Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 62

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 62
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 clarity and operability without changing the existing guidance. ASU 2024-01 provides an illustrative example intended
to demonstrate how entities that account for profits interest and similar awards would determine whether a profits interest award should
be accounted for in accordance with Topic 718. Entities can apply the guidance either retrospectively to all prior periods presented in
the financial statements or prospectively to profits interest and similar awards granted or modified on or after the date of adoption.
ASU 2024-01 is effective for annual periods beginning after December 15, 2024, and interim periods within those annual periods. Early
adoption is permitted for both interim and annual financial statements that have not yet been issued or made available for issuance. The
Company is currently evaluating the potential impact of adopting this guidance on its financial statements.

In November 2024, the FASB issued ASU 2024-03,
“ Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures” (Subtopic 220-40) (“ ASU
2024-03”). The objective of ASU 2024-03 is to improve disclosures about a public entity’s expenses, primarily through additional
disaggregation of income statement expenses. In January 2025, the FASB further clarified the effective date of ASU 2024-03 with the issuance
of Accounting Standards Update 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures
(Subtopic 220-40) (“ ASU 2025-01”). ASU 2024-03 is effective for annual periods beginning after December 15, 2026, and interim
periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted and may be applied either on a
prospective or retrospective basis. The Company is currently evaluating the impact ASU 2024-03 will have on its financial statement disclosures.

Except for the above-mentioned pronouncements,
there are no recently issued accounting standards that will have a material impact on the audited consolidated financial position, statements
of operations, and cash flows of the Company.

F-17

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 3 - GOING CONCERN

As reflected in the Company’s consolidated
financial statements for the year ended December 31, 2024, the Company’s revenue increased by