{"url_path":"/sec/jrsh/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Statements and Supplementary Data.**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-18","source_url":"https://www.sec.gov/Archives/edgar/data/1696558/0001213900-26-070227-index.html","accession_number":"0001213900-26-070227","cik":"0001696558","ticker":"JRSH","issuer_name":"Jerash Holdings (US), Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1696558/0001213900-26-070227-index.html","primary_entity_key":"0001696558","primary_entity_name":"Jerash Holdings (US), Inc."},"word_count":12995,"has_tables":true,"body_markdown":"**Item 8. Financial Statements and Supplementary Data.**\n\n \n\n**JERASH HOLDINGS (US), INC.**\n\n**INDEX TO CONSOLIDATED FINANCIAL STATEMENTS**\n\n**TABLE OF CONTENTS**\n\n \n\n    **Page**\n\n[Report of Independent Registered Public Accounting Firm (PCAOB ID # 199)](#f_006)   F-2\n\n[Consolidated Balance Sheets as of March 31, 2026 and 2025](#f_001)   F-3\n\n[Consolidated Statements of Operations and Comprehensive Income (Loss) for the Fiscal Years Ended March 31, 2026 and 2025](#f_002)   F-4\n\n[Consolidated Statements of Changes in Equity for the Fiscal Years Ended March 31, 2026 and 2025](#f_003)   F-5\n\n[Consolidated Statements of Cash Flows for the Fiscal Years Ended March 31, 2026 and 2025](#f_004)   F-6\n\n[Notes to Consolidated Financial Statements](#f_005)   F-7–F-27\n\n \n\nF-1\n\n \n\n \n\n**REPORT\nOF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**\n\n** **\n\nTo the Stockholders and Board of Directors of\n\nJerash Holdings (US), Inc.\n\n \n\n**Opinion on the Financial Statements**\n\n** **\n\nWe have audited the accompanying consolidated\nbalance sheets of Jerash Holdings (US), Inc. (the “Company”) as of March 31, 2026 and 2025, the related consolidated statements\nof operations and comprehensive income (loss), changes in equity and cash flows for each of the two years in the period ended March 31,\n2026, and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements\npresent fairly, in all material respects, the financial position of the Company as of March 31, 2026 and 2025, and the results of its\noperations and its cash flows for each of the two years in the period ended March 31, 2026, in conformity with accounting principles generally\naccepted in the United States of America.\n\n** **\n\n**Basis for Opinion**\n\n \n\nThese financial statements are the responsibility\nof the Company's management. Our responsibility is to express an opinion on the Company's financial statements based on our audits. We\nare a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (\"PCAOB\") and are\nrequired to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and\nregulations of the Securities and Exchange Commission and the PCAOB.\n\n \n\nWe conducted our audits in accordance with the\nstandards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial\nstatements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged\nto perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding\nof internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal\ncontrol over financial reporting. Accordingly, we express no such opinion.\n\n \n\nOur audits included performing procedures to assess\nthe risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond\nto those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.\nOur audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating\nthe overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.\n\n \n\n**Critical Audit Matters**\n\n \n\nCritical audit matters are matters arising from\nthe current period audit of the financial statements that were communicated or required to be communicated to the audit committee and\nthat: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,\nsubjective, or complex judgments. We determined that there are no critical audit matters.\n\n \n\n/s/ CBIZ CPAs P.C.\n\n \n\nCBIZ CPAs P.C.\n\n \n\nWe have served as the Company’s auditor\nsince 2016 (such date takes into account the acquisition of the attest business of Marcum llp\nby CBIZ CPAs P.C. effective November 1, 2024).\n\n** **\n\nCosta Mesa, CA\n\nJune 18, 2026\n\n** **\n\nF-2\n\n \n\n \n\n**JERASH HOLDINGS (US), INC.,**\n\n**AND SUBSIDIARIES**\n\n**CONSOLIDATED BALANCE SHEETS**\n\n \n\n  \nMarch 31,\n2026  \nMarch 31,\n2025 \n\n  \n   \n  \n\nASSETS \n   \n  \n\nCurrent Assets: \n   \n  \n\nCash and cash equivalents \n$10,764,576  \n$13,346,791 \n\nAccounts receivable, net \n 5,676,122  \n 3,076,074 \n\nInventories \n 29,956,361  \n 27,704,829 \n\nPrepaid expenses and other current assets \n 3,351,655  \n 3,648,321 \n\nAdvances to suppliers, net \n 8,639,635  \n 6,644,194 \n\nTotal Current Assets \n 58,388,349  \n 54,420,209 \n\n  \n    \n   \n\nRestricted cash - non-current \n 1,702,935  \n 1,717,248 \n\nLong-term deposits \n 834,686  \n 464,934 \n\nProperty, plant, and equipment, net \n 27,388,699  \n 25,023,681 \n\nGoodwill \n 499,282  \n 499,282 \n\nOperating lease right of use assets \n 1,038,563  \n 850,172 \n\nTotal Assets \n$89,852,514  \n$82,975,526 \n\n  \n    \n   \n\nLIABILITIES AND EQUITY \n    \n   \n\n  \n    \n   \n\nCurrent Liabilities: \n    \n   \n\nCredit facilities \n$4,902,996  \n$4,512,462 \n\nAccounts payable \n 7,167,019  \n 6,507,308 \n\nAccrued expenses \n 5,528,165  \n 4,342,436 \n\nIncome tax payable - current \n 1,331,765  \n 1,305,386 \n\nUncertain tax provision \n \n-\n  \n 175,290 \n\nOther payables \n 2,092,183  \n 2,149,185 \n\nDeferred revenue \n 241,357  \n 487,004 \n\nBank loan - current \n 58,766  \n \n-\n \n\nOperating lease liabilities - current \n 319,910  \n 339,699 \n\nTotal Current Liabilities \n 21,642,161  \n 19,818,770 \n\n  \n    \n   \n\nDeferred tax liabilities, net \n 73  \n 120 \n\nOperating lease liabilities - non-current \n 539,183  \n 287,527 \n\nBank Loan -non current \n 2,762,034  \n \n-\n \n\nTotal Liabilities \n 24,943,451  \n 20,106,417 \n\n  \n    \n   \n\nCommitments and Contingencies (Note 16) \n \n \n  \n \n \n \n\n  \n    \n   \n\nEquity \n    \n   \n\nPreferred stock, $0.001 par value; 500,000 shares authorized; none issued and outstanding \n \n-\n  \n \n-\n \n\nCommon stock, $0.001 par value; 30,000,000 shares authorized; 12,939,418 shares issued; 12,699,940 shares outstanding as of March 31, 2026 and 2025, respectively \n 12,939  \n 12,939 \n\nAdditional paid-in capital \n 26,579,006  \n 25,674,835 \n\nTreasury stock, 239,478 shares \n (1,169,046) \n (1,169,046)\n\nStatutory reserve \n 413,821  \n 413,821 \n\nRetained earnings \n 39,394,513  \n 38,396,901 \n\nAccumulated other comprehensive loss \n (464,753) \n (513,122)\n\nTotal Jerash Holdings (US), Inc. Stockholders’ Equity \n 64,766,480  \n 62,816,328 \n\n  \n    \n   \n\nNoncontrolling interest \n 142,583  \n 52,781 \n\nTotal Equity \n 64,909,063  \n 62,869,109 \n\n  \n    \n   \n\nTotal Liabilities and Equity \n$89,852,514  \n$82,975,526 \n\n  \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-3\n\n \n\n \n\n**JERASH HOLDINGS (US), INC.,**\n\n**AND SUBSIDIARIES**\n\n**CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)**\n\n \n\n \n \nFor the Fiscal Year Ended\nMarch 31,\n \n\n \n \n2026\n \n \n2025\n \n\n \n \n \n \n \n \n \n\nRevenue, net\n \n$\n166,263,870\n \n \n$\n145,812,006\n \n\nCost of goods sold\n \n \n139,480,501\n \n \n \n123,492,561\n \n\nGross Profit\n \n \n26,783,369\n \n \n \n22,319,445\n \n\n \n \n \n \n \n \n \n \n \n\nSelling, general, and administrative expenses\n \n \n19,551,781\n \n \n \n19,114,456\n \n\nStock-based compensation expenses\n \n \n904,171\n \n \n \n1,758,146\n \n\nTotal Operating Expenses\n \n \n20,455,952\n \n \n \n20,872,602\n \n\n \n \n \n \n \n \n \n \n \n\nIncome from Operations\n \n \n6,327,417\n \n \n \n1,446,843\n \n\n \n \n \n \n \n \n \n \n \n\nOther Income (Expenses):\n \n \n \n \n \n \n \n \n\nInterest expenses\n \n \n(1,625,387\n)\n \n \n(1,719,760\n)\n\nOther income, net\n \n \n45,416\n \n \n \n424,108\n \n\nTotal other expenses, net\n \n \n(1,579,971\n)\n \n \n(1,295,652\n)\n\n \n \n \n \n \n \n \n \n \n\nNet income before provision for income taxes\n \n \n4,747,446\n \n \n \n151,191\n \n\n \n \n \n \n \n \n \n \n \n\nIncome tax expenses\n \n \n1,120,044\n \n \n \n991,120\n \n\n \n \n \n \n \n \n \n \n \n\nNet income (loss)\n \n \n3,627,402\n \n \n \n(839,929\n)\n\n \n \n \n \n \n \n \n \n \n\nNet income attributable to noncontrolling interest\n \n \n89,802\n \n \n \n8,440\n \n\nNet income (loss) attributable to Jerash Holdings (US), Inc.’s Common Stockholders\n \n$\n3,537,600\n \n \n$\n(848,369\n)\n\n \n \n \n \n \n \n \n \n \n\nNet income (loss)\n \n$\n3,627,402\n \n \n$\n(839,929\n)\n\nOther Comprehensive Income (Loss):\n \n \n \n \n \n \n \n \n\nForeign currency translation gain (loss)\n \n \n48,369\n \n \n \n(20,803\n)\n\nTotal Comprehensive Income (Loss)\n \n \n3,675,771\n \n \n \n(860,732\n)\n\nComprehensive income attributable to noncontrolling interest\n \n \n89,802\n \n \n \n8,440\n \n\nComprehensive Income (Loss) Attributable to Jerash Holdings (US), Inc.’s Common Stockholders\n \n$\n3,585,969\n \n \n$\n(869,172\n)\n\n \n \n \n \n \n \n \n \n \n\nEarnings (Loss) Per Share Attributable to Common Stockholders:\n \n \n \n \n \n \n \n \n\nBasic\n \n$\n0.28\n \n \n$\n(0.07\n)\n\nDiluted\n \n$\n0.27\n \n \n$\n(0.07\n)\n\n \n \n \n \n \n \n \n \n \n\nWeighted Average Number of Shares\n \n \n \n \n \n \n \n \n\nBasic\n \n \n12,699,940\n \n \n \n12,329,021\n \n\nDiluted\n \n \n13,188,685\n \n \n \n12,329,021\n \n\n \n \n \n \n \n \n \n \n \n\nDividend per share\n \n$\n0.20\n \n \n$\n0.20\n \n\n \n\nThe\naccompanying notes are an integral part of these consolidated financial statements.\n\n \n\nF-4\n\n \n\n \n\n**JERASH HOLDINGS (US), INC.,**\n\n**AND SUBSIDIARIES**\n\n**CONSOLIDATED STATEMENTS OF CHANGES\nIN EQUITY**\n\n**FOR THE FISCAL YEARS ENDED MARCH\n31, 2026 AND 2025**\n\n \n\n \n \n \n \n \n \n \n \nAdditional\n \n \n \n \n \n \n \n \n \n \n \nAccumulated Other\n \n \n \n \n \n \n \n\n \n \nPreferred Stock\n \n \nCommon Stock\n \n \nPaid-in\n \n \nTreasury\n \n \nStatutory\n \n \nRetained\n \n \nComprehensive\n \n \nNoncontrolling\n \n \nTotal\n \n\n \n \nShares\n \n \nAmount\n \n \nShares\n \n \nAmount\n \n \nCapital\n \n \nStock\n \n \nReserve\n \n \nEarnings\n \n \nIncome (Loss)\n \n \ninterest\n \n \nEquity\n \n\nBalance at March 31, 2024\n \n \n\n-\n\n \n \n$\n\n-\n\n \n \n \n12,534,318\n \n \n$\n12,534\n \n \n$\n23,917,094\n \n \n$\n(1,169,046\n)\n \n$\n413,821\n \n \n$\n41,704,238\n \n \n$\n(492,319\n)\n \n$\n44,341\n \n \n$\n64,430,663\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nStock-based compensation expense for the restricted stock units issued under stock incentive plan\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n1,758,146\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n1,758,146\n \n\nIssuance of common stocks upon vesting of restricted stock units\n \n \n-\n \n \n \n\n-\n\n \n \n \n405,100\n \n \n \n405\n \n \n \n(405\n)\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n\nNet (loss) profit\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n(848,369\n)\n \n \n\n-\n\n \n \n \n8,440\n \n \n \n(839,929\n)\n\nDividend payments\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n(2,458,968\n)\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n(2,458,968\n)\n\nForeign currency translation loss\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n(20,803\n)\n \n \n\n-\n\n \n \n \n(20,803\n)\n\n \n \n \n**　**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at March 31, 2025\n \n \n\n-\n\n \n \n$\n\n-\n\n \n \n \n12,939,418\n \n \n$\n12,939\n \n \n$\n25,674,835\n \n \n$\n(1,169,046\n)\n \n$\n413,821\n \n \n$\n38,396,901\n \n \n$\n(513,122\n)\n \n$\n52,781\n \n \n$\n62,869,109\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at March 31, 2025\n \n \n\n-\n\n \n \n$\n\n-\n\n \n \n \n12,939,418\n \n \n$\n12,939\n \n \n$\n25,674,835\n \n \n$\n(1,169,046\n)\n \n$\n413,821\n \n \n$\n38,396,901\n \n \n$\n(513,122\n)\n \n$\n52,781\n \n \n$\n62,869,109\n \n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nStock-based compensation expense for the restricted stock units issued under stock incentive plan\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n904,171\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n904,171\n \n\nNet profit\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n3,537,600\n \n \n \n\n-\n\n \n \n \n89,802\n \n \n \n3,627,402\n \n\nDividend payments\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n(2,539,988\n)\n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n(2,539,988\n)\n\nForeign currency translation gain\n \n \n-\n \n \n \n\n-\n\n \n \n \n-\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n\n-\n\n \n \n \n48,369\n \n \n \n\n-\n\n \n \n \n48,369\n \n\n \n \n \n**　**\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n\nBalance at March 31, 2026\n \n \n\n-\n\n \n \n$\n\n-\n\n \n \n \n12,939,418\n \n \n$\n12,939\n \n \n$\n26,579,006\n \n \n$\n(1,169,046\n)\n \n$\n413,821\n \n \n$\n39,394,513\n \n \n$\n(464,753\n)\n \n$\n142,583\n \n \n$\n64,909,063\n \n\n \n\nThe accompanying notes are an integral\npart of these consolidated financial statements.