Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 100

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 100
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 and after the Reorganization, MMB, together with its subsidiaries are effectively controlled by the same controlling shareholders: therefore, the Reorganization was accounted for as a recapitalization, and the current capital structure has been retroactively presented in prior periods as if such structure existed at that time. This includes a retrospective presentation for all equity related disclosures, including share and per share, which have been revised to reflect the effects of the reorganization. Note 2 – Liquidity In assessing the Company’s liquidity, the Company monitors and analyzes its cash on-hand and its operating requirements and capital expenditure commitments. The Company’s liquidity needs are to meet its working capital requirements, operating expenses and capital expenditure obligations. The Company’s working capital deficit and cash on-hand was approximately $352,000 and $10,000, respectively, as of December 31, 2024. To enhance liquidity over the next 12 months, the Company plans to focus on driving revenue growth, optimizing its cost structure, and improving accounts receivable management. To achieve this, the Company will leverage its market leadership by introducing innovative products and services, while strategically expanding its market share in key regions. These efforts are expected to generate additional cash inflows and foster steady revenue growth. Also, the Company is working to improve its liquidity and capital sources through equity financing in short term. The management believes that the Company has sufficient funds to meet its working capital requirements and debt obligations, for at least the next 12 months from the filing date of these consolidated financial statements. However, there is no assurance that management will be successful in their plans. There are a number of factors that could potentially arise that could undermine the Company’s plans, such as changes in the demand for its services, economic conditions, its operating results may deteriorate and its bank and shareholders may not provide continued financial support. F-35 Note 3 – Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its subsidiaries, all of which are wholly-owned. All intercompany transactions and balances have been eliminated in consolidation. Use of Estimates and Assumptions The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses