Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Dec. 31, 2018 | Feb. 13, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | Jerash Holdings (US), Inc. | |
Entity Central Index Key | 1,696,558 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | JRSH | |
Entity Common Stock, Shares Outstanding | 11,325,000 | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Small Business | true |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Current Assets: | ||
Cash | $ 26,711,771 | $ 8,597,830 |
Accounts receivable | 13,140,501 | 5,247,090 |
Accounts receivable - related party | 0 | 50,027 |
Inventories | 12,121,042 | 20,293,392 |
Prepaid expenses and other current assets | 1,859,212 | 1,533,868 |
Advance to suppliers | 63,733 | 1,128,079 |
Total Current Assets | 53,896,259 | 36,850,286 |
Restricted cash | 3,679,970 | 3,598,280 |
Property, plant and equipment, net | 2,615,187 | 2,819,715 |
Total Assets | 60,191,416 | 43,268,281 |
Current Liabilities: | ||
Credit facilities | 20,915 | 980,195 |
Accounts payable | 4,592,699 | 4,776,812 |
Accrued expenses | 1,294,515 | 1,175,427 |
Income tax payable | 885,000 | 112,000 |
Other payables | 957,504 | 878,987 |
Total Current Liabilities | 7,750,633 | 7,923,421 |
Income tax payable – non-current | 1,591,000 | 1,288,000 |
Total Liabilities | 9,341,633 | 9,211,421 |
Commitments and Contingencies (See Note 13) | ||
Equity | ||
Preferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 30,000,000 and 15,000,000 shares authorized; 11,325,000 shares and 9,895,000 shares issued and outstanding as of December 31, 2018 and March 31, 2018, respectively. | 11,325 | 9,895 |
Additional paid-in capital | 14,762,813 | 2,742,158 |
Statutory reserve | 71,699 | 71,699 |
Retained earnings | 35,709,499 | 30,948,006 |
Accumulated other comprehensive loss | (14,565) | (24,502) |
Total Shareholder's Equity | 50,540,771 | 33,747,256 |
Noncontrolling interest | 309,012 | 309,604 |
Total Equity | 50,849,783 | 34,056,860 |
Total Liabilities and Equity | $ 60,191,416 | $ 43,268,281 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Mar. 31, 2018 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 500,000 | 500,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 30,000,000 | 15,000,000 |
Common Stock, Shares, Issued | 11,325,000 | 9,895,000 |
Common Stock, Shares, Outstanding | 11,325,000 | 9,895,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue, net | $ 18,677,164 | $ 11,543,763 | $ 70,504,646 | $ 60,443,400 |
Cost of goods sold | 15,477,534 | 7,791,407 | 54,296,244 | 44,623,660 |
Gross Profit | 3,199,630 | 3,752,356 | 16,208,402 | 15,819,740 |
Selling, general and administrative expenses | 2,173,022 | 1,557,449 | 6,250,104 | 4,316,524 |
Share based compensation expenses | 0 | 0 | 3,399,934 | 116,578 |
Total Operating Expenses | 2,173,022 | 1,557,449 | 9,650,038 | 4,433,102 |
Income from Operations | 1,026,608 | 2,194,907 | 6,558,364 | 11,386,638 |
Other Income: | ||||
Other income, net | 20,885 | 12,244 | 19,633 | 1,316 |
Total other income, net | 20,885 | 12,244 | 19,633 | 1,316 |
Net Income before provision for income tax | 1,047,493 | 2,207,151 | 6,577,997 | 11,387,954 |
Income tax expense (benefit) | (578,000) | 0 | 1,251,000 | 0 |
Net income | 1,625,493 | 2,207,151 | 5,326,997 | 11,387,954 |
Net loss attributable to noncontrolling interest | 721 | 26 | 746 | 2,845 |
Net income attributable to Jerash Holdings (US), Inc.'s Common Shareholders | 1,626,214 | 2,207,177 | 5,327,743 | 11,390,799 |
Net Income | 1,625,493 | 2,207,151 | 5,326,997 | 11,387,954 |
Other Comprehensive Income: | ||||
Foreign currency translation gain (loss) | 311 | (53,817) | 10,091 | (30,273) |
Total Comprehensive Income | 1,625,804 | 2,153,334 | 5,337,088 | 11,357,681 |
Comprehensive loss attributable to noncontrolling interest | 720 | 515 | 592 | 3,135 |
Comprehensive Income Attributable to Jerash Holdings (US), Inc.'s Common Shareholders | $ 1,626,524 | $ 2,153,849 | $ 5,337,680 | $ 11,360,816 |
Earnings Per Share Attributable to Common Shareholders: | ||||
Basic | $ 0.14 | $ 0.23 | $ 0.48 | $ 1.18 |
Diluted | $ 0.14 | $ 0.23 | $ 0.47 | $ 1.18 |
Weighted Average Number of Shares | ||||
Basic | 11,325,000 | 9,683,500 | 11,158,600 | 9,683,500 |
Diluted | 11,393,179 | 9,683,500 | 11,283,812 | 9,683,500 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Statutory Reserve [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Noncontrolling Interest [Member] |
Balance at Mar. 31, 2017 | $ 22,017,790 | $ 0 | $ 8,788 | $ 1,091,212 | $ 71,699 | $ 20,537,889 | $ (8,395) | $ 316,597 |
Balance (in shares) at Mar. 31, 2017 | 0 | 8,787,500 | ||||||
Reverse recapitalization | 1,000 | $ 0 | $ 712 | 288 | 0 | 0 | 0 | 0 |
Reverse recapitalization (in shares) | 0 | 712,500 | ||||||
Private placement - common stock and warrants issued, net of stock issuance costs of $444,475 | 1,534,475 | $ 0 | $ 395 | 1,534,080 | 0 | 0 | 0 | 0 |
Private placement - common stock and warrants issued, net of stock issuance costs of $444,475 (in shares) | 0 | 395,000 | ||||||
Stock-based compensation expense for the stock options issued under stock incentive plan | 116,578 | $ 0 | $ 0 | 116,578 | 0 | 0 | 0 | 0 |
Net income (loss) | 11,387,954 | 0 | 0 | 0 | 0 | 11,390,799 | 0 | (2,845) |
Foreign currency translation gain | (30,273) | 0 | 0 | 0 | 0 | 0 | (29,983) | (290) |
Balance at Dec. 31, 2017 | 35,027,524 | $ 0 | $ 9,895 | 2,742,158 | 71,699 | 31,928,688 | (38,378) | 313,462 |
Balance (in shares) at Dec. 31, 2017 | 0 | 9,895,000 | ||||||
Balance at Mar. 31, 2018 | 34,056,860 | $ 0 | $ 9,895 | 2,742,158 | 71,699 | 30,948,006 | (24,502) | 309,604 |
Balance (in shares) at Mar. 31, 2018 | 0 | 9,895,000 | ||||||
Common stock issued net of stock issuance costs of $1,387,879 | 8,622,121 | $ 0 | $ 1,430 | 8,620,691 | 0 | 0 | 0 | 0 |
Common stock issued net of stock issuance costs of $1,387,879 (in shares) | 0 | 1,430,000 | ||||||
Stock-based compensation expense for the stock options issued under stock incentive plan | 3,399,934 | $ 0 | $ 0 | 3,399,934 | 0 | 0 | 0 | 0 |
Warrants issued to the underwriter | 30 | 0 | 0 | 30 | 0 | 0 | 0 | 0 |
Net income (loss) | 5,326,997 | 0 | 0 | 0 | 0 | 5,327,743 | 0 | (746) |
Dividend Distribution | (566,250) | (566,250) | ||||||
Foreign currency translation gain | 10,091 | 0 | 0 | 0 | 0 | 0 | 9,937 | 154 |
Balance at Dec. 31, 2018 | $ 50,849,783 | $ 0 | $ 11,325 | $ 14,762,813 | $ 71,699 | $ 35,709,499 | $ (14,565) | $ 309,012 |
Balance (in shares) at Dec. 31, 2018 | 0 | 11,325,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock issued net of stock issuance costs | $ 1,387,879 | $ 444,475 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 5,326,997 | $ 11,387,954 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 959,975 | 899,277 |
Stock-based compensation expense | 3,399,934 | 116,578 |
Changes in operating assets: | ||
Accounts receivable | (7,889,687) | (3,983,634) |
Accounts receivable- related party | 50,044 | 2,252,257 |
Inventories | 8,181,267 | 12,419,117 |
Prepaid expenses and other current assets | (252,714) | 95,979 |
Advance to suppliers | 1,064,756 | (3,604,797) |
Changes in operating liabilities: | ||
Accounts payable | (186,461) | (8,776,539) |
Accrued expenses | 118,470 | 70,138 |
Other payables | 78,070 | (198,487) |
Income tax payable | 1,076,000 | 0 |
Net cash provided by operating activities | 11,926,651 | 10,677,843 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property, plant and equipment | (724,325) | (730,269) |
Acquisition deposit | (380,000) | |
Other receivable - related party | 0 | 336,746 |
Net cash used in investing activities | (1,104,325) | (393,523) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Dividend distribution | (566,250) | 0 |
Proceeds from short-term loan | (959,630) | 948,193 |
Due from shareholders | 0 | 692,500 |
Net proceeds from private placement | 0 | 1,772,845 |
Net proceeds from Common stock | 8,930,300 | 0 |
Warrants issued to the underwriter | 30 | 0 |
Net cash provided by financing activities | 7,404,450 | 3,413,538 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (31,145) | (12,791) |
NET INCREASE IN CASH AND RESTRICTED CASH | 18,195,631 | 13,685,067 |
CASH AND RESTRICTED CASH, BEGINNING OF THE PERIOD | 12,196,110 | 4,132,761 |
CASH AND RESTRICTED CASH, END OF THE PERIOD | 30,391,741 | 17,817,828 |
CASH AND RESTRICTED CASH, END OF THE PERIOD | 30,391,741 | 17,817,828 |
LESS: NON-CURRENT RESTRICTED CASH | 3,679,970 | 3,472,374 |
CASH, END OF PERIOD | 26,711,771 | 14,345,454 |
Non-cash financing activities | ||
Warrants issued to underwriters in connection with the IPO in fiscal 2019 and the private placement in fiscal 2018 | 160,732 | 161,926 |
Prepaid stock issuance cost netted with proceeds from the IPO in fiscal 2019 and the private placement in fiscal 2018 | 308,179 | 239,105 |
Income taxes paid | $ 175,000 | $ 0 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 9 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Jerash Holdings (US), Inc. (“Jerash Holdings”) is a corporation established under the laws of the State of Delaware on January 20, 2016. Jerash Holdings is a parent holding company with no operations. Global Trend Investment Limited (“GTI”) was a limited company that was incorporated in the British Virgin Islands (“BVI”) on July 5, 2000, and was owned by two individuals and a BVI corporation, Merlotte Enterprise Limited, which was wholly owned by the Chairman of the Board of GTI and Jerash Garments and Fashions Manufacturing Company Limited (“Jerash Garments”). Previously, GTI was wholly-owned by Wealth Choice Limited (“WCL”), a BVI corporation, and the Chairman of the Board of Jerash Garments is also one of the beneficial owners of WCL and its subsidiaries. In September 2016, WCL transferred its ownership in GTI and its subsidiaries to Merlotte Enterprise Limited and an individual shareholder, and in October 2016, the individual shareholder transferred approximately 22% of its shares to another individual shareholder. Jerash Garments is a wholly owned subsidiary of Jerash Holdings and was the wholly owned subsidiary of GTI prior to the Merger described below. Jerash Garments was established in Amman, the Hashemite Kingdom of Jordan (“Jordan”) as a limited liability company on November 26, 2000 with declared capital of 50,000 Jordanian Dinar (“JOD”) (approximately US$70,500). Jerash for Industrial Embroidery Company (“Jerash Embroidery”) and Chinese Garments and Fashions Manufacturing Company Limited (“Chinese Garments”) were both incorporated in Amman, Jordan as limited liability companies on March 11, 2013 and June 13, 2013, respectively, with declared capital of JOD 50,000 each. Jerash Embroidery and Chinese Garments were initially established under the name of Jerash Garments’ nominated agent but were in fact controlled and fully funded by Jerash Garments. On January 1, 2015, the nominated agent entered into an equity transfer agreement with Jerash Garments, in which the nominated agent agreed to transfer 100% ownership interests of Jerash Embroidery and Chinese Garments to Jerash Garments (the “Equity Transfer”). Subsequent to the Equity Transfer, Jerash Embroidery and Chinese Garments became wholly owned subsidiaries of Jerash Garments. Jerash Garments, Jerash Embroidery and Chinese Garments were effectively controlled by the same controlling shareholders before and after the Equity Transfer. Thus, this transaction is considered a reorganization of entities under common control. The consolidations of Jerash Embroidery and Chinese Garments have been accounted for at their carrying amounts as of the beginning of the first period presented in the accompanying consolidated financial statements. Victory Apparel (Jordan) Manufacturing Company Limited (“Victory Apparel”) was incorporated as a limited liability company in Amman, Jordan on September 18, 2005 with declared capital of JOD 50,000, as a wholly owned subsidiary of WCL. Jerash Garments is the sole user of the land, building and equipment being held by Victory Apparel and had a lease agreement with Victory Apparel related to the use of these assets before GTI and its subsidiaries were acquired by WCL in March 2012. The land and building were not registered in Victory Apparel’s name, and Jerash Garments continued to hold the land and building in its name in trust for Victory Apparel. The declaration of trust was never registered with the Land Registry of Jordan, and on June 30, 2016, Victory Apparel and Jerash Garments dissolved the sale agreement, resulting in the property and equipment being owned free and clear by Jerash Garments. Victory Apparel has no significant assets or liabilities as well as no significant operating activities of its own and WCL intends to dissolve the entity. Although Jerash Garments does not own the equity interest of Victory Apparel, our president, director and significant shareholder, Mr. Choi, is also a director of Victory Apparel and controls all decision-making for Victory Apparel along with our other significant shareholder, Mr. Lee Kian Tjiauw, who have the ability to control Victory Apparel’s financial affairs. In addition, Victory Apparel's equity at risk is not sufficient to permit it to operate without additional subordinated financial support from Mr. Choi. Based on these facts, we concluded that Jerash Garments has effective control over Victory Apparel due to Mr. Choi’s roles at both organizations and therefore Victory Apparel is considered a Variable Interest Entity (“VIE”) under Accounting Standards Codification (“ASC”) 810-10-05-08A. Accordingly, Jerash Garments consolidates Victory Apparel’s operating results, assets and liabilities. Treasure Success International Limited (“Treasure Success”) was incorporated on July 5, 2016 in Hong Kong, China, whose 100% equity interest is registered under the name of the Chairman of the Board of Jerash Garments, with the primary purpose to employ staff from China to support Jerash Garments' operations. On October 31, 2016, the Chairman of the Board of Jerash Garments transferred his 100% equity interest of Treasure Success to GTI. Treasure Success was inactive until October 2016. Treasure Success was consolidated as a VIE before October 31, 2016. The transfer was accounted for as a transfer between entities under common control. On May 11, 2017, the shareholders of GTI contributed 100% of their outstanding capital stock in GTI to Jerash Holdings in exchange for an aggregate of 8,787,500 shares of common stock of Jerash Holdings. Immediately prior to this transaction, Jerash Holdings had 712,500 shares of common stock outstanding with a par value of $0.001 per share. Immediately following this transaction, GTI merged with and into Jerash Holdings, with Jerash Holdings being the surviving entity, as a result of which Jerash Holdings became the direct parent of GTI’s wholly owned subsidiaries, Jerash Garments, including its wholly owned subsidiaries, and Treasure Success. The transactions described above are collectively referred to as the “Merger.” The Merger was accounted for as a reverse recapitalization. Under reverse capitalization accounting, GTI is recognized as the accounting acquirer, and Jerash Holdings is the legal acquirer or accounting acquiree. As such, following the Merger, the historical financial statements of GTI and its subsidiaries are treated as the historical financial statements of the combined company. Consequently, the consolidated financial statements of Jerash Holdings reflect the operations of the accounting acquirer and a recapitalization of the equity of the accounting acquirer. Jerash Holdings, its subsidiaries and VIE (herein collectively referred to as the “Company”) are engaged in manufacturing customized ready-made outerwear from knitted fabric and exporting produced apparel for large brand-name retailers. The Company is diversifying the range of products to include additional pieces such as trousers and urban styling outerwear and different types of natural and synthetic materials and is also expanding its workforce in Jordan with workers from other countries, including Bangladesh, Sri Lanka, India, Myanmar and Nepal. