Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 142

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 18
Chunk 142
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31, 2023, 2024 and 2025, respectively. Aggregate net foreign currency transaction (loss) gain included in other income, net.

Post-retirement and post-employment benefits - The Company and its subsidiaries contribute to a state pension scheme in respect of its Chinese employees.

Stock-based compensation - The Company adopts ASC No. 718, “ Compensation - Stock Compensation”, which requires that share-basedpayment transactions with employees, such as share options, be measured based on the grant-datefair value of the equity instrument issued and recognized as compensation expense over the requisite service period, with a corresponding addition to equity. Under this method, compensation cost related to employee

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Table of Contents

DESWELL INDUSTRIES, INC.

2. Summary of Significant Accounting Policies(cont.)

share options or similar equity instruments is measured at the grant date based on the fair value of the award and is recognized over the period during which an employee is required to provide service in exchange for the award, which generally is the vesting period.

There were no stock options granted during the year ended March 31, 2023, 2024 and 2025.

Net income per share - Basic net income per share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted net income per share gives effect to all dilutive potential common shares outstanding during the period. The weighted average number of common shares outstanding is adjusted to include the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued. In computing the dilutive effect of potential common shares, the average stock price for the period is used in determining the number of treasury shares assumed to be purchased with the proceeds from the exercise of options.

Basic net income per share and diluted net income per share calculated in accordance with ASC No. 260, “ Earnings Per Share”, are reconciled as follows (shares in thousands):

                                                           Year ended March 31,                                                          
                                                           2023                                  2024                  2025              
 ─────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net income attributable to Deswell Industries, Inc.      $                          2,059      $          7,709      $         11,138  
  Basic weighted average common shares outstanding                                   15,935                15,935                15,935  
  Basic net income per share                               $                           0.13