Company: RNGE
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010872
Chunk: 89

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part II, Item 8
Chunk 89
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 taxes and other taxes that the Company collects concurrent 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 invoices 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.

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 transferred to the customer.

Contract Estimates

Due to the nature of the Company’s performance
obligations, the estimation of total revenue and cost at completion is subject to many variables and requires significant judgment. Since
a significant change in one or more of these variables could affect the profitability of contracts, the Company reviews and updates contract-related
estimates regularly through a review process in which the Company reviews the progress and execution of performance obligations and the
estimated cost at completion.

The Company recognizes adjustments in estimated
profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date
is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized
using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, a provision
for the entire loss is recognized in the period it is identified.

Contract Modifications

Contract modifications can occur during the performance
of the Company’s contracts. Contracts may be modified to account for changes in contract specifications or requirements. In most
instances, contract modifications are for goods or services that are not distinct, and, therefore, are accounted for as part of the existing
contract.

Cost and Expense Recognition

Contract costs include all direct labor, materials,
equipment mobilization, subcontractor, and equipment costs, and those indirect costs related to contract performance, such as indirect
labor, tools and supplies. Costs are recognized