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the fiscal year ended March 31, 2018. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company's financial position as of December 31, 2018, its results of operations and its cash flows for the nine months ended December 31, 2018 and 2017, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of Jerash Holdings, its subsidiaries and VIE. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIEs. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. As described in Note 1, management of the Company has concluded that Victory Apparel is a VIE, and that Jerash Garments is considered the primary beneficiary because Mr. Choi, our president, director and significant shareholder absorbs the risks and rewards of Victory Apparel; therefore, we consolidate Victory Apparel for financial reporting purposes. Noncontrolling interests result from the consolidation of Victory Apparel, which is 100% owned by WCL. The following table sets forth the carrying amounts of the assets and liabilities of the VIE, Victory Apparel, which was included in the Company’s consolidated balance sheets: December 31, 2018 March 31, 2018 Current assets $ 1,325 $ 2,069 Intercompany receivables* 307,687 311,527 Total assets 309,012 313,596 Third party current liabilities - (3,992 ) Total liabilities - (3,992 ) Net assets $ 309,012 $ 309,604 * Receivables from Jerash Garments are eliminated upon consolidation. Victory Apparel did not generate any income but incurred certain expenses for each of three and nine month periods ended December 31, 2018 and 2017. The loss was $721 and $26 for the three months ended December 31, 2018 and 2017, respectively. The loss was $746 and $2,845 for the nine months ended December 31, 2018 and 2017, respectively. Use of Estimates The preparation of the unaudited condensed consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s most significant estimates include allowance for doubtful accounts, valuation of inventory reserve and useful lives of buildings and other property. Actual results could differ from these estimates. Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the original date of purchase to be cash equivalents. As of December 31, 2018 and March 31, 2018, the Company had no cash equivalents. Restricted Cash Restricted cash consists of cash used as security deposits to obtain credit facilities of the Company from a bank and to secure custom clearance under the requirements of local regulations. The Company is required to keep certain amounts on deposit that are subject to withdrawal restrictions. These security deposits at the bank are refundable only when the bank facilities are terminated. The restricted cash is classified as a non-current asset since the Company has no intention to terminate these bank facilities within one year. Accounts Receivable Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually grants credit to customers with good credit standing for a maximum of 90 days and determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the unaudited condensed consolidated statements of income and comprehensive income. Actual amounts received may differ from management's estimate of credit worthiness and the economic environment. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. No allowance was considered necessary as of December 31, 2018 and March 31, 2018. Inventories Inventories are stated at the lower of cost or net realizable value. Inventories include cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is determined using the First in, First-out (“FIFO”) method. The Company periodically reviews its inventories for excess or slow-moving items and makes provisions as necessary to properly reflect inventory value. Property, Plant and Equipment Property, plant and equipment are recorded at cost, reduced by accumulated depreciation and amortization. Depreciation and amortization expense related to property, plant and equipment is computed using the straight-line method based on estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the initial lease term or the estimated useful life of the improvements. The useful life and depreciation method are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property, plant and equipment. The estimated useful lives of depreciation and amortization of the principal classes of assets are as follows: Useful life Land Infinite Property and buildings 15 years Equipment and machinery 3-5 years Office and electronic equipment 3-5 years Automobiles 5 years Leasehold improvements Lesser of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation or amortization of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the unaudited condensed consolidated statements of income and comprehensive income. Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors which may indicate potential impairment include a significant underperformance relative to the historical or projected future operating results or a significant negative industry or economic trend. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that asset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset. The fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record any impairment loss during the three and nine months ended December 31, 2018 and 2017. Revenue Recognition The Company adopted Accounting Standards Codification ("ASC") 606 in the first quarter of fiscal year 2019 using the modified retrospective approach. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there was no material change to the Company’s consolidated financial statements upon adoption of ASC 606. The table below presents the impact of applying the new revenue recognition standard to the components of total revenue within the unaudited condensed consolidated statement of income and comprehensive income for the three and nine months ended December 31, 2018. The Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and concluded that there was no difference in the pattern of revenue recognition: Three Months Ended December 31, (in millions of dollars) As reported Financial Results prior to Adoption of Revenue Recognition Standard Impact of Adoption of Revenue Recognition Standard Revenue: $ 18,677,164 $ 18,677,164 $ - Nine Months Ended December 31, (in millions of dollars) As reported Financial Results prior to Adoption of Revenue Recognition Standard Impact of Adoption of Revenue Recognition Standard Revenue: $ 70,504,646 $ 70,504,646 $ - Substantially all of the Company’s revenue is derived from product sales, which consist of sales of the Company’s customized ready-made outerwear for large brand-name retailers. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within 30 to 60 days of the invoice date, and the contracts do not have significant financing components. Shipping and handling costs associated with outbound freight are not an obligation of the Company. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as a price per unit. All estimates are based on the Company's historical experience, complete satisfaction of the performance obligation, and the Company's best judgment at the time the estimate is made. The contract assets are recorded on the Condensed Consolidated Balance Sheet as accounts receivable as of December 31, 2018 and March 31, 2018, respectively. For the three and nine months ended December 31, 2018 and 2017, there was no revenue recognized from performance obligations related to prior periods. As of December 31, 2018, there was no revenue expected to be recognized in any future periods related to remaining performance obligations. The Company has one revenue generating reportable geographic segment under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its sales of customized ready-made outerwear. The Company believes disaggregation of revenue by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see Note 12). Shipping and Handling Proceeds collected from customers for shipping and handling costs are included in revenues. Shipping and handling costs are expensed as incurred and are included in operating expenses, as a part of selling, general and administrative expenses. Total shipping and handling expenses were $177,071 and $111,205 for the three months ended December 31, 2018 and 2017, respectively. Total shipping and handling expenses were $593,223 and $508,204 for the nine months ended December 31, 2018 and 2017, respectively. Income Taxes The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. Jerash Holdings was incorporated in the State of Delaware and is subject to Federal income tax in the United States of America. GTI was incorporated in the BVI and is not subject to income taxes under the current laws of BVI. Treasure Success was registered in Hong Kong and has no operating profit for current tax liabilities. Jerash Garments, Jerash Embroidery, Chinese Garments and Victory Apparel are subject to the regulations of Income Tax Department in Jordan. The corporate income tax rate in Jordan is 14% for the industrial sector. In accordance with the Investment Encouragement Law, Jerash Garments' export sales to overseas customers are entitled to a 100% income tax exemption for a period of 10 years commencing at the first day of production. This exemption was extended for 5 years until December 31, 2018. Effective January 1, 2019 Jerash Garments will begin paying corporate income tax in Jordan at a rate of 5%. The estimated tax savings as a result of the tax exemption for Jerash Garments totaled $261,372 and $342,254 for the three months ended December 31, 2018 and 2017, respectively. Per share effect of the tax exemption was $0.02 and $0.04 for the three months ended December 31, 2018 and 2017. The estimated tax savings as a result of the tax exemption for Jerash Garments totaled $1,623,602 and $1,675,086 for the nine months ended December 31, 2018 and 2017, respectively. Per share effect of the tax exemption was $0.15 and $0.17 for each of the nine months ended December 31, 2018 and 2017. Local sales of Jerash Garments are subject to income tax at a fixed rate of 14%. No tax provision was provided for the three and nine months ended December 31, 2017 since there was no net income generated from local sales. The income tax expense recorded for the nine months ended December 31, 2018 takes into account the 5% tax rate that Jerash Garments will become subject to as of January 1, 2019. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. Deferred income taxes were immaterial, and accordingly, no deferred tax assets or liabilities were recognized as of December 31, 2018 and March 31, 2018. ASC 740 clarifies the accounting for uncertainty in tax positions. This interpretation requires that an entity recognizes in its financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of income and comprehensive income. There were no uncertain tax positions, and tax returns in Jordan prior to 2015 are not subject to examination by any applicable tax authorities. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Tax Act”) was enacted. Under the provisions of the Tax Act, the U.S. corporate tax rate decreased from 35% to 21%. As the Company has a March 31 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ending March 31, 2018, and 21% for subsequent fiscal years. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation under the new Global Intangible Low-Taxed Income (GILTI) regime. Please see further discussion regarding the Company’s accounting for the Tax Act in Note 14. Foreign Currency Translation The reporting currency of the Company is the U.S. dollar and the Company uses the Jordanian Dinar (“JOD”) as its functional currency, except Treasure Success, which uses the Hong Kong Dollar (“HKD”) as its functional currency. The assets and liabilities of the Company have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date, equity accounts have been translated at historical rates, and revenue and expenses have been translated into U.S. dollars using average exchange rates in effect during the reporting period. Cash flows are also translated at average translation rates for the periods, therefore, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The value of JOD against US dollars and other currencies may fluctuate and is affected by, among other things, changes in the Jordan’s political and economic conditions. Any significant revaluation of JOD may materially affect the Company’s financial condition in terms of US dollars reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2018 March 31, 2018 December 31, 2017 Period-end spot rate US$1=JOD 0.7090 US$1=JOD 0.7094 US$1=JOD 0.7097 US$1=HKD 7.8309 US$1=HKD 7.8490 US$1=HKD 7.8003 Average rate US$1=JOD 0.7091 US$1=JOD 0.7092 US$1=JOD 0.7093 US$1=HKD 7.8431 US$1=HKD 7.8091 US$1=HKD 7.8125 Stock-Based Compensation The Company measures compensation expense for stock-based awards to non-employee contractors and directors based upon the awards’ initial grant-date fair value. The estimated grant-date fair value of the award is recognized as expense over the requisite service period using the straight-line method. The fair value of awards to non-employees is then marked-to-market each reporting period until vesting criteria are met. The Company estimates the fair value of stock warrants using a Black-Scholes model. This model is affected by the Company's stock price on the date of the grant as well as assumptions regarding a number of highly complex and subjective variables. These variables include the expected term of the warrant, expected risk-free rates of return, the expected volatility of the Company's common stock, and expected dividend yield, each of which is more fully described below. The assumptions for expected term and expected volatility are the two assumptions that significantly affect the grant date fair value. Expected Term: the expected term of a warrant is the period of time that the warrant is expected to be outstanding. Risk-free Interest Rate: the Company bases the risk-free interest rate used in the Black-Scholes model on the implied yield at the grant date of the U.S. Treasury zero-coupon issue with an equivalent term to the stock-based award being valued. Where the expected term of a stock-based award does not correspond with the term for which a zero coupon interest rate is quoted, the Company's uses the nearest interest rate from the available maturities. Expected Stock Price Volatility: the Company utilizes comparable public company volatility over the same period of time as the life of the warrant. Dividend Yield: Until November 2018, the Board of Directors had not declared, and the Company had not yet paid, any dividends. Accordingly, stock-based compensation awards granted prior to November 2018 assumed no dividend yield, while any subsequent stock-based compensation awards will be valued using the anticipated dividend yield. Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS (See Note 11). Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in JOD or HKD to U.S. Dollar is reported in other comprehensive income (loss) in the unaudited condensed consolidated statements of income and comprehensive income. Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 - Quoted prices in active markets for identical assets and liabilities. Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash, including restricted cash, accounts receivable, other receivables, due from related parties, due from shareholders, accounts payable, accrued expenses, other payables and short-term loan to approximate the fair value of the respective assets and liabilities at December 31, 2018 and March 31, 2018 based upon the short-term nature of these assets and liabilities. Concentrations and Credit Risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of December 31, 2018 and March 31, 2018, $5,566,358 and $4,793,527 of the Company’s cash was on deposit at financial institutions in Jordan, where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of December 31, 2018 and March 31, 2018, $24,732,451 and $7,400,111 of the Company’s cash was on deposit at financial institutions in Hong Kong, which are insured by the Hong Kong Deposit Protection Board subject to certain limitations. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. As of December 31, 2018 and March 31, 2018, $92,932 and $2,472 of the Company’s cash was on deposit in the United States and are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Accounts receivable are typically unsecured and derived from revenue earned from customers, and therefore are exposed to credit risk. The risk is mitigated by the Company's assessment of its customers' creditworthiness and its ongoing monitoring of outstanding balances. Customer and vendor concentration risk Prior to August 2016, substantially all of the Company’s sales were made to end-customers, through its affiliate (see Note 9), that are located primarily in the United States (see Note 12). Thereafter, the Company began selling directly to its customers. The Company’s operating results could be adversely affected by U.S. government policy on exporting business, foreign exchange rate fluctuations, and change of local market conditions. The Company has a concentration of its revenues and purchases with specific customers and suppliers. For the three months ended December 31, 2018, two end-customers accounted for 82% and 12%, for 83% and 5%, for 72% and 12%, for 81% and 8%, for 91% and 8% for 57% and 22% For the three months ended December 31, 2018, the Company purchased approximately 33% and 28% of its raw materials from two major suppliers. For the nine months ended December 31, 2018, the Company purchased approximately 16% 10% of its raw materials from four major suppliers. For the three months ended December 31, 2017, the Company purchased approximately 62% and 12%, respectively, of its raw materials from two major suppliers. For the nine months ended December 31, 2017, the Company purchased approximately 87% of its raw materials from one major supplier. As of December 31, 2018 accounts payable to the two major suppliers accounted for 60% and 10% of the total accounts payable balance. As of March 31, 2018, there was a net prepaid balance to one major supplier totaling $874,591. A loss of any of these customers or suppliers could adversely affect the operating results or cash flows of the Company. Risks and Uncertainties The principal operations of the Company are located in Jordan. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in Jordan, as well as by the general state of the Jordanian economy. The Company’s operations in Jordan are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in Jordan. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS The Company considers the applicability and impact of all accounting standards updates (“ASUs”). Management periodically reviews new accounting standards that are issued. New Accounting Pronouncements Recently Adopted As disclosed in Note 2 – Summary of Significant Accounting Policies – Revenue Recognition above, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) effective April 1, 2018 using the retrospective transition method. This new accounting standard outlines a single comprehensive model to use in accounting for revenue arising from contracts with customers. This standard supersedes existing revenue recognition requirements and eliminates most industry-specific guidance from U.S. GAAP. The core principle of the new accounting standard is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the adoption of this new accounting standard resulted in increased disclosure, including qualitative and quantitative disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Adoption of this standard did not result in significant changes to the Company’s accounting policies, business processes, systems or controls, or have a material impact on the Company’s financial position, results of operations and cash flows or related disclosures. As such, prior period financial statements were not recast. On April 1, 2018, we adopted ASU 2016-18, Restricted Cash – A Consensus of the FASB Emerging Issues Task Force, (“ASU 2016-18”), which amends ASC 230, Statement of Cash Flows, to clarify guidance on the classification and presentation of restricted cash in the statement of cash flows using the full retrospective method. Adoption of this standard did not have a material impact on our consolidated financial statements. See our unaudited condensed consolidated statements of cash flows for the reconciliation of cash presented in the statements of cash flows to the cash presented on the balance sheet. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting ("ASU 2017-09"), which amends the scope of modification accounting for share-based payment arrangements such that an entity would not apply modification accounting if the fair value, vesting conditions and classification of the awards are the same immediately before and after the modification. ASU 2017-09 became effective for the Company beginning April 1, 2018 for both interim and annual reporting periods. The adoption of ASU 2017-09 did not have a material impact on the Company's condensed consolidated financial statements. New Accounting Pronouncements Not Yet Adopted In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. Under this ASU, most of the guidance on such payments to nonemployees would be aligned with the requirements for share-based payments granted to employees. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption of this ASU is permitted. The Company does not expect adoption of this ASU to have a material impact on its Consolidated Financial Statements. In February 2016, the FASB issued ASU 2018-20, Leases (Topic 842), to increase transparency and comparability among organizations by recognizing leases assets and lease liabilities on the balance sheet and disclosing key information about lease transactions. This ASU is effective for annual reporting periods beginning after December 15, 2018. Early adoption of this ASU is permitted. |
ACCOUNTS RECEIVABLES, NET
ACCOUNTS RECEIVABLES, NET | 9 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | NOTE 4 – ACCOUNTS RECEIVABLES, NET The Company’s net accounts receivable is as follows: As of As of December 31, 2018 March 31, 2018 Trade accounts receivable $ 13,140,501 $ 5,247,090 Less: allowances for doubtful accounts - - Accounts receivables, Net $ 13,140,501 $ 5,247,090 As of December 31, 2018 and March 31, 2018 the balance of accounts receivable includes $3 and $470,659, of factored accounts receivable to be received from Hong Kong and Shanghai Banking Corporation (“HSBC”) under the Factoring Agreement (see Note 10). |
INVENTORIES
INVENTORIES | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 5 – INVENTORIES Inventories consisted of the following: As of As of December 31, 2018 March 31, 2018 Raw materials $ 6,497,773 $ 11,497,237 Work-in-progress 620,926 2,073,509 Finished goods 5,002,343 6,722,646 Total inventory $ 12,121,042 $ 20,293,392 An inventory allowance was not considered necessary as of December 31, 2018 and March 31, 2018. |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, NET | 9 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 6 – PROPERTY, PLANT AND EQUIPMENT, NET Property, plant and equipment, net consisted of the following: As of December 31, 2018 As of March 31, 2018 Land $ 61,078 $ 61,048 Property and buildings 432,562 432,347 Equipment and machinery 5,542,094 4,918,270 Office and electric equipment 538,177 505,356 Automobiles 367,332 372,084 Leasehold improvements 1,648,603 1,552,108 8,589,846 7,841,213 Construction in progress 197,290 217,494 Less: Accumulated Depreciation and Amortization (6,171,949 ) (5,238,992 ) Property and Equipment, Net $ 2,615,187 $ 2,819,715 Depreciation and amortization expense was $306,433 and $310,953 for the three months ended December 31, 2018 and 2017, respectively. Depreciation and amortization expense was $959,975 and $899,277 for the nine months ended December 31, 2018 and 2017, respectively. The construction in progress account represents costs incurred for the Company's two new sewing workshops; the first is 4,800 square foot workshop in the Tafilah Governorate of Jordan, which is expected to be completed by the middle of calendar year 2019. The second one is 54,000 square foot workshop in Al-Hasa County in the Tafilah Governorate of Jordan, which is expected to be completed by the middle of calendar year 2019. |
EQUITY
EQUITY | 9 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 7 – EQUITY Preferred Stock The Company has 500,000 authorized shares of preferred stock with a par value of $0.001 per share, and with none issued and outstanding as of December 31, 2018 and March 31, 2018. The preferred stock can be issued by the Board of Directors of Jerash Holdings in one or more classes or one or more series within any class, and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, rights, qualifications, limitations or restrictions of such rights as the Board of Directors may determine from time to time. Common Stock Prior to September 17, 2018, the Company had 15,000,000 authorized shares of common stock with a par value of $0.001 per share. On September 17, 2018, following approval from its stockholders, the Company filed a certificate of amendment to its certificate of incorporation to increase its authorized shares of common stock from 15,000,000 to 30,000,000. The Company had 11,325,000 shares and 9,895,000 shares of common stock outstanding as of December 31, 2018 and March 31, 2018 respectively. Statutory Reserve In accordance with the Corporate Law in Jordan, Jerash Garments, Jerash Embroidery, Chinese Garments and Victory Apparel 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. This reserve is not available for dividend distribution. As of both December 31, 2018 and March 31, 2018, the consolidated balance of the statutory reserve was $71,699. Cash Dividend On November 1, 2018, the Board of Directors of Jerash Holdings declared a cash dividend of $0.05 per share of common stock, payable to shareholders of record at the close of business on November 19, 2018. on November 27, 2018. Private placement On May 15, 2017, the Company the initial closing of a private placement for the sale of an aggregate of 540,000 shares of common stock and warrants exercisable for up to 54,000 shares of common stock to ten accredited investors. Fifty percent of the shares (270,000 shares) purchased in the initial closing were sold by one of the Company’s shareholders at $4.99 per share, the remaining fifty percent of the shares (270,000 shares) were issued by Jerash Holdings. Each share was sold together with one warrant, with each such warrant being immediately exercisable for one-tenth of one share of common stock. 540,000 five-year warrants were issued at $0.01 per warrant to purchase up to 54,000 shares of Jerash Holdings’ common stock at an exercise price per full share equal to $6.25. The Company received aggregate gross proceeds of $1,352,700 for the shares and warrants issued and sold in the initial closing of the private placement, and incurred direct expenses related to the offering of $379,828. On August 18, 2017, the Company conducted the second closing of a private placement, pursuant to which an aggregate of 200,000 shares of common stock and warrants exercisable for up to 20,000 shares of common stock were sold to one accredited investor. Fifty percent of the shares (100,000 shares) purchased in the closing were sold by one of the Company’s shareholders at $4.99 per share and the remaining fifty percent of the shares (100,000 shares) were issued by Jerash Holdings. Each share was sold together with one warrant, with each such warrant being immediately exercisable for one-tenth of one share of common stock. 200,000 five-year warrants were issued at $0.01 per warrant to purchase up to 20,000 shares of Jerash Holdings’ common stock at an exercise price per full share equal to $6.25. The Company received net proceeds of $450,910 for the shares and warrants issued and sold in the closing of this private placement. On September 27, 2017, the Company conducted the third and final closing of a private placement, pursuant to which an aggregate of 50,000 shares of common stock and warrants exercisable for up to 5,000 shares of common stock were sold to two accredited investors. Fifty percent of the shares (25,000 shares) purchased in the closing were sold by one of the Company’s shareholders at $4.99 per share and the remaining fifty percent of the shares (25,000 shares) were issued by Jerash Holdings. Each share was sold together with one warrant, with each such warrant being immediately exercisable for one-tenth of one share of common stock. 