Company: RNGE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024206
Chunk: 141

Company: RANGE IMPACT, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 8
Chunk 141
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 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, stone and other products and recognizes revenue when the products are delivered to the customer’s designated
site or when control of these products is transferred to its customers, in an amount that reflects the consideration the Company expects
to be entitled to in exchange for those products. Sales taxes and other taxes that the Company collects concurrent with revenue producing
activities are excluded from revenue. 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 at an agreed-upon hourly rate for each project. All revenue is recognized at a point in time.

The
Company recognizes revenue on reclamation contracts over time as performance obligations are satisfied due to the continuous transfer
of control to the customer. The Company’s contracts are generally accounted for as a single performance obligation since the Company
is providing a significant service of integrating components into a single project. The Company recognizes revenue using a cost-based
input method by which actual costs incurred relative to total estimated contract costs determine, as a percentage, progress toward contract
completion. This percentage is applied to the contract price to determine the amount of revenue to recognize. The Company believes the
cost-based input method is the most faithful depiction of performance because it directly measures the value of the services transferred
to the customer.

Contract
Estimates

Due
to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is subject to many
variables and requires significant judgment. Since a significant change in one or more of these variables could affect the profitability
of contracts, the Company reviews and updates contract-related estimates regularly through a review process in which the Company reviews
the progress and execution of performance obligations and the estimated cost at completion.

The
Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of
the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods
of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an
anticipated loss on the contract, a provision for