Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 83

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 83
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739 |   |
| Less: Allowance for credit losses    |     |   |       (2,740 | ) |     |   |       (2,817 | ) |
| Advances to suppliers, net           |     | $ |      522,190 |   |     | $ |          922 |   |

Our suppliers generally require refundable prepayments
from us before delivery of goods or services. It usually takes 3 to 6 months for the suppliers to deliver raw materials for our equipment
production and takes up to 6 to 12 months for the suppliers to deliver the construction materials. The prepayment is necessary to secure
the supply in the market or secure a favorable price.

The changes of allowance for doubtful accounts for the years ended
December 31, 2024 and 2023 are as follows:

|                              |     |   | December 31, 
         2024 |   |     |   | December 31, 
         2023 |   |
|:-----------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Beginning balance            |     | $ |        2,817 |   |     | $ |        2,900 |   |
| Foreign exchange translation |     |   |          (77 | ) |     |   |          (83 | ) |
| Ending balance               |     | $ |        2,740 |   |     | $ |        2,817 |   |

NOTE 8 – LEASE

The Company has several operating leases for manufacturing facilities,
dormitories and offices. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive
covenants. Rent expense for the years ended December 31, 2024, 2023 and 2022 was $, $ and nil, respectively.

The Company’s operating leases primarily include leases for dormitories,
office space and manufacturing facilities. The current portion of operating lease liabilities is presented on the consolidated balance
sheet. For the year ended December 31, 2024, total lease expense amounted to $, which included nil of interest, $ of amortization
expense of ROU assets and short-term lease expense of nil. For the year ended December 31, 2023, total lease expense amounted to $,
which included nil of interest, $ of amortization expense of ROU assets and short-term lease expense of nil.