50,000 five-year warrants were issued at $0.01 per warrant to purchase up to 5,000 shares of Jerash Holdings’ common stock at an exercise price per full share equal to $6.25. The Company received net proceeds of $110,179 for the shares and warrants issued and sold in the closing of this private placement. Initial Public Offering The registration statement on Form S-1 (File No. 333-222596) for the Company’s initial public offering (the “IPO”) was declared effective on March 14, 2018. On May 2, 2018 the Company issued 1,430,000 shares of common stock at $7.00 per share and received gross proceeds of $10,010,000. The Company incurred underwriting commissions of $477,341, underwriter offering expenses of $250,200 and additional underwriting expenses of $352,159, yielding net proceeds from the IPO of $8,930,300. Independent Board of Directors Simultaneous with the closing of the IPO, the Company increased the size of the Board of Directors from two to five members and elected three new independent directors who ill hold office until the next annual meeting of stockholders. The Company approved an audit committee charter and formed an audit committee of the Board of Directors, whose chair is an “audit committee financial expert.” The Company also approved a compensation committee charter and a nominating and corporate governance committee charter and formed a compensation committee and a nominating and corporate governance committee. |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 9 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 8 – STOCK BASED COMPENSATION Warrants issued for services From time to time, the Company issues warrants to purchase its common stock. These warrants are valued using a Black-Scholes model and using the volatility, market price, exercise price, risk-free interest rate and dividend yield appropriate at the date the warrants were issued. On May 15, 2017, Jerash Holdings issued warrants to the designees of the placement agent in the above private placement to purchase 48,600 units, with each unit consisting of one share of Jerash Holdings common stock and one warrant (with each such warrant being immediately exercisable for one-tenth of one share of its common stock at an exercise price of $6.25 per share for a period of five years from the issuance date), at an exercise price of $5.50 per unit. The fair value of these units was $107,990 and was included in offering costs of the private placement in May 2017. On May 15, 2017, Jerash Holdings also issued a five-year warrant to purchase up to 50,000 shares of its common stock pursuant to a letter agreement with one of its board advisors. The warrant has an exercise price of $5.00 per share and may be converted by means of “cashless” exercise during the term of the warrant. This warrant may be exercised any time after issuance through and including the five-year anniversary of the issuance date. Stock-based compensation expense was recognized during the quarter ended June 30, 2017 was $116,578 for this warrant. No compensation expense was recognized in connection with this warrant during the three and nine months ended December 31, 2018. On August 1, 2017, warrants to purchase 18,000 units became issuable by Jerash Holdings to the designees of the placement agent in the above private placement, with each unit consisting of one share of Jerash Holdings common stock and one warrant (with each such warrant being immediately exercisable for one-tenth of one share of its common stock at an exercise price of $6.25 per share for a period of five years from the issuance date), at an exercise price of $5.50 per unit. The fair value of these units was $43,122 and was included in offering costs of the private placement in August 2017. On September 27, 2017, warrants to purchase 4,500 units became issuable by Jerash Holdings to the designees of the placement agent in the above private placement, with each unit consisting of one share of Jerash Holdings common stock and one warrant (with each such warrant being immediately exercisable for one-tenth of one share of its common stock at an exercise price of $6.25 per share for a period of five years from the issuance date), at an exercise price of $5.50 per unit. The fair value of these units was $10,814 and was included in offering costs of the private placement in September 2017. Simultaneous with the closing of the IPO, the Company issued to the underwriter and its affiliates warrants to purchase 57,200 shares of common stock (“IPO Underwriter Warrants”) at an exercise price of $8.75 per share with an expiration date of May 2, 2023. The shares underlying the IPO Underwriter Warrants were subject to a 180-day lock-up that expired on October 29, 2018. During the period ended December 31, 2018, all of the outstanding warrants were fully vested and exercisable, which became exercisable during the period. The fair value of these warrants granted was estimated as of the grant date using the Black-Scholes model with the following assumptions: Common Stock Warrants December 31, 2018 Expected term (in years) 5.0 Risk-free interest rate (%) 1.8% - 2.8 % Expected volatility (%) 50.3% - 52.2 % Dividend yield (%) 0.0 % Warrant activity is summarized as follows: Shares Weighted Average Exercise Price Warrants outstanding at March 31, 2018 207,210 $ 5.69 Granted (Underwriter Warrants for the IPO) 57,200 $ 8.75 Exercised - - Cancelled - - Warrants outstanding at December 31, 2018 264,410 $ 6.35 Stock Options On March 21, 2018 the Board of Directors adopted the Jerash Holdings (US), Inc. 2018 Stock Incentive Plan (the “Plan”), pursuant to which the Company may grant various types of equity awards. 1,484,250 shares of common stock were reserved for issuance under the Plan. On April 9, 2018, the Board of Directors approved the issuance of 989,500 nonqualified stock options under the Plan in accordance with the Plan at an exercise price of $7.00 per share, and a term of five years. As of December 31, 2018, all of these outstanding stock options were fully vested and exercisable. The fair value of these options granted was estimated as of the grant date using the Black-Scholes model with the following assumptions. Stock Options December 31, 2018 Expected term (in years) 5.0 Risk-free interest rate (%) 2.6 % Expected volatility (%) 50.3 % Dividend yield (%) 0.0 % On August 3, 2018, the Board of Directors granted the Company’s Chief Financial Officer and Head of U.S. Operations a total of 150,000 nonqualified stock options under the Plan in accordance with the Plan at an exercise price of $6.12 per share and a term of ten years. The options vest in three equal six-month installments, with the first one-third having vested on August 3, 2018 and the remaining amounts vesting on February 3 and August 3, 2019. The fair value of the options granted on August 3, 2018 w as estimated as of the grant date using the Black-Scholes model with the following assumptions; Stock Options December 31, 2018 Expected term (in years) 10.0 Risk-free interest rate (%) 2.95 % Expected volatility (%) 50.3 % Dividend yield (%) 0.0 % The fair value of all of outstanding stock options is $3.21. Stock option activity is summarized as follows: Shares Weighted Average Exercise Price Stock option outstanding at March 31, 2018 - - Granted 1,139,500 $ 6.88 Exercised - - Cancelled - - Stock options outstanding at December 31, 2018 1,139,500 $ 6.88 Total expense related to the stock options issued was $0 for the three months ended December 31, 2018 and $3,399,934 for the nine months ended December 31, 2018. There were $387,909 of unrecognized compensation costs at December 31, 2018 relating to unvested awards. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 9 – RELATED PARTY TRANSACTIONS The relationship and the nature of related party transactions are summarized as follow: Name of Related Party Relationship to the Company Nature of Transactions Ford Glory Holdings Limited (“FGH”) Affiliate, former indirect parent of the Company Working Capital Advances Ford Glory International Limited (“FGIL”) Affiliate, subsidiary of FGH Sales / Purchases Value Plus (Macao Commercial Offshore) Limited (“VPMCO”) Affiliate, subsidiary of FGH Purchases Yukwise Limited (“Yukwise”) Common Shareholder Consulting Services Multi-Glory Corporation Limited (“Multi-Glory”) Common Shareholder Consulting Services Pursuant to the terms of a sale and purchase agreement between one of the Company’s current individual shareholders and Victory City Investments Limited, the ultimate 51% shareholder of FGIL, dated July 13, 2016 (the “Sale and Purchase Agreement”), and effective since August 1, 2016, all rights, interests and benefits of any contracts that FGIL had at that time with any of the Company’s customers for products manufactured or to be manufactured by the Company, together with the costs and obligations relating to those contracts were transferred to the Company. Thereafter, the Company has been selling directly to the end-customers and no longer through its affiliate, FGIL. Related party balances: a. Accounts receivable – related party: Accounts receivable from related party in connection with the collection of accounts receivable from end-customers on behalf of the Company due to the support arrangement during the transition period as described below (see a. Sales to related party) consisted of the following: As of December 31, 2018 As of March 31, 2018 FGIL $ - $ 50,027 Related party transactions: a. Sales to related party: Pursuant to the Sale and Purchase Agreement, the Company has all rights, interests and benefits of the sales agreements signed with end-customers since August 2016, together with the costs and obligations of those agreements. During the transition period, the Company’s affiliate supported the Company to complete the transition with no additional fees charged. For the three months ended December 31, 2018 and 2017, $0 and $1,809,475 of sales were made with the support from FGIL. For the nine months ended December 31, 2018 and 2017, $0 and $43,994,497 of sales were made with the support from FGIL. b. Consulting agreements On January 16, 2018, Treasure Success and Multi-Glory entered into a consulting agreement, pursuant to which Multi-Glory will provide high-level advisory, marketing and sales services to the Company for $300,000 per annum. The agreement renews automatically for one-month terms. The agreement became effective as of January 1, 2018. Total consulting fees under this agreement were $75,000 for the three months ended December 31, 2018 and $225,000 for the nine months ended December 31, 2018. On January 12, 2018, Treasure Success and Yukwise entered into a consulting agreement, pursuant to which Mr. Choi will serve as Chief Executive Officer and provide a high level of advisory and general management services for $300,000 per annum, with automatic renewal for one-month terms. This agreement became effective as of January 1, 2018. Total advisory and management expenses under this agreement were $75,000 for the three months ended December 31, 2018 and $225,000 for the nine months ended December 31, 2018. c. Personal Guarantees Borrowings under the Credit Facility, as defined below, with HSBC are collateralized by the personal guarantees by Mr. Choi and Mr. Ng Tsze Lun. |
CREDIT FACILITIES
CREDIT FACILITIES | 9 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | NOTE 10 – CREDIT FACILITIES Pursuant to a letter agreement dated May 29, 2017, Treasure Success entered into an $8,000,000 import credit facility with HSBC (the “Facility Letter”). In addition, pursuant to an offer letter dated June 5, 2017, HSBC offered to provide Treasure Success with a $12,000,000 factoring facility for certain debt purchase services related to our accounts receivables (the “Factoring Agreement” and together with the Facility Letter, the “Credit Facilities”). The Credit Facilities are guaranteed by Jerash Holdings, Jerash Garments, as well as the Company’s two individual shareholders. In addition, the Credit Facilities require cash and other investment security collateral of $3,000,000. The Credit Facilities provide that drawings under the Credit Facilities are charged interest at the Hong Kong Interbank Offered Rate (“HIBOR”) plus 1.5% for drawings in Hong Kong dollars, and the London Interbank Offered Rate (“LIBOR”) plus 1.5% for drawings in other currencies. In addition, the Credit Facilities also contain certain service charges and other commissions and fees. Under the Factoring Agreement, HSBC also provides credit protection and debt services related to each of our preapproved customers. For any approved debts or collections assigned to HSBC, HSBC charges a flat fee of 0.35% on the face value of the invoice for such debt or collection. We may assign debtor payments that are to be paid to HSBC within 90 days, defined as the maximum terms of payment. We may receive advances on invoices that are due within 30 days of the delivery of our goods, defined as the maximum invoicing period. The Credit Facilities are subject to review at any time, and HSBC has discretion on whether to renew the Facility Letter. Either party may terminate the Factoring Agreement subject to a 30-day notice period. As of December 31, 2018 and March 31, 2018, the Company had made $20,915 and $980,195 in withdrawals, respectively, under the Credit Facilities, which are due within 120 days of each borrowing date or upon demand by HSBC. As of December 31, 2018, $20,915 was outstanding under the Factoring Agreement and no amounts outstanding under the Facility Letter. On January 31, 2019, Standard Chartered Bank (Hong Kong) Limited (“SCBHK”) offered to provide an import facility of up to $3.0 million to Treasure Success pursuant to a facility letter, dated June 15, 2018. Pursuant to the agreement, SCBHK agreed to finance import invoice financing and pre-shipment financing of export orders up to an aggregate of $3.0 million. The SCBHK facility bears interest at 1.3% per annum over SCBHK’s cost of funds. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE 11 – EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended December 31, 2018 and 2017. 57,200 IPO Underwriter Warrants, 50,000 stock options to the Company’s Chief Financial Officer and 100,000 stock options to the Company’s Head of U.S. Operations were anti-dilutive for the three and nine months ended December 31, 2018 and excluded from the EPS calculation. Three Months Ended December 31, (in $000s except share and per share information) Nine Months Ended December 31, (in $000s except share and per share information) 2018 2017 2018 2017 Numerator: Net income attributable to Jerash Holdings (US), Inc.'s Common Shareholders $ 1,626 $ 2,207 $ 5,328 $ 11,391 Denominator: Denominator for basic earnings per share (weighted-average shares) 11,325,000 9,683,500 11,158,600 9,683,500 Dilutive securities – unexercised warrants and options 68,179 - 125,212 - Denominator for diluted earnings per share (adjusted weighted-average shares) 11,393,179 9,683,500 11,283,812 9,683,500 Basic earnings per share $ 0.14 $ 0.23 $ 0.48 $ 1.18 Diluted earnings per share $ 0.14 $ 0.23 $ 0.47 $ 1.18 |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 12 – 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 Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the Company’s chief operating decision maker for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. Management, including the chief operating decision maker, reviews operating results by the revenue of the Company’s products. The Company’s major product is outerwear. For the three month periods ended December 31, 2018 and 2017, outerwear accounted for approximately 81.6% and 78.2% of total revenue. For the nine month periods ended December 31, 2018 and 2017, outerwear accounted for approximately 93.2% and 92% of total revenue, Based on management's assessment, the Company has determined that it has only one operating segment as defined by ASC 280. The following table summarizes sales by geographic areas for the three months ended December 31, 2018 and 2017, respectively. For the three months ended December 31, 2018 December 31, 2017 United States $ 15,208,472 $ 8,495,713 Jordan 3,432,201 2,518,993 Other countries 36,491 529,057 Total $ 18,677,164 $ 11,543,763 The following table summarizes sales by geographic areas for the nine months ended December 31, 2018 and 2017, respectively. For the Nine months ended December 31, 2018 December 31, 2017 United States $ 60,881,903 $ 54,835,203 Jordan 8,531,198 4,826,158 Other countries 1,091,545 782,039 Total $ 70,504,646 $ 60,443,400 All long-lived assets were located in Jordan as of December 31, 2018 and March 31, 2018. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 13 – COMMITMENTS AND CONTINGENCIES Rent Commitment The Company leases two manufacturing facilities under operating leases. Operating lease expense amounted to $380,705 and $319,156 for the three months ended December 31, 2018 and 2017, respectively, and amounted to $1,070,334 and $949,120 for the nine months ended December 31, 2018 and 2017, respectively. Future minimum lease payments under non-cancelable operating leases are as follows: Twelve months ended December 31, 2019 $ 749,005 2020 - 2021 and thereafter - Total $ 749,005 The Company has twenty six operating leases for its facilities that require monthly payments ranging between $247 and $15,301, and are renewable on an annual basis. In addition, in connection with the Paramount acquisition, the Company entered into a lease for the primary factory facility and housing accommodations utilized by Paramount and expects to lease the satellite facility space. Acquisition Payment Commitment On December 11, 2018, Jerash Garments entered into an agreement to purchase all of the outstanding stock of a garment manufacturing business based in Jordan. Pursuant to this agreement, and provided that the transaction closes, Jerash Garments will pay an aggregate purchase price of $980,000. As of December 31, 2018, the Company had paid $380,000 as an acquisition deposit for this acquisition. The acquisition is expected to be completed within one year, and the remaining $600,000 of the aggregate purchase price will be paid at or prior to the closing of the acquisition. (see Note 15 – Subsequent Events). Contingencies From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would not have a material adverse impact on the Company’s consolidated financial position, results of operations and cash flows. |
