Company: RNGE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023395
Chunk: 97

Company: RANGE IMPACT, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 97
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 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.

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