Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 67

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 67
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 uncollectible balances from the continuing operations amounted to $ 2,740and $ 2,817as of December 31, 2024 and 2023, respectively. F-9 RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Property, Plant and Equipment

Property and equipment are stated at cost.

|                                 |     | Useful life |
| Property and buildings          |     | 30–50 years |
| Machinery equipment             |     | 5–15 years  |
| Transportation vehicles         |     | 5–10 years  |
| Office and electronic equipment |     | 3–5 years   |

Expenditures for maintenance and repairs, which
do not materially extend the useful lives of the assets, are charged to expense as incurred. Expenditures for major renewals and betterments
which substantially extend the useful life of assets are capitalized. The cost and related accumulated depreciation of assets retired
or sold are removed from the respective accounts, and any gain or loss is recognized in the consolidated statements of income and other
comprehensive income in other income or expenses.

Construction-in-Progress (“CIP”)

Construction-in-progress represents property and
buildings under construction and consists of construction expenditures, equipment procurement, and other direct costs attributable to
the construction. Construction-in-progress is not depreciated. Upon completion and ready for intended use, construction-in-progress is
reclassified to the appropriate category within property, plant and equipment.

Intangible Assets

Intangible assets consist primarily of an acquired concession right
on forest land and software.

| Items                           |     | Useful life |
| Concession right on forest land |     | 37 years    |
| Software                        |     | 10 years    |

F-10 RETO ECO-SOLUTIONS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Impairment of Long-lived Assets The Company reviews long-lived assets, 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