INCOME TAX
INCOME TAX | 9 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 14 – INCOME TAX The Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change has caused the Company to record a one-time income tax payable to be paid over 8 years. The one-time transition tax was calculated using the Company’s total post-1986 overseas earnings and profits based on a rate of 15.5% for the Company’s cash and cash equivalents and a rate of 8% for its other assets. The Company previously booked a provisional charge of $1,400,000 related to the transition tax for all of its foreign subsidiaries, resulting in an increase in income tax expense of approximately $1,400,000 for the year ended March 31, 2018. The income tax payable attributable to the transition tax is due over an 8-year period beginning in 2018. The Company revised its estimate of the impact of the transition tax which resulted in $1,892,000 of the third quarter, the Company finalized its transition tax calculation with the filing of the income tax returns and has completed its accounting for the transition tax liability. The calculated transition tax liability is $1,687,000. of the Tax Act and the application of ASC 740, Income Taxes. Under U.S. GAAP, the Company is allowed to make an accounting policy choice of either (1) treating taxes due on future U.S. inclusions in taxable income related to GILTI as a current-period expense when incurred (the “period cost method”) or (2) factoring such amounts into the Company’s measurement of its deferred taxes (the “deferred method”). The Company has selected the period cost method as its accounting policy with respect to the new GILTI tax rules, and therefore considered the taxes resulting from GILTI as a current-period expense for the nine-month period ended December 31, 2018. Income tax expense for the nine months ended December 31, 2018 was $1,251,000 compared to $0 in the nine months ended December 31, 2017. The effective tax rate of 19% for the nine months ended December 31, 2018 differs from the U.S. statutory rate of 21% as a result of non-US income subject to tax at rates lower than the U.S. rate, the impact of GILTI, and as a result of the Company’s completion of its accounting for the transition tax liability. The Company booked a $578,000 income tax benefit and $0 in income tax expense for the quarters ended December 31, 2018 and 2017, respectively, and $1,251,000 and $0 in income tax expense for the nine months ended December 31, 2018 and 2017, respectively. The $578,000 income tax benefit booked in the quarter ended December 31, 2018 arises from the Company’s completion of its accounting for the transition tax liability, and the cumulative effect of the revision to the estimated effective annual tax rate as a result of clarification surrounding state and local income tax treatment of GILTI. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 15 – SUBSEQUENT EVENTS On December 11, 2018, Jerash Garments entered into an agreement with an individual to purchase all of the outstanding stock of a garment manufacturing business based in Jordan. Pursuant to this agreement, the Company will pay an aggregate purchase price of $ As of , $ has been paid as a prepaid deposit for this acquisition. The Company expects this transaction to close within a year. On January 31, 2019, SCBHK offered to provide an import facility of up to $3.0 million to Treasure Success pursuant to the SCBHK facility letter, dated June 15, 2018. Pursuant to the agreement, SCBHK agreed to finance import invoice financing and pre-shipment financing of export orders up to an aggregate $3.0 million. The SCBHK facility bears interest at 1.3% per annum over SCBHK’s cost of funds. On February 7, 2019, our Board of Directors approved the payment of a dividend of $0.05 per share payable on February 27, 2019 to shareholders of record on February 19, 2019. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis Of Presentation And Principles Of Consolidation [Policy Text Block] | Basis of presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared and presented in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures, which are normally included in annual financial statements prepared in accordance with U.S. GAAP, have been omitted pursuant to those rules and regulations. The unaudited interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto for the fiscal year ended March 31, 2018. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary to present a fair presentation of the Company's financial position as of December 31, 2018, its results of operations and its cash flows for the nine months ended December 31, 2018 and 2017, as applicable, have been made. The unaudited interim results of operations are not necessarily indicative of the operating results for the full fiscal year or any future periods. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The unaudited condensed consolidated financial statements include the financial statements of Jerash Holdings, its subsidiaries and VIE. All significant intercompany balances and transactions have been eliminated in consolidation. In accordance with accounting standards regarding consolidation of variable interest entities, VIEs are generally entities that lack sufficient equity to finance their activities without additional financial support from other parties or whose equity holders lack adequate decision making ability. All VIEs with which the Company is involved must be evaluated to determine the primary beneficiary of the risks and rewards of the VIEs. The primary beneficiary is required to consolidate the VIE for financial reporting purposes. As described in Note 1, management of the Company has concluded that Victory Apparel is a VIE, and that Jerash Garments is considered the primary beneficiary because Mr. Choi, our president, director and significant shareholder absorbs the risks and rewards of Victory Apparel; therefore, we consolidate Victory Apparel for financial reporting purposes. Noncontrolling interests result from the consolidation of Victory Apparel, which is 100% owned by WCL. The following table sets forth the carrying amounts of the assets and liabilities of the VIE, Victory Apparel, which was included in the Company’s consolidated balance sheets: December 31, 2018 March 31, 2018 Current assets $ 1,325 $ 2,069 Intercompany receivables* 307,687 311,527 Total assets 309,012 313,596 Third party current liabilities - (3,992 ) Total liabilities - (3,992 ) Net assets $ 309,012 $ 309,604 * Receivables from Jerash Garments are eliminated upon consolidation. Victory Apparel did not generate any income but incurred certain expenses for each of three and nine month periods ended December 31, 2018 and 2017. The loss was $721 and $26 for the three months ended December 31, 2018 and 2017, respectively. The loss was $746 and $2,845 for the nine months ended December 31, 2018 and 2017, respectively. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the unaudited condensed consolidated financial statements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. The Company’s most significant estimates include allowance for doubtful accounts, valuation of inventory reserve and useful lives of buildings and other property. Actual results could differ from these estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash The Company considers all highly liquid investment instruments with an original maturity of three months or less from the original date of purchase to be cash equivalents. As of December 31, 2018 and March 31, 2018, the Company had no cash equivalents. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash Restricted cash consists of cash used as security deposits to obtain credit facilities of the Company from a bank and to secure custom clearance under the requirements of local regulations. The Company is required to keep certain amounts on deposit that are subject to withdrawal restrictions. These security deposits at the bank are refundable only when the bank facilities are terminated. The restricted cash is classified as a non-current asset since the Company has no intention to terminate these bank facilities within one year. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | Accounts Receivable Accounts receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The Company usually grants credit to customers with good credit standing for a maximum of 90 days and determines the adequacy of reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due. The allowance is based on management's best estimates of specific losses on individual exposures, as well as a provision on historical trends of collections. The provision is recorded against accounts receivables balances, with a corresponding charge recorded in the unaudited condensed consolidated statements of income and comprehensive income. Actual amounts received may differ from management's estimate of credit worthiness and the economic environment. Delinquent account balances are written off against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. No allowance was considered necessary as of December 31, 2018 and March 31, 2018. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are stated at the lower of cost or net realizable value. Inventories include cost of raw materials, freight, direct labor and related production overhead. The cost of inventories is determined using the First in, First-out (“FIFO”) method. The Company periodically reviews its inventories for excess or slow-moving items and makes provisions as necessary to properly reflect inventory value. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are recorded at cost, reduced by accumulated depreciation and amortization. Depreciation and amortization expense related to property, plant and equipment is computed using the straight-line method based on estimated useful lives of the assets, or in the case of leasehold improvements, the shorter of the initial lease term or the estimated useful life of the improvements. The useful life and depreciation method are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property, plant and equipment. The estimated useful lives of depreciation and amortization of the principal classes of assets are as follows: Useful life Land Infinite Property and buildings 15 years Equipment and machinery 3-5 years Office and electronic equipment 3-5 years Automobiles 5 years Leasehold improvements Lesser of useful life and lease term Expenditures for maintenance and repairs, which do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation or amortization of assets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the unaudited condensed consolidated statements of income and comprehensive income. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company assesses its long-lived assets, including property and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. Factors which may indicate potential impairment include a significant underperformance relative to the historical or projected future operating results or a significant negative industry or economic trend. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that asset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset. The fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record any impairment loss during the three and nine months ended December 31, 2018 and 2017. |
Revenue From Customer [Policy Text Block] | Revenue Recognition The Company adopted Accounting Standards Codification ("ASC") 606 in the first quarter of fiscal year 2019 using the modified retrospective approach. ASC 606, Revenue from Contracts with Customers, establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity's contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The Company has assessed the impact of the guidance by reviewing its existing customer contracts and current accounting policies and practices to identify differences that will result from applying the new requirements, including the evaluation of its performance obligations, transaction price, customer payments, transfer of control and principal versus agent considerations. Based on the assessment, the Company concluded that there was no change to the timing and pattern of revenue recognition for its current revenue streams in scope of Topic 606 and therefore there was no material change to the Company’s consolidated financial statements upon adoption of ASC 606. The table below presents the impact of applying the new revenue recognition standard to the components of total revenue within the unaudited condensed consolidated statement of income and comprehensive income for the three and nine months ended December 31, 2018. The Company evaluated its revenue recognition policy for all revenue streams within the scope of the ASU under previous standards and using the five-step model under the new guidance and concluded that there was no difference in the pattern of revenue recognition: Three Months Ended December 31, (in millions of dollars) As reported Financial Results prior to Adoption of Revenue Recognition Standard Impact of Adoption of Revenue Recognition Standard Revenue: $ 18,677,164 $ 18,677,164 $ - Nine Months Ended December 31, (in millions of dollars) As reported Financial Results prior to Adoption of Revenue Recognition Standard Impact of Adoption of Revenue Recognition Standard Revenue: $ 70,504,646 $ 70,504,646 $ - Substantially all of the Company’s revenue is derived from product sales, which consist of sales of the Company’s customized ready-made outerwear for large brand-name retailers. The Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when the time between order confirmation and satisfaction of the performance obligations is equal to or less than one year, and virtually all of the Company’s contracts are short-term. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in contracts with customers upon shipment of the goods. Generally, payment is due from customers within 30 to 60 days of the invoice date, and the contracts do not have significant financing components. Shipping and handling costs associated with outbound freight are not an obligation of the Company. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price is stated in the contract, usually as a price per unit. All estimates are based on the Company's historical experience, complete satisfaction of the performance obligation, and the Company's best judgment at the time the estimate is made. The contract assets are recorded on the Condensed Consolidated Balance Sheet as accounts receivable as of December 31, 2018 and March 31, 2018, respectively. For the three and nine months ended December 31, 2018 and 2017, there was no revenue recognized from performance obligations related to prior periods. As of December 31, 2018, there was no revenue expected to be recognized in any future periods related to remaining performance obligations. The Company has one revenue generating reportable geographic segment under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its sales of customized ready-made outerwear. The Company believes disaggregation of revenue by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see Note 12). |
