Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 31

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 15
Chunk 31
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Item 15. Controls and Procedures

.”

However, the implementation
of these measures may not fully address the material weaknesses in our internal control over financial reporting. Our failure to correct
the material weaknesses or our failure to discover and address any other material weaknesses or control deficiencies could result in inaccuracies
in our financial statements and could also impair our ability to comply with applicable financial reporting requirements and related regulatory
filings on a timely basis. Moreover, ineffective internal control over financial reporting significantly hinders our ability to prevent
fraud.

Our independent registered
public accounting firm is required to attest to the effectiveness of our internal control over financial reporting in this annual report
on Form 20-F as we are no longer an “emerging growth company.” However, as long as we remain a “smaller reporting company”
as defined in Rule 10(f)(1) of Regulation S-K, we are not required to comply with the independent registered public accounting firm attestation
requirement on our internal control over financial reporting. If we are unable to implement and maintain effective internal control over
financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our
Class A Shares could be negatively affected, and we could become subject to investigations by the stock exchange on which our securities
are listed, the SEC, or other regulatory authorities, which could require additional financial and management resources.

Risks Related to Our Class A Shares

Failure to meet Nasdaq’s continued
listing requirements could result in the delisting of the Company’s Class A Shares, negatively impact the price of the Company’s
Class A Shares and negatively impact its ability to raise additional capital.

As previously disclosed, on
January 29, 2025, we received a delisting determination letter from The Nasdaq Stock Market LLC (“ Nasdaq”) due to failure
to comply with the minimum bid price requirement set forth in Nasdaq Listing Rule 5550(a)(2). We requested a hearing before a Nasdaq Hearings
Panel (the “ Panel”). Following the hearing before the Panel, at which we outlined our plan of compliance, we received a letter,
dated March 28, 2025, from Nasdaq notifying us that the Panel has concluded that we have regained compliance with the Listing Rules of
The Nasdaq Stock Market. The letter stated that we will remain on a Discretionary Panel Monitor, pursuant to Listing Rule 5815(d)(4)(A),
for a one-year period from the date of the Letter.