reviewed annually.
Current report
In connection with the Property Purchase Request, on January 28, 2026, Jerash Garments entered into a loan agreement with the Housing Bank to finance the acquisition Property No. 1326. Pursuant to the loan agreement, the Housing Bank agreed to provide Jerash Garments with a loan in the principal amount of JOD 2 million (approximately $2.8 million). The loan bears interest at a rate of 8% per annum, calculated on the daily outstanding balance and charged monthly. Following a grace period ending January 31, 2027, the loan is repayable in 96 monthly installments of JOD 20,833 ($29,383) each, with the first installment due on February 1, 2027. The loan is secured by a first-priority mortgage on Property No. 1326, valued at JOD 5.5 million (approximately $7.8 million).
Current report
Capital Bank Credit Facility
Current report
On April 9, 2026, the Company signed a credit facility agreement offered by Capital Bank. Pursuant to the facility, Capital Bank agreed to finance import invoices of up to $7.5 million with condition that such invoices are secured by letter of credit issued by customers. The facility bears an SOFR interest rate plus a spread. As of June 30, 2026, the Company had $nil outstanding under the Capital Bank facility. The Capital Bank facility is reviewed annually.
Removed paragraphs (18)
Previous report
The increase of approximately 14% in sales to the U.S. during the three months ended December 31, 2025, was mainly attributable to a general increase in shipments to our major U.S. customers.
Previous report
During the three months ended December 31, 2025, aggregate sales to China, Korea, Jordan, and other locations increased by 47% from $4.3 million to $6.3 million from the same period last year. This increase was mainly due to the introduction of a customer in Korea, which started to have bulk shipments during the quarter.
Previous report
Gross profit margin. Gross profit margin was approximately 17% for the three months ended December 31, 2025, which increased by 2 percentage points from approximately 15% for the same period in fiscal 2025. The increase in gross profit margin was primarily driven by changes in product mix resulting from new customers introduced in the past few years and the growth in scale of production.
Previous report
***Operating expenses.***Operating expenses increased by 9%, or approximately $0.4 million, from approximately $4.7 million for the three months ended December 31, 2024, to approximately $5.1 million for the three months ended December 31, 2025. The increase in operating expenses was primarily due to the increase in export-related expenses following the growth in sales and an increase in recruitment expenses in relation to headcount increase, offsetting a decrease in stock-based compensation expenses.
Previous report
***Income tax expenses.***Income tax expenses for the three months ended December 31, 2025, were approximately $368,000 compared to income tax expenses of approximately $450,000 for the same period in fiscal 2025. The decrease in the income tax expenses was mainly due to tax provision adjustment in fiscal 2025 in GILTI, primarily resulting from the retroactive reinstatement of the subpart F income that was enacted for previous fiscal years andan increase in operating profit of Jordan subsidiaries related to GILTI provision. The effective tax rate declined to 24.1% for the three months ended December 31, 2025, compared to 98.6% for the three months ended December 31, 2024.
Previous report
Nine months ended December 31, 2025 and 2024
Previous report
Revenue. Revenue increased by approximately $6.8 million, or 6%, to $123.4 million, for the nine months ended December 31, 2025, from approximately $116.6 million for the same period in fiscal 2025. The increase was mainly due to the increase in shipments to some of our major customers in the U.S. and sales increases to some of our new customers introduced during the past few years.
Previous report
Revenue by Geographic Area
Previous report
During the nine months ended December 31, 2025, aggregate sales to China, Korea, Jordan, and other locations increased by 34% from approximately $13.9 million to $18.6 million from the same period last year, as we diversified our customer mix by introducing new customers in new locations such as Korea during the nine months ended December 31, 2025.
Previous report
For the nine months ended December 31, 2025 and 2024, we purchased 14% and 12% of our garments and raw materials from one major supplier, respectively.
Previous report
***Operating expenses.***Operating expenses for the nine months ended December 31, 2025 decreased by 4%, or approximately $0.6 million, to approximately $15.4 million, compared to the same period in fiscal 2025. The decrease was primarily due to better control over export costs, the decrease in stock-based compensation expenses, and reduced spending in repair and maintenance in fiscal 2026.