Shipping and Handling, Policy [Policy Text Block] | Shipping and Handling Proceeds collected from customers for shipping and handling costs are included in revenues. Shipping and handling costs are expensed as incurred and are included in operating expenses, as a part of selling, general and administrative expenses. Total shipping and handling expenses were $177,071 and $111,205 for the three months ended December 31, 2018 and 2017, respectively. Total shipping and handling expenses were $593,223 and $508,204 for the nine months ended December 31, 2018 and 2017, respectively. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company is subject to income taxes on an entity basis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. Jerash Holdings was incorporated in the State of Delaware and is subject to Federal income tax in the United States of America. GTI was incorporated in the BVI and is not subject to income taxes under the current laws of BVI. Treasure Success was registered in Hong Kong and has no operating profit for current tax liabilities. Jerash Garments, Jerash Embroidery, Chinese Garments and Victory Apparel are subject to the regulations of Income Tax Department in Jordan. The corporate income tax rate in Jordan is 14% for the industrial sector. In accordance with the Investment Encouragement Law, Jerash Garments' export sales to overseas customers are entitled to a 100% income tax exemption for a period of 10 years commencing at the first day of production. This exemption was extended for 5 years until December 31, 2018. Effective January 1, 2019 Jerash Garments will begin paying corporate income tax in Jordan at a rate of 5%. The estimated tax savings as a result of the tax exemption for Jerash Garments totaled $261,372 and $342,254 for the three months ended December 31, 2018 and 2017, respectively. Per share effect of the tax exemption was $0.02 and $0.04 for the three months ended December 31, 2018 and 2017. The estimated tax savings as a result of the tax exemption for Jerash Garments totaled $1,623,602 and $1,675,086 for the nine months ended December 31, 2018 and 2017, respectively. Per share effect of the tax exemption was $0.15 and $0.17 for each of the nine months ended December 31, 2018 and 2017. Local sales of Jerash Garments are subject to income tax at a fixed rate of 14%. No tax provision was provided for the three and nine months ended December 31, 2017 since there was no net income generated from local sales. The income tax expense recorded for the nine months ended December 31, 2018 takes into account the 5% tax rate that Jerash Garments will become subject to as of January 1, 2019. The Company accounts for income taxes in accordance with ASC 740, “Income Taxes,” which requires the Company to use the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between financial statement carrying amounts and the tax bases of existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, the effect on deferred income taxes of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized if it is more likely than not that some portion, or all of, a deferred tax asset will not be realized. Deferred income taxes were immaterial, and accordingly, no deferred tax assets or liabilities were recognized as of December 31, 2018 and March 31, 2018. ASC 740 clarifies the accounting for uncertainty in tax positions. This interpretation requires that an entity recognizes in its financial statements the impact of a tax position, if that position is more likely than not of being sustained upon examination, based on the technical merits of the position. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company has elected to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of income tax expense in the consolidated statements of income and comprehensive income. There were no uncertain tax positions, and tax returns in Jordan prior to 2015 are not subject to examination by any applicable tax authorities. On December 22, 2017, the “Tax Cuts and Jobs Act” (the “Tax Act”) was enacted. Under the provisions of the Tax Act, the U.S. corporate tax rate decreased from 35% to 21%. As the Company has a March 31 fiscal year-end, the lower corporate income tax rate will be phased in, resulting in a U.S. statutory federal rate of approximately 28% for our fiscal year ending March 31, 2018, and 21% for subsequent fiscal years. Additionally, the Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation under the new Global Intangible Low-Taxed Income (GILTI) regime. Please see further discussion regarding the Company’s accounting for the Tax Act in Note 14. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation The reporting currency of the Company is the U.S. dollar and the Company uses the Jordanian Dinar (“JOD”) as its functional currency, except Treasure Success, which uses the Hong Kong Dollar (“HKD”) as its functional currency. The assets and liabilities of the Company have been translated into U.S. dollars using the exchange rates in effect at the balance sheet date, equity accounts have been translated at historical rates, and revenue and expenses have been translated into U.S. dollars using average exchange rates in effect during the reporting period. Cash flows are also translated at average translation rates for the periods, therefore, amounts related to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from period to period are included as a separate component of accumulated other comprehensive income (loss). Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The value of JOD against US dollars and other currencies may fluctuate and is affected by, among other things, changes in the Jordan’s political and economic conditions. Any significant revaluation of JOD may materially affect the Company’s financial condition in terms of US dollars reporting. The following table outlines the currency exchange rates that were used in creating the consolidated financial statements in this report: December 31, 2018 March 31, 2018 December 31, 2017 Period-end spot rate US$1=JOD 0.7090 US$1=JOD 0.7094 US$1=JOD 0.7097 US$1=HKD 7.8309 US$1=HKD 7.8490 US$1=HKD 7.8003 Average rate US$1=JOD 0.7091 US$1=JOD 0.7092 US$1=JOD 0.7093 US$1=HKD 7.8431 US$1=HKD 7.8091 US$1=HKD 7.8125 |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation The Company measures compensation expense for stock-based awards to non-employee contractors and directors based upon the awards’ initial grant-date fair value. The estimated grant-date fair value of the award is recognized as expense over the requisite service period using the straight-line method. The fair value of awards to non-employees is then marked-to-market each reporting period until vesting criteria are met. The Company estimates the fair value of stock warrants using a Black-Scholes model. This model is affected by the Company's stock price on the date of the grant as well as assumptions regarding a number of highly complex and subjective variables. These variables include the expected term of the warrant, expected risk-free rates of return, the expected volatility of the Company's common stock, and expected dividend yield, each of which is more fully described below. The assumptions for expected term and expected volatility are the two assumptions that significantly affect the grant date fair value. Expected Term: the expected term of a warrant is the period of time that the warrant is expected to be outstanding. Risk-free Interest Rate: the Company bases the risk-free interest rate used in the Black-Scholes model on the implied yield at the grant date of the U.S. Treasury zero-coupon issue with an equivalent term to the stock-based award being valued. Where the expected term of a stock-based award does not correspond with the term for which a zero coupon interest rate is quoted, the Company's uses the nearest interest rate from the available maturities. Expected Stock Price Volatility: the Company utilizes comparable public company volatility over the same period of time as the life of the warrant. Dividend Yield: Until November 2018, the Board of Directors had not declared, and the Company had not yet paid, any dividends. Accordingly, stock-based compensation awards granted prior to November 2018 assumed no dividend yield, while any subsequent stock-based compensation awards will be valued using the anticipated dividend yield. |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Share The Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants) as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS (See Note 11). |
Comprehensive Income, Policy [Policy Text Block] | Comprehensive Income Comprehensive income consists of two components, net income and other comprehensive income (loss). The foreign currency translation gain or loss resulting from translation of the financial statements expressed in JOD or HKD to U.S. Dollar is reported in other comprehensive income (loss) in the unaudited condensed consolidated statements of income and comprehensive income. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments ASC 825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 - Quoted prices in active markets for identical assets and liabilities. Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash, including restricted cash, accounts receivable, other receivables, due from related parties, due from shareholders, accounts payable, accrued expenses, other payables and short-term loan to approximate the fair value of the respective assets and liabilities at December 31, 2018 and March 31, 2018 based upon the short-term nature of these assets and liabilities. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations and Credit Risk Credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash. As of December 31, 2018 and March 31, 2018, $5,566,358 and $4,793,527 of the Company’s cash was on deposit at financial institutions in Jordan, where there currently is no rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure. As of December 31, 2018 and March 31, 2018, $24,732,451 and $7,400,111 of the Company’s cash was on deposit at financial institutions in Hong Kong, which are insured by the Hong Kong Deposit Protection Board subject to certain limitations. While management believes that these financial institutions are of high credit quality, it also continually monitors their credit worthiness. As of December 31, 2018 and March 31, 2018, $92,932 and $2,472 of the Company’s cash was on deposit in the United States and are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. Accounts receivable are typically unsecured and derived from revenue earned from customers, and therefore are exposed to credit risk. The risk is mitigated by the Company's assessment of its customers' creditworthiness and its ongoing monitoring of outstanding balances. Customer and vendor concentration risk Prior to August 2016, substantially all of the Company’s sales were made to end-customers, through its affiliate (see Note 9), that are located primarily in the United States (see Note 12). Thereafter, the Company began selling directly to its customers. The Company’s operating results could be adversely affected by U.S. government policy on exporting business, foreign exchange rate fluctuations, and change of local market conditions. The Company has a concentration of its revenues and purchases with specific customers and suppliers. For the three months ended December 31, 2018, two end-customers accounted for 82% and 12%, for 83% and 5%, for 72% and 12%, for 81% and 8%, for 91% and 8% for 57% and 22% For the three months ended December 31, 2018, the Company purchased approximately 33% and 28% of its raw materials from two major suppliers. For the nine months ended December 31, 2018, the Company purchased approximately 16% 10% of its raw materials from four major suppliers. For the three months ended December 31, 2017, the Company purchased approximately 62% and 12%, respectively, of its raw materials from two major suppliers. For the nine months ended December 31, 2017, the Company purchased approximately 87% of its raw materials from one major supplier. As of December 31, 2018 accounts payable to the two major suppliers accounted for 60% and 10% of the total accounts payable balance. As of March 31, 2018, there was a net prepaid balance to one major supplier totaling $874,591. A loss of any of these customers or suppliers could adversely affect the operating results or cash flows of the Company. |
Risks and Uncertainties [Policy Text Block] | Risks and Uncertainties The principal operations of the Company are located in Jordan. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic, and legal environments in Jordan, as well as by the general state of the Jordanian economy. The Company’s operations in Jordan are subject to special considerations and significant risks not typically associated with companies in North America. These include risks associated with, among others, the political, economic and legal environment and foreign currency exchange. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions in Jordan. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Variable Interest Entities [Table Text Block] | The following table sets forth the carrying amounts of the assets and liabilities of the VIE, Victory Apparel, which was included in the Company’s consolidated balance sheets: December 31, 2018 March 31, 2018 Current assets $ 1,325 $ 2,069 Intercompany receivables* 307,687 311,527 Total assets 309,012 313,596 Third party current liabilities - (3,992 ) Total liabilities - (3,992 ) Net assets $ 309,012 $ 309,604 * Receivables from Jerash Garments are eliminated upon consolidation. |
Schedule of Depreciation and Amortization Expense Related to Property, Plant and Equipment [Table Text Block] | Useful life Land Infinite Property and buildings 15 years Equipment and machinery 3-5 years Office and electronic equipment 3-5 years Automobiles 5 years Leasehold improvements Lesser of useful life and lease term |
