Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 63

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 63
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 820 Fair Value Measurement(“ASC 820”), and the concession right was initially measured at cost and subsequently evaluated for potential impairment indicators. The Company recorded the acquired concession right at fair value on the date of acquisition using both a market approach and an income approach to fair value. The methods used to estimate the fair value of the acquired intangible asset involves significant assumptions. The significant assumptions applied by management in estimating the fair value of the acquired forest land use rights included forest type, growth status, quantity, and survival rate. The significant assumptions applied by management in estimating the fair value of the acquired forest land use rights included discount and capitalization rates. We identified the accounting for and valuation of the newly acquired concession right as a critical audit matter because (i) the initial recognition involved complex judgments related to purchase price allocation, and (ii) determining the fair value of the concession right involved significant estimation uncertainty. Performing audit procedures to evaluate management’s estimates and assumptions required especially challenging auditor judgment and the use of valuation specialists. How the Critical Audit Matter was Addressed in the Audit Our audit procedures related to the accounting for and valuation of the concession right included, among others:

| ● | Evaluating the Company's determination that the transaction met 
 the criteria for asset acquisition accounting under ASC 805.    |

| ● | Assessing the methodology and significant assumptions used to estimate                                                                  
 the fair value of the concession right. For the underlying forest, we assessed forest type, growth status, quantity, and survival rate. 
 For the forest land use rights, we assessed discount rate and capitalization rate.                                                      |

| ● | Comparing key assumptions to external industry reports, market data, 
 and historical information, where applicable.                        |

| ● | Involving firm-engaged valuation specialists to assist in evaluating 
 the valuation models and assumptions.                                |

| ● | Performing sensitivity analysis on significant assumptions to assess 
 their impact on the valuation.                                       |

| ● | Evaluating the adequacy of the related disclosures in the consolidated 
 financial statements.                                                  |

/s/ YCM CPA INC. We have served as the Company’s auditor since 2021. PCAOB ID 6781
Irvine, California
May 8, 2025 F-3 RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

| ASSETS                                                                                                                                                               
 Current Assets:                                                                                                                                                      |     | December 31, 
 2024         |             |   |     | December 31,