Company: JL
Filing Date: 2025-07-28
Form Type: 20-F
Source: 0001213900-25-068049
Chunk: 213

Company: J-Long Group Ltd
Filing Date: 2025-07-28
Form: 20-F
Item: Item 18
Chunk 213
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 were combined into
one issued and outstanding Ordinary Share. The total number of authorized Ordinary Shares were reduced from31,400,000to3,140,000, and
the par value changed to $0.000375per share. As of March 31, 2025,3,761,701ordinary shares were issued and outstanding.

16. SHARE-BASED COMPENSATION

The Company accounts for
share-based compensation to employees in accordance with ASC 718, Compensation - Stock Compensation. Under ASC 718, the Company
measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the
award and, for those awards subject only to service conditions, the Company recognizes the costs on a straight-line basis over the requisite
service period for the entire award the employee is required to provide service in exchange for the award, which generally is the vesting
period.

Under the 2024 Equity Incentive Plan, the Company granted621,720shares
(post-reverse stock split) at $3.05per share to four consultants and one employee on November 26, 2024 (155,430, 155,430, 155,430,77,715,
and77,715shares respectively) and accrued US$654,595for selling expenses for the fiscal year ended March 31, 2025. These shares were
awarded with no vesting period and are amortized straight-line over the service period for 1 year tied to specified tasks.

17. SEGMENT INFORMATION

The Company follows Financial
Accounting Standards Board (“ FASB”) Accounting Standards Codification (“ ASC”) Topic 280, Segment Reporting, as
amended by Accounting Standards Update (“ ASU”) No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment
Disclosures, the Company continually monitors the reportable segments for changes in facts and circumstances to determine whether changes
in the identification or aggregation of operating segments are necessary.

The Company’s chief
operating decision maker (“ CODM”) is the Mr. Danny Tze Ching Wong. The CODM regularly reviews financial information, including
segment revenue, gross profit, significant segment expenses (selling expenses and general and administrative expenses), segment net income
(loss), and segment assets to evaluate segment performance and allocate resources accordingly.

Based on the internal management
reporting and assessment, the Company determined that it operates intworeportable segments: Hong Kong