Company: RNGE
Filing Date: 2025-11-14
Form Type: 10-Q
Source: 0001493152-25-023395
Chunk: 103

Company: RANGE IMPACT, INC.
Filing Date: 2025-11-14
Form: 10-Q
Item: Part I, Item 8
Chunk 103
---
 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.

The
following table summarizes the changes in asset retirement obligations for the nine months ended September 30,
2025:

SCHEDULE
OF ASSET RETIREMENT OBLIGATION 

    Asset retirement obligations as of January 1, 2025 
    $- 

    Initial asset retirement obligations as of March 31, 2025 
     43,079,071 
  
    Accretion expense for the period 
     1,243,945 
  
    Sites removed during the period 
     (6,429,480)
  
    Sites added during the period 
     10,399,477 
  
    Expenditures during the period 
     (753,866)
  
    Total asset retirement obligations as of September 30, 2025 
    $47,539,147 
  
    Total asset retirement obligations 
    $47,539,147 

    12

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