Company: SEAH
Filing Date: 2025-08-29
Form Type: DRS/A
Source: 0001213900-25-082696
Chunk: 183

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-08-29
Form: DRS/A
Chunk 183
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 operating lease are added to the carrying amount of the leased asset and recognized over the lease term on the same basis on the rental income. The Group does not have any sales -typeor direct financing leases for the years ended March 31, 2025 and 2024. F-13

SEAHAWK RECYCLING HOLDINGS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (In U.S. Dollar, except for share data) 2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) (p)Revenue recognition The Group recognizes revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to the Group’s customers, in an amount that reflects the consideration the Group expects to be entitled to in exchange for those goods or services, reduced by consumption tax. To achieve the core principle of this standard, the Group applied the following five steps: Step 1: Identification of the contract, or contracts, with the customer; Step 2: Identification of the performance obligations in the contract; Step 3: Determination of the transaction price; Step 4: Allocation of the transaction price to the performance obligations in the contract; Step 5: Recognition of the revenue when, or as, a performance obligation is satisfied. The Group currently generates its revenue from the following main sources: Revenue from recycling sales Revenue from recycling sales primarily consists of scrap metal and waste paper sold to both domestic and international customers. Revenue is recognized at a point in time. The exact timing of which depends on the terms of each contract, either upon the goods are loaded onto the vessel, or upon arrival at the location designated by the customers, which is the point when the risks and titles are transferred to the customer. The Group’s products are sold with no right of return, and the Company does not provide other credits or sales incentives to customers. Revenue is reported on a gross basis, as the Group acts as the principal in these transactions, for which it bears inventory risk, exercises discretion over pricing, and is responsible for fulfilling the obligation to deliver the specified goods to customers. Revenue from technology licensing The Group grants licenses to a third party for the use of relevant technologies related to the classification, dismantling, treatment, and recycling of scrap metals. Revenue from technology licensing is recognized on a straight -linebasis over the contract periods. Revenue is reported on a gross basis,