Company: RETO
Filing Date: 2025-05-09
Form Type: 20-F
Source: 0001213900-25-041195
Chunk: 51

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-05-09
Form: 20-F
Item: Item 19
Chunk 51
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, including
finite-lived intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset
may not be recoverable. If the estimated cash flows from the use of the asset and its eventual disposition are below the asset’s
carrying value, then the asset is deemed to be impaired and written down to its fair value.

Long-term Investment in Equity Investee (Discontinued Operations)

The Company’s long-term investments include
equity method investments and equity investments without readily determinable fair values.

Investments in entities in which the Company can
exercise significant influence but does not own a majority equity interest or control are accounted for using the equity method of accounting
in accordance with ASC 323, Investments-Equity Method and Joint Ventures (“ ASC 323”). Under the equity method, the Company
initially records its investment at cost, and the difference between the cost of the equity investee and the amount of the underlying
equity in the net assets of the equity investee is accounted for as if the investee were a consolidated subsidiary. The share of earnings
or losses of the investee are recognized in the consolidated statements of comprehensive loss. Equity method adjustments include the Company’s
proportionate share of investee income or loss, adjustments to recognize certain differences between the Company’s carrying value
and its equity in net assets of the investee at the date of investment, impairments, and other adjustments required by the equity method.
The Company assesses its equity investment for other-than-temporary impairment by considering factors as well as all relevant and available
information including, but not limited to, current economic and market conditions, the operating performance of the investees including
current earnings trends, the general market conditions in the investee’s industry or geographic area, factors related to the investee’s
ability to remain in business, such as the investee’s liquidity, debt ratios, and cash burn rate and other company-specific information.

Investments in equity securities without readily
determinable fair values are measured at cost minus impairment adjusted by observable price changes in orderly transactions for the identical
or a similar investment of the same issuer. These investments are measured at fair value on a nonrecurring basis when there are events
or changes in circumstances that may have a significant adverse effect. An impairment loss is recognized in the consolidated statements
of comprehensive loss equal to the amount by which the carrying value exceeds the fair value of the investment. Prior to the adoption
of ASU 2016-01 on