Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 146

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 18
Chunk 146
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 financial statements.

In November 2024, the FASB issued ASU 2024-03Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. The new guidance is intended to provide investors enhanced disclosures and requires public companies to disaggregate key expense types. The ASU is effective on a prospective basis for annual periods beginning after December 15, 2026, with early adoption permitted. The disclosure updates are required to be applied prospectively with the option for retrospective application. The Company is currently evaluating the impact of the amendments on its consolidated financial statements.

3. Marketable Securities

The Company acquired equity securities listed in Hong Kong Securities Exchange.

                    March 31,               
                         2024         2025  
 ────────────────────────────────────────────
  Cost                $25,772      $24,757  
  Market value        $23,026      $25,175  

Included in non-operatingincome (expenses), net unrealized (loss) gain from marketable securities for the years ended March 31, 2023, 2024 and 2025 of $(3,973), $952and $3,163, respectively.

Net proceeds from sale of marketable securities for the years ended March 31, 2023, 2024 and 2025 were $3,854, $ niland $5,647, respectively and realized gain from sales of marketable securities for the years ended March 31, 2023, 2024 and 2025 were $581, $ niland $1,470, respectively. For the purposes of determining realized gains and losses, the cost of securities sold was determined based on the average cost method.

The marketable securities were classified as Level 1 of the hierarchy established under ASC No. 820 because the valuations were based on quoted prices for identical securities in active markets.

F-14

Table of Contents

DESWELL INDUSTRIES, INC.

4. Inventories, net

Inventories, net of allowances, by major categories are summarized as follows:

                        March 31,                                   
                        2024                       2025             
 ────────────────────────────────────────────────────────────────────
  Raw materials         $               8,747      $         6,017  
  Work-in-progress                      2,285                2,602  
  Finished goods                        1,097                  843