Company: RNGE
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010872
Chunk: 134

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 2
Chunk 134
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 “Business Combinations.” This method requires the Company
to record assets and liabilities of the businesses acquired at their estimated fair values as of the acquisition date. Any excess of
the cost of the acquisition over the fair value of the net assets acquired is recorded as goodwill. Determining the fair value requires
management to make estimates and assumptions including discount rates, rates of return on assets, and long-term sales growth rates.

Revenue Recognition

The Company recognizes revenue
under ASC 606, “Revenue from Contracts with Customers”. The core principle of the revenue standard is that a company should
recognize revenue by analyzing the following five steps: (1) identify the contract with the customer; (2) identify the performance obligations
in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations; and (5) recognize
revenue when, or as, each performance obligation is satisfied. The Company primarily invoices customers and recognizes revenue on a periodic
basis for equipment and labor hours provided to a customer on a particular job based on an agreed-upon hourly rate sheet or a fixed amount
for a project. The Company also invoices customers and recognizes revenue for equipment mobilization fees and materials and supplies
required to complete a project. The Company invoices for the sales of chemicals and recognizes revenue when the products are delivered
to the customer’s designated site. Costs for equipment, labor and chemicals are generally expensed as incurred since the projects
are generally short-term and not subject to a contract. The Company also invoices customers for the provision of environmental security
services on an agreed-upon hourly rate for each project. All revenue is recognized at a point in time.

The Company recognizes revenue
from contracts for financial reporting purposes over time. Progress toward completion of the Company’s contracts is measured by
the percentage of cost incurred to date compared to estimated total costs for each contract. This method is used because management considers
total cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at
least reasonably possible that the estimates used will change significantly within the near term.

22

Stock-Based Compensation

The Company periodically
issues stock options and restricted stock awards to employees and non-employees in non-capital raising transactions for services and
for financing costs. The Company accounts for such grants issued and vesting based on ASC 718, “Compensation - Stock
Compensation” whereby the value of the award is measured on the date of grant and recognized for employees as compensation