| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis
of Presentation and Principles of Consolidation The
accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“U.S. GAAP”). The
accompanying consolidated financial statements of the Company reflect the principal activities of the entities listed below. All
inter-company balances and transactions have been eliminated upon consolidation.
Name
of the entity Place
of Incorporation Ownership Percentage
ReTo
Eco-Solutions, Inc. (“RETO”) British
Virgin Islands Parent
REIT
Holdings (China) Limited (“REIT Holdings”) Hong
Kong, China 100 %
Beijing
REIT Technology Development Co., Ltd. (“Beijing REIT”) Beijing,
China WFOE,100 %
Gu’an
REIT Machinery Manufacturing Co., Ltd. (“Gu’an REIT”) Gu’an,
China 100 %
REIT
Mingsheng Environment Protection Construction Materials (Changjiang) Co., Ltd. (“REIT Changjiang”) Changjiang,
China 100 %
Beijing
REIT Eco-Engineering Technology Co., Ltd. (“REIT Eco Engineering”) Beijing,
China 100 %
Langfang
Ruirong Mechanical and Electrical Equipment Co., Ltd. (“Ruirong”) Langfang,
China 100 %
Hainan
REIT Construction Project Co., Ltd. (“REIT Construction”) Haikou,
China 100 %
REIT
Xinyi New Materials Co., Ltd. (“REIT Xinyi”) Xinyi,
China 70 %
Nanjing
Dingxuan Environmental Protection Technology Development Co., Ltd. (“Dingxuan”) Nanjing,
China 100 %
REIT
Technology Development (America), Inc. (“REIT US”) California,
U.S.A 100 %
REIT
Q GREEN Machines Private Limited (“REIT India”) India 51 %
Xinyi
REIT Ecological Technology Co, Ltd (“REIT Ecological”) Xinyi,
China 100 %
Horgos
Ta-REIT Environment Technology Co., Ltd., (“Horgos Ta-REIT”) Horgos,
China 100 %
REIT
Ecological Technology Co., Ltd. (“REIT Yancheng”) Yancheng,
China 100 %
Lingqiu
REIT Dongtian Ecological Technology Co., Ltd. (“REIT Lingqiu”) Datong, China 51 % Noncontrolling
interests As
of December 31, 2018, and 2017, noncontrolling interests represent the noncontrolling shareholders’ proportionate share
of equity interests in REIT Xinyi, REIT India and REIT Lingqiu. Use
of Estimates The
preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reporting period. These estimates are based on information
as of the date of the consolidated financial statements. Significant
estimates required to be made by management include, but are not limited to, the valuation of accounts receivable, inventories,
advances to suppliers, useful lives of property, plant and equipment, intangible assets, the recoverability of long-lived assets,
provision necessary for contingent liabilities, revenue recognition under the input method, and realization of deferred tax assets.
Actual results could differ from those estimates. Foreign
Currency Translation The
Company’s principal country of operations is the PRC. The financial position and results of its operations are determined
using RMB, the local currency, as the functional currency. The Company’s financial statements are reported using U.S. Dollars.
The results of operations and the consolidated statements of cash flows denominated in foreign currency are translated at the
average rate of exchange during the reporting period. Assets and liabilities denominated in foreign currencies at the balance
sheet date are translated at the applicable rates of exchange in effect at that date. The equity denominated in the functional
currency is translated at the historical rate of exchange at the time of capital contribution. Because cash flows are translated
based on the average translation rate, amounts related to assets and liabilities reported on the consolidated statements of cash
flows will not necessarily agree with changes in the corresponding balances on the consolidated balance sheets. Translation adjustments
arising from the use of different exchange rates from period to period are included as a separate component of accumulated other
comprehensive income (loss). Gains and losses from foreign currency transactions are included in the results of operations. The
value of RMB against US$ and other currencies may fluctuate and is affected by, among other things, changes in the PRC’s
political and economic conditions. Any significant revaluation of RMB may materially affect the Company’s financial condition
in terms of US$ reporting. The following table outlines the currency exchange rates that were used in creating the consolidated
financial statements in this report:
December 31, December 31, December 31,
Year-end spot rate US$1=RMB 6.8755 US$1=RMB 6.5062 US$1= RMB 6.9448
Average rate US$1=RMB 6.6090 US$1=RMB 6.7568 US$1= RMB 6.6441 Cash
and Cash Equivalents Cash
and cash equivalents represent cash on hand and time deposits, which have original maturities of three months or less when purchased
and which are unrestricted as to withdrawal and use. In addition, highly liquid investments which have original maturities of
three months or less when purchased are classified as cash equivalents. The Company maintains most of the bank accounts in the
PRC. Cash balances in bank accounts in PRC are not insured by the Federal Deposit Insurance Corporation or other programs. Restricted
Cash Restricted
cash consists of cash equivalents used as collateral to secure bank borrowings. The Company is required to keep certain amounts
on deposit that are subject to withdrawal restrictions. The restricted cash balance is associated with the Company’s short-term
borrowings, thus, classified as a current asset. As of December 31, 2018, and 2017, the Company had restricted cash of $85,293
and $Nil, respectively, related to the bank acceptance notes payable. In
November 2016, the FASB issued Accounting Standards Update No. 2016-18, Statement of Cash Flows (Topic 230): Restricted
Cash, which requires companies to include amounts generally described as restricted cash and restricted cash equivalents in cash
and cash equivalents when reconciling beginning-of-period and end-of-period total amounts presented in the statement of cash flows.
