Company: RNGE
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001641172-25-024206
Chunk: 82

Company: RANGE IMPACT, INC.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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RO in the period in which it is incurred if a reasonable estimate of fair value
can be made. Upon initial recognition, the Company capitalizes the cost as part of the carrying amount of the related long-lived asset.
The liability is subsequently accreted over time through charges to operating expense, and the capitalized asset is depreciated over
its useful life.

As
of March 31, 2025, 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.

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

SCHEDULE
OF ASSET RETIREMENT OBLIGATION 

    Total asset retirement obligations as of March 31, 2025 
    $43,079,071 
  
    Accretion expense for the period 
     524,033 
  
    Sites removed during the period 
     (6,429,480)
  
    Sites added during the period 
     10,399,477 
  
    Expenditures during the period 
     (415,338)
  
    Total asset retirement obligations as of June 30, 2025 
    $47,157,763 
  
    Total Asset Retirement Obligations  
     47,157,763 

    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
res