Company: RNGE
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010872
Chunk: 88

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 88
---

During the third quarter of 2024, the Company
sold its wholly-owned subsidiary Graphium Biosciences, Inc. In accordance with GAAP, assets and liabilities of discontinued operations
are presented separately in the Consolidated Balance Sheets, and results of discontinued operations are reported as a separate component
of consolidated net loss or net income in the Consolidated Statements of Operations, for all periods presented, resulting in changes
to the presentation of certain prior period amounts.

Refer to Note 4 for additional discussion of
discontinued operations and disposition of assets. All other notes to these consolidated financial statements present the results of
continuing operations and exclude amounts related to discontinued operations for all periods presented.

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. Any excess of the fair value of the net assets acquired over
the cost of the acquisition is accounted for as a bargain purchase gain. 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 ASC 606 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 in the contract;
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, 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