Company: DSWL
Filing Date: 2025-06-18
Form Type: 6-K
Source: 0001171843-25-003948
Chunk: 10

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-06-18
Form: 6-K
Chunk 10
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2024. In terms of total SG&A expense, the increase was due to increases of $226,000 in administrative
staff costs and welfare, $200,000 in audit fees, $49,000 in local government taxes and charges, $10,000 in costs of utilities, and $14,000
in office repair and maintenance, as compared to the same period in the prior fiscal year.

SG&A expenses in the electronic segment increased $227,000 to $3,048,000
or 11.3% of net sales in the segment for the six months ended March 31, 2025, compared to $2,821,000 or 11.0%of net sales in the segment
for the corresponding period in fiscal 2024. The increase in SG&A expenses was primarily related to increases of $124,000 in selling
expense as well as $96,000 in staff costs and welfare, when compared to the corresponding period in the prior fiscal year.

Other Income - Other income was $591,000 for the six months ended March
31, 2025, as compared to other income of $183,000 in the corresponding six months of the prior fiscal year.

On a segment basis, other income attributable to the plastic segment for
the six months ended March 31, 2025 was $102,000, as compared to other expense of $65,000 for the same period in the prior fiscal year.
The increase in other income was mainly due to gain of $53,000 from sales of materials and of $29,000 from disposal of fixed assets, and
$40,000 for reversal of doubtful debts, offsetting an exchange loss of $19,000 during the second half of fiscal 2025, as compared to an
exchange gain of $10,000 and a reversal of provisions of $10,000 for doubtful debts and a loss of $85,000 from disposal of fixed assets
during the same period of fiscal 2024.

Other income attributable to the electronic segment for the six months
ended March 31, 2025 was $489,000, as compared with other income of $248,000 for the corresponding period in the prior fiscal year. The
increase in other income was mainly due to increases of $92,000 in exchange gain and of $158,000 from reversal of doubtful debts during
the six months ended March 31, 2025, when compared with the same period of last fiscal year.

Operating