Company: DSWL
Filing Date: 2025-06-18
Form Type: 6-K
Source: 0001171843-25-003948
Chunk: 16

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-06-18
Form: 6-K
Chunk 16
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 of $20,000, respectively. This is compared to a current tax expense of $270,000 and a deferred
tax benefit of $160,000 in the last fiscal year.

On a segment basis, there was a current income tax benefit of $54,000 and
a deferred tax benefit of $99,000 in the plastic segment for the year ended March 31, 2025, as compared to a current tax provision of
$68,000 and a deferred tax expense of $7,000 during the last fiscal year. In the electronic segment, there was a current tax expense of
$236,000 and a deferred tax provision of $79,000 for the year ended March 31, 2025, as compared to a current tax expense of $202,000 and
a deferred tax benefit of $167,000 in fiscal 2024.

Net Income – The Company had net income of $11,138,000 for the year
ended March 31, 2025, as compared to net income of $7,709,000 for the year ended March 31, 2024. The increase in net income
was mainly due to the increase in non-operating income, as described above.

Net income for the plastic segment for the year ended March 31, 2025 was
$5,177,000, as compared to a net income of $2,233,000 for fiscal 2024. The increase in net income in the plastic segment was
mainly due to an increase in non-operating income as described above.

Net income for the electronic segment for the year ended March 31, 2025
was $7,309,000, as compared to net income of $6,738,000 for fiscal 2024. The increase in net income in the electronic segment
was mainly attributable to increase in non-operating income as described above.

Liquidity and Capital Resources

The Company relies primarily upon internally generated funds to finance
its operations and investments.

As of March 31, 2025, the Company had working capital of $78,771,000, as
compared to $66,825,000 at March 31, 2024. The Company has generated sufficient funds from its operating activities to finance
its operations and there is little need for external financing. The Company had no short or long-term borrowings as of March
31, 2025.

As of March 31, 2025,