RANGE IMPACT, INC. 10-Q

Item 1. Financial Statements (unaudited) RANGE IMPACT, INC. CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) CONSOLIDATED UNAUDITED BALANCE SHEETS AS OF SEPTEMBER 30, 2024 AND DECEMBER 31, 2023 4 CONSOLIDATED UNAUDITED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023 5 CONSOLIDATED UNAUDITED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023 6 CONSOLIDATED UNAUDITED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023 7 NOTES TO THE CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS 8 3 RANGE IMPACT, INC. CONSOLIDATED BALANCE SHEETS September 30, 2024 (unaudited) December 31, 2023 Assets Current Assets Cash and cash equivalents $ 244,586 $ 2,176,581 Accounts receivable 4,133,776 7,185,411 Contract assets 697,039 247,310 Prepaid expenses 29,975 115,324 Current assets of discontinued operations - 219 Total current assets 5,105,376 9,724,845 Long-term Assets Property and equipment, net of accumulated depreciation 4,585,235 13,301,902 Goodwill 751,421 751,421 Deposits - 1,442 Long term assets of discontinued operations - 8,534 Total long-term assets 5,336,656 14,063,299 Total Assets $ 10,442,032 $ 23,788,144 Liabilities and Stockholders’ Equity Current Liabilities Accounts payable $ 1,099,753 $ 3,714,014 Line of credit 2,100,000 2,400,000 Current portion of long-term debt 1,458,215 2,755,792 Accrued expenses 112,101 101,283 Total current liabilities 4,770,069 8,971,089 Long-term Liabilities Long-term debt, net of current portion 2,403,824 5,250,027 Total long-term debt 2,403,824 5,250,027 Total liabilities 7,173,893 14,221,116 Stockholders’ Equity Common stock, par value $ 0.001 per share; 1,000,000,000 shares authorized; 104,727,189 and 101,023,485 shares issued and outstanding, respectively 104,727 101,023 Additional paid-in-capital 57,605,070 56,547,804 Accumulated deficit ( 54,441,658 ) ( 47,081,799 ) Total stockholders’ equity 3,268,139 9,567,028 Total Liabilities and Stockholders’ Equity $ 10,442,032 $ 23,788,144 See accompanying notes to the consolidated financial statements. 4 RANGE IMPACT, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) 2024 2023 2024 2023 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Revenues $ 2,171,655 $ 5,455,633 $ 8,431,286 $ 12,468,787 Cost of services 2,564,583 2,597,867 8,954,289 8,116,918 Gross profit (loss) ( 392,928 ) 2,857,766 ( 523,003 ) 4,351,869 Operating expenses: General and administrative 473,942 1,057,055 2,115,542 2,419,001 Total operating expenses 473,942 1,057,055 2,115,542 2,419,001 Income (loss) from operations ( 866,870 ) 1,800,711 ( 2,638,545 ) 1,932,868 Other income (expense): Gain on bargain purchase - 1,875,150 - 1,875,150 Other income 33,586 4,621 52,176 4,621 Loss on sale of fixed assets ( 3,751,680 ) - ( 3,751,680 ) - Interest expense ( 155,404 ) ( 135,467 ) ( 496,322 ) ( 244,101 ) Total other income (expense) ( 3,873,498 ) 1,744,304 ( 4,195,826 ) 1,635,670 Income (loss) from continuing operations before income taxes ( 4,740,368 ) 3,545,015 ( 6,834,371 ) 3,568,538 Income tax expense attributable to continuing operations 2,955 - 59,555 - Income (loss) from continuing operations ( 4,743,323 ) 3,545,015 ( 6,893,926 ) 3,568,538 Loss from discontinued operations ( 177,015 ) ( 140,840 ) ( 465,933 ) ( 354,461 ) Net income (loss) $ ( 4,920,338 ) $ 3,404,175 $ ( 7,359,859 ) $ 3,214,077 Net income (loss) per share – basic and diluted from continuing operations $ ( 0.05 ) $ 0.04 $ ( 0.07 ) $ 0.04 Weighted average number of common shares outstanding – basic and diluted 103,148,561 83,531,308 102,442,788 80,742,455 Net income (loss) per share – basic and diluted from discontinued operations $ 0.00 $ 0.00 $ 0.00 $ 0.00 Weighted average number of common shares outstanding – basic and diluted 103,148,561 83,531,308 102,442,788 80,742,455 See accompanying notes to the consolidated financial statements. 5 RANGE IMPACT, INC. CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) (Unaudited) Number of Shares Amount Paid-in Capital Accumulated Deficit Total Three Months Ended September 30, 2024 Common Stock Additional Number of Shares Amount Paid-in Capital Accumulated Deficit Total Balance as of June 30, 2024 104,727,189 $ 104,727 $ 57,600,580 $ ( 49,521,320 ) $ 8,183,987 Shares issued for cash - - - - - Stock based compensation - - 4,490 - 4,490 Net loss - - - ( 4,920,338 ) ( 4,920,338 ) Balance as of September 30, 2024 104,727,189 $ 104,727 $ 57,605,070 $ ( 54,441,658 ) $ 3,268,139 Three Months Ended September 30, 2023 Common Stock Additional Number of Shares Amount Paid-in Capital Accumulated Deficit Total Balance as of June 30, 2023 80,850,148 $ 80,850 $ 53,517,367 $ ( 50,402,952 ) $ 3,195,265 Shares issued for cash 6,666,667 