Company: RNGE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023395
Chunk: 39

Company: RANGE IMPACT, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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    $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 six6-year
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 as of September 30, 2025. 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.

The
Company periodically reviews the estimated re