Company: RNGE
Filing Date: 2025-11-19
Form Type: 424B3
Source: 0001493152-25-024206
Chunk: 11

Company: RANGE IMPACT, INC.
Filing Date: 2025-11-19
Form: 424B3
Chunk 11
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 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.

Since the Fola Acquisition in March 2025, the Company’s revenues primarily consist of royalty payments from third-party contract miners based on the sale of coal mined on our land. Prior to the Fola Acquisition discussed above, the Company invoiced customers and recognized 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 invoiced customers and recognized revenue for equipment mobilization fees and materials and supplies required to complete a project. The Company invoiced for the sales of chemicals, stone and other products and recognized revenue when the products were delivered to the customer’s designated site or when control of these products was transferred to its customers, in an amount that reflected the consideration the Company expected to be entitled to in exchange for those products. Sales taxes and other taxes that the Company collects concurrently 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 invoiced 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.

Beginning in 2024, 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 applied to the contract price to determine the amount of revenue to recognize. The Company believes the cost-based input method is the most faithful depiction of performance because it directly measures the value of the services