\n\n \n\nF-5\n\n \n\n \n\n**JERASH HOLDINGS (US), INC.,**\n\n**AND SUBSIDIARIES**\n\n**CONSOLIDATED STATEMENTS OF CASH FLOWS**\n\n \n\n  \nFor the Fiscal Year Ended\nMarch 31, \n\n  \n2026  \n2025 \n\nCASH FLOWS FROM OPERATING ACTIVITIES \n   \n  \n\nNet income (loss) \n$3,627,402  \n$(839,929)\n\nAdjustments to reconcile net income (loss) to net cash provided by operating activities: \n    \n   \n\nDepreciation \n 3,074,963  \n 2,681,709 \n\nStock-based compensation expenses \n 904,171  \n 1,758,146 \n\nCredit loss (recovery), net \n 73,479  \n (17,054)\n\nAmortization of operating lease right-of-use assets \n 588,463  \n 591,961 \n\nUncertain tax provision \n \n-\n  \n 175,290 \n\n  \n    \n   \n\nChanges in operating assets: \n    \n   \n\nAccounts receivable \n (2,673,527) \n 2,358,493 \n\nInventories \n (2,251,532) \n (463,257)\n\nPrepaid expenses and other current assets \n 296,668  \n (902,253)\n\nAdvances to suppliers \n (1,995,441) \n (3,558,057)\n\nDeferred tax assets \n \n-\n  \n 158,329 \n\nChanges in operating liabilities: \n    \n   \n\nAccounts payable \n 659,711  \n 167,071 \n\nAccrued expenses \n 1,185,730  \n 166,593 \n\nOther payables \n (57,002) \n (85,685)\n\nDeferred revenue \n (245,647) \n 476,804 \n\nOperating lease liabilities \n (544,988) \n (544,616)\n\nIncome tax payable \n (148,106) \n (759,037)\n\nDeferred tax liabilities \n (47) \n 120 \n\nNet cash provided by operating activities \n 2,494,297  \n 1,364,628 \n\n  \n    \n   \n\nCASH FLOWS FROM INVESTING ACTIVITIES \n    \n   \n\nPurchases of property, plant and equipment \n (5,128,453) \n (951,112)\n\nPayments for construction of properties \n \n-\n  \n (1,089,484)\n\nPayment for long-term deposits \n (665,825) \n (329,326)\n\nNet cash used in investing activities \n (5,794,278) \n (2,369,922)\n\n  \n    \n   \n\nCASH FLOWS FROM FINANCING ACTIVITIES \n    \n   \n\nDividend payments \n (2,539,988) \n (2,458,968)\n\nRepayment of short-term loan \n (21,723,106) \n (14,103,935)\n\nProceeds from short-term loan \n 22,113,640  \n 18,616,397 \n\nProceeds from long-term loan \n 2,820,800  \n \n-\n \n\nNet cash provided by financing activities \n 671,346  \n 2,053,494 \n\n  \n    \n   \n\nEFFECT OF EXCHANGE RATE CHANGES ON CASH, CASH EQUIVALENTS AND RESTRICTED CASH \n 32,107  \n (21,028)\n\n  \n    \n   \n\nNET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH \n (2,596,528) \n 1,027,172 \n\n  \n    \n   \n\nCASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF THE YEAR \n 15,064,039  \n 14,036,867 \n\n  \n    \n   \n\nCASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF THE YEAR \n$12,467,511  \n$15,064,039 \n\n  \n    \n   \n\nCASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF THE YEAR \n$12,467,511  \n$15,064,039 \n\nLESS: NON-CURRENT RESTRICTED CASH \n 1,702,935  \n 1,717,248 \n\nCASH AND CASH EQUIVALENTS END OF THE\nYEAR \n$10,764,576  \n$13,346,791 \n\n  \n    \n   \n\nSupplemental disclosure information: \n    \n   \n\nCash paid for interest \n$1,625,387  \n$1,719,760 \n\nIncome tax paid \n$1,272,591  \n$1,398,684 \n\n  \n    \n   \n\nNon-cash investing and financing activities \n    \n   \n\nEquipment obtained by utilizing long-term deposit \n$296,098  \n$667,567 \n\nOperating lease right of use assets obtained in exchange for operating lease obligations \n$765,303  \n$186,726 \n\n \n\nThe accompanying notes are an integral part of these consolidated financial statements.\n\nF-6\n\n \n\n** **\n\n**JERASH HOLDINGS (US), INC.**\n\n**NOTES TO CONSOLIDATED FINANCIAL STATEMENTS**\n\n \n\n**NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS**\n\n \n\nJerash Holdings (US), Inc. (“Jerash Holdings”)\nwas incorporated under the laws of the State of Delaware on January 20, 2016. Jerash Holdings is a holding company with no operations.\nJerash Holdings and its subsidiaries are herein collectively referred to as the “Company.”\n\n \n\nJerash Garments and Fashions Manufacturing Company\nLimited (“Jerash Garments”) is a wholly owned subsidiary of Jerash Holdings and was established in Amman, the Hashemite Kingdom\nof Jordan (“Jordan”), as a limited liability company on November 26, 2000 with a declared capital of 150,000 Jordanian Dinar\n(“JOD”) (approximately US$212,000).\n\n \n\nJerash for Industrial Embroidery Company (“Jerash Embroidery”)\nand Chinese Garments and Fashions Manufacturing Company Limited (“Chinese Garments”) were both established in Amman, Jordan,\nas limited liability companies on March 11, 2013 and June 13, 2013, respectively, each with a declared capital of JOD 50,000 (approximately\nUS$71,000). Jerash Embroidery and Chinese Garments are wholly owned subsidiaries of Jerash Garments. As of March 31, 2026, the principal\nactivities of Jerash Embroidery and Chinese Garment were transferred to Jerash Garment, and Jerash Embroidery and Chinese Garments\ncurrently have no operation.\n\n \n\nAl-Mutafaweq Co. for Garments Manufacturing Ltd.\n(“Paramount”) is a contract garment manufacturer that was established in Amman, Jordan, as a limited liability company on\nOctober 24, 2004 with a declared capital of JOD 100,000 (approximately US$141,000). On December 11, 2018, Jerash Garments and the sole\nshareholder of Paramount entered into an agreement pursuant to which Jerash Garments acquired all of the outstanding shares of stock of\nParamount. Jerash Garments assumed ownership of all of the machinery and equipment owned by Paramount. Paramount had no other significant\nassets or liabilities and no operating activities or employees at the time of this acquisition, so this transaction was accounted for\nas an asset acquisition. As of June 18, 2019, Paramount became a subsidiary of Jerash Garments. As of March 31, 2026, the principal activities\nof Paramount were transferred to Jerash Garment, and Paramount currently has no operation.\n\n \n\nJerash The First for Medical Supplies Manufacturing\nCompany Limited (“Jerash The First”) was established in Amman, Jordan, as a limited liability company on July 6, 2020, with\na registered capital of JOD 150,000 (approximately US$212,000). Jerash The First was engaged in the production of medical supplies in\nJordan and is a wholly owned subsidiary of Jerash Garments.\n\n \n\nMustafa and Kamal Ashraf Trading Company (Jordan)\nfor the Manufacture of Ready-Make Clothes LLC (“MK Garments”) is a garment manufacturer that was established in Amman, Jordan,\nas a limited liability company on January 23, 2003 with a declared capital of JOD 100,000 (approximately US$141,000). On June 24, 2021,\nJerash Garments and the sole shareholder of MK Garments entered into an agreement, pursuant to which Jerash Garments acquired all of the\noutstanding stock of MK Garments. As of October 7, 2021, MK Garments became a subsidiary of Jerash Garments.\n\n \n\nKawkab Venus Dowalyah Lisenaet Albesah (“Kawkab\nVenus”) was established in Amman, Jordan, as a limited liability company on January 15, 2015 with a declared capital of JOD 50,000\n(approximately US$71,000). It holds land with factory premises, which are leased to MK Garments. On July 14, 2021, Jerash Garments and\nthe sole shareholder of Kawkab Venus entered into an agreement, pursuant to which Jerash Garments acquired all of the outstanding stock\nof Kawkab Venus. Apart from the land and factory premises, Kawkab Venus had no other significant assets or liabilities and no operation\nactivities or employees at the time of acquisition, so the acquisition was accounted for as an asset acquisition. As of August 21, 2022,\nKawkab Venus became a subsidiary of Jerash Garments.\n\n \n\nF-7\n\n \n\n \n\n**NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS (CONTINUED)**\n\n \n\nTreasure Success International Limited (“Treasure\nSuccess”) was organized on July 5, 2016 in Hong Kong Special Administrative Region of the People’s Republic of China (“Hong\nKong” or “HK”), as a limited liability company for the primary purpose of employing staff from the People’s Republic\nof China (“China”) to support Jerash Garments’ operations and is a wholly owned subsidiary of Jerash Holdings.\n\n \n\nEver Winland Limited (“Ever Winland”) was organized in\nHong Kong, as a limited liability company. It held office premises, which were leased to Treasure Success. On June 22, 2022, Treasure\nSuccess and the shareholders of Ever Winland entered into an agreement, pursuant to which Treasure Success acquired all of the outstanding\nstock of Ever Winland. Apart from the office premises used by Treasure Success, Ever Winland had no other significant assets or liabilities\nand no operating activities or employees at the time of this acquisition, so this transaction was accounted for as an asset acquisition.\nAs of August 29, 2022, Ever Winland became a subsidiary of Treasure Success. The office premises were transferred to Treasure Success\nas of January 8, 2026.\n\n  \n\nJ&B International Limited (“J&B”)\nis a joint venture company established in Hong Kong on January 10, 2023. On March 20, 2023, Treasure Success and P. T. Eratex (Hong Kong)\nLimited (“Eratex”) entered into a Joint Venture and Shareholders’ Agreement, pursuant to which Treasure Success acquired\n51% of the equity interests in J&B on April 11, 2023. The declared capital is 500,000 Hong Kong Dollars (“HKD”) (approximately\n$64,000). J&B engaged in the garment trading and manufacturing business for orders from customers. On June 16, 2025, Treasure Success\nand Eratex attended a meeting of shareholders of J&B and approved the termination of J&B’s business operations and the dissolution\nof J&B, which is expected to complete in April 2027.