cash equivalents, and restricted cash totaled $14.5 million, and net working capital was $38.1 million. Inventory was $26.6 million, and accounts receivable amounted to $5.9 million. Net cash provided by operating activities was $2.5 million for the three months ended June 30, 2026. compared with net cash used in operating activities of $6.5 million in the same period last year. On August 7, 2026, Jarash's Board of Directors approved a regular quarterly dividend of 5 cents per share on its common stock, payable on August 24, 2026 to stockholders of record as of August 17. As Sam and Eric noted earlier, we remain optimistic about the company's future as we continue to focus on cost management and operating efficiencies, navigating current market conditions. Looking immediately ahead, we expect revenue for the fiscal 2027 second quarter to be approximately $49 million to $51 million. subject to logistics efficiency amid geopolitical uncertainties. Growth margin target for the fiscal 2027 second quarter is expected to be approximately 14% to 15%, taking into consideration the increased transportation costs for raw material imports. I will turn the call back to the operator as we open the call for questions.

Certainly. The floor is now open for questions. If you have any questions or comments, please press star 1 on your phone at this time. We ask that while posing your question, you please pick up your handset if listening on a speakerphone to provide optimum sound quality. Please hold for just a few moments while we pull for questions. Your first question is coming from Ryan Myers with Lake Street Capital Markets.

Please pose your question your line is live hey guys congrats on another strong quarter here i'm just wondering if you could start so with the announcement of the duty-free access you know have you seen any inbound orders from potentially new customers and then secondly you know what sort of capacity would you guys need to bring online and at what point potentially do you think you could do that should new orders come through with this new update to the duty-free yes ryan we definitely have seen increased inquiries and actually purchase orders after the

announcement of the free trade or the duty-free. Eric, do you want to mention a couple of the new opportunities after the announcement?

Yeah. After the announcement of the, I mean, new terrorist system applied to Jordan, which is a serial duty. So for the old customer, okay, like we have with our biggest customer, okay, so we received the projection for the coming season, which compared with last season, is around 15%, 15% more than last year. At the same time, we also received some more inquiries from importers, new importers from US and all importers also received more inquiries for order placement. So I think we are also, Jordan is now become the most competitive manufacturing hub.

This is the reason why we get so many inquiries when we expect the orders will be coming shortly and on comparable for last year it will be increased significantly also this Ringo this Ringo maybe I I add one more about the new customer actually I just take a business trip back to to to do you all and just come back and we are successfully open a few new customer like Urban Outfeeder there's a very big potential customer we just opened that this year we forecast for the first year already five million five million order business and and we're still waiting for another free brand like me wrangler and Reeboks and since they know children is a duty zero task field duty they know our price will be very competitive so um we we have a lot of uh requirements and also even uh north face they they want us to do something new uh like the uh down jacket which is the value is very high and

the petting jacket all this new opportunity is coming got it no that that's great to hear And then, you know, with some of those new opportunities, can you maybe just talk about the product mix there and maybe the potential for gross margin largely in the second half of the year to maybe kind of rebound to above 15, maybe back towards 16, 17? Just the potential for gross margin expansion as maybe the product mix changes a little bit with some of these new orders.

Well, Ryan, we definitely will try to achieve a higher growth margin by working hard on improving our efficiency as well as our sourcing. But as we all know, once we acquire a new customer, there will be a period of time that we will experience a little bit of lower margin until we get ramped up and get to a better efficiency with new customer and new products. So we'll continue to diversify our customer base. and continue to diversify our product mix. Like Ringo said, we have opportunities to get some new customers and try on some new products, which has a higher ASP and higher gross margin. But at the beginning, I wouldn't say that we will be able to achieve a high gross margin, especially the gross margin is facing two separate forces. One is we will, at one hand, improve our productivity and efficiency and try to achieve a higher gross margin and work on higher ASP products. However, at this point, we are also facing some uncertainties in terms of increasing raw material costs due to the logistics interruption in the area of importing raw materials and supplies from Asia because of the regional conflict of the transportation issues. So we will monitor the situation, and we will try our best to come up with alternatives and control our costs.

Got it. No, that's helpful. Thank you guys for taking my questions.

Once again, if you do have any questions or comments, please press star 1 at this time. Again, please press star 1 at this time if you have any remaining questions. There appear to be no further questions in queue. I would now like to turn the floor back over to CEO Sam Choi for closing remarks.

Thank you, Operator. And thanks to all of you for joining us today. We appreciate your ongoing support and interest in Juresh and look forward to updating you on our progress in the near future. Thank you very much.

Thank you, everyone. this does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. Thank you for your participation.

Thank you. Thank you. Bye.