Company: RNGE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023395
Chunk: 192

Company: RANGE IMPACT, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part II, Item 8
Chunk 192
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 of revenues and expenses during the period. The more significant
estimates and assumption by management include, among others, assumptions used in valuing assets acquired in business acquisitions, reserves
for accounts receivable, assumptions used in valuing equity instruments issued for services, the valuation allowance for deferred tax
assets, accruals for potential liabilities, and assumptions used in the determination of the Company’s liquidity. Actual results
could differ from those estimates.

Business
Combinations

Business
combinations are accounted for using the purchase method of accounting under ASC 805, “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.

On March 31, 2025, the Company acquired 120,154 acres
of fee, surface and mineral interests at the Fola mine complex (“Fola Mine”) located in West Virginia. As part of the Fola
Acquisition, the Company acquired 15 mining permits at the Fola Mine with an estimated reclamation obligation of $29,282,126 and assumed
an obligation to manage an additional 21 mining permits at the Fola Mine with a reclamation bond amount of $13,796,945. As a result, on
March 31, 2025, the Company recorded AROs of $43,079,071 related to the Fola Acquisition, and capitalized an equal amount onto the fair
value of the acquired land on that same date. The Company also assumed two coal royalty contracts and one 25-year solar lease for the
development of a large-scale solar project located on more than 1,500 acres at the Fola Mine.

The fair value of the land acquired by the Company in connection with the Fola Acquisition was $8,561,000, and the
Company agreed to credit an outstanding receivable of $2,958,516 due from one of the sellers to the Company, as consideration provided
in lieu of cash. Because the fair value of the land acquired exceeded the amount of the accounts receivable credited in connection with
the Fola Acquisition, the Company recognized a bargain purchase gain of $5,602,484 during the three months ended March 31, 2025