6,667 993,333 - 1,000,000 Fair value of vested stock options - - 17,830 - 17,830 Net income - - - 3,404,175 3,404,175 Balance as of September 30, 2023 87,516,815 $ 87,517 $ 54,528,530 $ ( 46,998,777 ) $ 7,617,270 Nine Months Ended September 30, 2024 Common Stock Additional Number of Shares Amount Paid-in Capital Accumulated Deficit Total Balance as of December 31, 2023 101,023,485 $ 101,023 $ 56,547,804 $ ( 47,081,799 ) $ 9,567,028 Shares issued for cash 3,703,704 3,704 996,296 - 1,000,000 Stock based compensation - - 60,970 - 60,970 Net loss - - - ( 7,359,859 ) ( 7,359,859 ) Balance as of September 30, 2024 104,727,189 $ 104,727 $ 57,605,070 $ ( 54,441,658 ) $ 3,268,139 Nine Months Ended September 30, 2023 Common Stock Additional Number of Shares Amount Paid-in Capital Accumulated Deficit Total Balance as of December 31, 2022 78,116,814 $ 78,117 $ 53,074,180 $ ( 50,212,854 ) $ 2,939,443 Balance 78,116,814 $ 78,117 $ 53,074,180 $ ( 50,212,854 ) $ 2,939,443 Shares issued for cash 9,400,001 9,400 1,400,600 - 1,410,000 Fair value of vested stock options - - 53,750 - 53,750 Net income - - - 3,214,077 3,214,077 Net income (loss) - - - 3,214,077 3,214,077 Balance as of September 30, 2023 87,516,815 $ 87,517 $ 54,528,530 $ ( 46,998,777 ) $ 7,617,270 Balance 87,516,815 $ 87,517 $ 54,528,530 $ ( 46,998,777 ) $ 7,617,270 See accompanying notes to the consolidated financial statements. 6 RANGE IMPACT, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) 2024 2023 Nine Months Ended September 30, 2024 2023 Cash flows from operating activities: Net income (loss) $ ( 7,359,859 ) $ 3,214,077 Adjustments to reconcile net loss to net cash (used in) operating activities: Gain on bargain purchase - ( 1,875,150 ) Net loss on Collins Building asset disposal 3,043,799 - Net loss on sale of assets 707,881 - Gain on disposition of business ( 100 ) - Fair value of vested stock options 60,970 53,750 Depreciation 1,594,152 1,069,845 Changes in operating assets and liabilities: Accounts receivable 3,024,835 ( 1,915,848 ) Unbilled receivables 26,800 ( 49,148 ) Contract assets ( 449,729 ) - Prepaid expenses and other current assets 85,349 ( 102,198 ) Accounts payable ( 2,614,262 ) 690,475 Accrued expenses 10,818 - Deposits 1,442 ( 11,084 ) Deposits from discontinued operations 8,534 - Net cash (used in) operating activities ( 1,859,370 ) 1,074,719 Cash flows from investing activities: Equipment purchases - ( 1,134,417 ) Cash paid in consideration for Collins Building acquisition - ( 1,000,000 ) Long-term debt issued for Collins Building acquisition - ( 4,035,250 ) Net proceeds from sale of assets 270,000 - Net insurance proceeds from casualty loss 160,000 - Net proceeds from disposition of Graphium Biosciences 100 - Cash paid for acquisition of land - ( 976,858 ) Net cash provided by (used in) investing activities 430,100 ( 7,146,525 ) Cash flows from financing activities: Issuance of shares for cash 1,000,000 1,410,000 Proceeds from notes issued in acquisition of Collins Building - 4,035,250 Proceeds from long-term debt - 383,202 Repayment of long-term debt ( 1,202,944 ) ( 1,072,729 ) Proceeds from (repayment of) line of credit ( 300,000 ) 1,900,000 Net cash provided by (used in) financing activities ( 502,944 ) 6,655,723 Net increase (decrease) in cash and cash equivalents ( 1,932,214 ) 583,917 Cash and cash equivalents - beginning of period 2,176,800 442,369 Cash and cash equivalents - end of period $ 244,586 $ 1,026,286 Supplemental disclosure of cash flow information: Cash paid during the period for: Interest $ 43,303 $ 244,101 Supplemental schedule of Non-Cash Investing and Financing Activities: Debt forgiveness related to Collins Building asset disposal $ 2,940,836 $ - See accompanying notes to the consolidated financial statements. 7 RANGE IMPACT, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023 (Unaudited) 1. BUSINESS OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Range Impact, Inc. (the “Company”, “we”, “us”, or “our”), was incorporated in the State of Nevada on June 29, 2007. Originally founded in 2007 as Legend Mining Inc., the Company began operations as a mineral extraction exploration business. In 2011, the Company changed its name to Stevia First Corp and pursued a new strategy focused on developing stevia-based additives for the food and beverage industry. In 2015, the Company changed its name to Vitality Biopharma, Inc. and pursued a new strategy focused on developing cannabinoid-based prodrugs anticipated to treat inflammatory conditions of the gastrointestinal tract. In October 2021, the Company changed its name to Malachite Innovations, Inc. and formed two wholly-owned operating subsidiaries: (i) Graphium Biosciences, Inc., a