Company: RNGE
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010872
Chunk: 53

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 53
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     585,669  
     890,772 
  
    Depreciation expense 
    $84,783  
    $1,868,997 

The Company provides for depreciation of its
property and equipment using the straight-line method for both financial reporting and federal income tax purposes over the estimated
six-year6 useful lives of the assets.

The Company assesses the recoverability of its
property and equipment by determining whether the depreciation of the assets over their remaining lives can be recovered through projected
future cash flows generated by the assets. There were no assets identified for impairment. These assets are reported within the Range
Services operating business segment.

Asset Retirement Obligations

The Company recognizes asset retirement obligations (“AROs”)
in accordance with ASC 410, “Asset Retirement and Environmental Obligations.” These obligations relate primarily to the Company’s
legal and regulatory requirements to perform reclamation, closure, and environmental remediation activities at coal mining sites currently
under management by the Company.

Under federal and state mining laws, including the Surface Mining Control
and Reclamation Act of 1977 (“SMCRA”), the Company is required to restore land and water resources disturbed by coal mining
activities to their original or approved alternative condition. AROs are recognized when the legal obligation is incurred, generally at
the time mining activity commences or when the Company assumes responsibility for a previously disturbed mine site.

The Company records the fair value of a liability for an ARO in the period
in which it is incurred if a reasonable estimate of fair value can be made. Upon initial recognition, the Company capitalizes the cost
as part of the carrying amount of the related long-lived asset. The liability is subsequently accreted over time through charges to operating
expense, and the capitalized asset is depreciated over its useful life.

As of March 31, 2025, the Company recorded AROs of $43,079,071 related
to the Fola Acquisition, which closed on that date. Refer to Note 3 for more details.

The total undiscounted amount of estimated future
cash flows required to satisfy the Company’s AROs over a 25-year projection period was approximately $60,617,039 as of March 31,
2025. The Company uses an annual inflation rate of 2.72% to forecast these estimated future cash flows and a credit-adjusted risk-free
rate of 7.18% to discount these future inflation-adjusted obligations to a present value.