\n\n \n\nJerash Newtech (Hong Kong) Holdings Limited (“Jerash\nNewtech”) is a joint venture company established in Hong Kong on November 3, 2023. On October 10, 2023, Treasure Success and Newtech\nTextile (HK) Limited entered into a Joint Venture and Shareholder’s Agreement to establish a new joint venture for the establishment\nof a fabric facility in Jordan. On November 3, 2023, Jerash Newtech was established according to the aforementioned Joint Venture and\nShareholder’s Agreement. Treasure Success owns 51% of the equity interests in Jerash Newtech. The declared capital of Jerash Newtech\nis US$100,000. On August 20, 2025, Treasure Success and Newtech Textile (HK) Limited attended a meeting of shareholders of Jerash Newtech\nand agreed to and authorized an application to be made for the deregistration of Jerash Newtech.\n\n \n\nJiangmen Treasure Success Business Consultancy\nCompany Limited (“Jiangmen Treasure Success”) was organized on August 28, 2019 under the laws of China in Jiangmen City of\nGuangdong Province in China with a total registered capital of HKD15 million (approximately $1.9 million) to provide support in sales\nand marketing, sample development, merchandising, procurement, and other areas. Treasure Success owns 100% of the equity interests in\nJiangmen Treasure Success.\n\n \n\nF-8\n\n \n\n \n\n**NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS\n(CONTINUED)**\n\n \n\nJerash Supplies, LLC (“Jerash Supplies”)\nwas formed under the laws of the State of Delaware on November 20, 2020. Jerash Supplies is engaged in the trading of personal protective\nequipment products and is a wholly owned subsidiary of Jerash Holdings.\n\n \n\nThe Company is engaged primarily in the manufacturing\nand exporting of customized, ready-made sportswear and outerwear produced in its facilities in Jordan and sold in the United States, Jordan,\nand other countries.\n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES**\n\n \n\n**Basis of Presentation and Principles of Consolidation**\n\n \n\nThe Company’s consolidated financial statements\nare prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and\npursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”).\n\n \n\nThe consolidated financial statements include\nthe financial statements of Jerash Holdings, its wholly owned subsidiaries, and two non-wholly owned subsidiaries.\n\n \n\nNon-wholly owned subsidiaries are entities that\nthe reporting parent entity does not own equity interests in full. Noncontrolling interest is evaluated with a depiction of the portion\nof a non-wholly owned subsidiary’s net assets, net income, and net comprehensive income that is attributable to holders of equity-classified\nownership interests other than the reporting parent entity. As mentioned in Note 1, the Company holds 51% of equity interest in J&B\nand Jerash Newtech through its wholly owned subsidiary, Treasure Success. The Company consolidates J&B and Jerash Newtech and reports\nnoncontrolling interest to reflect the portion of their equity that is not attributable to the Company as the controlling shareholder.\nAs of March 31, 2026 and 2025, noncontrolling interest was $142,583 and $52,781, respectively.\n\n \n\nAll significant intercompany balances and transactions\nhave been eliminated in consolidation.\n\n \n\n**Use of Estimates**\n\n \n\nThe preparation of the consolidated financial\nstatements, in conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets\nand liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported\namounts of revenue and expenses during the reporting period. Actual results could differ from these estimates.\n\n \n\n**Cash and Cash Equivalents**\n\n \n\nThe Company’s cash consists of cash on hand\nand cash deposited in financial institutions. The Company considers all highly liquid investment instruments with an original maturity\nof three months or less from the original date of purchase to be cash equivalents. All cash and cash equivalents are unrestricted as to\nwithdrawal and use.\n\n \n\n**Restricted Cash**\n\n \n\nRestricted cash consists of cash used as security\ndeposits to obtain credit facilities from a bank and to secure customs clearance, labor import requirements, and other requirements of\nlocal regulations. The Company is required to keep certain amounts on deposit that are subject to withdrawal restrictions. These security\ndeposits at the bank are refundable only when the bank facilities are terminated. The restricted cash is classified as a current asset\nif the Company intends to terminate these bank facilities within one year, and as a non-current asset if otherwise.\n\n \n\nF-9\n\n \n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**\n\n \n\n**Accounts Receivable, Net**\n\n \n\nAccounts receivable are recognized and carried\nat the original invoiced amount less an estimated allowance for credit loss. The Company usually grants extended payment terms to customers\nwith good credit standing and determines the adequacy of credit losses based on the historical level of credit loss, current economic\ntrends, and reasonable and supportable forecasts that affect the collectability of the future cash flows.\n\n \n\n**Inventories**\n\n \n\nInventories are stated at the lower of cost or\nnet realizable value. Inventories include the cost of raw materials, freight, direct labor, and related production overhead. The cost\nof inventories is determined using the First-in, First-out method. The Company periodically reviews its inventories for excess or slow-moving\nitems and makes provisions as necessary to properly reflect inventory value.\n\n** **\n\n**Advances to Suppliers, Net**\n\n \n\nAdvances to suppliers consist of balances paid\nto suppliers for services or materials purchased that have not been provided or received. Advances to suppliers for services and materials\nare short-term in nature. Advances to suppliers are reviewed periodically to determine whether their carrying value has become impaired.\nThe Company considers the assets to be impaired if the performance of the suppliers becomes doubtful. At each reporting date, the Company\ngenerally determines the adequacy of allowance for impairment by evaluating all available information and then records specific allowances\nfor those advances based on the specific facts and circumstances.\n\n ** **\n\n**Credit Loss**\n\n \n\nThe Company maintains expected loss methodology\nthat is referred to as the current expected credit loss methodology. The expected credit loss impairment model requires the entity to\nrecognize its estimate of expected credit losses for affected financial assets using an allowance for credit losses and requires consideration\nof a broader range of reasonable and supportable information to inform credit loss estimates.\n\n \n\nThe Company’s accounts receivable and other\nreceivables, which are included in prepaid expenses and other current assets line items in the consolidated balance sheets, are within\nthe scope of ASC Topic 326. The Company measures expected credit losses of account receivables and other receivables, on a collective\nbasis when similar risk characteristics exist. The Company makes estimates of expected credit and collectability trends for the allowance\nfor credit losses based upon assessment of various factors, including historical experience, the age of the receivables, creditworthiness\nof the customers and other debtors, current economic conditions, reasonable and supportable forecasts of future economic conditions, and\nother factors that may affect its ability to collect from the customers and other debtors. The Company also provides specific provisions\nfor allowance when facts and circumstances indicate that the receivable is unlikely to be collected.\n\n \n\nExpected credit losses are included in general\nand administrative expenses in the consolidated statements of operations and comprehensive income (loss). After all attempts to collect\na receivable have failed, the receivable is written off against the allowance.\n\n \n\n**Property, Plant, and Equipment, Net**\n\n \n\nProperty, plant, and equipment are recorded at\ncost, reduced by accumulated depreciation and amortization. Depreciation and amortization expense related to property, plant, and equipment\nis computed using the straight-line method based on the estimated useful lives of the assets, or in the case of leasehold improvements,\nthe shorter of the initial lease term or the estimated useful life of the improvements. The useful life and depreciation method are reviewed\nperiodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items\nof property, plant, and equipment. The estimated useful lives of depreciation and amortization of the principal classes of assets are\nas follows:\n\n \n\n   Useful life\n\nLand  Infinite\n\nProperty and buildings  15-25 years\n\nEquipment and machinery  3-5 years\n\nOffice and electronic equipment  3-5 years\n\nAutomobiles  5 years\n\nLeasehold improvements  Lesser of useful life and lease term\n\n \n\nF-10\n\n \n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**\n\n \n\n**Property, Plant, and Equipment, Net (Continued)**\n\n \n\nExpenditures for maintenance and repairs, which\ndo not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments\nthat substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation or amortization of\nassets retired or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of\noperations and comprehensive income (loss).\n\n \n\n**Impairment of Long-Lived Assets**\n\n \n\nThe Company assesses its long-lived assets, including\nproperty and equipment, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group\nmay not be recoverable. Factors that may indicate potential impairment include a significant underperformance relative to the historical\nor projected future operating results or a significant negative industry or economic trend. Recoverability of assets to be held and used\nis measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by that\nasset. If impairment is indicated, a loss is recognized for any excess of the carrying value over the estimated fair value of the asset.\nThe fair value is estimated based on the discounted future cash flows or comparable market values, if available. The Company did not record\nany impairment loss during the fiscal years ended March 31, 2026 and 2025.\n\n \n\n**Goodwill**\n\n \n\nGoodwill represents the excess purchase price\npaid over the fair value of the net assets of acquired companies. Goodwill is not amortized. As of March 31, 2026 and 2025, the carrying\namount of goodwill was $499,282. Goodwill is tested for impairment on an annual basis, or in interim periods if indicators of potential\nimpairment exist, based on the one reporting unit. The Company has the option to perform a qualitative assessment to determine whether\nit is necessary to perform the quantitative goodwill impairment test. When performing the quantitative impairment test, the Company compares\nthe fair value of its only reporting unit with the carrying amounts. The Company would recognize an impairment charge for the amount by\nwhich the carrying amount exceeds the reporting unit’s fair value. The Company concluded that no impairment of its goodwill occurred\nfor the fiscal years ended March 31, 2026 and 2025.\n\n \n\n**Revenue Recognition**\n\n \n\nSubstantially all of the Company’s revenue\nis derived from product sales, which consist of sales of the Company’s customized ready-made outerwear for large brand-name retailers.