Company: RNGE
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001343
Chunk: 806

Company: RANGE IMPACT, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 806
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 recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an
anticipated loss on the contract, a provision for the entire loss is recognized in the period it is identified.

    F-8

The
net effect of the changes in estimates of contract profits on current year closed jobs was to decrease “net income” by approximately
($279,970) for the 13 months ended December 31, 2024, which is included in net income in the statement of operations. The effect to “net
income” is based on that which would have been reported had the revised estimates been used as the basis of recognition of contract
profits in the preceding year.

Contract
Modifications

Contract
modifications can occur during the performance of the Company’s contracts. Contracts are modified to account for changes in contract
specifications or requirements. In most instances, contract modifications are for goods or services that are not distinct, and, therefore,
are accounted for as part of the existing contract.

Cost
and Expense Recognition

Contract
costs include all direct labor, materials, equipment mobilization, subcontractor, and equipment costs, and those indirect costs related
to contract performance, such as indirect labor, tools and supplies. Costs are recognized as incurred.

The
Company recognizes a portion of its 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 over the course
of the contract’s performance.

Revenue
earned over time compared to a point in time is as follows for the years ended December 31, 2024 and 2023.

SCHEDULE
OF REVENUE EARNED OVERTIME COMPARED TO A POINT IN TIME

    Year
    ended December 31, 2024  
    Year
    ended December 31, 2023 

    Earned over time 
    $2,059,401  
    $2,824,387 
  
    Point in time 
     6,951,680  
     16,521,919 
  
    Total revenue 
    $9,011,081  
    $19,346,306 

Cost
of Services

Contract