Company: RNGE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024206
Chunk: 17

Company: RANGE IMPACT, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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.” 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 reclamation costs and timing assumptions used in calculating AROs. Changes in estimates are
reflected in the period in which they occur. Actual costs may differ from those estimated due to changes in applicable laws and regulation,
inflation, post-mine land use changes, and the final scope of the reclamation and water restoration activities.

The following table summarizes the changes in asset
retirement obligations for the three months ended June 30, 2025:

SCHEDULE
OF ASSET RETIREMENT OBLIGATION 

    Total asset retirement obligations as of March 31, 2025 
    $43,079,071 
  
    Accretion expense for the period 
     524,033 
  
    Sites removed during the period 
     (6,