Company: SEAH
Filing Date: 2025-11-24
Form Type: F-1/A
Source: 0001213900-25-113788
Chunk: 180

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-11-24
Form: F-1/A
Chunk 180
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, and current economic conditions in assessing the lifetime expected credit losses. Additionally, external data and macroeconomic factors are also considered. The Group also provides specific provisions for allowance when facts and circumstances indicate that the receivable is unlikely to be collected. The Group adjusts the allowance percentage periodically when there are significant differences between estimated credit losses and actual bad debts. If there is strong evidence indicating that these financial assets are likely to be unrecoverable, the Group also makes specific allowance in the period in which a loss is determined to be probable. The balance of these financial assets is written off after all collection efforts have been exhausted. For the years ended March 31, 2025 and 2024, the Group recovered credit losses of US$11,333 and recognized expected credit losses of US$325,785, respectively. (g)Accounts receivable, net Accounts receivable, net are stated at the original amount less allowances for expected credit losses. Accounts receivable are recognized in the period when the Group has delivered the products and services to its customers and when its right to consideration is unconditional. Accounts receivable that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the provision for credit losses. As of March 31, 2025 and 2024, the balance of allowance for expected credit losses for the Group’s accounts receivable was US$298,565 and US$307,381, respectively. (h)Inventories Inventories consisting of inventories in transit via maritime shipping, are stated at the lower of cost or net realizable value. Inventory cost includes the purchase price of waste paper. Cost of inventories are computed using first -in, first -outmethod. Inventories are written down to estimated net realizable value, which could be impacted by certain factors including historical usage, expected demand, anticipated sales price, product obsolescence, and other factors. The Group periodically reviews its inventories for excess or slow -movingitems and makes provisions as necessary to properly reflect inventory value. No inventory write -downswere recorded for years ended March 31, 2025 and 2024, respectively. F-9

SEAHAWK RECYCLING HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In U.S. Dollar, except for share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (i)Property, plant and equipment, net Property, plant and equipment