v3.26.1
Segment Reporting
 3 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
SEGMENT REPORTING

NOTE 15 – SEGMENT REPORTING

 

ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about geographical areas, business segments, and major customers in financial statements for details on the Company’s business segments. The amendment of ASC 280 requires incremental disclosures in annual and interim periods to reportable segments and clarifies entities with a single reportable segment are also required to provide new disclosures in significant segment expenses, profit and loss, assets, and other segment items for better understanding company business activities and overall financial performance and assess potential future cash flow for the business. The Company uses the “management approach” in determining reportable operating segments. The management approach considers the internal organization and reporting used by the CODM for making operating decisions and assessing performance as the source for determining the Company’s reportable segments. CODM, including Chief Executive Officer and Chief Financial Officer, reviews operation results on the consolidated revenue, gross profit, selling, general, and administrative expenses, and net income or loss. In selling, general, and administration expenses, CODM reviews staff payroll and other related expenses, inventory export and related costs, depreciation, and other major items. Based on CODM’s assessment, the Company has determined that it has only one operating segment as defined by amended ASC 280. The following table summarizes the operating results reviewed by CODM.

 

    For the Three Months Ended
June 30,
 (Unaudited)		  
    2026     2025  
             
Revenue   $ 50,229,508     $ 39,629,308  
Less: Cost of goods sold     41,967,453       33,540,428  
Gross profit     8,262,055       6,088,880  
                 
Other income, net     3,846       49,314  
                 
Expenses                
Staff payroll and other related cost     2,701,911       2,224,922  
Inventory export and related cost     824,543       610,212  
Depreciation     102,242       116,995  
Other selling, general, and administrative expenses     1,775,693       1,955,086  
Total selling, general, and administrative expenses     5,404,389       4,907,215  
Stock-based compensation expenses     226,338       222,669  
Interest expenses     549,353       355,848  
Total expenses     6,180,080       5,485,732  
                 
Net income before provision for income taxes   $ 2,085,821     $ 652,462  

 

Other selling, general, and administrative expenses include consultancy fees and director remunerations, audit and professional fees, staff travelling and transportation expenses, rental, and general office expenses.

 

The Company’s major product is outerwear. For the three months ended June 30, 2026 and 2025, outerwear accounted for approximately 82.0% and 81.7% of the total revenue, respectively.

 

The following table summarizes sales by geographic areas for the three months ended June 30, 2026 and 2025, respectively.

 

    For the Three Months Ended
June 30,
(Unaudited)		  
    2026     2025  
United States   $ 38,902,232     $ 32,052,018  
China, including Hong Kong     8,734,742       6,126,728  
Korea     2,160,333       -  
Jordan     286,444       455,745  
Others     145,757       994,817  
Total   $ 50,229,508     $ 39,629,308  

 

As of June 30, 2026 and March 31, 2026, there were 78.8% and 20.3%, and 78.9% and 20.3%, of long-lived assets were located in Jordan and Hong Kong, respectively.