Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 68

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 68
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622,662  
                              Total      $                 7,654,767  

F-21

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 11 - CONVERTIBLE LOANS

July 2021 Debenture

On July 6, 2021, the Company entered into another
securities purchase with the Debenture Holder for the issuance of a Convertible Debenture (the “ July 2021 Debenture”) in the
aggregate principal amount of up to $2,500,000with a maturity date of twelve months after the issuance thereof, provided that in case
of an event of default, the July 2021 Debenture may become at the Debenture Holder’s election immediately due and payable. In addition,
the Company paid to an affiliate of the Debenture Holder a fee equal to3.5% of the amount of the July 2021 Debenture and a one-time due
diligence and structuring fee of $5,000at the closing.

The principal balance of $1,130,000of the July
2021 Debenture was converted into1,386common shares of the Company for the year ended December 31, 2021. The remaining balance of $1,370,000of the July 2021 Debenture was converted into1,068common shares of the Company during the year ended December 31, 2022.

March 2022 Note

On March 10, 2022, the Company entered into a
securities purchase agreement with an accredited investor for the issuance of a Convertible Promissory Note (the “ Note”) in
the aggregate principal amount of $3,105,000with a maturity date of twelve months after the payment of the purchase price for the Note,
which will be converted into Company’s common shares. The Note carries an original issue discount of $90,000. In addition, the Company
paid $15,000to the investor to cover legal fees, accounting fees, due diligence etc. On October 13, 2022, the Company entered into a
standstill agreement with the investor. Pursuant to the standstill agreement, the investor will not seek to convert any portion of the
Note for a period beginning as of the date of the agreement and ending on December 10, 2022 (the “ Standstill Period”). Balance
of