Company: RNGE
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001343
Chunk: 220

Company: RANGE IMPACT, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1A
Chunk 220
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 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
recognition 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, 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