The Company adopted the new standard effective January 1, 2018, using the retrospective transition method. Accounts
Receivable, net Accounts
receivable are recognized and carried at original invoiced amount less an estimated allowance for uncollectible accounts. The
Company usually grants credit to customers with good credit standing with a maximum of 180 days and determines the adequacy of
reserves for doubtful accounts based on individual account analysis and historical collection trends. The Company establishes
a provision for doubtful receivables when there is objective evidence that the Company may not be able to collect amounts due.
The allowance is based on management’s best estimates of specific losses on individual exposures, as well as a provision
on historical trends of collections. Based on the assessment of customers’ credit and ongoing relationships, the Company’s
payment terms typically range from 90 days to 1 year. The provision is recorded against accounts receivables balances, with a
corresponding charge recorded in the consolidated statements of income and comprehensive income. Actual amounts received may differ
from management’s estimate of credit worthiness and the economic environment. Delinquent account balances are written-off
against the allowance for doubtful accounts after management has determined that the likelihood of collection is not probable. Inventories Inventories
are stated at the lower of cost or net realizable value. Costs include the cost of raw materials, freight, direct labor and related
production overhead. The cost of inventories is calculated using the weighted average method. Any excess of the cost over the
net realizable value of each item of inventories is recognized as a provision for diminution in the value of inventories. Net
realizable value is the estimated selling price in the normal course of business less any costs to complete and sell products. Advances
to Suppliers, net Advances
to suppliers consist of balances paid to suppliers for services and materials that have not been provided or received. Advances
to suppliers for service and material are short-term in nature. Advances to Suppliers are reviewed periodically to determine whether
their carrying value has become impaired. The Company considers the assets to be impaired if the collectability of the advance
becomes doubtful. The Company uses the aging method to estimate the allowance for uncollectible balances. In addition, at each
reporting date, the Company generally determines the adequacy of allowance for doubtful accounts by evaluating all available information,
and then records specific allowances for those advances based on the specific facts and circumstances. Allowance for uncollectible
balances amounted to $871,030 and $534,245 as of December 31, 2018 and 2017, respectively. Property,
Plant and Equipment Property
and equipment are stated at cost. The straight-line depreciation method is used to compute depreciation over the estimated useful
lives of the assets, as follows:
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 land use rights and software. Under the PRC law, all land in the PRC is owned by the government and
cannot be sold to an individual or company. The government grants individuals and companies the right to use parcels of land for
specified periods of time. These land use rights are sometimes referred to informally as “ownership”. Land use rights
are stated at cost less accumulated amortization. Intangible assets are amortized using the straight-line method with the following
estimated useful lives:
Items Useful life
Land use rights 45-49 years
Software 10 years Impairment
of Long-lived Assets The
Company reviews long-lived assets, including definitive-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. There were no impairments of these assets recorded for the years ended December 31, 2018, 2017
and 2016. Fair
Value of Financial Instruments ASC
825-10 requires certain disclosures regarding the fair value of financial instruments. Fair value is defined as the price that
would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. A three-level fair value hierarchy prioritizes the inputs used to measure fair value. The hierarchy requires
entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used
to measure fair value are as follows:
● Level
1 - Quoted prices in active markets for identical assets and liabilities.
● Level
2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset
or liability, either directly or indirectly, for substantially the full term of the financial instrument.
