Revenue and Profitability - Revenue for the three months ended June 30, 2024, was $40,935,716, an increase of 17.5% compared to $34,735,657 for the same period in 2023[7] - Net loss attributable to Jerash Holdings (US), Inc.'s common stockholders was $1,345,216, compared to a net income of $496,526 in the prior year[7] - The company's net loss for the three months ended June 30, 2024, was $1.367 million, compared to a net income of $495,000 for the same period in 2023, representing a 376% decrease[111] - For the three months ended June 30, 2024, the gross profit margin decreased to approximately 11%, down 5 percentage points from 16% in the same period of fiscal 2023[118] - Net loss for June 2024 was $1,366,697 compared to a net income of $495,115 in June 2023, indicating a significant decline in profitability[11] Expenses and Costs - Gross profit decreased to $4,639,871, down 16.6% from $5,567,540 year-over-year[7] - Total operating expenses increased to $5,468,679 from $4,475,720, an increase of 22.2% year-over-year[7] - Cost of goods sold increased by approximately $7.1 million, or 24%, to approximately $36.3 million for the three months ended June 30, 2024, resulting in a gross profit decrease of 17%[117] - The company incurred total operating lease expenses of $648,241 for the three months ended June 30, 2024, compared to $650,774 for the same period in 2023, showing a slight decrease[75] Cash Flow and Assets - Cash flows from operating activities showed a net cash used of $2,200,948 in June 2024, a stark contrast to a net cash provided of $24,772 in June 2023[11] - Total current assets decreased to $47,642,671 from $50,919,660, a decline of 6.5%[5] - Cash and cash equivalents decreased to $11,366,228 from $12,428,369, a decline of 8.6%[5] - Total cash and restricted cash at the end of June 2024 was $12,973,872, down from $20,071,233 at the end of June 2023[11] - As of June 30, 2024, total cash was approximately $11.4 million, down from $12.4 million as of March 31, 2024, primarily due to an operational loss and a dividend payment[124] Equity and Liabilities - Total liabilities decreased to $13,732,704 from $15,814,903, a reduction of 13.1%[5] - Total equity as of June 30, 2024, was $62,927,072, down from $64,430,663[6] - As of June 30, 2024, total equity was approximately $62.9 million, down from $64.4 million as of March 31, 2024[125] Investments and Capital Expenditures - The company plans to invest approximately $29.9 million to establish a fabric facility in Jordan through its joint venture Jerash Newtech[19] - Capital expenditures for the three months ended June 30, 2024, were approximately $0.4 million, down from $1.8 million in the same period in fiscal 2023[136] - The company projects capital expenditures of approximately $4.1 million and $8.8 million for the fiscal years ending March 31, 2025, and 2026, respectively, to enhance production capacity[138] Customer Concentration and Sales - For the three months ended June 30, 2024, two customers accounted for 73% of total revenue, indicating a significant customer concentration risk[61] - Sales to the United States increased by approximately 13% during the three months ended June 30, 2024, primarily due to increased sales to a major customer[115] - Sales to Germany increased by 152% from $444,000 in 2023 to $1.120 million in 2024, reflecting expanded business relationships[114] Tax and Regulatory Matters - The Company’s effective income tax rate in Jordan increased to 20% plus a 1% social contribution starting January 1, 2024, impacting future tax liabilities[46] - The effective tax rate for the three months ended June 30, 2024, was (8.9%), a significant decrease from 37.6% in the same period of 2023[105] Internal Controls and Compliance - As of March 31, 2024, the company's internal control over financial reporting was deemed ineffective due to material weaknesses, particularly in period-end financial reporting related to income taxes and account balance reconciliation[143] - The company has implemented remedial actions, including enhanced communication with U.S. GAAP advisors and external consultants to strengthen compliance and address identified weaknesses[145] - Despite the material weaknesses, the unaudited condensed consolidated financial statements present fairly the company's financial position and results of operations in accordance with U.S. GAAP[147]
Jerash Holdings(JRSH) - 2025 Q1 - Quarterly Report