Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 50

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 50
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 and then records specific allowances for those advances based on the specific facts and circumstances.
Allowance for uncollectible balances from the continuing operations amounted to $2,740and $2,817as of December 31, 2024 and 2023, respectively.

F-9

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Property, Plant and Equipment

Property and equipment are stated at cost. The
straight-line depreciation method is used to compute depreciation over the estimated useful lives of the assets, as follows:

                                       Useful life    
  Property and buildings               30 – 50 years  
  Machinery equipment                  5 – 15 years   
  Transportation vehicles              5 – 10 years   
  Office and electronic equipment      3 – 5 years    

Expenditures for maintenance and repairs, which
do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments
which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired
or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other
comprehensive income in other income or expenses.

Construction-in-Progress (“ CIP”)

Construction-in-progress represents property and
buildings under construction and consists of construction expenditures, equipment procurement, and other direct costs attributable to
the construction. Construction-in-progress is not depreciated. Upon completion and ready for intended use, construction-in-progress is
reclassified to the appropriate category within property, plant and equipment.

Intangible Assets

Intangible assets consist primarily of an acquired concession right
on forest land and software. Intangible assets are stated at cost less accumulated amortization. Intangible assets are amortized using
the straight-line method with the following estimated useful lives:

  Items                                Useful life  
 ────────────────────────────────────────────────────
  Concession right on forest land      37 years     
  Software                             10 years     

F-10

RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES (continued)

Impairment of Long-lived Assets

The Company reviews long-lived assets