Company: SEAH
Filing Date: 2025-09-25
Form Type: F-1
Source: 0001213900-25-091701
Chunk: 80

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-09-25
Form: F-1
Chunk 80
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 of recently issued accounting pronouncements that are relevant to us is included in Note 2 to our consolidated financial statements included elsewhere in this prospectus. Quantitative and Qualitative Disclosures about Market Risks Interest rate risk We are exposed to interest rate risk on our interest -bearingassets and liabilities. As part of our asset and liability risk management, we review and take appropriate steps to manage our interest rate exposures on our interest -bearingassets and liabilities. We have not been exposed to material risks due to changes in market interest rates and have not used any derivative financial instrument to manage the interest risk exposure during the years ended March 31, 2025 and 2024. Inflation risk Inflationary factors, such as increases in raw materials, personnel and overhead costs, could impair our operating results. Although we do not believe that inflation has had a material impact on our financial position or results of operations to date, a high rate of inflation in the future may have an adverse effect on our ability to maintain current levels of gross margin and operating expenses as a percentage of sales revenues if the revenues do not increase with such increased costs. Credit risk Credit risk is controlled by the application of credit approvals, limits and monitoring procedures. We manage credit risk through in -houseresearch and analysis of Japan and worldwide economy and the underlying obligors and transaction structures. We consider many factors in assessing the collectability of our receivables, such as the age of the amounts due, the customer’s payment history, credit -worthinessand other specific circumstances related to the accounts. Foreign currency translation and transaction Our Operating Entity’s functional currency is JPY. As a result, we are exposed to foreign exchange risk as our results of operations may be affected by fluctuations in the exchange rate between JPY and USD. If JPY depreciates against the USD, the value of our JPY revenues, earnings, and assets, as expressed in our USD financial statements, will decline. We have not entered into any hedging transactions in an effort to reduce our exposure to foreign exchange risk. Currently, these risks are not material to our financial condition or results of operations. As we expand internationally, our exposure to foreign currency translation and transaction risks may become more significant. 52 INDUSTRY All the information and data presented in this section have been derived from Frost & Sullivan Limited (“Frost & Sullivan”)’s industry report commissioned by us entitled “Metal and Paper Recycling Market Study” (the “Frost & Sullivan Report”) unless otherwise noted. Frost & Sullivan has