● Level
3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the
assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that
use significant unobservable inputs. The
Company considers the recorded value of its financial assets and liabilities, which consist primarily of cash and cash equivalents,
accounts receivable, advance to suppliers, accounts payable, accrued and other liabilities, advances from customers, deferred
revenue, taxes payable and due to related parties to approximate the fair value of the respective assets and liabilities at December
31, 2018 and 2017, based upon the short-term nature of the assets and liabilities. The
Company believes that the carrying amount of the short-term and long-term borrowings approximates fair value at December 31, 2018
and 2017 based on the terms of the borrowings and current market rates as the rates of the borrowings are reflective of the current
market rates. Revenue
Recognition The
Company adopted ASC Topic 606 Revenue from Contracts with Customers (“ASC 606”) on January 1, 2018 using the modified
retrospective approach. Revenues for the year ended December 31, 2018 were presented under ASC 606, and revenues for the years
ended December 31, 2017 and 2016 were not adjusted and continue to be presented under ASC Topic 605, Revenue Recognition. There
is no adjustment to the opening balance of retained earnings at January 1, 2018 since there is no change to the timing and pattern
of revenue recognition upon adoption of ASC 606. Under ASC 606, revenue is recognized when control of promised goods or services
is transferred to the Company’s customers in an amount of consideration to which an entity expects to be entitled to in
exchange for those goods or services. The
Company’s revenues are primarily derived from the following sources:
● Revenue
from machinery and equipment sales The
Company recognizes revenue when the machinery and equipment is delivered and control is transferred. The Company generally provide
a warranty for a period of 12 months after the customers receive the equipment. The Company determines that such product warranty
is not a separated performance obligation because the nature of warranty is to provide assurance that a product will function
as expected and in accordance with customer’s specification and the Company has not sold the warranty separately. From its
past experience, the Company has not experienced any material warranty costs and, therefore, the Company does not believe an accrual
for warranty cost is necessary for the years ended December 31, 2018 and 2017. The
Company usually agrees with customers on the contracts to holdback approximately 5% to 20% of total contract price as security
deposits which are payable by customer within 12 months after the goods are shipped and titles have passed. The Company determines
that the timing of collection of security deposit has no impact on revenue recognition, as all above criteria on revenue recognition
had been met at the point at delivery and the Company does not retain any substantial performance obligations. The security retention
included in the account receivable as of December 31, 2018 and 2017 was Nil and $557,919, respectively.
● Revenue
from construction materials sales The
Company recognizes revenue, net of sales taxes and estimated sales returns, when the construction materials are shipped to, delivered
to or picked up by customers and control is transferred.
● Revenue
from municipal construction projects The
Company provides municipal construction services which includes sponge city projects, sewage pipeline construction, public plaza
construction, and landscaping, etc. The Company recognizes revenue associated with these contracts over time as service is performed
and the transfer of control occurs, based on a percentage-of-completion method using cost-to-cost input methods as a measure of
progress. When the percentage-of-completion method is used, the Company estimates the costs to complete individual contracts and
records as revenue that portion of the total contract price that is considered complete based on the relationship of costs incurred
to date to total anticipated costs (the cost-to-cost approach). Under
the cost-to-cost approach, the use of estimated costs to complete each contract is a significant variable in the process of determining
recognized revenue, requires judgment and can change throughout the duration of a contract due to contract modifications and other
factors impacting job completion. The costs of earned revenue include all direct material and labor costs and those indirect costs
related to contract performance, such as indirect labor, supplies, tools and repairs. Provisions for estimated losses on uncompleted
contracts are made in the period in which such losses are determined.
● Revenue
from technological consulting and other services The
Company recognizes revenue when technological consulting and other services are rendered and accepted by the customers. Disaggregation
of Revenues The
Company disaggregates its revenue from contracts by products and services, as we believe it best depicts how the nature, amount,
timing and uncertainty of the revenue and cash flows are affected by economic factors. The Company’s disaggregation of revenues
for the years ended December 31, 2018 and 2017 is disclosed in Note 17. Shipping
and Handling Shipping
and handling costs are expensed as incurred and are included in operating expenses, as a part of selling, and general and administrative
expenses, in the Company’s consolidated statements of income and comprehensive income. Total shipping and handling expenses
were $730,751, $776,438 and $630,218 for the years ended December 31, 2018, 2017 and 2016, respectively. Income
Taxes The
Company accounts for income taxes under ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences
attributable to differences between the consolidated financial statement carrying amounts of existing assets and liabilities and
their respective tax bases. Deferred
tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in
tax rates is recognized in income in the period including the enactment date. Valuation allowances are established, when necessary,
to reduce deferred tax assets to the amount expected to be realized. The
provisions of ASC 740-10-25, “Accounting for Uncertainty in Income Taxes,” prescribe a more-likely-than-not threshold
for consolidated financial statement recognition and measurement of a tax position taken (or expected to be taken) in a tax return.
