Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 115

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 12
Chunk 115
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 issued by the Committee of Sponsoring Organizations of the Treadway Commission (“ COSO”).

Based on that assessment, management concluded that, as of March 31, 2025, the Company’s internal control over financial reporting was ineffective due to the material weaknesses described below.

Due to its inherent limitations, internal control over financial reporting may not prevent or detect misstatements, and can only provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Material Weaknesses as of March 31, 2025

Under the standards established by the PCAOB, a material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual financial statements will not be prevented or detected on a timely basis.

We identified a material weakness in internal control related to ineffective information technology general controls (“ ITGCs”) in the area of user restrictions and privileged access, and program change management over a key information technology (“ IT”) system that supports our financial reporting processes. As a result, the related process-levelIT dependent controls and application controls were also ineffective. The IT material weakness did not result in any material misstatements in our financial statements or disclosures.