\nThe Company considers purchase orders to be a contract with a customer. Contracts with customers are considered to be short-term when\nthe time between order confirmation and satisfaction of the performance obligations is equal to or less than one year. Virtually all of\nthe Company’s contracts are short-term. The Company has minimal incremental costs of obtaining a contract, which are expensed when\nincurred. The Company recognizes revenue for the transfer of promised goods to customers in an amount that reflects the consideration\nto which the Company expects to be entitled in exchange for those goods. The Company typically satisfies its performance obligations in\ncontracts with customers upon shipment of the goods. Generally, payment is due from customers within 14 to 150 days of the invoice date.\nThe contracts do not have significant financing components. Shipping and handling costs associated with outbound freight from Jordan export\ndock are not an obligation of the Company. Returns and allowances are not a significant aspect of the revenue recognition process as historically\nthey have been immaterial.\n\n \n\nThe Company also derives revenue from rendering\ncutting and making services to other apparel vendors who subcontract orders to the Company. Revenue is recognized when the service is\nrendered. All of the Company’s contracts have a single performance obligation satisfied at a point in time and the transaction price\nis stated in the contract, usually as a price per unit. All estimates are based on the Company’s historical experience, complete\nsatisfaction of the performance obligation, and the Company’s best judgment at the time the estimate is made. Historically, sales\nreturns have not significantly impacted the Company’s revenue.\n\n \n\nF-11\n\n \n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**\n\n** **\n\n**Revenue Recognition (Continued)**\n\n \n\nThe Company applies the “distinct”\nguidance in ASC 606-10-25-19 through ASC 606-10-25-22 to identify the specified goods or services. The Company evaluates\nthe indicators in ASC 606-10-55-39 along with all relevant facts and circumstances in relation to our assessment. As the Company\nis primarily responsible for fulfilling the promise to provide the specified good and service, the Company has inventory risk before the\nspecified good or service has been transferred to a customer, or after transfer of control to the customer; and the Company has discretion\nin establishing the prices for the specified goods or service, the Company concluded that it is the principal of the sales transactions\nand revenue should be recognized on a gross basis.\n\n \n\nThe Company does not have any contract assets\nsince the Company recognizes accounts receivable and revenue for the transfer of promised goods to customer in an amount that reflects\nthe consideration to which the Company expects to be entitled in exchange for those goods. The Company has an unconditional right to consideration\nwhen the Company has satisfied its performance obligation and payment to the accounts receivable from customers is not contingent on a\nfuture event. The Company had contract liabilities of $241,357 and $487,004 as of March 31, 2026 and 2025, respectively. As of March 31,\n2026, $241,357 deferred revenue was expected to be recognized within fiscal year 2027.\n\n \n\n**Segment**\n\n \n\nThe Company has one revenue generating reportable\ngeographic segment under ASC Topic 280 “Segment Reporting” and derives its sales primarily from its sales of customized ready-made\nouterwear. Chief Operational Decision Makers (“CODM”), including Chief Executive Officer and Chief Financial Officer, are\nmaking operating decisions and assessing performance as the source for determining the Company’s reportable segments. CODM reviews\noperation results on the consolidated revenue, gross profit, selling, general, and administrative expenses, interest expenses, stock-based\ncompensation expense, and net income or loss regularly. In selling, general, and administration expense, CODM reviews staff payroll and\nother related expenses, inventory export and related costs, depreciation, and others major items. The Company believes disaggregation\nof revenue by geographic region best depicts the nature, amount, timing, and uncertainty of its revenue and cash flows (see “Note\n15—Segment Reporting”).\n\n \n\n**Shipping and Handling**\n\n \n\nProceeds collected from customers for shipping\nand handling costs are included in revenue. Shipping and handling costs are expensed as incurred and are included in operating expenses,\nas a part of selling, general, and administrative expenses. Total shipping and handling expenses were $2,783,046 and $2,991,097 for the\nfiscal years ended March 31, 2026 and 2025, respectively.\n\n \n\n**Income and Sales Taxes**\n\n \n\nThe Company is subject to income taxes on an entity\nbasis on income arising in or derived from the tax jurisdiction in which each entity is domiciled. Jerash Holdings and Jerash Supplies\nare incorporated/formed in the State of Delaware and are subject to federal income tax in the United States of America. Treasure Success,\nEver Winland, J&B, and Jerash Newtech are registered in Hong Kong and are subject to profits tax in Hong Kong. Jiangmen Treasure Success\nis incorporated in China and is subject to corporate income tax in China. Jerash Garments, Jerash Embroidery, Chinese Garments, Paramount,\nJerash The First, MK Garments, and Kawkab Venus are subject to income tax in Jordan, unless an exemption is granted. In accordance with\nDevelopment Zone law, Jerash Garments and its subsidiaries were subject to corporate income tax in Jordan at a rate of 20% plus a 1% social\ncontribution effective from January 1, 2024. Effective from October 1, 2025, Jerash Garments has been granted tax concession at a corporate\nincome tax rate 10% plus a 1% social contribution in accordance with the Jordanian Income Tax Law.\n\n \n\nJerash Garments and its subsidiaries are subject\nto local sales tax of 16% on purchases. Jerash Garments was granted a sales tax exemption from the Jordanian Investment Commission for\nthe period from June 1, 2015 to June 1, 2018 that allowed Jerash Garments to make purchases with no sales tax charge. The exemption has\nbeen extended to February 5, 2027.\n\n \n\nF-12\n\n \n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**\n\n** **\n\n**Income and Sales Taxes (Continued)**\n\n \n\nThe Company accounts for income taxes in accordance\nwith ASC 740, “Income Taxes,” which requires the Company to use the asset and liability method of accounting for income taxes.\nUnder the asset and liability method, deferred income taxes are recognized for the tax consequences of temporary differences by applying\nenacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases\nof existing assets and liabilities and operating loss and tax credit carry forwards. Under this accounting standard, any changes in tax\nrates and the impact on deferred income taxes are recognized in the consolidated statements of operations and comprehensive income (loss)\nin the period when the new rates are enacted. A valuation allowance is recognized if it is more likely than not that some portion, or\nall of, a deferred tax asset will not be realized.\n\n ** **\n\nThe Company applies the provisions of ASC 740-10-50,\n“Accounting for Uncertainty in Income Taxes,” which provides clarification related to the process associated with accounting\nfor uncertain tax positions recognized in the financial statements. Audit periods remain open for review until the statute of limitations\nhas passed. The completion of review or the expiration of the statute of limitations for a given audit period could result in an adjustment\nto the Company’s liability for income taxes. Any such adjustment could be material to the Company’s results of operations\nfor any given quarterly or annual period based, in part, upon the results of operations for the given period. As of the date of this annual\nreport, the Company is current on all corporate, federal, and state tax returns. The Company’s policy is to record interest and\npenalties related to unrecognized tax benefits as income tax expense. As of March 31, 2026 and 2025, uncertain tax provision was $nil\nand $175,290, respectively.\n\n \n\n**Foreign Currency Translation**\n\n \n\nThe reporting currency of the Company is the U.S.\ndollar (“US$” or “$”). The Company uses JOD in its Jordan subsidiaries, HKD in Treasure Success, Ever Winland,\nJ&B, and Jerash Newtech, and Chinese Yuan (“CNY”) in Jiangmen Treasure Success as the functional currency of each above-mentioned\nentity. The assets and liabilities of the Company have been translated into US$ using the exchange rates in effect at the balance sheet\ndate, equity accounts have been translated at historical rates, and revenue and expenses have been translated into US$ using average exchange\nrates in effect during the reporting period. Cash flows are also translated at average translation rates for the periods. Therefore, amounts\nrelated to assets and liabilities reported on the consolidated statements of cash flows will not necessarily agree with changes in the\ncorresponding balances on the consolidated balance sheets. Translation adjustments arising from the use of different exchange rates from\nperiod to period are included as a separate component of accumulated other comprehensive income or loss. Transaction gains and losses\nthat arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in\nthe consolidated statements of operations and comprehensive income (loss) as incurred, and the total amount of transaction gains and losses\nwere immaterial as of the fiscal years ended March 31, 2026 and 2025.\n\n \n\nThe value of JOD against US$ and other currencies\nmay fluctuate and is affected by, among other things, changes in Jordan’s political and economic conditions. Any significant revaluation\nof JOD, HKD, and CNY may materially affect the Company’s financial condition in terms of US$ reporting. The following table outlines\nthe currency exchange rates that were used in creating the consolidated financial statements in this report:\n\n \n\n  \nMarch 31,\n2026 \nMarch 31,\n2025\n\nPeriod-end spot rate \nUS$1=JOD0.7090 \nUS$1=JOD0.7090\n\n  \nUS$1=HKD7.8002 \nUS$1=HKD7.7790\n\n  \nUS$1=CNY6.9033 \nUS$1=CNY7.2572\n\nAverage rate \nUS$1=JOD0.7090 \nUS$1=JOD0.7090\n\n  \nUS$1=HKD7.8002 \nUS$1=HKD7.7925\n\n  \nUS$1=CNY7.1016 \nUS$1=CNY7.2150\n\n \n\n**Stock-Based Compensation**\n\n \n\nThe Company measures compensation expense for\nstock-based awards based on the awards’ initial grant-date fair value. The estimated grant-date fair value of the award is recognized\nas expense over the requisite service period using the straight-line method.\n\n \n\nF-13\n\n \n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**\n\n** **\n\n**Stock-Based Compensation (Continued)**\n\n \n\nThe Company estimates the fair value of stock\noptions 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\nregarding a number of variables. These variables include the expected term of the option, expected risk-free rates of return, the expected\nvolatility of the Company’s common stock, and expected dividend yield, each of which is more fully described below. The assumptions\nfor the expected term and expected volatility are the two assumptions that significantly affect the grant date fair value.\n\n \n\n \n●\nExpected Term: the expected term of a warrant or a stock option is the period of time that the warrant or a stock option is expected to be outstanding.\n\n \n\n \n●\nRisk-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 issued 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 uses the nearest interest rate from the available maturities.