# Jerash Holdings (US), Inc.: Form 10-Q for the period ended Dec 31, 2025

- Company: [Jerash Holdings (US), Inc.](/companies/jrsh.md) (CIK 1696558)
- Form: 10-Q
- Filed: 2026-02-10
- Accepted by EDGAR: Feb 10, 2026, 17:00 ET
- Period: 2025-12-31
- Accession: 0001213900-26-014379
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1696558/000121390026014379/ea0275397-10q_jerash.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1696558/000121390026014379/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-12-31.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-10-01 to 2025-12-31 | $41.8m | us-gaap:Revenues |
| Revenue | 9 months, 2025-04-01 to 2025-12-31 | $123.4m | us-gaap:Revenues |
| Cost of revenue | 3 months, 2025-10-01 to 2025-12-31 | $34.7m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months, 2025-04-01 to 2025-12-31 | $103.9m | us-gaap:CostOfGoodsAndServicesSold |
| Gross profit | 3 months, 2025-10-01 to 2025-12-31 | $7.0m | us-gaap:GrossProfit |
| Gross profit | 9 months, 2025-04-01 to 2025-12-31 | $19.4m | us-gaap:GrossProfit |
| Selling, general and administrative | 3 months, 2025-10-01 to 2025-12-31 | $4.9m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 9 months, 2025-04-01 to 2025-12-31 | $14.8m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-10-01 to 2025-12-31 | $1.9m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2025-04-01 to 2025-12-31 | $4.0m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-10-01 to 2025-12-31 | $393.2k | us-gaap:InterestExpenseNonoperating |
| Interest expense | 9 months, 2025-04-01 to 2025-12-31 | $1.2m | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-10-01 to 2025-12-31 | $367.9k | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2025-04-01 to 2025-12-31 | $850.5k | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-10-01 to 2025-12-31 | $1.2m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2025-04-01 to 2025-12-31 | $2.0m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-10-01 to 2025-12-31 | $0.09 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2025-04-01 to 2025-12-31 | $0.15 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-10-01 to 2025-12-31 | $0.09 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2025-04-01 to 2025-12-31 | $0.15 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-10-01 to 2025-12-31 | 13,221,380 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2025-04-01 to 2025-12-31 | 13,158,039 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2025-04-01 to 2025-12-31 | −$3.5m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2025-04-01 to 2025-12-31 | $936.4k | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months, 2025-04-01 to 2025-12-31 | $1.9m | us-gaap:PaymentsOfDividends |
| Cash and equivalents | at 2025-12-31 | $11.5m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-12-31 | $56.8m | us-gaap:AssetsCurrent |
| Total assets | at 2025-12-31 | $84.2m | us-gaap:Assets |
| Current liabilities | at 2025-12-31 | $20.4m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-12-31 | $20.6m | us-gaap:Liabilities |
| Shareholders' equity | at 2025-12-31 | $63.6m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 34,588 characters.

*The following discussion and analysis should be read in conjunction with the unaudited condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (this “Quarterly Report”).*

### Forward-Looking Statements

This Quarterly Report on Form 10-Q contains “forward-looking statements.” All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to: any projections of earnings, revenue, or other financial items; any statements regarding the adequacy, availability, and sources of capital, any statements of the plans, strategies, and objectives of management for future operations; any statements concerning proposed new products, services, or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect,” “plan,” “project,” or “anticipate,” and other similar words. In addition to any assumptions and other factors and matters referred to specifically in connection with such forward-looking statements, factors that could cause actual results or outcomes to differ materially from those contained in the forward-looking statements include those factors set forth in the “Risk Factors” section included in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025 and in subsequent reports that we file with the SEC.

Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed in this Quarterly Report. We do not intend, and undertake no obligation, to update any forward-looking statement, except as required by law.

The information included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with our unaudited condensed consolidated financial statements and the notes included in this Quarterly Report, and the audited consolidated financial statements and notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended March 31, 2025, filed with the SEC on June 26, 2025. References to fiscal 2026 and fiscal 2025 in this Management’s Discussion and Analysis of Financial Condition and Results of Operations refer to our fiscal year ending March 31, 2026, and fiscal year ended March 31, 2025, respectively.

