Company: SEAH
Filing Date: 2025-09-25
Form Type: F-1
Source: 0001213900-25-091701
Chunk: 78

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-09-25
Form: F-1
Chunk 78
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 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 March31, 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. For the years ended March31, 2025 and 2024, we recovered credit losses of US$11,333 and recognized expected credit losses of US$325,785, respectively. Revenue recognition We recognize revenue pursuant to ASC 606, Revenue from Contracts with Customers (“ASC 606”). In accordance with ASC 606, revenues from contracts with customers are recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services, reduced by consumption tax. To achieve the core principle of this standard, we applied the following five steps: Step 1: Identification of the contract, or contracts, with the customer; Step 2: Identification of the performance obligations in the contract; Step 3: Determination of the transaction price; Step 4: Allocation of the transaction price to the performance obligations in the contract; Step 5: Recognition of the revenue when, or as, a performance obligation is satisfied. Our revenue recognition policies effective on the adoption date of A$C 606 are as presented below. We currently generate our 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. Our products are sold with no right of return and we do not provide other credits or sales incentives to customers. Revenue is reported on a gross basis, as we act as the principal in these transactions, for which we bear inventory risk, exercises discretion over pricing, and are responsible for fulfilling the obligation to deliver the specified goods to customers