\n\n \n\n \n●\nExpected Stock Price Volatility: the Company utilizes the expected volatility of the Company’s common stock over the same period of time as the life of the warrant or stock option. When the Company’s own stock volatility information is unavailable for such period of time, the Company utilizes comparable public company volatility.\n\n \n\n \n●\nDividend Yield: 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.\n\n \n\n**Earnings or Loss per Share**\n\n \n\nThe Company computes earnings per share (“EPS”)\nin accordance with ASC 260, “Earnings per Share” (“ASC 260”). ASC 260 requires companies with complex capital\nstructures to present basic and diluted EPS. Basic EPS is measured as net income divided by the weighted average common shares outstanding\nfor the period. Diluted EPS is similar to basic EPS but presents the dilutive effect on a per share basis of potential common shares (for\ninstance, convertible securities, options, warrants, and restricted stock units (“RSUs”) as if they had been converted at\nthe beginning of the periods presented, or issuance date, if later. Potential common shares that have an anti-dilutive effect (i.e., those\nthat increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS (See “Note 14–Earnings\n(Loss) per Share”).\n\n \n\n**Comprehensive Income or Loss**\n\n \n\nComprehensive income or loss consists of two components,\nnet income or loss and other comprehensive income or loss. The foreign currency translation gain or loss resulting from translation of\nthe financial statements expressed in JOD or HKD or CNY to US$ is reported in other comprehensive income or loss in the consolidated statements\nof operations and comprehensive income (loss).\n\n \n\n**Fair Value of Financial Instruments**\n\n \n\nASC 825-10 requires certain disclosures regarding\nthe fair value of financial instruments. Fair value is defined as the price that would be received to sell an asset or paid to transfer\na liability in an orderly transaction between market participants at the measurement date. A three-level fair value hierarchy prioritizes\nthe inputs used to measure fair value. The hierarchy requires entities to maximize the use of observable inputs and minimize the use of\nunobservable inputs. The three levels of inputs used to measure fair value are as follows:\n\n \n\n \n●\nLevel 1 - Quoted prices in active markets for identical assets and liabilities.\n\n \n\n \n●\nLevel 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.\n\n \n\nF-14\n\n \n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**\n\n** **\n\n**Fair Value of Financial Instruments (Continued)**\n\n \n\n \n●\nLevel 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.\n\n \n\nThe Company considers the recorded value of its\nfinancial assets and liabilities, which consist primarily of cash and cash equivalents, accounts receivable, other current assets, credit\nfacilities, accounts payable, accrued expenses, income tax payables, other payables and operating lease liabilities to approximate the\nfair value of the respective assets and liabilities at March 31, 2026 and 2025 based upon the short-term nature of these assets and liabilities.\n\n \n\n**Concentrations and Credit Risk**\n\n \n\nCredit risk\n\n \n\nFinancial instruments that potentially subject the Company to significant\nconcentrations of credit risk consist primarily of cash and cash equivalents. As of March 31, 2026 and 2025, respectively, $5,236,963\nand $4,883,906 of the Company’s cash were on deposit at financial institutions in Jordan, where a maximum amount of JOD 50,000 (approximately\n$71,000) bank deposits are insured by each member bank under Jordan Deposit Insurance Corporation Law in the event of bank failure. As\nof March 31, 2026 and 2025, respectively, $344,673 and $246,394 of the Company’s cash were on deposit at financial institutions\nin China. Cash maintained in banks within China of less than CNY 0.5 million (equivalent to approximately $72,429) per bank are covered\nby “deposit insurance regulation” promulgated by the State Council of the People’s Republic of China. As of March 31,\n2026 and 2025, respectively, $6,826,388 and $9,871,227 of the Company’s cash were on deposit at financial institutions in Hong Kong,\nwhich are insured by the Hong Kong Deposit Protection Board subject to certain limitations. While management believes that these financial\ninstitutions are of high credit quality, it also continually monitors their creditworthiness. As of March 31, 2026 and 2025, respectively,\n$41,090 and $48,274 of the Company’s cash were on deposit in the United States and are insured by the Federal Deposit Insurance\nCorporation up to $250,000.\n\n \n\nAccounts receivable are typically unsecured and\nderived from revenue earned from customers, and therefore are exposed to credit risk. The risk is mitigated by the Company’s assessment\nof its customers’ creditworthiness and its ongoing monitoring of outstanding balances.\n\n  \n\nCustomer and vendor concentration risk\n\n \n\nThe Company’s sales are made primarily in the United States.\nIts operating results could be adversely affected by U.S. government policies on importing business, foreign exchange rate fluctuations,\nand changes in local market conditions. The Company has a concentration of its revenue and purchases with specific customers and suppliers.\nFor the fiscal years ended March 31, 2026 and 2025, two end-customers accounted for 52% and 14%, and 65% and 12% of the Company’s\ntotal revenue, respectively. As of March 31, 2026, three end-customers accounted for 29%, 26% and 12%, respectively, of the Company’s\ntotal accounts receivable balance. As of March 31, 2025, four end-customers accounted for 24%, 23%, 16%, and 11%, respectively, of the\nCompany’s total accounts receivable balance.\n\n \n\nFor the fiscal years ended March 31, 2026 and 2025, the Company purchased\napproximately 13% and 10% of its total purchase in garments and raw materials from one major supplier. As of March 31, 2026, accounts\npayable to the Company’s three major suppliers accounted for 21%, 18%, and 12% of the total accounts payable balance, respectively.\nAs of March 31, 2025, accounts payable to the Company’s three major suppliers accounted for 24%, 12%, and 11% of the total accounts\npayable balance, respectively.\n\n \n\n**Risks and Uncertainties**\n\n \n\nThe principal operations of the Company are located\nin Jordan. Accordingly, the Company’s business, financial condition, and results of operations may be influenced by political, economic,\nand legal environments in Jordan, as well as by the general state of the Jordanian economy. The Company’s operations in Jordan are\nsubject to special considerations and significant risks not typically associated with companies in North America. These include risks\nassociated with, among others, the political, economic, and legal environment, foreign currency exchange, and the recent conflicts between\nIsrael and Hamas and between Israel and Iran. The Company’s results may be adversely affected by changes in the political, regulatory,\nand social conditions in Jordan. Although the Company has not experienced losses from these situations and believes that it is in compliance\nwith existing laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future\nresults.\n\n \n\nF-15\n\n \n\n \n\n**NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)**\n\n \n\n**Risks and Uncertainties (Continued)**\n\n \n\nSince the inception of the turmoil in the Middle\nEast, the Company has been closely monitoring the situation and keeping its customers informed. Production is ongoing as usual, with no\nchanges to customer orders or commitments, and the Company is currently mainly using the port in Aqaba, Jordan for import and export.\nIn order to provide flexibility, the Company has also been using the Port of Jebel Ali in the United Arab Emirates as an alternative route\nfor raw material import since December 2023. However, in the event of any potential impact on the ports, the Company has prepared a contingency\nplan, approved by its major customers, to temporarily relocate production to alternate regions.\n\n \n\n**NOTE 3 – RECENT ACCOUNTING PRONOUNCEMENTS**\n\n \n\nIn December 2023, the Financial Accounting\nStandards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Income Taxes (Topic\n740): Improvements to Income Tax Disclosures,” which modifies the rules on income tax disclosures to require disaggregated\ninformation about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The\nstandard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital\nallocation decisions. The guidance is effective for annual periods beginning after December 15, 2024, with early adoption permitted.\nASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company adopted this new\nguidance on its consolidated financial statements and related disclosures on a prospective basis.\n\n \n\nIn November 2024, the FASB issued ASU 2024-03,\n“Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income\nStatement Expenses.” This update requires that at each interim and annual reporting period a report entity to disclose (1) the amounts\nof purchases of inventory, employee compensation, depreciation, amortization, and depletion in commonly presented expense captions; (2)\ncertain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements;\n(3) a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively;\nand (4) the total amount of selling expenses and, in annual reporting periods, the definition of selling expenses. In January 2025, the\nFASB issued ASU 2025-01, “Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):\nClarifying the Effective Date.” This update clarifies that ASU 2024-03 is effective for annual reporting periods beginning after\nDecember 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted.\nThe Company is currently evaluating the potential impact of adopting this new guidance on its consolidated financial statements and related\ndisclosures.\n\n  \n\n**NOTE 4 – ACCOUNTS RECEIVABLE, NET**\n\n \n\nAccounts receivable consisted of the following:\n\n \n\n  \nAs of\nMarch 31,\n2026  \nAs of\nMarch 31,\n2025 \n\nTrade accounts receivable \n$5,676,122  \n$3,076,074 \n\nLess: allowances for credit loss \n \n-\n  \n \n-\n \n\nAccounts receivable, net \n$5,676,122  \n$3,076,074 \n\n** **\n\n**NOTE 5 – INVENTORIES**\n\n \n\nInventories consisted of the following:\n\n \n\n  \nAs of\nMarch 31,\n2026  \nAs of\nMarch 31,\n2025 \n\nRaw materials \n$16,556,259  \n$13,101,508 \n\nWork-in-progress \n 2,398,140  \n 2,888,090 \n\nFinished goods \n 11,001,962  \n 11,715,231 \n\nTotal inventory \n$29,956,361  \n$27,704,829 \n\n \n\nF-16\n\n \n\n \n\n**NOTE 5 – INVENTORIES (CONTINUED)**\n\n \n\nAs of March 31, 2026 and 2025, no inventory valuation reserve was recorded\nas 99.5% and 98.2% of inventory on hand was backed by firm customer orders, respectively. The remaining 0.5% and 1.8% of inventories on\nhand as of March 31, 2026 and 2025, respectively, were allocated to garment samples and personal protective equipment orders.\n\n \n\n**NOTE 6 – ADVANCES TO SUPPLIERS, NET**\n\n \n\nAdvances to suppliers consisted of the following:\n\n \n\n \n \n**As of\nMarch 31,\n2026**\n \n \n**As of\nMarch 31,\n2025**\n \n\nAdvances to suppliers\n \n$\n8,639,635\n \n \n$\n6,644,194\n \n\nLess: allowances for impairment\n \n \n-\n \n \n \n-\n \n\nAdvances to suppliers, net\n \n$\n8,639,635\n \n \n$\n6,644,194\n \n\n  \n\n**NOTE 7 – LEASES**\n\n \n\nThe Company had 37 operating leases for manufacturing\nfacilities, offices, and staff dormitories as of March 31, 2026. Some leases include one or more options to renew, which is typically\nat the Company’s sole discretion. