Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 152

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 18
Chunk 152
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 leases premises and warehouses under various operating leases, certain of which contain escalation clauses. As of March 31, 2024 and 2025, the Company had no material operating lease arrangement with lease terms over 1 year, except for the land use rights and long term leased land. See Note 6 for additional description of the arrangement.

F-19

Table of Contents

DESWELL INDUSTRIES, INC.

9. Lease(cont.)

The following table represents lease costs recognized in the Company’s consolidated statements of comprehensive income for the year ended March 31, 2023, 2024 and 2025. Lease costs are included in cost of sales, selling, general and administrative expense on the Company’s consolidated statements of comprehensive income.

                             Year ended March 31,                      
                                             2023      2024      2025  
 ───────────────────────────────────────────────────────────────────────
  Operating lease costs                       $76       $79       $73  
  Total leases costs                          $76       $79       $73  

                                                                        Year ended March 31,                                              
                                                                        2023                              2024              2025          
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Supplemental cash flow information for our leases was as follows                                                                        
  Operating cash paid for operating lease                               $                         76      $         79      $         73  

10. Commitments and Contingencies

The Company leases premises and warehouses under non-cancelableoperating lease agreements. See note 9 for future minimum lease payments under non-cancelableoperating lease agreements with initial terms of one year or more.

At March 31, 2025, the Company had capital commitments for purchase of plant and machinery, and leasehold improvement totaling $82, which are expected to be disbursed during the year ending March 31, 2025.

11. Employee Benefits

The Company contributes to a state pension plan run by the Chinese government in respect of its employees in the PRC. The expense of $754, $852and $766included in the consolidated statements of comprehensive income related to this plan, which is based on certain percentages of the employees’ salaries, up to a maximum amount specified by the local government, was provided for the years ended March 31, 2023, 2024 and 2025, respectively.

12. Stock Option Plan

On March 15, 1995, the Company adopted the 199