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

Company: RANGE IMPACT, INC.
Filing Date: 2025-05-15
Form: 10-Q
Item: Part I, Item 1
Chunk 10
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 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 as incurred.

The Company recognizes revenue from contracts
for financial reporting purposes over time. Progress toward completion of the Company’s contracts is measured by the percentage
of cost incurred to date compared to estimated total costs for each contract. This method is used because management considers total
cost to be the best available measure of progress on contracts. Because of inherent uncertainties in estimating costs, it is at least
reasonably possible that the estimates used will change significantly over the course of the contract’s performance.

    9

Revenue earned over time compared to a point
in time is as follows for the quarters ended March 31, 2025 and 2024.

SCHEDULE
OF REVENUE EARNED OVERTIME COMPARED TO A POINT IN TIME

    Quarter Ended March 31, 2025  
    Quarter Ended March 31, 2024 

    Earned over time 
    $-  
    $870,494 
  
    Point in time 
     695,701  
     3,039,399 
  
    Total revenue 
     695,701  
     3,909,893 

Cost of Services

Contract costs include all direct labor, materials,
subcontractor, and equipment costs and those indirect costs related to contract performance, such as indirect labor, tools and supplies.
For construction contracts, costs are generally recognized as incurred. Under certain circumstances, costs incurred in the period related
to future activity on contracts may be capitalized.

Costs incurred that do not contribute to satisfying
performance obligations are excluded from the cost input calculation for revenue recognition. Excluded costs include both uninstalled
materials and abnormal costs. Abnormal costs comprise wasted materials, wasted or rework labor and other resources to fulfill a contract
that were not reflected in the price of the contract. A limited allowance for material overages and labor inefficiencies