Company: SEAH
Filing Date: 2025-08-29
Form Type: DRS/A
Source: 0001213900-25-082696
Chunk: 74

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-08-29
Form: DRS/A
Chunk 74
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 credit losses and (3) income taxes. See “Note 2 — Summary of Significant Accounting Policies” to our consolidated financial statements for the disclosure of these accounting policies. We believe the following accounting estimates involve the most significant judgments used in the preparation of our financial statements: provision of allowance for expected credit losses, estimated useful lives of long -livedassets and fair value measurement. Provision of allowance for expected credit losses Our accounts receivable, receivables from a third party and other receivables in prepaid expenses and other current assets and other non -currentassets are within the scope of ASC 326. ASC 326 introduces an approach based on expected credit losses on financial assets at amortized cost. Upon adoption of ASC 326, we estimate the expected credit losses for accounts receivable using the roll -ratemethod on a collective basis when similar risk characteristics exist. The roll -ratemethod stratifies the receivables balance by delinquency stages and projected forward in one -yearincrements using historical roll rate. In each year of the simulation, losses on the receivables are captured, and the ending delinquency stratification serves as the beginning point of the next iteration. The loss rate calculated for each delinquency stage is then adjusted for both current and forecasts of economic conditions. The management then applied the adjusted loss rate to respective receivables balance. For receivables from a third party, other receivables and other non -currentassets, we would consider factors such as the customer’s financial condition and liquidity, the customer’s willingness and ability to settle payment and historical and subsequent collections data on an individual basis. We also provide specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. Expected credit losses are included in general and administrative expenses in the consolidated statements of comprehensive income. After all attempts to collect a receivable have failed, the receivable is written off against the allowance. For the years ended March 31, 2025 and 2024, we recovered credit losses of US$11,333 and recognized expected credit losses of US$325,785, respectively. Estimated useful lives of long-lived assets Our long -livedassets primarily comprise assets utilized in our operations, including buildings, automobiles, patents, and other equipment. The long -livedassets, except land, have a finite useful life, which is based on the management’s best estimation. The estimated useful lives are as follows:

| Category                 |     | Estimated useful lives |
| Buildings                |