Revenue Recognition, Milestone Method [Table Text Block] | Three Months Ended December 31, (in millions of dollars) As reported Financial Results prior to Adoption of Revenue Recognition Standard Impact of Adoption of Revenue Recognition Standard Revenue: $ 18,677,164 $ 18,677,164 $ - Nine Months Ended December 31, (in millions of dollars) As reported Financial Results prior to Adoption of Revenue Recognition Standard Impact of Adoption of Revenue Recognition Standard Revenue: $ 70,504,646 $ 70,504,646 $ - |
Schedule of Differences between Reported Amount and Reporting Currency Denominated Amount [Table Text Block] | December 31, 2018 March 31, 2018 December 31, 2017 Period-end spot rate US$1=JOD 0.7090 US$1=JOD 0.7094 US$1=JOD 0.7097 US$1=HKD 7.8309 US$1=HKD 7.8490 US$1=HKD 7.8003 Average rate US$1=JOD 0.7091 US$1=JOD 0.7092 US$1=JOD 0.7093 US$1=HKD 7.8431 US$1=HKD 7.8091 US$1=HKD 7.8125 |
ACCOUNTS RECEIVABLES, NET (Tabl
ACCOUNTS RECEIVABLES, NET (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The Company’s net accounts receivable is as follows: As of As of December 31, 2018 March 31, 2018 Trade accounts receivable $ 13,140,501 $ 5,247,090 Less: allowances for doubtful accounts - - Accounts receivables, Net $ 13,140,501 $ 5,247,090 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consisted of the following: As of As of December 31, 2018 March 31, 2018 Raw materials $ 6,497,773 $ 11,497,237 Work-in-progress 620,926 2,073,509 Finished goods 5,002,343 6,722,646 Total inventory $ 12,121,042 $ 20,293,392 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, NET (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consisted of the following: As of December 31, 2018 As of March 31, 2018 Land $ 61,078 $ 61,048 Property and buildings 432,562 432,347 Equipment and machinery 5,542,094 4,918,270 Office and electric equipment 538,177 505,356 Automobiles 367,332 372,084 Leasehold improvements 1,648,603 1,552,108 8,589,846 7,841,213 Construction in progress 197,290 217,494 Less: Accumulated Depreciation and Amortization (6,171,949 ) (5,238,992 ) Property and Equipment, Net $ 2,615,187 $ 2,819,715 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | The fair value of these warrants granted was estimated as of the grant date using the Black-Scholes model with the following assumptions: Common Stock Warrants December 31, 2018 Expected term (in years) 5.0 Risk-free interest rate (%) 1.8% - 2.8 % Expected volatility (%) 50.3% - 52.2 % Dividend yield (%) 0.0 % |
Share-based Compensation, Activity [Table Text Block] | Warrant activity is summarized as follows: Shares Weighted Average Exercise Price Warrants outstanding at March 31, 2018 207,210 $ 5.69 Granted (Underwriter Warrants for the IPO) 57,200 $ 8.75 Exercised - - Cancelled - - Warrants outstanding at December 31, 2018 264,410 $ 6.35 |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The fair value of these options granted was estimated as of the grant date using the Black-Scholes model with the following assumptions. Stock Options December 31, 2018 Expected term (in years) 5.0 Risk-free interest rate (%) 2.6 % Expected volatility (%) 50.3 % Dividend yield (%) 0.0 % |
Share-based Compensation, Stock Options, Activity [Table Text Block] | The fair value of all of outstanding stock options is $3.21. Stock option activity is summarized as follows: Shares Weighted Average Exercise Price Stock option outstanding at March 31, 2018 - - Granted 1,139,500 $ 6.88 Exercised - - Cancelled - - Stock options outstanding at December 31, 2018 1,139,500 $ 6.88 |
Nonqualified Stock Options [Member] | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The fair value of the options granted on August 3, 2018 w as estimated as of the grant date using the Black-Scholes model with the following assumptions; Stock Options December 31, 2018 Expected term (in years) 10.0 Risk-free interest rate (%) 2.95 % Expected volatility (%) 50.3 % Dividend yield (%) 0.0 % |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Relationship and Nature of Related Party Transactions [Table Text Block] | The relationship and the nature of related party transactions are summarized as follow: Name of Related Party Relationship to the Company Nature of Transactions Ford Glory Holdings Limited (“FGH”) Affiliate, former indirect parent of the Company Working Capital Advances Ford Glory International Limited (“FGIL”) Affiliate, subsidiary of FGH Sales / Purchases Value Plus (Macao Commercial Offshore) Limited (“VPMCO”) Affiliate, subsidiary of FGH Purchases Yukwise Limited (“Yukwise”) Common Shareholder Consulting Services Multi-Glory Corporation Limited (“Multi-Glory”) Common Shareholder Consulting Services |
Schedule of Related Party Transactions [Table Text Block] | Accounts receivable from related party in connection with the collection of accounts receivable from end-customers on behalf of the Company due to the support arrangement during the transition period as described below (see a. Sales to related party) consisted of the following: As of December 31, 2018 As of March 31, 2018 FGIL $ - $ 50,027 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per share for the three and nine months ended December 31, 2018 and 2017. 57,200 IPO Underwriter Warrants, 50,000 stock options to the Company’s Chief Financial Officer and 100,000 stock options to the Company’s Head of U.S. Operations were anti-dilutive for the three and nine months ended December 31, 2018 and excluded from the EPS calculation. Three Months Ended December 31, (in $000s except share and per share information) Nine Months Ended December 31, (in $000s except share and per share information) 2018 2017 2018 2017 Numerator: Net income attributable to Jerash Holdings (US), Inc.'s Common Shareholders $ 1,626 $ 2,207 $ 5,328 $ 11,391 Denominator: Denominator for basic earnings per share (weighted-average shares) 11,325,000 9,683,500 11,158,600 9,683,500 Dilutive securities – unexercised warrants and options 68,179 - 125,212 - Denominator for diluted earnings per share (adjusted weighted-average shares) 11,393,179 9,683,500 11,283,812 9,683,500 Basic earnings per share $ 0.14 $ 0.23 $ 0.48 $ 1.18 Diluted earnings per share $ 0.14 $ 0.23 $ 0.47 $ 1.18 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following table summarizes sales by geographic areas for the three months ended December 31, 2018 and 2017, respectively. For the three months ended December 31, 2018 December 31, 2017 United States $ 15,208,472 $ 8,495,713 Jordan 3,432,201 2,518,993 Other countries 36,491 529,057 Total $ 18,677,164 $ 11,543,763 The following table summarizes sales by geographic areas for the nine months ended December 31, 2018 and 2017, respectively. For the Nine months ended December 31, 2018 December 31, 2017 United States $ 60,881,903 $ 54,835,203 Jordan 8,531,198 4,826,158 Other countries 1,091,545 782,039 Total $ 70,504,646 $ 60,443,400 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future minimum lease payments under non-cancelable operating leases are as follows: Twelve months ended December 31, 2019 $ 749,005 2020 - 2021 and thereafter - Total $ 749,005 |
ORGANIZATION AND DESCRIPTION _2
ORGANIZATION AND DESCRIPTION OF BUSINESS (Details Textual) | Dec. 31, 2018$ / sharesshares | Mar. 31, 2018$ / sharesshares | May 11, 2017$ / sharesshares | Oct. 31, 2016 | Jul. 05, 2016 | Jan. 01, 2015 | Jun. 13, 2013JOD (JD) | Mar. 11, 2013JOD (JD) | Sep. 18, 2005JOD (JD) | Nov. 26, 2000USD ($) | Nov. 26, 2000JOD (JD) |
Percentage of Individual Shareholder Transactions | 22.00% | ||||||||||
Common Stock, Shares, Outstanding | shares | 11,325,000 | 9,895,000 | 8,787,500 | ||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 | $ 0.001 | |||||||||
Hashemite Kingdom of Jordan [Member] | |||||||||||
Capital | $ 70,500 | JD 50,000 | |||||||||
Chinese Garments [Member] | |||||||||||
Capital | JD | JD 50,000 | JD 50,000 | |||||||||
Jerash Embroidery and Cinese Garments [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | ||||||||||
Victory Apparel [Member] | |||||||||||
Capital | JD | JD 50,000 | ||||||||||
Jerash Garments [Member] | |||||||||||
Equity Method Investment, Ownership Percentage | 100.00% | ||||||||||
Jerash Holdings [Member] | |||||||||||
Common Stock, Shares, Outstanding | shares | 712,500 | ||||||||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.001 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Victory Apparel [Member] - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 | |
Current assets | $ 1,325 | $ 2,069 | |
Intercompany receivables | [1] | 307,687 | 311,527 |
Total assets | 309,012 | 313,596 | |
Third party current liabilities | 0 | (3,992) | |
Total liabilities | 0 | (3,992) | |
Net assets | $ 309,012 | $ 309,604 | |
[1] | Receivables from Jerash Garments are eliminated upon consolidation. |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 9 Months Ended |
Dec. 31, 2018 | |
Land [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | Infinite |
Building [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 15 |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Office Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Office Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 3 |
Automobiles [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | 5 |
Leasehold Improvements [Member] | |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of useful life and lease term |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue: | $ 18,677,164 | $ 11,543,763 | $ 70,504,646 | $ 60,443,400 |
Previously Reported [Member] | ||||
Revenue: | 18,677,164 | 70,504,646 | ||
Restatement Adjustment [Member] | ||||
Revenue: | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) | Dec. 31, 2018$ / JD | Dec. 31, 2018$ / $ | Mar. 31, 2018$ / JD | Mar. 31, 2018$ / $ | Dec. 31, 2017$ / JD | Dec. 31, 2017$ / $ |
Period-end spot rate [Member] | ||||||
Foreign Currency Exchange Rate, Translation | 0.7090 | 7.8309 | 0.7094 | 7.8490 | 0.7097 | 7.8003 |
Average rate [Member] | ||||||
Foreign Currency Exchange Rate, Translation | 0.7091 | 7.8431 | 0.7092 | 7.8091 | 0.7093 | 7.8125 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Dec. 22, 2017 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2019 | Mar. 31, 2018 | |
Net loss attributable to noncontrolling interest | $ 721 | $ 26 | $ 746 | $ 2,845 | ||||
Cost of Goods and Services Sold | 15,477,534 | $ 7,791,407 | $ 54,296,244 | $ 44,623,660 | ||||
Effective Income Tax Rate Reconciliation, Percent | 14.00% | 19.00% | 14.00% | |||||
Income Tax Holiday, Description | In accordance with the Investment Encouragement Law, Jerash Garments' export sales to overseas customers are entitled to a 100% income tax exemption for a period of 10 years commencing at the first day of production. This exemption was extended for 5 years until December 31, 2018. | |||||||
Income Tax Holiday, Aggregate Dollar Amount | $ 261,372 | $ 342,254 | $ 1,623,602 | $ 1,675,086 | ||||
Income Tax Holiday, Income Tax Benefits Per Share | $ 0.02 | $ 0.04 | $ 0.15 | $ 0.17 | ||||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | 28.00% | |||||
Prepaid Expense | $ 874,591 | $ 874,591 | ||||||
Tax AuthorityJordan [Member] | ||||||||
Effective Income Tax Rate Reconciliation, Percent | 5.00% | 5.00% | 5.00% | |||||
Scenario, Plan [Member] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||||
Wealth Choice Limited [Member] | ||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% | ||||||
Supplier One [Member] | ||||||||
Concentration Risk, Percentage | 33.00% | 62.00% | 16.00% | 87.00% | ||||
Supplier Two [Member] | ||||||||
Concentration Risk, Percentage | 28.00% | 12.00% | 14.00% | |||||
Supplier Three [Member] | ||||||||
Concentration Risk, Percentage | 11.00% | |||||||
Supplier Four [Member] | ||||||||
Concentration Risk, Percentage | 10.00% | |||||||
Sales Revenue, Net [Member] | Customer One [Member] | ||||||||
Concentration Risk, Percentage | 82.00% | 72.00% | 83.00% | 81.00% | ||||
Sales Revenue, Net [Member] | Customer Two [Member] | ||||||||
Concentration Risk, Percentage | 12.00% | 12.00% | 5.00% | 8.00% | ||||
Accounts Receivable [Member] | Customer One [Member] | ||||||||
Concentration Risk, Percentage | 91.00% | 57.00% | ||||||
Accounts Receivable [Member] | Customer Two [Member] | ||||||||
Concentration Risk, Percentage | 8.00% | 22.00% | ||||||
Account Payable [Member] | Supplier One [Member] | ||||||||
Concentration Risk, Percentage | 60.00% | |||||||
Account Payable [Member] | Supplier Two [Member] | ||||||||
Concentration Risk, Percentage | 10.00% | |||||||
JORDAN | ||||||||
Effective Income Tax Rate Reconciliation, Percent | 14.00% | |||||||
Deposits | $ 5,566,358 | $ 4,793,527 | $ 5,566,358 | $ 4,793,527 | ||||
HONG KONG | ||||||||
Deposits | 24,732,451 | 7,400,111 | 24,732,451 | 7,400,111 | ||||
UNITED STATES | ||||||||
Cash, FDIC Insured Amount | 92,932 | $ 2,472 | 92,932 | $ 2,472 | ||||
Shipping and Handling [Member] | ||||||||
Cost of Goods and Services Sold | $ 177,071 | $ 111,205 | $ 593,223 | $ 508,204 |
ACCOUNTS RECEIVABLES, NET (Deta
ACCOUNTS RECEIVABLES, NET (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Trade accounts receivable | $ 13,140,501 | $ 5,247,090 |
Less: allowances for doubtful accounts | 0 | 0 |
Accounts receivables, Net | $ 13,140,501 | $ 5,247,090 |
ACCOUNTS RECEIVABLES, NET (De_2
ACCOUNTS RECEIVABLES, NET (Details Textual) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Factored Accounts Receivable | $ 3 | $ 470,659 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Raw materials | $ 6,497,773 | $ 11,497,237 |
Work-in-progress | 620,926 | 2,073,509 |
Finished goods | 5,002,343 | 6,722,646 |
Total inventory | $ 12,121,042 | $ 20,293,392 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, NET (Details) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
Subtotal | $ 8,589,846 | $ 7,841,213 |
Construction in progress | 197,290 | 217,494 |
Less: Accumulated Depreciation and Amortization | (6,171,949) | (5,238,992) |
Property and Equipment, Net | 2,615,187 | 2,819,715 |
Land [Member] | ||
Subtotal | 61,078 | 61,048 |
Property and Buildings [Member] | ||
Subtotal | 432,562 | 432,347 |
Machinery and Equipment [Member] | ||
Subtotal | 5,542,094 | 4,918,270 |
Office and Electric Equipment [Member] | ||
Subtotal | 538,177 | 505,356 |
Automobiles [Member] | ||
Subtotal | 367,332 | 372,084 |
Leasehold Improvements [Member] | ||
Subtotal | $ 1,648,603 | $ 1,552,108 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, NET (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018USD ($)m²ft² | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)m²ft² | Dec. 31, 2017USD ($) | |
Depreciation, Depletion and Amortization | $ | $ 306,433 | $ 310,953 | $ 959,975 | $ 899,277 |
Area of Land | ft² | 54,000 | 54,000 | ||
Construction in Progress [Member] | ||||
Area of Land | m² | 4,800 | 4,800 |
EQUITY (Details Textual)
EQUITY (Details Textual) - USD ($) | May 02, 2018 | May 15, 2017 | Nov. 27, 2018 | Sep. 27, 2017 | Aug. 18, 2017 | Dec. 31, 2018 | Nov. 01, 2018 | Sep. 17, 2018 | Mar. 31, 2018 | May 11, 2017 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||||
Preferred Stock, Shares Authorized | 500,000 | 500,000 | ||||||||
Retained Earnings, Appropriation Description | 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. | |||||||||
Retained Earnings, Appropriated | $ 71,699 | $ 71,699 | ||||||||
