Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 113

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 113
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 tax assets, net    |                      | $                  |       - |   |     | $ |    - |   |

Management has applied a valuation allowance to the total amount of deferred tax assets based on the determination that it is more likely than not that the deferred tax asset will not be realized. This determination was based on the historic and estimated future profitability of the entities to which the deferred tax assets relate. F-44 The movement of valuation allowance as follows:

|                                    |     | As of December 31, |   2024 |     |   | 2023 |
|:-----------------------------------|:----|:-------------------|-------:|:----|:--|-----:|
| Balance at beginning of the period |     | $                  |    575 |     | $ |    - |
| Additions                          |     |                    | 17,207 |     |   |  575 |
| Balance at ending of the period    |     | $                  | 17,782 |     | $ |  575 |

The Company evaluates each uncertain tax position (including the potential application of interest and penalties) based on the technical merits, and measure the unrecognized benefits associated with the tax positions. As of December 31, 2024 and 2023, the Company did not have any significant unrecognized uncertain tax positions or any unrecognized liabilities, interest or penalties associated with unrecognized tax benefits. The Company does not believe that its uncertain tax benefits position will materially change over the next twelve months. Note 10 – Lease All of the Company’s leases are classified as operating leases and primarily consist of real estate leases for corporate offices and other facilities. The Company’s lease agreements do not contain any residual value guarantees, restrictions or covenants. The Company has the option to extend the lease by providing written notice at least 60 days before the lease expires. As the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate based on information available at lease commencement to determine the present value of the lease payments. Cash paid for amounts included in the measurement of operating lease liabilities was approximately $55,561 and $5,084 for the years ended December 31, 2024 and 2023, respectively. As of December 31, 2024 and 2023, the weighted-average remaining lease term on these leases is approximately 1.41 and 2.08 years, respectively and the weighted-average discount rate used to measure the lease liabilities was approximately 3.