This interpretation also provides guidance on the recognition of income tax assets and liabilities, classification of current
and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and related
disclosures. The Company records a liability for uncertain tax positions when it is probable that a loss has been incurred and
the amount can be reasonably estimated. To
the extent applicable, the Company records interest and penalties as a general and administrative expense. The Company’s
subsidiaries in China and Hong Kong are subject to the income tax laws of the PRC and Hong Kong. No significant taxable income
was generated outside the PRC for the years ended December 31, 2018, 2017 and 2016. As of December 31, 2018, the tax years ended
December 31, 2014 through December 31, 2018 for the Company’s PRC subsidiaries remain open for statutory examination by
PRC tax authorities. Value
Added Tax (“VAT”) Sales
revenue represents the invoiced value of goods, net of VAT. The VAT is based on gross sales price and VAT rates range up to 16%,
starting from May 1, 2018, depending on the type of products sold. The VAT may be offset by VAT paid by the Company on raw materials
and other materials included in the cost of producing or acquiring its finished products. The Company recorded a VAT payable net
of payments in the accompanying consolidated financial statements. All of the VAT returns of the Company have been and remain
subject to examination by the tax authorities for five years from the date of filing. Accounting
for Changes in Ownership During
the year ended December 31, 2017, the Company completed the acquisition of a 15.68% noncontrolling interest in its subsidiary
REIT Changjiang. In accordance with ASC 810 “Consolidation”, changes in a parent’s ownership while the parent
retains its controlling financial interest in its subsidiary should be accounted for as an equity transaction. Therefore, no gain
or loss is recognized in consolidated net income (loss) or comprehensive income (loss). The carrying amount of the controlling
and noncontrolling interest is adjusted to reflect the change in its ownership interest in the subsidiary. Any difference between
the fair value of the consideration received or paid and the amount by which the noncontrolling interest is adjusted is recognized
in equity attributable to the parent. If a change in a parent’s ownership interest occurs in a subsidiary that has accumulated
other comprehensive income, the carrying amount of accumulated other comprehensive income is adjusted to reflect the change in
the ownership interest in the subsidiary through a corresponding charge or credit to equity attributable to the parent. Earnings
per Share The
Company computes earnings per share (“EPS”) in accordance with ASC 260, “Earnings per Share” (“ASC
260”). ASC 260 requires companies with complex capital structures to present basic and diluted EPS. Basic EPS is measured
as net income divided by the weighted average common shares outstanding for the period. Diluted EPS is similar to basic EPS but
presents the dilutive effect on a per share basis of potential common shares (e.g., convertible securities, options and warrants)
as if they had been converted at the beginning of the periods presented, or issuance date, if later. Potential common shares that
have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation
of diluted EPS. For the years ended December 31, 2018, 2017 and 2016, the Company had no dilutive security outstanding that could
potentially dilute EPS in the future. Concentrations
and Credit Risk A
majority of its expense transactions are denominated in RMB and a significant portion of the Company and its subsidiaries’
assets and liabilities are denominated in RMB. RMB is not freely convertible into foreign currencies. In the PRC, certain foreign
exchange transactions are required by law to be transacted only by authorized financial institutions at exchange rates set by
the People’s Bank of China (“PBOC”). Remittances in currencies other than RMB by the Company in China must be
processed through the PBOC or other China foreign exchange regulatory bodies which require certain supporting documentation in
order to effectuate the remittance. The
Company maintains certain bank accounts in the PRC, Hong Kong, India and BVI, which are not insured by Federal Deposit Insurance
Corporation (“FDIC”) insurance or other insurance. As of December 31, 2018, and 2017, $1,065,774 and $2,018,199 of
the Company’s cash and cash equivalents was on deposit at financial institutions in the PRC where there currently is no
rule or regulation requiring such financial institutions to maintain insurance to cover bank deposits in the event of bank failure.