Stock Issued During Period, Shares, New Issues | 1,430,000 | |||||||||
Payments of Stock Issuance Costs | $ 379,828 | |||||||||
Stock Issued During Period, Value, New Issues | $ 8,622,121 | |||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | ||||||||
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 | 15,000,000 | |||||||
Common Stock, Shares, Outstanding | 11,325,000 | 9,895,000 | 8,787,500 | |||||||
Dividends | $ 566,250 | $ 566,250 | ||||||||
Dividends Payable, Amount Per Share | $ 0.05 | |||||||||
Warrant [Member] | ||||||||||
Class of Warrant or Right, Price Per Warrant | 0.01 | 0.01 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.25 | $ 6.25 | $ 6.25 | |||||||
Private Placement [Member] | ||||||||||
Number of Common Stock and Warrants To Be Sold | 540,000 | 50,000 | 200,000 | |||||||
Stock Issued During Period, Shares, New Issues | 270,000 | 25,000 | 100,000 | |||||||
Proceeds from Issuance of Common Stock, and Warrants | $ 1,352,700 | |||||||||
Net Proceeds from Issuance of Common Stock, and Warrants | $ 110,179 | $ 450,910 | ||||||||
Private Placement [Member] | Shareholder [Member] | ||||||||||
Stock Issued During Period, Shares, New Issues | 25,000 | 100,000 | ||||||||
Shares Issued, Price Per Share | $ 4.99 | $ 4.99 | $ 4.99 | |||||||
Private Placement [Member] | Warrant [Member] | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 54,000 | 5,000 | 20,000 | |||||||
Class of Warrant or Right, Price Per Warrant | 0.01 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5,000 | $ 20,000 | ||||||||
IPO [Member] | ||||||||||
Stock Issued During Period, Value, New Issues | $ 10,010,000 | |||||||||
Underwriting Commissions | 477,341 | |||||||||
Underwriter Offering Expenses | 250,200 | |||||||||
Additional Underwriting Expenses | 352,159 | |||||||||
Proceeds from Issuance Initial Public Offering | $ 8,930,300 | |||||||||
Common Stock, Par or Stated Value Per Share | $ 7 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) | 9 Months Ended |
Dec. 31, 2018 | |
Measurement Input, Expected Term [Member] | |
Fair Value Assumptions Term | 5 years |
Measurement Input, Expected Dividend Rate [Member] | |
Fair Value Assumptions Rate | 0.00% |
Maximum [Member] | Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Assumptions Rate | 2.80% |
Maximum [Member] | Measurement Input, Price Volatility [Member] | |
Fair Value Assumptions Rate | 52.20% |
Minimum [Member] | Measurement Input, Risk Free Interest Rate [Member] | |
Fair Value Assumptions Rate | 1.80% |
Minimum [Member] | Measurement Input, Price Volatility [Member] | |
Fair Value Assumptions Rate | 50.30% |
STOCK BASED COMPENSATION (Det_2
STOCK BASED COMPENSATION (Details 1) - Warrant [Member] | 9 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Warrants outstanding, Shares | shares | 207,210 |
Granted, Shares | shares | 57,200 |
Exercised, Shares | shares | 0 |
Cancelled, Shares | shares | 0 |
Warrants outstanding, Shares | shares | 264,410 |
Warrants outstanding, Weighted Average Exercise Price | $ / shares | $ 5.69 |
Granted, Weighted Average Exercise Price | $ / shares | 8.75 |
Exercised, Weighted Average Exercise Price | $ / shares | 0 |
Cancelled, Weighted Average Exercise Price | $ / shares | 0 |
Warrants outstanding, Weighted Average Exercise Price | $ / shares | $ 6.35 |
STOCK BASED COMPENSATION (Det_3
STOCK BASED COMPENSATION (Details 2) | 9 Months Ended |
Dec. 31, 2018 | |
Nonqualified Stock Options [Member] | |
Expected term (in years) | 10 years |
Risk-free interest rate | 2.95% |
Expected volatility | 50.30% |
Dividend yield | 0.00% |
Employee Stock Option [Member] | |
Expected term (in years) | 5 years |
Risk-free interest rate | 2.60% |
Expected volatility | 50.30% |
Dividend yield | 0.00% |
STOCK BASED COMPENSATION (Det_4
STOCK BASED COMPENSATION (Details 3) - $ / shares | Aug. 03, 2018 | Dec. 31, 2018 |
Stock options outstanding, Shares | 0 | |
Granted, Shares | 150,000 | 1,139,500 |
Exercised, Shares | 0 | |
Cancelled, Shares | 0 | |
Stock options outstanding, Shares | 1,139,500 | |
Stock options outstanding, Weighted Average Exercise Price | $ 0 | |
Granted, Weighted Average Exercise Price | $ 6.12 | 6.88 |
Exercised, Weighted Average Exercise Price | 0 | |
Cancelled, Weighted Average Exercise Price | 0 | |
Stock options outstanding, Weighted Average Exercise Price | $ 6.88 |
STOCK BASED COMPENSATION (Det_5
STOCK BASED COMPENSATION (Details Textual) - USD ($) | Aug. 03, 2018 | Apr. 09, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 21, 2018 | Sep. 27, 2017 | Aug. 18, 2017 | Aug. 01, 2017 | May 15, 2017 |
Capital Units, Value | $ 107,990 | |||||||||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | $ 116,578 | $ 3,399,934 | $ 116,578 | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,484,250 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 150,000 | 1,139,500 | ||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 6.12 | $ 6.88 | ||||||||||
Share-based Compensation | $ 0 | $ 0 | $ 3,399,934 | $ 116,578 | ||||||||
Fair Value of Options | $ 3.21 | $ 3.21 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost | $ 387,909 | |||||||||||
Employee Stock Option [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 989,500 | |||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 7 | |||||||||||
Warrant [Member] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.25 | $ 6.25 | $ 6.25 | |||||||||
Board Advisor [Member] | Warrant [Member] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 50,000 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5 | |||||||||||
Private Placement [Member] | Warrant [Member] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 5,000 | 20,000 | 54,000 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5,000 | $ 20,000 | ||||||||||
Private Placement [Member] | Designee [Member] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5.50 | $ 5.50 | $ 5.50 | |||||||||
Private Placement [Member] | Designee [Member] | Capital Units [Member] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 4,500 | 18,000 | 48,600 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.25 | $ 6.25 | $ 6.25 | |||||||||
Capital Units, Value | $ 10,814 | $ 43,122 | ||||||||||
IPO Underwriter Warrants [Member] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 57,200 | 57,200 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 8.75 | $ 8.75 | ||||||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | May 2, 2023 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 9 Months Ended |
Dec. 31, 2018 | |
Ford Glory Holdings Limited [Member] | |
Nature of Common Ownership or Management Control Relationships | Affiliate, former indirect parent of the Company |
Related Party Transaction, Description of Transaction | Working Capital Advances |
Ford Glory International Limited [Member] | |
Nature of Common Ownership or Management Control Relationships | Affiliate, subsidiary of FGH |
Related Party Transaction, Description of Transaction | Sales / Purchases |
Value Plus Macao Commercial Offshore Limited [Member] | |
Nature of Common Ownership or Management Control Relationships | Affiliate, subsidiary of FGH |
Related Party Transaction, Description of Transaction | Purchases |
Yukwise Limited [Member] | |
Nature of Common Ownership or Management Control Relationships | Common Shareholder |
Related Party Transaction, Description of Transaction | Consulting Services |
Multi-Glory Corporation Limited [Member] | |
Nature of Common Ownership or Management Control Relationships | Common Shareholder |
Related Party Transaction, Description of Transaction | Consulting Services |
RELATED PARTY TRANSACTIONS (D_2
RELATED PARTY TRANSACTIONS (Details 1) - USD ($) | Dec. 31, 2018 | Mar. 31, 2018 |
FGIL | $ 0 | $ 50,027 |
RELATED PARTY TRANSACTIONS (D_3
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | Jan. 12, 2018 | Jan. 16, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 13, 2016 |
Marketing Services and Advisory,Amount | $ 300,000 | $ 300,000 | |||||
Consulting Fees | $ 75,000 | $ 225,000 | |||||
Revenues | 18,677,164 | $ 11,543,763 | 70,504,646 | $ 60,443,400 | |||
Victory City Investments Limited [Member] | |||||||
Equity Method Investment, Ownership Percentage | 51.00% | ||||||
Ford Glory International Limited [Member] | |||||||
Revenues | 0 | $ 1,809,475 | 0 | $ 43,994,497 | |||
Multi Glory Corporation Limited [Member] | |||||||
Consulting Fees | $ 75,000 | $ 225,000 |
CREDIT FACILITIES (Details Text
CREDIT FACILITIES (Details Textual) - USD ($) | Jun. 05, 2017 | Dec. 31, 2018 | Jan. 31, 2019 | Mar. 31, 2018 | May 29, 2017 |
Line of Credit, Current | $ 20,915 | $ 980,195 | |||
Percentage of Flate fee | 0.35% | ||||
Line of Credit Facility, Expiration Period | 120 days | ||||
Treasure Success International [Member] | |||||
Debt Instrument, Description of Variable Rate Basis | The Credit Facilities provide that drawings under the Credit Facilities are charged interest at the Hong Kong Interbank Offered Rate (“HIBOR”) plus 1.5% for drawings in Hong Kong dollars, and the London Interbank Offered Rate (“LIBOR”) plus 1.5% for drawings in other currencies. In addition, the Credit Facilities also contain certain service charges and other commissions and fees. | ||||
Credit Facility [Member] | Treasure Success International [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | $ 8,000,000 | |||
Debt Instrument, Collateral Amount | $ 3,000,000 | ||||
Line of Credit, Current | $ 20,915 | $ 980,195 | |||
Credit Facility [Member] | Treasure Success International [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Credit Facility [Member] | Treasure Success International [Member] | Hongkong Interbank Offered Rate LIBOR [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | ||||
Facility Letter [Member] | |||||
Long-term Line of Credit | $ 20,915 | ||||
SCBHK Credit Facility [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 3,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | ||||
SCBHK Credit Facility [Member] | Treasure Success International [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | ||||
Net income attributable to Jerash Holdings (US), Inc.'s Common Shareholders | $ 1,626 | $ 2,207 | $ 5,328 | $ 11,391 |
Denominator: | ||||
Denominator for basic earnings per share (weighted-average shares) | 11,325,000 | 9,683,500 | 11,158,600 | 9,683,500 |
Dilutive securities – unexercised warrants and options | 68,179 | 0 | 125,212 | 0 |
Denominator for diluted earnings per share (adjusted weighted-average shares) | 11,393,179 | 9,683,500 | 11,283,812 | 9,683,500 |
Basic earnings per share | $ 0.14 | $ 0.23 | $ 0.48 | $ 1.18 |
Diluted earnings per share | $ 0.14 | $ 0.23 | $ 0.47 | $ 1.18 |
EARNINGS PER SHARE (Details Tex
EARNINGS PER SHARE (Details Textual) | 9 Months Ended |
Dec. 31, 2018shares | |
Employee Stock Option [Member] | Chief Financial Officer [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 50,000 |
Employee Stock Option [Member] | Chief Operating Officer [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 |
Warrant [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 57,200 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 18,677,164 | $ 11,543,763 | $ 70,504,646 | $ 60,443,400 |
United States [Member] | ||||
Revenues | 15,208,472 | 8,495,713 | 60,881,903 | 54,835,203 |
Jordan [Member] | ||||
Revenues | 3,432,201 | 2,518,993 | 8,531,198 | 4,826,158 |
Other Countries [Member] | ||||
Revenues | $ 36,491 | $ 529,057 | $ 1,091,545 | $ 782,039 |
SEGMENT REPORTING (Details Text
SEGMENT REPORTING (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sales Revenue, Goods, Net [Member] | Customer Concentration Risk [Member] | ||||
Concentration Risk, Percentage | 81.60% | 78.20% | 93.20% | 92.00% |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 31, 2018USD ($) |
Twelve months ended December 31, | |
2,019 | $ 749,005 |
2,020 | 0 |
2021 and thereafter | 0 |
Total | $ 749,005 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Dec. 11, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases, Rent Expense | $ 380,705 | $ 319,156 | $ 1,070,334 | $ 949,120 | |
Garment Manufacturing Factory Facility [Member] | |||||
Business Combination, Contingent Consideration, Liability | $ 600,000 | 600,000 | |||
Business Combination, Consideration Transferred | $ 980,000 | ||||
Payments to Acquire Businesses, Gross | 380,000 | ||||
Minimum [Member] | |||||
Operating Leases, Rent Expense, Minimum Rentals | 247 | ||||
Maximum [Member] | |||||
Operating Leases, Rent Expense, Minimum Rentals | $ 15,301 |
INCOME TAX (Details Textual)
INCOME TAX (Details Textual) - USD ($) | Jun. 30, 2018 | Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2018 |
Description of New Tax Rate on Certain Off-Shore Earnings | The Tax Act imposes a one-time transition tax on deemed repatriation of historical earnings of foreign subsidiaries, and future foreign earnings are subject to U.S. taxation. The change has caused the Company to record a one-time income tax payable to be paid over 8 years. The one-time transition tax was calculated using the Company’s total post-1986 overseas earnings and profits based on a rate of 15.5% for the Company’s cash and cash equivalents and a rate of 8% for its other assets. | ||||||
Income Tax Expense (Benefit) | $ (578,000) | $ 0 | $ 1,251,000 | $ 0 | $ 1,400,000 | ||
Accrued Income Taxes | 1,400,000 | ||||||
Deferred Tax Liabilities, Gross | 1,892,000 | 1,892,000 | |||||
Transition Tax Liability | 1,687,000 | 1,687,000 | |||||
Accrued Income Taxes, Current | 885,000 | 885,000 | 112,000 | ||||
Accrued Income Taxes, Noncurrent | 1,591,000 | $ 1,591,000 | $ 1,288,000 | ||||
Current Income Tax Expense (Benefit) | $ 492,000 | ||||||
Effective Income Tax Rate Reconciliation, Percent | 14.00% | 19.00% | 14.00% | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 21.00% | 28.00% | ||||
Transition Tax Liability [Member] | |||||||
Income Tax Expense (Benefit) | $ 578,000 |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) | Feb. 07, 2019$ / shares | Dec. 11, 2018USD ($)ft²workers | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($)ft² | Nov. 01, 2018$ / shares |
Dividends Payable, Amount Per Share | $ / shares | $ 0.05 | ||||
Area of Land | ft² | 54,000 | ||||
Number of Workers | workers | 500 | ||||
SCBHK Credit Facility [Member] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | $ 380,000 | ||||
Garment Manufacturing Factory Facility [Member] | |||||
Business Combination, Consideration Transferred | $ 980,000 | ||||
Area of Land | ft² | 100,900 | ||||
Primary Factory Facility [Member] | |||||
Business Combination, Consideration Transferred | $ 380,000 | ||||
Satellite Factory Facility [Member] | |||||
Business Combination, Consideration Transferred | $ 300,000 | ||||
Area of Land | ft² | 10,800 | ||||
Possession of Housing Accommodations [Member] | |||||
Business Combination, Consideration Transferred | $ 300,000 | ||||
Subsequent Event [Member] | SCBHK Credit Facility [Member] | |||||
Dividends Payable, Date to be Paid | Feb. 27, 2019 | ||||
Dividends Payable, Date of Record | Feb. 19, 2019 | ||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | $ 3,000,000 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.30% | ||||
Dividends Payable, Amount Per Share | $ / shares | $ 0.05 | ||||
Subsequent Event [Member] | SCBHK Credit Facility [Member] | Treasure Success International [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,000,000 |