SHARE- BASED COMPENSATION

12 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 8 – SHARE- BASED COMPENSATION

Warrants issued for services

From time to time, the Company issues warrants to purchase its common stock. These warrants are valued using a Black-Scholes model and using the volatility, market price, exercise price, risk-free interest rate and dividend yield appropriate at the date the warrants were issued.

Simultaneous with the closing of the IPO, the Company issued to the underwriter and its affiliates warrants to purchase 57,200 shares of common stock (“IPO Underwriter Warrants”) at an exercise price of $8.75 per share with an expiration date of May 2, 2023. The shares underlying the IPO Underwriter Warrants were subject to a 180-day lock-up that expired on October 29, 2018.

During the year ended March 31, 2019, all of the outstanding warrants were fully vested and exercisable.

The fair value of these warrants was estimated as of the grant date using the Black-Scholes model with the following assumptions:

	Common Stock Warrants March 31, 2019
Expected term (in years)		5.0
Risk-free interest rate (%)		1.8-2.8	%
Expected volatility (%)		50.3%-52.2	%
Dividend yield (%)		0.0	%

Warrant activity is summarized as follows:

	Shares		Weighted Average Exercise Price
Warrants outstanding at March 31, 2018		207,210	$	5.69
Granted		57,200	$	8.75
Exercised		-		-
Cancelled		-		-
Warrants outstanding at March 31, 2019		264,410	$	6.35

Stock Options

On March 21, 2018 the Board of Directors adopted the Jerash Holdings (US), Inc. 2018 Stock Incentive Plan (the “Plan”), pursuant to which the Company may grant various types of equity awards. 1,484,250 shares of common stock were reserved for issuance under the Plan. On April 9, 2018, the Board of Directors approved the issuance of 989,500 nonqualified stock options under the Plan in accordance with the Plan at an exercise price of $7.00 per share, and a term of five years. As of March 31, 2019, all of these outstanding stock options were fully vested and exercisable.

The fair value of these options granted on April 9, 2018 was estimated as of the grant date using the Black-Scholes model with the following assumptions.

	Stock Options March 31, 2019
Expected term (in years)		5.0
Risk-free interest rate (%)		2.6	%
Expected volatility (%)		50.3	%
Dividend yield (%)		0.0	%

On August 3, 2018, the Board of Directors granted the Company’s Chief Financial Officer and Head of U.S. Operations a total of 150,000 nonqualified stock options under the Plan in accordance with the Plan at an exercise price of $6.12 per share and a term of ten years. The options vest in three equal six-month installments, with the first two-thirds having vested on August 3, 2018 and February 3, 2019 respectively, the remaining amounts vesting on and August 3, 2019.

The fair value of the options granted on August 3, 2018 was estimated as of the grant date using the Black-Scholes model with the following assumptions:

	Stock Options March 31, 2019
Expected term (in years)		10.0
Risk-free interest rate (%)		2.95	%
Expected volatility (%)		50.3	%
Dividend yield (%)		0.0	%

Stock option activity is summarized as follows:

	Shares		Weighted Average Exercise Price
Stock options outstanding at March 31, 2018		-		-
Granted		1,139,500	$	6.88
Exercised		-		-
Cancelled		-		-
Stock options outstanding at March 31, 2019		1,139,500	$	6.88

Total expense related to the stock options issued was $3,593,888 for the year ended March 31, 2019. There were $193,955 of unrecognized compensation costs at March 31, 2019 relating to unvested awards.