The cash balance held in the Hong Kong bank accounts was $73,540 and $51,634 as of December 31, 2018 and 2017, respectively. The
cash balance held in India bank accounts was $90,783 and $Nil as of December 31, 2018 and 2017 respectively. The cash balance
held in BVI bank accounts was $245,874 and $8,774,608 as of December 31, 2018 and 2017 respectively. As of December31, 2018 and
2017, the Company held $181 and $3,356 of cash balances within the United States, respectively, which was below the FDIC insurance
limits of $250,000. Accounts
receivable are typically unsecured and derived from revenue earned from customers, thereby exposed to credit risk. The risk is
mitigated by the Company’s assessment of its customers’ creditworthiness and its ongoing monitoring of outstanding
balances. The
Company’s sales are made to customers that are located primarily in China. The Company has a concentration of its revenues
and receivables with specific customers. For the years ended December 31, 2018, 2017 and 2016, no customer accounted for more
than 10% of the Company’s total revenue. As of December 31, 2018, 2017 and 2016, none of account receivable accounted for
more than 10% of the total outstanding accounts receivable balance. For
the years ended December 31, 2018, 2017 and 2016, the Company purchased approximately 28%, 31% and 41% of its raw materials from
one major supplier, respectively. Advanced payments to three major vendors accounted for 20%, 17% and 11% of the total advance
payments outstanding as of December 31, 2018. Advanced payments to three major vendors accounted for 23%, 17% and 16% of the total
advance payments outstanding as of December 31, 2017. Risks
and Uncertainties The
main operation of the Company is located in the PRC. Accordingly, the Company’s business, financial condition, and results
of operations may be influenced by political, economic, and legal environments in the PRC, as well as by the general state of
the PRC economy. The Company’s results may be adversely affected by changes in the political, regulatory and social conditions
in the PRC. Although the Company has not experienced losses from these situations and believes that it is in compliance with existing
laws and regulations including its organization and structure disclosed in Note 1, this may not be indicative of future results. Reclassifications Certain
prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect
on the reported results of operations. 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
February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases In
June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial
Instruments (“ASU 2016-13”) which requires the measurement and recognition of expected credit losses for financial
assets held at amortized cost. ASU 2016-13 replaces the existing incurred loss impairment model with an expected loss methodology,
which will result in more timely recognition of credit losses. ASU 2016-13 is effective for annual reporting periods, and interim
periods within those years, beginning after December 15, 2019. The Company is currently in the process of evaluating the impact
of the adoption of ASU 2016-13 on its consolidated financial statements. In
February 2018, the FASB issued ASU 2018-02, which allows a reclassification from accumulated other comprehensive income to retained
earnings for adjustments to tax effects that were originally recorded in other comprehensive income due to changes in the U.S.
federal corporate income tax rate resulting from the enactment of the U.S. tax reform legislation, commonly referred to as the
Tax Cuts and Jobs Act (the “Tax Act. The Company does not expect this guidance will have a material impact on its consolidated
financial statements. In
March 2018, the FASB issued ASU 2018-05 — Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting
Bulletin No. 118 (“ASU 2018-05”), which amends the FASB Accounting Standards Codification and XBRL Taxonomy based
on the Tax Cuts and Jobs Act (the “Act”) that was signed into law on December 22, 2017 and Staff Accounting Bulletin
No. 118 (“SAB 118”) that was released by the Securities and Exchange Commission. The Act changes numerous provisions
that impact U.S. corporate tax rates, business-related exclusions, and deductions and credits and may additionally have international
tax consequences for many companies that operate internationally. The Company does not believe this guidance will have a material
impact on its consolidated financial statements. On
June 20, 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718) - Improvements to Nonemployee
Share-Based Payment Accounting, which aligns the accounting for share-based payment awards issued to employees and nonemployees.
Under ASU No. 2018-07, the existing employee guidance will apply to nonemployee share-based transactions (as long as the transaction
is not effectively a form of financing), with the exception of specific guidance related to the attribution of compensation cost.
The cost of nonemployee awards will continue to be recorded as if the grantor had paid cash for the goods or services. In addition,
the contractual term will be able to be used in lieu of an expected term in the option-pricing model for nonemployee awards. The
new standard is effective for us on January 1, 2019. Early adoption is permitted, including in interim periods, and should be
applied to all new awards granted after the date of adoption. The Company does not expect this guidance will have a material impact
on its consolidated financial statements. In
August 2018, the FASB Accounting Standards Board issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): Disclosure
Framework Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies
the disclosure requirements on fair value measurements. ASU 2018-13 is effective for public entities for fiscal years beginning
after December 15, 2019, with early adoption permitted for any removed or modified disclosures. The removed and modified disclosures
will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The Company does not
expect this guidance will have a material impact on its consolidated financial statements. Except
for the above-mentioned pronouncements, there are no new recent issued accounting standards that will have material impact on
the consolidated financial position, statements of operations and cash flows. |
