Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 69

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 69
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 the Note were increased by $310,500.00(the “ Standstill Fee”) as of the date of the agreement. The fair value of the Note
was $3,922,686as of December 31, 2022. On May 26, 2023, the Company entered into an extension agreement with the investor to extend the
maturity date until March 10, 2024. Balance of the Note were increased by $145,569as of the date of the agreement.

The principal balance of $100,000of the March
2022 Note was converted into291common shares of the Company on December 20, 2022. The remaining balance of $3,461,069was converted
into27,966common shares of the Company during the year ended December 31, 2023.

For the years ended December 31, 2024, 2023 and 2022, due to the change
in fair value of convertible debentures, the Company recorded an unrealized gain (loss) of nil, $47,813and ($467,383) in other expense,
respectively. Interest expense recognized for these convertible debentures for the years ended December 31, 2024, 2023 and 2022 was nil,
$90,638and $194,117, respectively.

NOTE 12 - LOANS FROM THIRD PARTIES - CURRENT

  Loans from Third Parties                            As of             As of                        
                                                      December 31,      December 31,                 
                                                      2024              2023                         
 ─────────────────────────────────────────────────────────────────────────────────────────────────────
  Honghe County Yisa Hengtong Decoration Company      $109,600          $                 112,678    
  Less: Loans from third parties-non-current          -                                   ( 112,678  
  Loans from third parties - current                  $109,600          $                 -          

On May 26, 2023, the Company entered into a loan agreement with Honghe
County Yisa Hengtong Decoration Company to borrow $112,678as a working capital loan fortwo years. The loan is from May 26, 2023 to May
5, 2025 and bears an annual interest of1%. The loan was fully repaid in June 2024. On May 6, 2024, the Company entered into a new loan
agreement with Honghe County Yisa Hengtong Decoration