### Results of Operations

### Three months ended December 31, 2025 and 2024

The following table summarizes the results of our operations during the three-month periods ended December 31, 2025 and 2024, and provides information regarding the dollar and percentage increase or (decrease) during such periods.

(All amounts, other than percentages, in thousands of U.S. dollars)

| Statement of Income Data: | Three Months Ended December 31, 2025 Amount | As % of Sales | Three Months Ended December 31, 2024 Amount | As % of Sales | Period over Period Increase (Decrease) Amount% |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | $41,769 | 100% | $35,385 | 100% | $6,384 | 18% |
| Cost of goods sold | 34,720 | 83% | 30,002 | 85% | 4,718 | 16% |
| Gross profit | 7,049 | 17% | 5,383 | 15% | 1,666 | 31% |
| Selling, general, and administrative expenses | 4,878 | 12% | 4,201 | 12% | 677 | 16% |
| Stock-based compensation expenses | 229 | 1% | 474 | 1% | (245) | (52)% |
| Other expenses, net | 418 | 1% | 252 | 1% | 166 | 66% |
| Net income before taxation | 1,524 | 3% | 456 | 1% | 1,068 | 234% |
| Income tax expenses | 368 | 1% | 450 | 1% | (82) | (18)% |
| Net income | $1,156 | 3% | $6 | 0% | $1,150 | 19,167% |

24

***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.

The following table outlines the dollar amount and percentage of total sales to our customers for the three months ended December 31, 2025 and 2024.

(All amounts, other than percentages, in thousands of U.S. dollars)

|  | Three Months Ended December 31, 2025 Sales Amount% |  | Three Months Ended December 31, 2024 Sales Amount% |  |
| --- | ---: | ---: | ---: | ---: |
| VF Corporation (1) | $19,344 | 46% | $20,493 | 58% |
| New Balance | 6,673 | 16% | 4,700 | 13% |
| SWC (Dynamic) | 4,028 | 10% | 3,619 | 10% |
| Acushnet | 3,473 | 8% | 323 | 1% |
| Hansoll | 2,492 | 6% | - | 0% |
| Suzhou Unitex | 1,379 | 3% | 780 | 2% |
| GIII | 767 | 2% | 382 | 1% |
| Tharanco | 690 | 2% | 587 | 2% |
| Others | 2,923 | 7% | 4,501 | 13% |
| Total | $41,769 | 100% | $35,385 | 100% |

(1) A large portion of our products are sold under The North Face, Timberland, and Vans brands owned by VF Corporation.

### Revenue by Geographic Area

(All amounts, other than percentages, in thousands of U.S. dollars)

| Region | Three Months Ended December 31, 2025 Amount% |  | Three Months Ended December 31, 2024 Amount% |  | Period over Period Increase (Decrease) Amount% |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| United States | $35,428 | 85% | $31,062 | 88% | $4,366 | 14% |
| China (including Hong Kong) | 2,984 | 7% | 2,312 | 6% | 672 | 29% |
| Korea | 2,492 | 6% | - | 0% | 2,492 | -% |
| Jordan | 724 | 2% | 930 | 3% | (206) | (22)% |
| Others | 141 | 0% | 1,081 | 3% | (940) | (87)% |
| Total | $41,769 | 100% | $35,385 | 100% | $6,384 | 18% |

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.

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.

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.

***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.

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.

For the three months ended December 31, 2024, we purchased 14% of our total purchase in garments and raw materials from one major supplier.

***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.

***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.

***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.

***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 and an 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.

***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.

### Nine months ended December 31, 2025 and 2024

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.

(All amounts, other than percentages, in thousands of U.S. dollars)

| Statement of Income Data: | Nine Months Ended December 31, 2025 Amount | As % of Sales | Nine Months Ended December 31, 2024 Amount | As % of Sales | Period over Period Increase (Decrease) Amount% |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | $123,367 | 100% | $116,561 | 100% | $6,806 | 6% |
| Cost of goods sold | 103,939 | 84% | 99,480 | 85% | 4,459 | 4% |
| Gross profit | 19,428 | 16% | 17,081 | 15% | 2,347 | 14% |
| Selling, general, and administrative expenses | 14,756 | 12% | 14,650 | 13% | 106 | 1% |
| Stock-based compensation expenses | 680 | 1% | 1,417 | 1% | (737) | (52)% |
| Other expenses, net | 1,182 | 1% | 1,042 | 1% | 140 | 13% |
| Net income / (loss) before taxation | 2,810 | 2% | (28) | (0)% | 2,838 | 10,136% |
| Income tax expense | 851 | 1% | 667 | 1% | 184 | 28% |
| Net income / (loss) | $1,959 | 1% | $(695) | (1)% | $2,654 | 382% |

***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.

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.

(All amounts, other than percentages, in thousands of U.S. dollars)

|  | Nine Months Ended December 31, 2025 Sales Amount% |  | Nine Months Ended December 31, 2024 Sales Amount% |  |
| --- | ---: | ---: | ---: | ---: |
| VF Corporation (1) | $69,703 | 57% | $77,659 | 67% |
| New Balance | 16,412 | 13% | 12,291 | 11% |
| Suzhou Unitex | 7,502 | 6% | 4,999 | 4% |
| Acushnet | 4,670 | 4% | 955 | 1% |
| SWC (Dynamic) | 4,332 | 4% | 5,049 | 4% |
| G-III | 3,158 | 3% | 2,107 | 2% |
| Hansoll | 2,541 | 2% | - | 0% |
| American Eagle Outfitter | 2,264 | 1% | 1,406 | 1% |
| Tharanco | 2,072 | 1% | 1,747 | 1% |
| Others | 10,713 | 9% | 10,348 | 9% |
| Total | $123,367 | 100% | $116,561 | 100% |

(1) A large portion of our products are sold under The North Face, Timberland and Vans brands that are owned by VF Corporation.

### Revenue by Geographic Area

(All amounts, other than percentages, in thousands of U.S. dollars)

| Region | Nine Months Ended December 31, 2025 Amount% |  | Nine Months Ended December 31, 2024 Amount% |  | Period over Period Increase (Decrease) Amount% |  |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| United States | $104,759 | 85% | $102,628 | 88% | $2,131 | 2% |
| China (including Hong Kong) | 12,388 | 10% | 7,079 | 6% | 5,309 | 75% |
| Korea | 2,541 | 2% | - | 0% | 2,541 | -% |
| Jordan | 1,654 | 1% | 2,659 | 2% | (1,005) | (38)% |
| Others | 2,025 | 2% | 4,195 | 4% | (2,170) | (52)% |
| Total | $123,367 | 100% | $116,561 | 100% | $6,806 | 6% |

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.

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.

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.

***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.

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.

***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.

***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.

***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.

***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.

***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.

### Liquidity and Capital Resources

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.

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.

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.

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.

Total equity as of December 31, 2025 was approximately $63.7 million compared to $62.9 million as of March 31, 2025.

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.

Since May and October 2021, we have participated in supply chain financing programs of two of our major customers, respectively. The programs allow us to receive early payments for approved sales invoices submitted by us through the bank the customer cooperates with. For any early payments received, we are subject to an early payment charge imposed by the customer’s bank, for which the rate is SOFR plus a spread. The arrangement allows us to have better liquidity without the need to incur administrative charges and handling fees as in bank financing. In March 2024, we participated in an additional supply chain financing program with one customer.

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.

### Credit Facilities

### DBS Facility Letter

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.

### Bank al Etihad Credit Facility

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.

### Nine months ended December 31, 2025 and 2024

The following table sets forth a summary of our cash flows for the periods indicated:

(All amounts in thousands of U.S. dollars)

|  | Nine months ended December 31, 2025 | 2024 |
| --- | ---: | ---: |
| Net cash used in operating activities | $(3,491) | $(581) |
| Net cash used in investing activities | (1,372) | (1,672) |
| Net cash provided by financing activities | 2,922 | 3,124 |
| Effect of exchange rate changes on cash and restricted cash | 33 | (125) |
| Net (decrease) increase in cash and restricted cash | (1,908) | 746 |
| Cash and restricted cash, beginning of nine-month period | 15,064 | 14,037 |
| Cash and restricted cash, end of nine-month period | $13,156 | $14,783 |

### Operating Activities

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:

