Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 61

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 61
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 For the year ended December 31, 2022, one customer accounted for100% of the Company’s
total revenue.

As of December 31, 2024, four customers accounted
for37%,23%,22% and12% of the Company’s consolidated accounts receivable, respectively. As of December 31, 2023, one customer
accounted for100% of the Company’s consolidated accounts receivable.

For the year ended December 31, 2024, the Company
purchased approximately68% and13% of its raw materials from two major suppliers, respectively. For the year ended December 31, 2023,
the Company purchased approximately83% and14% of its raw materials from two major suppliers, respectively. For the year ended December
31, 2022, the Company purchased approximately99% of its raw materials from one major supplier.

As of December 31, 2024, two suppliers accounted
for58% and33% of the total accounts payable balance, respectively. As of December 31, 2023, two suppliers accounted for64% and36%
of the total accounts payable balance, respectively.

Recent Accounting Pronouncements

The Company considers the applicability and impact
of all accounting standards updates (“ ASUs”). Management periodically reviews new accounting standards that are issued.

In December 2023, the Financial Accounting
Standards Board (“ FASB”) issued ASU 2023-09, “ Income Taxes (Topic 740): Improvements to Income Tax Disclosures”
(“ ASU 2023-09”). This ASU requires that public business entities must annually “(1) disclose specific categories
in the rate reconciliation and (2) provide additional information for reconciling items that meet a quantitative threshold (if the
effect of those reconciling items is equal to or greater than 5 percent of the amount computed by multiplying pretax income or loss by
the applicable statutory income tax rate).” A public entity should apply the amendments in ASU 2023-09 prospectively to all
annual periods beginning after December 15, 2024. The Company is currently evaluating these new disclosure requirements and does
not expect the adoption to have a material impact.

In March 2024, the FASB issued ASU 2024-01, “ Compensation
- Stock Compensation (Topic 718) - Scope Application of Profits Interest and Similar Awards” (“ ASU 2024-01”), which
intends to improve