Company: RNGE
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010872
Chunk: 76

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 8
Chunk 76
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critical accounting policies require us to make significant judgments and estimates in the preparation of our consolidated financial
statements included in this report:

Use of Estimates and Assumptions

The preparation of financial
statements in conformity with generally accepted accounting principles in the United States requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date
of the financial statements and the reported amounts 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.

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