Jerash Holdings (US), Inc. Segments Disclosure

NOTE 15 – 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 amendment of ASC 280 requires incremental disclosures in annual and interim periods to reportable segments and clarifies entities with a single reportable segment are also required to provide new disclosures in significant segment expenses, profit and loss, assets, and other segment items for better understanding company business activities and overall financial performance and assess potential future cash flow for the business. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the CODM for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. CODM, including Chief Executive Officer and Chief Financial Officer, reviews operation results on the consolidated revenue, gross profit, selling, general, and administrative expenses, and net income or loss. In selling, general, and administration expenses, CODM reviews staff payroll and other related expenses, inventory export and related costs, depreciation, and other major items. Based on CODM’s assessment, the Company has determined that it has only one operating segment as defined by amended ASC 280. The following table summarizes the operating results reviewed by CODM.

 

		For the Fiscal Years Ended March 31,
		2026				2025
Revenue		$	166,263,870			$	145,812,006
Less: Cost of goods sold			139,480,501				123,492,561
Gross profit			26,783,369				22,319,445
Other income, net			45,416				424,108
Expenses
Staff payroll and other related cost			9,300,872				7,958,548
Inventory export and related cost			2,783,046				2,991,097
Depreciation			460,867				465,022
Other selling, general, and administrative expenses			7,006,996				7,699,789
Total selling, general, and administrative expenses			19,551,781				19,114,456
Stock-based compensation expenses			904,171				1,758,146
Interest expenses			1,625,387				1,719,760
Total expenses			22,081,339				22,592,362
Net income before provision for income taxes		$	4,747,446			$	151,191

 

Other selling, general, and administrative expenses include consultancy fees and director remunerations, audit and professional fees, staff travelling and transportation expenses, rental, and general office expenses.

 

The Company’s major product is outerwear. For the fiscal years ended March 31, 2026 and 2025, outerwear accounted for approximately 88.0% and 90.2% of the total revenue, respectively.

 

The following table summarizes sales by geographic areas for the fiscal years ended March 31, 2026 and 2025, respectively.

 

		For the Fiscal Years Ended March 31,
		2026				2025
United States		$	138,158,216			$	128,576,537
China, including Hong Kong			16,851,268				8,941,127
Korea			6,951,768				-
Jordan			2,198,380				3,081,278
Others			2,104,238				5,213,064
Total		$	166,263,870			$	145,812,006

 

As of March 31, 2026 and 2025, there were 78.9% and 20.3%, and 75.7% and 23.7%, of long-lived assets were located in Jordan and Hong Kong, respectively.