Previous report
Other expenses, net. Other expenses, net was approximately $1.2 million for the nine months ended December 31, 2025, compared to other expenses, net of approximately $1.0 million for the same period in fiscal 2025. The increase was primarily due to exchange loss offsetting interesting rate decrease in net interest expenses for higher utilization of bank facility and customers’ supply chain financing programs to cope with business growth.
Previous report
Net income (loss). Net income for the nine months ended December 31, 2025 was approximately $2.0 million compared to net loss of approximately $0.7 million for the same period in fiscal 2025. The increase in net income was mainly attributable to improvement in productivity through changes in product mix and economies of scale, better control over logistics costs, lower interest expenses benefit from the decrease in SOFR, and lower stock-based compensation expenses during the period.
Previous report
The primary drivers of the increase in current assets were the increase in accounts receivable and advances to suppliers. The primary driver of the increase in current liabilities was the increase in credit facilities which were offset partially by decreases in accounts payable, accrued expenses and other payables, and income tax payable.
Previous report
Credit Facilities
Previous report
Nine months ended December 31, 2025 and 2024
Previous report
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 is completed in second quarter of fiscal year 2025. 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 report
On February 2, 2026, Jerash Garments received the approval from the Housing Bank of the Property Purchase Request submitted by Jerash Garments to the Housing Bank on January 20, 2026 for the purchase of the Property located on Property No. 1326, Basin No. 3 Abu Sawwana, Al-Ruqaim Village, from the lands of South Amman, Jordan. The purchase price is JOD 2,400,000 (approximately $3,384,000), to be paid via down payment and bank financing from the Housing Bank. Jerash Garments has inspected the Property, accepted responsibility for all fees and expenses related to the transfer of ownership, and agreed to register the Property in its name and bear all ownership transfer fees payable by both the seller and the buyer at the Land and Survey Department.
Reworded paragraphs (25)
Previous wording
Revenue. Revenue increased by approximately $6.4 million, or 18%, to $41.8 million, for the three months ended December 31, 2025, from approximately $35.4 million for the same period in fiscal 2025. The increase was mainly due to increases in shipments to some of the customers in the U.S. and the introduction of a new customer in Korea.
Current wording
*Revenue.*Revenue increased by approximately $10.6 million, or 27%, to $50.2 million, for the three months ended June 30, 2026, from approximately $39.6 million for the same period in fiscal 2026. The increase was mainly due to an increase in shipments to our two major buyers in the U.S. and the introduction of a new customer in Korea.
Previous 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.
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. The tariff had been modified to 15% according to an executive order of presidential actions on July 31, 2025. In February 2026, the U.S. Supreme Court ruled that the “reciprocal” tariffs were illegal, and the U.S. Customs has since then stopped to impose the “reciprocal” tariff and established a new process to refund importers for voided “reciprocal” tariff. Following the ruling, the U.S. Government then invoked Section 122 of the Trade Act of 1974 to impose an across the board 10% tariff for a period of 150 days that expired in July 2026, including on the imports from Jordan. On July 21, 2026, the U.S. Government and Jordanian Government entered into an agreement intending to enhance reciprocity in their bilateral relationship by securing preferential trade arrangements and addressing tariff and non-tariff barriers including, inter alia, the United States commits to provide preferential tariff treatment for originating goods of Jordan in future tariff actions with certain exceptions. On July 28, 2026, after the tariff imposed under Section 122 of the Trade Act of 1974 expired, the Office of the United States Trade Representative (the Trade Representative) issued a Notice of Actions in Section 301 investigations of acts, policies, and practices of various economies related to the failure of each economy to impose and effectively enforce a prohibition on the importation of goods produced with forced labor (the Notice). Based on the findings in the investigation of Jordan and other factors, the Trade Representative has determined to impose 10 percent tariffs on products of Jordan, except as provided in Annex I and Annex II, Parts A, N, and O, of the Notice. These exceptions apply to items of specific Harmonized Tariff Schedule of the United States (HTSUS) codes. Most of the garment categories that Jerash manufactures fall within the HTSUS codes in the exceptions and thus are not subject to the tariff.
