Company: DSWL
Filing Date: 2025-06-18
Form Type: 6-K
Source: 0001171843-25-003948
Chunk: 7

Company: DESWELL INDUSTRIES INC
Filing Date: 2025-06-18
Form: 6-K
Chunk 7
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              | 24,758 |     | $                | 417 |     | $          | 25,175 |

|                       |     | March 31, 2024 |        |     |                  |        |   |     |            |        |
|:----------------------|:----|:---------------|-------:|:----|:-----------------|:-------|:--|:----|:-----------|-------:|
|                       |     | Cost           |        |     | Gross Unrealized 
 (Loss)           |        |   |     | Fair value |        |
| Marketable securities |     |                |        |     |                  |        |   |     |            |        |
| Equity securities     |     | $              | 25,772 |     | $                | (2,746 | ) |     | $          | 23,026 |

Marketable Securities

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

Unrealized income from these marketable securities for the six months ended
March 31, 2025 is included in the non-operating income of the consolidated statement of operations and comprehensive income.

During the second half of fiscal 2025, realized gain from the sale of marketable
securities was $1,470.

| 3. | Inventories |

| Inventories by major categories: |     | March 31, 
 2025      |       |     | March 31, 
 2024      |        |
|:---------------------------------|:----|:----------|------:|:----|:----------|-------:|
| Raw materials                    |     | $         | 5,682 |     | $         |  8,747 |
| Work in progress                 |     |           | 2,602 |     |           |  2,285 |
| Finished goods                   |     |           |   843 |     |           |  1,097 |
|                                  |     | $         | 9,127 |     | $         | 12,129 |

| 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