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise,\nit will include the renewal period in its lease term. New lease modifications result in measurement of the right of use (“ROU”)\nassets and lease liability. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive\ncovenants. ROU assets and related lease obligations are recognized at the commencement date based on the present value of remaining lease\npayments over the lease term.\n\n \n\nAll of the Company’s leases are classified as operating leases\nand primarily include office space, manufacturing facilities and staff dormitories.\n\n \n\nSupplemental balance sheet information related to operating leases\nwas as follows:\n\n \n\n  \nAs of\nMarch 31,\n2026  \nAs of\nMarch 31,\n2025 \n\nOperating lease right of use assets \n$1,038,563  \n$850,172 \n\n  \n    \n   \n\nOperating lease liabilities – current \n$319,910  \n$339,699 \n\nOperating lease liabilities – non-current \n 539,183  \n 287,527 \n\nTotal operating lease liabilities \n$859,093  \n$627,226 \n\n \n\nThe weighted average remaining lease terms and discount rates for all\nof operating leases were as follows:\n\n \n\nRemaining lease term and discount rate:\n\n \n\n   For the Fiscal Years Ended \n\n   March 31,\n2026   March 31,\n2025 \n\nWeighted average remaining lease term (years)   3.2    1.6 \n\n           \n\nWeighted average discount rate   5.60%   6.25%\n\n \n\nF-17\n\n \n\n \n\n**NOTE 7 – LEASES (CONTINUED)**\n\n \n\nDuring the fiscal years ended March 31, 2026 and\n2025, the Company incurred total operating lease expenses of $2,269,300 and $2,385,398, respectively.\n\n \n\nThe following is a schedule, by fiscal years,\nof maturities of lease liabilities as of March 31, 2026:\n\n** **\n\n2027 \n$512,989 \n\n2028 \n 217,839 \n\n2029 \n 182,517 \n\n2030 \n 126,979 \n\n2031 \n 97,360 \n\nThereafter \n \n-\n \n\nTotal lease payments \n 1,137,684 \n\nLess: imputed interest \n (99,121)\n\nLess: prepayments \n (179,470)\n\nPresent value of lease liabilities \n$859,093 \n\n \n\n**NOTE 8 – PROPERTY, PLANT, AND EQUIPMENT, NET**\n\n \n\nProperty, plant, and equipment, net consisted of the following:\n\n \n\n  \nAs of\nMarch 31,\n2026  \nAs of\nMarch 31,\n2025 \n\nLand \n$2,200,334  \n$2,200,334 \n\nProperty and buildings \n 24,737,536  \n 21,158,457 \n\nEquipment and machinery \n 15,149,498  \n 13,540,863 \n\nOffice and electric equipment \n 1,569,943  \n 1,484,093 \n\nAutomobiles \n 1,417,113  \n 1,382,946 \n\nLeasehold improvements \n 4,665,845  \n 4,513,590 \n\nSubtotal \n 49,740,269  \n 44,280,283 \n\nLess: Accumulated depreciation and amortization \n (22,351,570) \n (19,256,602)\n\nProperty, plant, and equipment, net \n$27,388,699  \n$25,023,681 \n\n \n\nOn February 2, 2026, Jerash Garments received\nthe approval from the Housing Bank for Trade and Finance (the “Housing Bank”) of a property purchase request (the “Property\nPurchase Request”) submitted by Jerash Garments to the Housing Bank on January 20, 2026 for the purchase of a manufacturing building\nand associated land (the “Property”) located on Property No. 1326, Basin No. 3 Abu Sawwana, Al-Ruqaim Village, from the lands\nof South Amman, Jordan. The purchase price is JOD 2,400,000 (approximately $3,384,000). The purchase was completed on February 19, 2026.\n\n \n\nFor the fiscal years ended March 31, 2026 and\n2025, depreciation and amortization expenses were $3,074,963 and $2,681,709, respectively.\n\n \n\n**NOTE 9 – EQUITY**\n\n \n\n**Preferred Stock**\n\n \n\nThe Company has 500,000 shares of preferred stock,\npar value of $0.001 per share, authorized; none were issued and outstanding as of March 31, 2026 and 2025. The preferred stock can be\nissued by the board of directors of Jerash Holdings (the “Board of Directors”) in one or more classes or one or more series\nwithin any class, and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations,\npreferences, rights, qualifications, limitations, or restrictions of such rights as the Board of Directors may determine from time to\ntime.\n\n \n\nF-18\n\n \n\n \n\n**NOTE 9 – EQUITY (CONTINUED)**\n\n \n\n**Common Stock**\n\n \n\nThe Company had 12,699,940 shares of common stock\noutstanding as of March 31, 2026 and 2025.\n\n \n\nOn February 9, 2023, the Board of Directors approved the grant of 405,800\nRSUs under the Plan (as defined below) to 37 executive officers and employees of the Company, with a two-year vesting period. 405,100\nRSUs were vested and additional shares were issued for the fiscal year ended March 31, 2025.\n\n \n\n**Statutory Reserve**\n\n \n\nIn accordance with the corporate law in Jordan,\nJerash Garments, Jerash Embroidery, Chinese Garments, Paramount, Jerash The First, MK Garments, and Kawkab Venus are required to make\nappropriations to certain reserve funds, based on net income determined in accordance with generally accepted accounting principles of\nJordan. Appropriations to the statutory reserve are required to be 10% of net income until the reserve is equal to 100% of the entity’s\nshare capital. This reserve is not available for dividend distribution. In addition, PRC companies are required to set aside at least\n10% of their after-tax net profits each year, if any, to fund the statutory reserves until the balance of the reserves reaches 50% of\ntheir registered capital. The statutory reserves are not distributable in the form of cash dividends to the Company and can be used to\nmake up cumulative prior-year losses.\n\n \n\n**Dividends**\n\n \n\nDuring the fiscal year ended March 31, 2026, the Board of Directors\ndeclared a cash dividend of $0.05 per share of common stock on February 3, 2026, November 7, 2025, August 8, 2025 and May 20, 2025, respectively.\nFour cash dividends of $634,997 each were paid in full on February 20, 2026, November 26, 2025, August 29, 2025, and June 6, 2025, respectively.\n\n \n\nDuring the fiscal year ended March 31, 2025, the\nBoard of Directors declared a cash dividend of $0.05 per share of common stock on February 5, 2025, November 8, 2024, August 5, 2024,\nand May 21, 2024, respectively. Four cash dividends of $614,742 each were paid in full on February 25, 2025, November 29, 2024, August\n23, 2024, and June 7, 2024, respectively.\n\n \n\n**NOTE 10 – STOCK-BASED COMPENSATION**\n\n** **\n\n**Stock Options**\n\n \n\nOn March 21, 2018, the Board of Directors adopted\nthe Jerash Holdings (US), Inc. 2018 Stock Incentive Plan (the “Plan”), pursuant to which the Company may grant various types\nof equity awards. 1,484,250 shares of common stock of the Company were reserved for issuance under the Plan. In addition, on July 19,\n2019, the Board of Directors approved an amendment and restatement of the Plan, which was approved by the Company’s stockholders\nat its annual meeting of stockholders on September 16, 2019. The amended and restated Plan increased the number of shares reserved for\nissuance under the Plan by 300,000, to 1,784,250, among other changes. As of March 31, 2026, the Company had 121,310 shares remaining\navailable for future issuance under the Plan.\n\n \n\nAll stock option activities are summarized as\nfollows:\n\n \n\n  \nOption to  \nWeighted\nAverage \n\n  \nAcquire\nShares  \nExercise\nPrice \n\nStock options outstanding as of March 31, 2024 \n 150,000  \n$6.25 \n\nGranted \n \n-\n  \n \n-\n \n\nExercised \n \n-\n  \n \n-\n \n\nExpired \n \n-\n  \n \n-\n \n\nStock options outstanding as of March 31, 2025 \n 150,000  \n$6.25 \n\n \n\n  \nOption to  \nWeighted\nAverage \n\n  \nAcquire\nShares  \nExercise\nPrice \n\nStock options outstanding as of March 31, 2025 \n 150,000  \n$6.25 \n\nGranted \n \n-\n  \n \n-\n \n\nExercised \n \n-\n  \n \n-\n \n\nExpired \n \n-\n  \n \n-\n \n\nStock options outstanding as of March 31, 2026 \n 150,000  \n$6.25 \n\n \n\nF-19\n\n \n\n \n\n**NOTE 10 – STOCK-BASED COMPENSATION\n(CONTINUED)**\n\n \n\nAll these outstanding options were fully vested\nand exercisable. As of March 31, 2026, there were 150,000 stock options outstanding. The weighted average remaining life of the options\nis 2.8 years.\n\n \n\n**Restricted Stock Units**\n\n \n\nOn February 9, 2023, the Board of Directors approved the grant of 405,800\nRSUs under the Plan to 37 executive officers and employees of the Company, with a two-year vesting period. 405,100 RSUs were vested and\nadditional shares were issued for the fiscal year ended March 31, 2025.\n\n \n\nOn March 25, 2024, the Board of Directors approved the grant of 915,040\nRSUs under the Plan to 35 executive officers and employees of the Company, with a three-year vesting period. The fair value of these RSUs\non March 25, 2024 was $2,745,120, based on the market price of the Company’s common stock as of the date of the grant. As of March\n31, 2026, there were $890,429 unrecognized stock-based compensation expenses to be recognized through March 2027 and 907,840 RSUs remained\noutstanding.\n\n \n\nRSU activities are summarized as follows:\n\n \n\n  \nNumber of\nShares  \nWeighted-\nAverage\nGrant\nDate Fair\nValue Per\nShare \n\nRSUs outstanding as of March 31, 2024 \n 1,320,140  \n$3.55 \n\nGranted \n \n-\n  \n \n-\n \n\nVested \n (405,100) \n 4.78 \n\nForfeited \n (3,600) \n 3.00 \n\nRSUs outstanding as of March 31, 2025 \n 911,440  \n 3.00 \n\n \n\n  \nNumber of\nShares  \nWeighted-\nAverage\nGrant\nDate Fair\nValue Per\nShare \n\nRSUs outstanding as of March 31, 2025 \n 911,440  \n$3.00 \n\nGranted \n \n-\n  \n \n-\n \n\nVested \n \n-\n  \n \n-\n \n\nForfeited \n (3,600) \n 3.00 \n\nRSUs outstanding as of March 31, 2026 \n 907,840  \n 3.00 \n\n \n\nTotal expenses related to the RSUs issued were\n$904,171 and $1,758,146 for the fiscal years ended March 31, 2026 and 2025, respectively.\n\n \n\n**NOTE 11 – RELATED PARTY TRANSACTIONS**\n\n \n\nThe relationship and the nature of related party\ntransactions are summarized as follows:\n\n \n\n**Name of Related Party**   **Relationship to the Company**   **Nature of Transactions**\n\n         \n\nYukwise Limited (“Yukwise”)   Wholly owned by the Company’s President, Chief Executive Officer, Chairman, and a significant stockholder   Consulting Services\n\n         \n\nMulti-Glory Corporation Limited (“Multi-Glory”)   Wholly owned by a significant stockholder   Consulting Services\n\n \n\n**Consulting agreements**\n\n \n\nOn January 12, 2018, Treasure Success and Yukwise\nentered into a consulting agreement, pursuant to which Mr. Choi will serve as Chief Executive Officer and provide high-level advisory\nand general management services for $300,000 per annum. The agreement renews automatically for one-month terms. This agreement became\neffective as of January 1, 2018. Total consulting fees under this agreement were $300,000 for the fiscal years ended March 31, 2026 and\n2025.\n\n \n\nF-20\n\n \n\n \n\n**NOTE 11 – RELATED PARTY TRANSACTIONS\n(CONTINUED)**\n\n \n\nOn January 16, 2018, Treasure Success and Multi-Glory\nentered into a consulting agreement, pursuant to which Multi-Glory will provide high-level advisory, marketing, and sales services to\nthe Company for $300,000 per annum. The agreement renews automatically for one-month terms. The agreement became effective as of January\n1, 2018. Total consulting fees under this agreement were $300,000 for the fiscal years ended March 31, 2026 and 2025.