Company: RNGE
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010872
Chunk: 8

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 8
---
 accounting
principles generally accepted in the United States of America. Intercompany balances and transactions have been eliminated in
consolidation.

Reclassifications

Certain prior period amounts have been reclassified
to conform with the current period’s presentation.

Use of Estimates

The preparation of financial statements in conformity
with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Discontinued Operations

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