Company: DSWL
Filing Date: 2025-11-13
Form Type: 6-K
Source: 0001171843-25-007261
Chunk: 5

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-11-13
Form: 6-K
Chunk 5
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                       |     |   |               Cost |     |   |           Gross 
 Unrealized Gain |     |   |   Fair 
  value |
| Marketable securities |     |   |                    |     |   |                 |     |   |        |
| Equity securities     |     | $ |             25,543 |     | $ |           1,347 |     | $ | 26,890 |

Marketable Securities

The Company acquired equity securities mainly listed on the Hong Kong Stock
Exchange and the New York Stock Exchange. These securities are recorded at fair value based on quoted market prices.

Unrealized gain from these marketable securities for the six months ended September
30, 2025 is included in the non-operating income of the consolidated statement of income.

During the first half of fiscal 2026, realized gain from the sale of
marketable securities was $2,881.

3. Inventories

| Inventories by major categories: |     | September 30, 
 2025          |        |     | March 31, 
 2025      |       |
|:---------------------------------|:----|:--------------|-------:|:----|:----------|------:|
| Raw materials                    |     | $             |  6,079 |     | $         | 6,017 |
| Work in progress                 |     |               |  2,979 |     |           | 2,602 |
| Finished goods                   |     |               |  1,072 |     |           |   843 |
|                                  |     | $             | 10,130 |     | $         | 9,462 |

4. Earnings Per Share

The basic net income per share and diluted net income per
share are computed in accordance with ASC No. 260, "Earnings Per Share" (formerly the SFAS No.128 “Earnings Per Share”).

The basic net income per share is computed by dividing income
available to common holders by the weighted average number of common shares outstanding during the period. Diluted net income
per share gives effect to all potentially dilutive common shares outstanding during the period.

The weighted average number of common shares outstanding is
adjusted to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares
had been issued. In computing the dilutive effect of potential common shares, the average stock price for the period is used
in determining the number of treasury