Previous wording
The increase of approximately 2% in sales to the U.S. during the nine months ended December 31, 2025, was mainly attributable to a general increase in shipments to some of our major customers in the U.S.
Current wording
The increase of approximately 21% in sales to the U.S. during the three months ended June 30, 2026, was mainly attributable to the increase in shipments to two of our major buyers in the U.S.
Previous wording
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $4.5 million, or 4%, to approximately $103.9 million, for the nine months ended December 31, 2025, from approximately $99.5 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold decreased by approximately 1% point to 84% for the nine months ended December 31, 2025 from 85% for the same period in fiscal 2025. The decrease in cost of goods sold as a percentage of revenue was primarily attributable to changes in product mix following the introduction of new customers and the improvement in efficiency through economies of scale.
Current wording
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $8.4 million, or 25%, to approximately $42.0 million, for the three months ended June 30, 2026, from approximately $33.5 million for the same period in fiscal 2026. As a percentage of revenue, the cost of goods sold decreased by approximately 1 percentage point, from 85% for the same period in fiscal 2026 to 84% for the three months ended June 30, 2026. The decrease in the cost of goods sold as a percentage of revenue was primarily attributable to a general improvement in efficiency resulting from economy of scale and continuous automation.
Previous wording
For the three months ended December 31, 2025, we purchased 16% and 10% of our total purchase in garments and raw materials from two major suppliers, respectively.
Current wording
For the three months ended June 30, 2026, we purchased 18% and 13% of our total purchase in garments and raw materials from two major suppliers, respectively.
Previous wording
For the three months ended December 31, 2024, we purchased 14% of our total purchase in garments and raw materials from one major supplier.
Current wording
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.
Previous wording
Gross profit margin. Gross profit margin was approximately 16% for the nine months ended December 31, 2025, which increased by 1% point from 15% for the same period in fiscal 2025. The increase in gross profit margin was primarily driven by improvement in productivity from changes in product mix and economies of scale.
Current wording
Gross profit margin. Gross profit margin was approximately 16% for the three months ended June 30, 2026, which increased by 1 percentage point from approximately 15% for the same period in fiscal 2026. The increase in gross profit margin was primarily driven by increase in shipments to our U.S. customers that typically generated higher margin and an overall improvement in efficiency through automation.
Previous wording
Other expenses, net. Other expenses, net were approximately $418,000 for the three months ended December 31, 2025, compared to other expenses, net of approximately $252,000 for the same period in fiscal 2025. The increase was primarily due to exchange loss and the increase in utilization of bank facility and customers’ supply chain financing programs to support the growth in business.
Current wording
Other expenses, net. Other expenses, net were approximately $546,000 for the three months ended June 30, 2026, as compared to other expenses, net of approximately $307,000 for the same period in fiscal 2026. The increase was primarily due to higher revenue from two major customers participating in supply chain financing programs that allow us to receive early payments and increases in interest expense in letter of credit financing for raw material purchases of a new buyer.
Previous wording
***Income tax expenses.***Income tax expenses for the nine months ended December 31, 2025 were approximately $851,000 compared to income tax expenses of approximately $667,000 for the same period in fiscal 2025. The increase in the income tax expenses was mainly due to higher operating profit in fiscal 2026. The effective tax rate declined to 30.3% for the nine months ended December 31, 2025, compared to (2,339.6%) for the nine months ended December 31, 2024. The decrease in effective tax rate primarily related to uncertain tax provision, which was provided in the prior year and subsequently amended in connection with the overstatement of approximately $150,000 in fiscal 2026.
Current wording
*Income tax expenses.*Income tax expenses for the three months ended June 30, 2026, were approximately $404,000 compared to income tax expenses of approximately $329,000 for the same period in fiscal 2026. The increase in the income tax expenses was mainly due to an increase in net profit of Jerash Garments offsetting tax concession to decrease corporation income tax rate from 20% to 10% in Jordan effective from October 1, 2025, and offsetting federal tax provision adjusted to the same period in fiscal 2026. The effective tax rate decreased to 19.4% for the three months ended June 30, 2026, as compared to 50.4% for the same period in fiscal 2026.
