Company: RETO
Filing Date: 2025-09-15
Form Type: F-1
Source: 0001213900-25-087644
Chunk: 103

Company: ReTo Eco-Solutions, Inc.
Filing Date: 2025-09-15
Form: F-1
Chunk 103
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 by observable market data.                                                                                          |
| ● | Level                                                                                                                               
 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants   
 would use in pricing the asset or liability based on the best available information.                                                |

Financial instruments included in current assets and current liabilities are reported in the consolidated balance sheets at face value or cost, which approximate fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rates of interest. Assets and liabilities measured at fair value on a recurring basis. Cash and Cash Equivalents Cash and cash equivalents consist of deposits with banks and all highly liquid investments, with maturities of three months or less, that are not segregated and deposited for regulatory purposes. All cash are located in China. The Company has not experienced any losses in such accounts. Management believes that the Company is not exposed to any significant credit risk on cash. Cash in China may not be freely transferable out of the PRC because of exchange control regulations or other reasons. Inventories and Provision for Excess or Expired Inventory Inventories consist of barrels of craft beers which is stated at the lower of cost or net realizable value. Net realizable value is the difference between the expected sale price and the total sale or disposal costs. Cost of inventory is determined using the first-in, first-out basis method. Adjustments are recorded to write down the cost of inventory to the estimated net realizable value due to slow-moving and obsolete inventory, which is dependent upon factors such as historical and forecasted consumer demand, and promotional environment. The Company takes ownership, risks and rewards of the products purchased. The provisions for excess or expired inventory are based on management’s estimates of forecasted usage of inventories on hand. Forecasting usage involves significant judgments regarding future demand for the Company’s various existing products. A significant change in the timing or level of demand for certain products as compared to forecasted amounts may result in recording additional provisions for excess or expired inventory in the future. Provision for excess or expired inventory included in cost of goods sold was nil for the years ended December 31, 2024 and 2023. F-37 Fixed Assets, net Fixed assets are stated at cost less accumulated depreciation, and depreciated on a straight-line basis over the estimated useful lives of the assets with no residual value. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. The cost of repairs and maintenance is