Company: RNGE
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001641172-25-001343
Chunk: 62

Company: RANGE IMPACT, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 1
Chunk 62
---
 Natural”). Range Natural
provided mining and reclamation services using six of its own employees and two third-party mining subcontractors for its one customer
at the Fola Mine until December 2023. Range Natural operates in a highly-competitive market environment with high price sensitivity of
customers and inflationary pressures on labor, material and supply costs, therefore operating efficiency and asset utilization are key
drivers of profitability and performance. Range Natural uses minimal raw materials in connection with its mining and reclamation services
at the Fola Mine, other than grass seed and other related reclamation supplies, which are reimbursed by its customer. Range Natural does
not own any intellectual property and does not require any government approvals to provide mining and reclamation services at the Fola
Mine, other than standard business licenses, mining operator permits, and safety training for workers. Range Natural billed its sole
customer using a “rates and hours” method for its own employees and a “cost plus margin” method for its subcontractors.
Range Natural employees used Range Natural equipment and Range Natural subcontractors used their own equipment in performing the mining
and reclamation services. In December 2023, all of the Range Natural employees were terminated and the mining equipment subsequently
sold since Range Natural was no longer directly providing mining and reclamation services at the Fola Mine. Beginning in January 2024,
Range Natural had no employees, equipment or operations, other than contracts with third-party subcontractors.

In
January 2024, the Company separated Range Natural’s results from the “Range Reclaim” reporting segment and included
Range Natural’s results in a separate “Range Minerals” reporting segment. The Company believes reporting the results
of Range Minerals separately from Range Reclaim will provide better insight and transparency into the overall operational performance
of both operating business segments.

From
January 2024 to May 2024, Range Natural engaged two subcontractors to perform mining and reclamation services for its one customer at
the Fola Mine. Range Natural was responsible for paying both subcontractors on a bi-monthly basis and then charged its customer using
a “cost plus margin” method.

On
May 2024, Range Natural engaged a primary contractor to fund the bi-monthly payments due to the same two subcontractors performing mining
and reclamation services for its one customer at the Fola Mine. As of June 30, 2024, the primary contractor failed to perform and therefore
the contract was terminated.

On
June 30, 2024,