Company: RNGE
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001343
Chunk: 50

Company: RANGE IMPACT, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 50
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2023, based on all available
                                            objective evidence, including the existence of cumulative losses, the Company determined
                                            that it was more likely than not that the net deferred tax assets were not fully realizable.
                                            Accordingly, the Company established a full valuation allowance against its net deferred
                                            tax assets. The Company intends to maintain a full valuation allowance on net deferred tax
                                            assets until sufficient positive evidence exists to support reversal of the valuation allowance.
                                            During the year ended December 31, 2024 and the year ended December 31, 2023, the valuation allowance changed by $0.8 million and $2.2
million, respectively.

At
December 31, 2024 and December 31, 2023, the Company had available federal and state net operating loss carryforwards
(“NOLs”) to reduce future taxable income. Due to restrictions imposed by Internal Revenue Code Section 382 regarding
substantial changes in ownership of companies with loss carryforwards, the utilization of the Company’s NOLs may be limited as
a result of changes in stock ownership. For Federal purposes, after considering limitations under Section 382, the net operating
loss amounts available were approximately $19.2 million
and $16.9 million
as of December 31, 2024 and December 31, 2023, respectively. For state purposes, after considering limitations under Section 382,
the net operating loss amounts available were approximately $16.5 million
as of December 31, 2024 and $16.6 million as of December 31, 2023. NOLs incurred subsequent to the latest change in control are not
subject to the Section 382 limitation. The
Federal carryforwards generated prior to December 31, 2017 expire on various dates through 2037, and Federal carryforwards generated
after December 31, 2017 do not expire but are limited to 80% utilization in a given period.

11.
MAJOR CUSTOMER AND CONCENTRATION OF CREDIT RISK

Sales
to the Company’s two largest customers were 53% and 23%, respectively, of total sales for the year ended December 31, 2024, and
70% and 24%, respectively, of total sales for the year ended December 31, 2023.

Accounts
receivable from the same customers were 83% and 17%, respectively, of total accounts receivable and unbilled rece