Previous wording
Net income. Net income for the three months ended December 31, 2025, was approximately $1.2 million compared to net income of approximately $6,000 for the same period in fiscal 2025. The increase in net income was mainly attributable to improvement of gross profit in efficiency through economies of scale with higher revenue, decrease of corporate tax in a Jordan subsidiary offset exchange loss and the increase in operating expenses.
Current wording
Net income. Net income for the three months ended June 30, 2026, was approximately $1.7 million compared to net income of approximately $0.3 million for the same period in fiscal 2026. The increase in net income was mainly attributable to an increase in shipments and improvements in efficiency through automation that generated overall profit margins, offsetting the increase in operating expense, other expenses and income tax expenses.
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. 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.
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, 2025, we had cash of approximately $11.5 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 decrease in total cash was mainly a result of higher account receivable balances arising from sales made closer to the end of the quarter, which were mostly collected in early fourth quarter through customers’ supply chain financing programs.
Current wording
As of June 30, 2026, we had cash and cash equivalents of approximately $12.4 million and restricted cash of approximately $1.7 million compared to cash and cash equivalents of approximately $10.8 million and restricted cash of approximately $1.7 million as of March 31, 2026. The total increase in cash and cash equivalents was mainly due to more shipments completed with more accounts receivable collected from our two major customers through their supplier financing programs.
Previous wording
Our current assets as of December 31, 2025 were approximately $56.8 million and our current liabilities were approximately $20.4 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.
Current wording
Our current assets as of June 30, 2026 were approximately $56.2 million and our current liabilities were approximately $18.1 million, which resulted in a ratio of approximately 3.1 to 1. Our current assets as of March 31, 2026 were approximately $58.4 million, and our current liabilities were approximately $21.6 million, which resulted in a current ratio of approximately 2.7 to 1.
Previous wording
Total equity as of December 31, 2025 was approximately $63.7 million compared to $62.9 million as of March 31, 2025.
Current wording
Total equity as of June 30, 2026 was approximately $66.2 million compared to $64.9 million as of March 31, 2026.
Previous wording
We had net working capital of $36.4 million and $34.6 million as of December 31, 2025 and March 31, 2025, 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 $38.1 million and $36.7 million as of June 30, 2026 and March 31, 2026. Based on our current operating plan, we believe that cash on hand and cash generated from operation 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, 2025 and March 31, 2025, we had $4.5 million and $4.5 million 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, 2026 and March 31, 2026, we had $5.0 million and $4.9 million outstanding under this DBSHK facility, respectively.
Previous wording
On July 31, 2025, Bank al Etihad offered to provide a credit facility of up to $6.0 million to Jerash Garments. Pursuant to the facility, Bank al Etihad agreed to finance import invoices of up to $6.0 million with condition that such invoices are secured by letter of credit issued by customers. The facility bears an interest rate at the Prime Lending Rate announced by Bank al Etihad, currently 8% per annum. As of December 31, 2025, the Company had $4.8 million outstanding under the Bank al Etihad facility.
Current wording
On July 31, 2025, Bank al Etihad offered to provide a credit facility of up to $6.0 million to Jerash Garments. Pursuant to the facility, Bank al Etihad agreed to finance import invoices of up to $6.0 million with condition that such invoices are secured by letter of credit issued by customers. The facility bears an interest rate at the Prime Lending Rate announced by Bank al Etihad. As of June 30, 2026 and March 31, 2026, the Company had $nil outstanding under the Bank al Etihad facility. The Bank al Etihad facility is reviewed annually.
Previous wording
Net cash used in operating activities was approximately $3.5 million for the nine months ended December 31, 2025, compared to cash used in operating activities of approximately $581,000 for the same period in fiscal 2025. The increase in net cash used in operating activities was primarily attributable to the following factors:
Current wording
Net cash provided by operating activities was approximately $2.5 million for the three months ended June 30, 2026, compared to net cash used in operating activities of approximately $6.5 million for the same period in fiscal 2026. The increase in net cash provided by operating activities was primarily attributable to the following factors:
Previous wording
Net cash used in investing activities was approximately $1.4 million for the nine months ended December 31, 2025, compared to approximately $1.7 million in the same period in fiscal 2025. The net cash used in investing activities during the nine months ended December 31, 2025 was mainly for investments in property, plant, and equipment. The net cash used in investing activities during the nine months ended December 31, 2024 was mainly for investment in property, plant, and equipment and the construction of a dormitory.
