Company: RNGE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023395
Chunk: 66

Company: RANGE IMPACT, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 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. 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.

On March 31, 2025, the Company acquired 120,154 acres
of fee, surface and mineral interests at the Fola mine complex (“Fola Mine”) located in West Virginia. As part of the Fola
Acquisition, the Company acquired 15 mining permits at the Fola Mine with an estimated reclamation obligation of $29,282,126 and assumed
an obligation to manage an additional 21 mining permits at the Fola Mine with a reclamation bond amount of $13,796,945. As a result, on
March 31, 2025, the Company recorded AROs of $43,079,071 related to the Fola Acquisition, and capitalized an equal amount onto the fair
value of the acquired land on that same date. The Company also assumed two coal royalty contracts and one 25-year solar lease for the
development of a large-scale solar project located on more than 1,500 acres at the Fola Mine.

The fair value of the land acquired by the Company in connection with the Fola Acquisition was $8,561,000, and the
Company agreed to credit an outstanding receivable of $2,958,516 due from one of the sellers to the Company, as consideration provided
in lieu of cash. Because the fair value of the land acquired exceeded the amount of the accounts receivable credited in connection with
the Fola Acquisition, the Company recognized a bargain purchase gain of $5,602,484 during the three months ended March 31, 2025.

Revenue
Recognition

The
Company recognizes revenue under ASC 606, “Revenue from Contracts with Customers”. The core principle of the 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; and (5) recognize revenue when, or as, each performance obligation is satisfied. The Company primarily invoices customers
and recognizes revenue on a periodic basis for equipment and labor hours