Company: RNGE
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010872
Chunk: 14

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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 the Company recorded AROs of $43,079,071 related
to the Fola Acquisition, which closed on that date. Refer to Note 3 for more details.

The total undiscounted amount of estimated future
cash flows required to satisfy the Company’s AROs over a 25-year projection period was approximately $60,617,039 as of March 31,
2025. The Company uses an annual inflation rate of 2.72% to forecast these estimated future cash flows and a credit-adjusted risk-free
rate of 7.18% to discount these future inflation-adjusted obligations to a present value.

The Company periodically reviews the estimated reclamation costs and timing
assumptions used in calculating AROs. Changes in estimates are reflected in the period in which they occur. Actual costs may differ from
those estimated due to changes in applicable laws and regulation, inflation, post-mine land use changes, and the final scope of the reclamation
and water restoration activities.

Income Taxes

The Company follows the asset and liability method
of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences
attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences).
The effect on deferred income tax assets and liabilities of a change in tax rates is recognized as income (loss) in the period that includes
the enactment date.

Leases

The Company determines whether a contract is,
or contains, a lease at inception. Right-of-use assets represent the Company’s right to use an underlying asset during the lease
term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Right-of-use assets
and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease
term. The Company uses its incremental borrowing rate based on the information available at lease commencement in determining the present
value of unpaid lease payments. As of March 31, 2025, the Company had no material lease commitments for longer than one year.

Stock-Based Compensation

The Company periodically issues stock options
and restricted stock awards to employees and non-employees in non-capital raising transactions for services. The Company accounts for
such grants issued and vesting based on ASC 718, “Compensation-Stock Compensation”, whereby the value of the award is measured on the date
of grant and recognized for employees as compensation expense on the straight-line basis over the vesting period. Recognition