- a decrease in inventory of $1.7 million in the nine months ended December 31, 2025, compared to a decrease of $8.1 million in the same period in fiscal 2025;
- an increase in accounts receivable of $4.8 million in the nine months ended December 31, 2025, compared to an increase of $1.8 million in the same period in fiscal 2025;
- an increase in advances to suppliers of $1.4 million in the nine months ended December 31, 2025, compared to an increase of $4.8 million in the same period in fiscal 2025;
- a decrease in accounts payable of $2.9 million in the nine months ended December 31, 2025, compared to a decrease of $2.5 million in the same period in fiscal 2025; and
- net income of $2.0 million in the nine months ended December 31, 2025, from a net loss of $0.7 million in the same period in fiscal 2025.

### Investing Activities

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.

### Financing Activities

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.

### Statutory Reserves

In accordance with the corporate law in Jordan, subsidiaries of Jerash Holdings in Jordan are required to make appropriations to certain reserve funds, based on net income determined in accordance with generally accepted accounting principles of Jordan. Appropriations to the statutory reserve are required to be 10% of net income until the reserve is equal to 100% of the entity’s share capital. Jiangmen Treasure Success is required to set aside 10% of its net income as statutory surplus reserve until such reserve is equal to 50% of its registered capital. These reserves are not available for dividend distribution. The statutory reserve was $0.4 million as of December 31, 2025 and 2024.

The following table provides the amount of our statutory reserves, the amount of restricted net assets, consolidated net assets, and the amount of restricted net assets as a percentage of consolidated net assets, as of December 31, 2025 and 2024.

(All amounts, other than percentages, in thousands of U.S. dollars)

|  | As of December 31, 2025 | 2024 |
| --- | ---: | ---: |
| Statutory Reserves | $414 | $414 |
| Total Restricted Net Assets | $414 | $414 |
| Consolidated Net Assets | $63,651 | $63,183 |
| Restricted Net Assets as Percentage of Consolidated Net Assets | 0.65% | 0.66% |

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.

### Capital Expenditures

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.

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.

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.

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.

### Off-balance Sheet Commitments and Arrangements

We have not entered into any other financial guarantees or other commitments to guarantee the payment obligations of any third parties. In addition, we have not entered into any derivative contracts that are indexed to our own shares and classified as stockholders’ equity, or that are not reflected in our consolidated financial statements.

### Critical Accounting Estimates

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.

### Recent Accounting Pronouncements

See “Note 3—Recent Accounting Pronouncements” in the notes to our unaudited condensed consolidated financial statements for a discussion of recent accounting pronouncements.

## Controls and procedures

As filed, 2,800 characters.

### Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in the Securities Exchange Act of 1934, as amended (the “Exchange Act”) Rule 15d-15(e)) are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act, such as this report, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures are also designed with the objective of ensuring that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.

Our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), based on their evaluation of our disclosure controls and procedures as of December 31, 2025, concluded that our disclosure controls and procedures were effective as of that date based on reasons set forth below.

Based on the assessment using those criteria, management concluded that, as of March 31, 2024, our internal control over financial reporting was not effective because there were ineffective information technology general controls in the areas of privileged user access and the review of user access over certain information technology systems that support our financial reporting processes.

Although some remedial actions have been implemented to address the issues, in the annual report for fiscal 2025 filed on June 26, 2025, the management concluded that, as of March 31, 2025, our internal control over financial reporting was still ineffective as some of the control deficiencies surrounding the information technology environment were not sufficiently remediated.

Additional remedial actions have then been implemented to address the issues. In the assessment in fiscal 2026, the management concluded that, as of December 31, 2025, our internal control over financial reporting was effective after review and testing of the effectiveness of the remedial actions.

Our management has concluded that the unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report present fairly, in all material respects, our financial position, results of operations, and cash flows in conformity with U.S. GAAP.

### Change in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as the term is defined in Rules 13a-15(f) and 15(d)-15(f) under the Exchange Act) during the quarter ended December 31, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

### JERASH HOLDINGS (US), INC.

Filed Feb 10, 2026.
Source: SEC EDGAR, the filing index for accession 0001213900-26-014379. Last ingested by Listed: Nov 5, 2026, 12:15 ET. No prices; not investment advice.