\n\n \n\n**NOTE 12 – CREDIT FACILITIES AND BANK LOAN**\n\n \n\n**Credit Facilities**\n\n \n\nStarting from May and October 2021, the Company\nhas participated in a financing program with two customers, in which the Company may receive early payments for approved sales invoices\nsubmitted by the Company through the bank the customer cooperates with. In March 2024, the Company joined a supply chain financing program\nwith one additional customer. For any early payments received, the Company is subject to an early payment charge imposed by the customer’s\nbank, for which the rate is based on Secured Overnight Financing Rate (“SOFR”) plus a spread. In certain scenarios, the Company\nsubmits the sales invoice and receives payments prior to the shipment of the relative products. In that case, instead of recording the\ncash receipts as a reduction to accounts receivables, the Company records the cash receipts as receipts in advance from a customer until\nproducts are entitled to transfer. The Company records the early payment charge in interest expenses on the consolidated statements of\noperations and comprehensive income (loss). For the fiscal years ended March 31, 2026 and 2025, the early payment charge was $1,303,967\nand $1,482,263, respectively.\n\n \n\nOn January 12, 2022, DBS Bank (Hong Kong) Limited\n(“DBSHK”) offered to provide a banking facility of up to $5.0 million to Treasure Success pursuant to a facility letter dated\nJanuary 12, 2022, which was amended pursuant to a facility letter dated January 4, 2024. Pursuant to the amended facility, DBSHK agreed\nto finance cargo receipt, trust receipt, account payable financing, and certain type of import and export invoice financing up to an aggregate\nof $5.0 million, with certain financial covenants. The DBSHK facility bears interest at 1.5% per annum over Hong Kong Interbank Offered\nRate (“HIBOR”) for HKD bills and 1.1% to 1.3% per annum over DBSHK’s cost of funds for foreign currency bills. The facility\nis guaranteed by Jerash Holdings and became available to the Company on June 17, 2022.\n\n \n\nAs of March 31, 2026 and 2025, the Company had\n$4,902,996 and $4,512,462 outstanding under the DBSHK facility and the weighted average interest rate was 5.3% and 6.3%, respectively.\nThe DBSHK facility is reviewed annually.\n\n \n\nOn July 31, 2025, Bank al Etihad offered to provide\na credit facility of up to $6.0 million to Jerash Garments. Pursuant to the facility, Bank al Etihad agreed to finance import invoices\nof up to $6.0 million, with condition that such invoices are secured by letter of credit issued by customers. The facility bears an interest\nrate at the Prime Lending Rate announced by Bank al Etihad, currently 8% per annum. As of March 31, 2026, the Company had $nil outstanding\nunder the Bank al Etihad facility. The Bank al Etihad facility is reviewed annually.\n\n \n\nOn January 15, 2026, Housing Bank offered to provide a credit facility\nof up to $14.0 million to Jerash Garments. Pursuant to the facility, Housing Bank agreed to finance import invoices of up to $14.0 million,\nwith condition that such invoices are secured by letter of credit issued by customers. The facility bears an interest rate SOFR plus a\nspread, currently approximately 6.1% per annum. As of March 31, 2026, the Company had $nil outstanding under the Housing Bank facility.\nThe Housing Bank facility is reviewed annually.\n\n \n\n**Bank Loan**\n\n \n\nIn connection with the Property Purchase Request,\non January 28, 2026, Jerash Garments entered into a loan agreement with the Housing Bank to finance the acquisition Property No. 1326.\nPursuant to the loan agreement, the Housing Bank agreed to provide Jerash Garments with a loan in the principal amount of JOD 2,000,000\n(approximately $2,820,000). The loan bears interest at a rate of 8% per annum, calculated on the daily outstanding balance and charged\nmonthly. Following a grace period ending January 31, 2027, the loan is repayable in 96 monthly installments of JOD 20,833 each, with the\nfirst installment due on February 1, 2027. The loan is secured by a first-priority mortgage on Property No. 1326, valued at JOD 5,500,000.\n\n \n\nThe following is a schedule, by fiscal years,\nof maturities of bank loan as of March 31, 2026:\n\n** **\n\n2027 \n$58,766 \n\n2028 \n 352,594 \n\n2029 \n 352,594 \n\n2030 \n 352,594 \n\n2031 \n 352,594 \n\nThereafter \n 1,351,658 \n\nTotal bank loan \n$2,820,800 \n\n  \n   \n\nBank loan – current \n$58,766 \n\nBank loan – non current \n 2,762,034 \n\nTotal bank loan \n$2,820,800 \n\n \n\nF-21\n\n \n\n \n\n**NOTE 13 – NONCONTROLLING INTEREST**\n\n \n\nOn March 20, 2023, Treasure Success and P.T. Eratex\n(Hong Kong) Limited entered into a Joint Venture and Shareholders’ Agreement, pursuant to which Treasure Success and P.T Eratex\n(Hong Kong) Limited acquired 51% and 49% of the equity interest in J&B, respectively, on April 11, 2023.\n\n \n\nOn October 10, 2023, Treasure Success and Newtech\nTextile (HK) Limited entered into a Joint Venture and Shareholders’ Agreement, pursuant to which Treasure Success and Newtech Textile\n(HK) Limited acquired 51% and 49% of the equity interest in Jerash Newtech, respectively, on November 3, 2023.\n\n \n\nFor the fiscal year ended March 31, 2026, the\nnet income or (loss) generated by J&B and Jerash Newtech was $188,112 and $(4,843), respectively. For the fiscal year ended March\n31, 2025, the net income or (loss) generated by J&B and Jerash Newtech was $20,469 and $(3,243), respectively.\n\n \n\nNoncontrolling interest as of March 31, 2026 in\nJ&B and Jerash Newtech was $100,820 and $41,763, respectively.\n\n \n\nOn June 16, 2025, Treasure Success and P.T. Eratex\n(Hong Kong) Limited attended a meeting of shareholders of J&B and approved the termination of J&B’s business operations\nand the dissolution of J&B, which is expected to complete in April 2027.\n\n \n\nOn August 20, 2025, Treasure Success and Newtech\nTextile (HK) Limited attended a meeting of shareholders of Jerash Newtech and agreed to and authorized an application to be made for the\nderegistration of Jerash Newtech.\n\n** **\n\n**NOTE 14 – EARNINGS (LOSS) PER SHARE**\n\n \n\nThe following table sets forth the computation of basic and diluted\nearnings (loss) per share for the fiscal years ended March 31, 2026 and 2025. As of March 31, 2026, 1,057,840 RSUs and stock options\nwere outstanding. For the fiscal year ended March 31, 2026, 150,000 stock options were excluded from the EPS calculation as the\nresult would be anti-dilutive. For the fiscal year ended March 31, 2025, all RSUs and stock options were excluded from the EPS calculation\nas the result would be anti-dilutive.\n\n \n\n  \n\n**For\nthe Fiscal Years Ended March 31,**\n \n\n  \n2026  \n2025 \n\nNumerator: \n   \n  \n\nNet income (loss) attributable to Jerash Holdings (US), Inc.’s Common Stockholders \n$3,537,600  \n$(848,369)\n\n  \n    \n 　 \n\nDenominator: \n    \n 　 \n\nDenominator for basic earnings per share (weighted-average shares) \n 12,699,940  \n 12,329,021 \n\nDilutive securities – RSUs \n 488,745  \n \n-\n \n\nDenominator for diluted earnings per share (adjusted weighted-average shares) \n 13,188,685  \n 12,329,021 \n\nBasic earnings (loss) per share \n$0.28  \n$(0.07)\n\nDiluted earnings (loss) per share \n$0.27  \n$(0.07)\n\n \n\nF-22\n\n \n\n \n\n**NOTE 15 – SEGMENT REPORTING**\n\n \n\nASC 280, “Segment Reporting,” establishes\nstandards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure\nas well as information about geographical areas, business segments, and major customers in financial statements for details on the Company’s\nbusiness segments. The amendment of ASC 280 requires incremental disclosures in annual and interim periods to reportable segments and\nclarifies entities with a single reportable segment are also required to provide new disclosures in significant segment expenses, profit\nand loss, assets, and other segment items for better understanding company business activities and overall financial performance and assess\npotential future cash flow for the business. The Company uses the “management approach” in determining reportable operating\nsegments. The management approach considers the internal organization and reporting used by the CODM for making operating decisions and\nassessing performance as the source for determining the Company’s reportable segments. CODM, including Chief Executive Officer and\nChief Financial Officer, reviews operation results on the consolidated revenue, gross profit, selling, general, and administrative expenses,\nand net income or loss. In selling, general, and administration expenses, CODM reviews staff payroll and other related expenses, inventory\nexport and related costs, depreciation, and other major items. Based on CODM’s assessment, the Company has determined that it has\nonly one operating segment as defined by amended ASC 280. The following table summarizes the operating results reviewed by CODM.\n\n \n\n \n \nFor the Fiscal Years Ended\nMarch 31,\n \n\n \n \n2026\n \n \n2025\n \n\n \n \n \n \n \n \n \n\nRevenue\n \n$\n166,263,870\n \n \n$\n145,812,006\n \n\nLess: Cost of goods sold\n \n \n139,480,501\n \n \n \n123,492,561\n \n\nGross profit\n \n \n26,783,369\n \n \n \n22,319,445\n \n\n \n \n \n \n \n \n \n \n \n\nOther income, net\n \n \n45,416\n \n \n \n424,108\n \n\n \n \n \n \n \n \n \n \n \n\nExpenses\n \n \n \n \n \n \n \n \n\nStaff payroll and other related cost\n \n \n9,300,872\n \n \n \n7,958,548\n \n\nInventory export and related cost\n \n \n2,783,046\n \n \n \n2,991,097\n \n\nDepreciation\n \n \n460,867\n \n \n \n465,022\n \n\nOther selling, general, and administrative expenses\n \n \n7,006,996\n \n \n \n7,699,789\n \n\nTotal selling, general, and administrative expenses\n \n \n19,551,781\n \n \n \n19,114,456\n \n\nStock-based compensation expenses\n \n \n904,171\n \n \n \n1,758,146\n \n\nInterest expenses\n \n \n1,625,387\n \n \n \n1,719,760\n \n\nTotal expenses\n \n \n22,081,339\n \n \n \n22,592,362\n \n\n \n \n \n \n \n \n \n \n \n\nNet income before provision for income taxes\n \n$\n4,747,446\n \n \n$\n151,191\n \n\n \n\nOther selling, general, and administrative expenses\ninclude consultancy fees and director remunerations, audit and professional fees, staff travelling and transportation expenses, rental,\nand general office expenses.\n\n \n\nThe Company’s major product is outerwear.\nFor the fiscal years ended March 31, 2026 and 2025, outerwear accounted for approximately 88.0% and 90.2% of the total revenue, respectively.\n\n \n\nThe following table summarizes sales by geographic\nareas for the fiscal years ended March 31, 2026 and 2025, respectively.\n\n \n\n  \nFor the Fiscal Years Ended\nMarch 31, \n\n  \n2026  \n2025 \n\nUnited States \n$138,158,216  \n$128,576,537 \n\nChina, including Hong Kong \n 16,851,268  \n 8,941,127 \n\nKorea \n 6,951,768  \n \n-\n \n\nJordan \n 2,198,380  \n 3,081,278 \n\nOthers \n 2,104,238  \n 5,213,064 \n\nTotal \n$166,263,870  \n$145,812,006 \n\n \n\nAs of March 31, 2026 and 2025, there were 78.9%\nand 20.3%, and 75.7% and 23.7%, of long-lived assets were located in Jordan and Hong Kong, respectively.\n\n \n\nF-23\n\n \n\n \n\n**NOTE 16 – COMMITMENTS AND CONTINGENCIES**\n\n \n\n**Commitments**\n\n \n\nOn August 28, 2019, Jiangmen Treasure Success\nwas incorporated under the laws of the People’s Republic of China in Jiangmen City, Guangdong Province, China, with a total registered\ncapital of HKD 3 million (approximately $385,000). On December 9, 2020, shareholders of Jiangmen Treasure Success approved to increase\nits registered capital to HKD 15 million (approximately $1.9 million). The Company’s subsidiary, Treasure Success, as a shareholder\nof Jiangmen Treasure Success, is required to contribute HKD 15 million (approximately $1.9 million) as paid-in capital in exchange for\n100% ownership interest in Jiangmen Treasure Success. As of March 31, 2026, Treasure Success had made capital contribution of HKD 10 million\n(approximately $1.3 million). Pursuant to the articles of incorporation of Jiangmen Treasure Success, Treasure Success is required to\ncomplete the remaining capital contribution before December 31, 2029 as Treasure Success’ available funds permit.