Revenue and Income - Revenue for the three months ended December 31, 2024, was $35,384,737, representing a 28.5% increase from $27,520,121 in the same period of 2023[10]. - Net income for the three months ended December 31, 2024, was $6,314, compared to a net income of $232,170 in the same period of 2023, showing a significant decline[10]. - The company reported a net loss attributable to common stockholders of $5,806 for the three months ended December 31, 2024, compared to a net income of $220,713 in the same period of 2023[10]. - For the nine months ended December 31, 2024, the company reported a net loss of $695,834 compared to a net income of $1,096,229 for the same period in 2023[17]. - The net income for the three months ended December 31, 2023, was $232,170, a significant increase from the previous year's net income of $220,713[15]. Expenses and Costs - Selling, general and administrative expenses for the nine months ended December 31, 2024, were $14,650,105, up from $12,318,535 in 2023, reflecting an 18.9% increase[10]. - The cost of goods sold for the three months ended December 31, 2024, was $30.0 million, representing 85% of total revenue, compared to $23.1 million, or 84% of total revenue, for the same period in 2023[136]. - Operating expenses increased by 14%, or approximately $0.6 million, to approximately $4.7 million, primarily due to higher export logistic costs[149]. - The company incurred total operating lease expenses of $561,102 for the three months ended December 31, 2024, compared to $599,622 for the same period in 2023, showing a decrease in lease costs[87]. Assets and Liabilities - Total current assets as of March 31, 2024, were $51,114,063, slightly up from $50,919,660 as of December 31, 2023[9]. - Total liabilities increased to $16,653,474 as of March 31, 2024, from $15,814,903 as of December 31, 2023[9]. - Total assets as of March 31, 2024, were $79,836,715, a slight decrease from $80,245,566 as of December 31, 2023[9]. - As of March 31, 2024, total equity stands at $64,430,663, a decrease from $68,234,234 on March 31, 2023, reflecting a decline of approximately 5.3%[13]. Cash Flow - The company experienced a significant decrease in net cash provided by operating activities, dropping to $(581,275) from $7,866,954 in the previous year[17]. - Cash and cash equivalents increased to $13,219,109 as of March 31, 2024, compared to $12,428,369 as of December 31, 2023[9]. - Net cash used in investing activities was $(1,671,833), a decrease from $(4,263,959) in the prior year, showing reduced capital expenditures[17]. - 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[184]. Dividends - The company maintained a dividend per share of $0.05 for both the three and nine months ended December 31, 2024, consistent with the previous year[10]. - Dividend payments for the three months ended December 31, 2024, totaled $(1,844,226), consistent with the previous year[13]. - The company declared cash dividends of $0.05 per share of common stock, totaling $614,742 for each of the three dividends paid during the nine months ended December 31, 2024[96]. Inventory and Receivables - The company's total inventories decreased from $27,241,573 as of March 31, 2024, to $19,118,133 as of December 31, 2024, primarily due to a reduction in raw materials[83]. - Accounts receivable increased from $5,451,334 as of March 31, 2024, to $7,237,959 as of December 31, 2024, reflecting a growth in revenue[82]. - The company’s accounts receivable decreased by $1,803,392 compared to a decrease of $6,044,375 in the previous year, indicating improved collection efforts[17]. Accounting and Compliance - The Company adopted ASU 2016-13 on April 1, 2023, which changes the credit loss impairment methodology to an expected loss model, but it did not have a material impact on consolidated financial statements[44]. - The company failed to maintain effective controls over period-end financial reporting, particularly regarding income taxes and account level balances reconciliation, leading to errors[207]. - Enhanced communication with U.S. GAAP advisors is being implemented to strengthen compliance with new promulgations[207]. Future Plans and Investments - The company plans to invest approximately $29.9 million to establish a new fabric facility in Jordan through its joint venture Jerash Newtech[29]. - The company projects capital expenditures of approximately $2.2 million and $8.8 million for the fiscal years ending March 31, 2025, and 2026, respectively, to enhance production capacity[196]. Customer Concentration - For the three months ended December 31, 2024, three end-customers accounted for 58%, 13%, and 10% of the company's total revenue, indicating a significant customer concentration risk[74].
Jerash Holdings(JRSH) - 2025 Q3 - Quarterly Report