Company: DSWL
Filing Date: 2025-07-29
Form Type: 20-F
Source: 0001174947-25-001096
Chunk: 139

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-07-29
Form: 20-F
Item: Item 18
Chunk 139
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 the products to the customer and the signing of the good receipt notes, the Company has the legally enforceable right to receive full payment of the sales price. The customer’s obligation to pay the Company is not dependent on the customer selling the products or collecting cash from their customers (or end customers). The customer is required to pay under normal sales terms. The Company’s normal payment terms range from 30 days to 90 days and its sales arrangements do not have any material financing components. In addition, the Company’s customer arrangements do not produce contract assets or liabilities that are material to its consolidated financial statements. The Company permits the return of damaged or defective products and accounts for these actual returns as deduction from sales. Product returns to the Company were insignificant during past years.

Incremental costs to fulfill the Company’s customer arrangements are expensed as incurred, as the amortization period is less than one year.

The Company’s sales are net of value added tax (“ VAT”) and business tax and surcharges collected on behalf of tax authorities in respect of product sales. VAT and business tax and surcharges collected from customers, net of VAT paid for purchases, is recorded as a liability in the consolidated balance sheets until it is paid to the tax authorities.

Outbound freight and Handling costs:

The Company accounts for product outbound freight and handling costs as fulfillment activities and present the associated costs in selling expenses in the period in which it sells the product.

Disaggregation of Revenues:

The following table disaggregates product sales by business segment and by geography, which provides information as to the major source of revenue. See Note 16 for additional description of our reportable business segments.

                                Year ended March 31, 2023                                                                 
                                Injection molded                           Electronic                  Total              
                                Plastic parts                              Products                                       
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Net sales                                                                                                               
  United States of America      $                               1,006      $               11,163      $          12,169  
  PRC                                                          13,010                      14,730                 27,740  
  United Kingdom                                                    2                       9,106                  9,108  
  Hong Kong                                                     1,468                       5,002                  6,470  
  Europe                                                          131                      13,159                 13,290  
  Canada                                                            —                       4,699                  4,699  
  Others                                                            —                       3,861                  3,861