Current wording
Net cash used in investing activities was approximately $0.7 million for the three months ended June 30, 2026 and 2025. The net cash used in investing activities during the three months ended June 30, 2026 and 2025 was mainly for purchases of property, plant, and machineries, and deposits for fixed assets.
Previous wording
Net cash provided by in financing activities was approximately $2.9 million for the nine months ended December 31, 2025, which was net proceeds of $4.8 million from bank financing facilities and dividend payments of $1.9 million in the period. 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 credit facilities of approximately $5.0 million and the dividend payments of approximately $1.8 million.
Current wording
Net cash used in financing activities was approximately $153,000 for the three months ended June 30, 2026, which was the net proceeds of short-term loan of $482,000 and $635,000 of dividend payment in the period. Net cash used in financing activities was approximately $379,000 for the three months ended June 30, 2025, which was the net proceeds of short-term loan of $256,000 and $635,000 of dividend payment in the period.
Previous wording
Total restricted net assets accounted for approximately 0.65% of our consolidated net assets as of December 31, 2025. 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 0.63% of our consolidated net assets as of June 30, 2026. 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 $1.4 million and $1.7 million for the nine months ended December 31, 2025 and 2024, for plant and machinery in both periods and the construction of a dormitory in fiscal 2025. For the nine months ended December 31, 2025, our capital expenditures in payments for additional plant and machinery were approximately $1.4 million. 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.
Current wording
We had capital expenditures of approximately $0.7 million for the three months ended June 30, 2026 and 2025. All of our capital expenditures were payments for additional plant and machinery during the periods.
Previous wording
We expect that our capital expenditures will increase in the future as our business continues to develop and expand. We project that there will be an aggregate of approximately $7.8 million, $17.9 million, $18.0 million, $2.8 million, and $2 million of capital expenditures, respectively, in each of the five fiscal years from the fiscal year ending March 31, 2026 to the fiscal year ending March 31, 2030, for further enhancement of production capacity to meet future sales growth based on the current market response and communication with key customers. 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 have used cash generated from operations of our subsidiaries to fund our capital commitments in the past. Our capital expenditure plan is highly related to customer commitments and market responses to the demand of our capacity. If growth in demand is in line with our projection, other than cash generated from the operations of our subsidiaries, we may also obtain further bank financing and raise funds from the capital market to meet our capital expenditure plan and fund our capital commitments. As of the date of this report, no material commitment has been made for the capital expenditure projections above.
Current wording
We expect that our capital expenditures will increase in the following two fiscal years to create additional capacity to underpin our long-term business plan. 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 have used cash generated from operations of our subsidiaries to fund our capital commitments in the past. Our capital expenditure plan is highly related to customer commitments and market responses to the demand of our capacity. If growth in demand is in line with our projection, other than cash generated from the operations of our subsidiaries, we may also obtain further bank financing and raise funds from the capital market to meet our capital expenditure plan and fund our capital commitments. As of the date of this report, no material commitment has been made for the capital expenditure projections above.
Previous wording
We prepare our consolidated financial statements in conformity with 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 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, 2026 and 2025
Rearranged previous paragraphs (4)
Previous report — wording carried elsewhere
Cost of goods sold. Following the increase in sales revenue, our cost of goods sold increased by approximately $4.7 million, or 16%, to approximately $34.7 million, for the three months ended December 31, 2025, from approximately $30.0 million for the same period in fiscal 2025. As a percentage of revenue, the cost of goods sold decrease by approximately 2 percentage points, from 85% for the same period in fiscal 2025 to 83% for the three months ended December 31, 2025. The decrease in the cost of goods sold as a percentage of revenue was primarily attributable to improvements in efficiency through economies of scale and adjustments in product mix following the introduction of new customers.
Previous report — wording carried elsewhere
The following table summarizes the results of our operations during the nine-month periods ended December 31, 2025 and 2024, 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, 2025 and 2024, respectively.
Previous report — wording carried elsewhere
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.