\n\n \n\n**Contingencies**\n\n \n\nFrom time to time, the Company is a party to various\nlegal actions arising in the ordinary course of business. The Company accrues costs associated with these matters when they become probable\nand the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. The Company’s\nmanagement does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would not\nhave a material adverse impact on the Company’s consolidated financial position, results of operations, and cash flows.\n\n \n\nIn 2020, Jerash Garments had business with a personal\nprotective equipment (“PPE”) customer (the “PPE Customer”) to produce PPE products for them. The PPE products\nwere delivered in 2020 against some postdated checks issued by the PPE Customer. Delivery was also supported by delivery documents signed\nby persons of the PPE Customer for inspection and receiving. The PPE Customer declined to honor the postdated checks. Jerash Garments\nbrought the case to the court and won in the Cassation Court. For the same PPE products, the PPE Customer filed another case claiming\nthat certain lengths/widths of the PPE products were inconsistent with the specifications. The Court of First Instance ruled in favor\nof the PPE Customer. Jerash Garments was ordered to pay to the PPE Customer an amount of US$653,000. Jerash Garments filed an appeal,\nwhich is undergoing in the Court of Appeal. Upon the judgment of the appeal, the parties involved may appeal further to the Court of Cassation\nwhere judgment will be final.\n\n \n\nThe management has consulted two external legal\nadvisors of Jordanian laws. Both opined that Jerash Garments has a strong position in the appeal as Jerash Garments will be allowed to\npresent witnesses with additional evidence including the proof of inspections and receipts in the appeal. Also, given the appeal process\nmentioned above, the case would take a considerable long period of time to reach conclusion.\n\n \n\nThe management, based on the legal opinion of\nexternal advisors, the fact that the Court of Appeal and Cassation’s previous favorable verdicts on Jerash Garments’ lawful\nright to collect proceeds for the PPE products, and the proceedings of the appeal, concluded that the chance of loss is remote. Therefore,\nthere was no accrual in the financial statements.\n\n \n\n**NOTE 17 – INCOME TAX**\n\n \n\nJerash Garments, Jerash Embroidery, Chinese Garments,\nParamount, Jerash The First, MK Garments, and Kawkab Venus are subject to the regulations of the Income Tax Department in Jordan. Effective\nJanuary 1, 2019, the Jordanian government reclassified the area where Jerash Garments and its subsidiaries are to a Development Zone.\nIn accordance with the Development Zone law, Jerash Garments and its subsidiaries were subject to income tax at income tax rate of 20%\nplus a 1% social contribution effective from January 1, 2024. Effective from October 1, 2025, Jerash Garments has been granted tax concession\nat a corporate income tax rate of 10% plus a 1% social contribution in accordance with the Jordanian Income Tax Law.\n\n \n\nThe foreign earnings of Jerash Garments and its\nsubsidiaries are subject to U.S. taxation at the Jerash Holdings level under the new Global Intangible Low-Taxed Income (“GILTI”)\nregime.\n\n \n\nThe provision for income taxes consisted of the\nfollowing:\n\n \n\n \n \nFor the Fiscal Years Ended\nMarch 31,\n \n\n \n \n2026\n \n \n2025\n \n\nDomestic and foreign components of income (loss) before income taxes\n \n \n \n \n \n \n\nDomestic\n \n$\n(2,097,096\n)\n \n$\n(1,075,059\n)\n\nForeign\n \n \n6,844,542\n \n \n \n1,226,250\n \n\nTotal\n \n$\n4,747,446\n \n \n$\n151,191\n \n\n \n\nF-24\n\n \n\n \n\n**NOTE 17 – INCOME TAX (CONTINUED)**\n\n \n\n \n \nFor the Fiscal Years Ended\nMarch 31,\n \n\n \n \n2026\n \n \n2025\n \n\nProvision (benefit) for income taxes\n \n \n \n \n \n \n\nCurrent tax:\n \n \n \n \n \n \n\nU.S. federal\n \n$\n(5,594\n)\n \n$\n395,067\n \n\nU.S. state and local\n \n \n750\n \n \n \n750\n \n\nForeign\n \n \n1,124,935\n \n \n \n436,854\n \n\nTotal Current Tax\n \n \n1,120,091\n \n \n \n832,671\n \n\nDeferred tax:\n \n \n \n \n \n \n \n \n\nU.S. federal\n \n \n(47\n)\n \n \n158,449\n \n\nTotal deferred tax\n \n \n(47\n)\n \n \n158,449\n \n\nTotal tax\n \n$\n1,120,044\n \n \n$\n991,120\n \n\n \n \n \n \n \n \n \n \n \n\nEffective tax rates\n \n \n23.6\n%\n \n \n655.5\n%\n\n \n\nUpon adoption of ASU 2023-09, Improvements to\nIncome Tax Disclosures, as described in Note 3 – Recent Accounting Pronouncements, the reconciliation of taxes at the federal statutory\nrate to our provision for (benefit from) income taxes for the fiscal year ended March 31, 2026 was as follows:\n\n \n\n  \nFor the Fiscal Year Ended March 31, 2026 \n\n  \nAmount  \nPercent \n\nU.S. Federal Statutory Tax Rate \n$996,963  \n 21.0%\n\nState and Local Income Taxes, Net of Federal Income Tax Effect \n 593  \n 0.0%\n\nForeign Tax Effects \n    \n   \n\nJordan \n    \n   \n\nStatutory tax rate difference \n (67,075) \n (1.4)%\n\nForeign tax attributes \n (56,933) \n (1.2)%\n\nValuation allowance \n 56,933  \n 1.2%\n\nHong Kong (HK) \n    \n   \n\nStatutory tax rate difference \n (241,315) \n (5.1)%\n\nForeign tax attributes \n 10,444  \n 0.2%\n\nValuation allowance \n (10,444) \n (0.2)%\n\nPeople’s Republic of China (PRC) \n    \n   \n\nStatutory tax rate difference \n (4,028) \n (0.1)%\n\nForeign tax attributes \n 81,490  \n 1.7%\n\nValuation allowance \n (81,490) \n (1.7)%\n\nOther foreign rate differentials \n \n—\n  \n 0.0%\n\nEffect of Cross-Border Tax Laws \n    \n   \n\nGlobal intangible low-taxed income (GILTI) \n 433,547  \n 9.1%\n\nSubpart F income \n 323,199  \n 6.8%\n\nTax Credits \n    \n   \n\nGILTI-related credits \n (259,669) \n (5.5)%\n\nSubpart F-related credits \n (89,191) \n (1.9)%\n\nOther tax credits \n \n—\n  \n 0.0%\n\nChanges in Valuation Allowances \n \n—\n  \n 0.0%\n\nNontaxable or Nondeductible Items \n 121,699  \n 2.6%\n\nChanges in Unrecognized Tax Benefits \n \n—\n  \n 0.0%\n\nOther Adjustments \n \n—\n  \n 0.0%\n\nReturn to Provision (RTP) \n (94,679) \n (2.0)%\n\nEffective Tax Rate \n$1,120,044  \n 23.6%\n\n \n\nF-25\n\n \n\nThe reconciliation of taxes at the federal statutory\nrate to our provision for (benefit from) income taxes for the fiscal year ended March 31, 2025 in accordance with the guidance prior to\nthe adoption of ASU 2023-09 was as follows:\n\n \n\n  \nFor the\n\nFiscal Year Ended\nMarch 31,\n\n2025 \n\nTax at statutory rate \n$31,750 \n\nState tax, net of federal benefit \n 593 \n\nNon-deductible expenses \n (57,723)\n\nNon-taxable income \n \n—\n \n\nGlobal Intangible Low-Taxed Income, net \n \n—\n \n\nCross-border tax effect - Subpart F income \n 549,151 \n\nTax Credits \n (52,724)\n\nForeign tax rate differential \n 179,343 \n\nForeign tax attributes \n 190,817 \n\nChange in Valuation Allowance \n (190,817)\n\nProvision to return adjustments \n 165,440 \n\nUncertain Tax Provision: Amended tax returns \n 175,290 \n\nTotal \n$991,120 \n\n \n\nTax payments in terms of jurisdiction consisted\nof the following:\n\n \n\n  \nFor the Fiscal Years Ended\nMarch 31, \n\n  \n2026  \n2025 \n\nJurisdiction \n   \n  \n\nU.S. Federal \n$562,711  \n$333,960 \n\nU.S. State and Local \n 500  \n 500 \n\nForeign - Jordan \n 685,510  \n 1,011,997 \n\nForeign - Others \n 23,870  \n 52,227 \n\nTotal \n$1,272,591  \n$1,398,684 \n\n \n\nF-26\n\n \n\n**NOTE 17 – INCOME TAX (CONTINUED)**\n\n \n\nUnrecognized tax benefits are summarized as follows:\n\n \n\n \n \nFiscal\n2026\n \n\nUnrecognized tax benefit as of March 31, 2025\n \n$\n175,290\n \n\nLess: Tax positions of prior years (Subpart F income inclusion on amended federal tax returns)\n \n \n \n \n\nFiscal Year(s) Affected: FY 2022\n \n \n(80,048\n)\n\nFiscal Year(s) Affected: FY 2023\n \n \n(69,981\n)\n\nPayments during the year\n \n \n(25,261\n)\n\nUnrecognized tax benefit as of March 31, 2026\n \n$\n0\n \n\n \n\nAll unrecognized tax provision had been paid as\nof March 31, 2026.\n\n \n\nThe Company’s deferred tax assets and liabilities\nas of March 31, 2026 and 2025 consisted of the following:\n\n \n\nDeferred tax liabilities \nAs of\nMarch 31,\n2026  \nAs of\nMarch 31,\n2025 \n\nDeferred tax liabilities \n$(73) \n$(120)\n\nNet operating losses carried forward \n 1,940,213  \n 1,975,215 \n\nLess: valuation allowance \n (1,940,213) \n (1,975,215)\n\nDeferred tax liabilities \n$(73) \n$(120)\n\n \n\nDeferred tax assets are reduced by a valuation\nallowance when it is considered more likely than not that some portion or all of the deferred tax assets will not be realized. As of March\n31, 2026 and 2025, the allowance for deferred tax assets was $1,940,213 and $1,975,215, respectively. The allowance is provided for net\noperating loss of foreign subsidiaries.\n\n \n\nAs of March 31, 2026, the Company had cumulative book-tax basis differences\nin its foreign subsidiaries of approximately $18.5 million. The Company has not recorded a U.S. deferred tax liability for the book-tax\nbasis in its foreign subsidiaries as these amounts continue to be indefinitely reinvested in foreign operations. The reversal of this\ntemporary difference would occur upon the sale or liquidation of the Company’s foreign subsidiaries, and the estimated impact of\nthe reversal of this temporary difference is approximately $3.9 million. As of March 31, 2026 and 2025, there were $nil and $175,290 and\nuncertain tax positions, respectively.\n\n \n\nThe One Big Beautiful Bill Act was enacted during\nthe period. The Company has evaluated the provisions of the legislation and recorded the effects of changes in tax law in accordance with\nASC 740. The impact primarily relates to remeasurement of deferred tax assets and liabilities at the enacted tax rates, as well as adjustments\nto current tax expense where applicable.\n\n \n\nThe Company files income tax returns in the U.S. federal, state and\nforeign jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax\nexaminations by tax authorities for years prior to April 1, 2019.\n\n \n\n**NOTE 18 – SUBSEQUENT EVENTS**\n\n \n\nThe Company has evaluated all subsequent events\nthrough the date of the filing of this Annual Report on Form 10-K with the SEC to ensure that this filing includes appropriate disclosure\nof events both recognized in the consolidated financial statements as of March 31, 2026. The Company has determined that there were no\nsubsequent events that required recognition, adjustment to, or disclosure in the consolidated financial statements, except for the following:\n\n  \n\nOn April 9, 2026, the Company signed a credit facility agreement offered\nby Capital Bank of Jordan (“Capital Bank”). Pursuant to the facility, Capital Bank agreed to finance import invoices of up\nto $7.5 million with condition that such invoices are secured by letter of credit issued by customers. The facility bears an SOFR interest\nrate plus a spread, with minimum 5% interest rate annually. The Capital Bank facility is reviewed annually.\n\n  \n\nOn May 4, 2026, the Board of Directors approved\nthe payment of a dividend of $0.05 per share.\n\n \n\nF-27"}