Nevada corporation (“Graphium”), into which the Company contributed all of its drug development assets; and (ii) Daedalus Ecosciences, Inc., a Nevada corporation (“Daedalus”), which was formed to serve as a holding company for the Company’s future impact investing businesses. In May 2022, the Company acquired Range Environmental Resources, Inc., a West Virginia corporation (“Range Environmental”) and Range Natural Resources, Inc., a West Virginia corporation (“Range Natural” and together with Range Environmental, the “Range Reclamation Entities”). The Range Reclamation Entities provide land reclamation and water restoration services to mining and non-mining customers throughout the Appalachian region with the goal of returning land to pre-mining conditions or repurposing the land for natural, commercial, agricultural or recreational use. The Range Reclamation Entities’ water restoration services seek to improve the water quality in rivers, streams and discharges through novel and innovative treatment applications to help customers meet their various regulatory standards and requirements. From May 2022 to June 2024, Range Natural engaged subcontractors who controlled and were responsible for mining and selling coal to third-party customers incidental to the reclamation and repurposing of mine sites. In August 2023, the Company acquired Collins Building & Contracting, Inc., a West Virginia corporation (“Collins Building”), an environmental services business primarily focusing on the reclamation of abandoned mine land sites in West Virginia, as described in more detail in Note 3. In December 2023, the Company changed its name to Range Impact, Inc., and reorganized into five operating business segments: (i) Range Reclaim; (ii) Range Water; (iii) Range Security; (iv) Range Land; and (v) Drug Development. In January 2024, the Company added Range Minerals as its sixth operating business segment. Range Minerals was previously reported within the Range Reclaim operating business segment. The Drug Development segment was also renamed Graphium Biosciences. In August 2024, the Company sold substantially all of the assets of Collins Building to the previous shareholder of Collins Building in exchange for the cancellation of all remaining debt owed to the previous shareholder, as described in more detail in Note 2. In September 2024, the Company sold Graphium and all of its drug development assets. The Company is no longer in the cannabinoid drug development business, as described in more detail in Note 2. Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, during the nine months ended September 30, 2024, the Company incurred a net loss of $ 7,359,859 and $ 1,859,370 of cash was used by the Company’s operating activities. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. The ability to continue as a going concern is dependent on the Company attaining and maintaining profitable operations in the future, collecting outstanding accounts receivable, and/or raising additional capital to meet its obligations and repay its liabilities arising from normal business operations when they come due. The Company estimates, as of September 30, 2024, that it may not have sufficient funds to operate the business for 12 months given its cash balance of $ 244,568 and expected revenues to be generated by the Range Reclamation Entities. The Company is actively seeking additional financing and other sources of capital to fund its currently estimated level of operations. However, these estimates could differ if the Company encounters unanticipated difficulties, or if its estimates of the amount of cash necessary to operate its business prove to be wrong, and the Company uses its available financial resources faster than it currently expects. No assurance can be given that any future financing or capital, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries: CLV Azurite Land LLC, Collins Building & Contracting, Inc., Graphium Biosciences, Inc. (sold in September 2024), Range Environmental Resources, Inc., Range Land, LLC, Range Minerals, LLC, Range Natural Resources, Inc., Range Reclaim, LLC, Range Security, LLC, Range Security Resources, LLC, Range Water, LLC, Terra Preta, LLC, Aether Credit Ventures, Inc. (dissolved in November 2023), Pristine Stream Ventures, Inc. (dissolved in November 2023), NextGen AgriTech, Inc. (dissolved in November 2023), and Daedalus Ecosciences, Inc. (merged into Range Impact, Inc. in December 2022), and have been prepared in accordance with accounting principles generally accepted in the United States of America. Intercompany balances and transactions have been eliminated in consolidation. Reclassifications Certain prior period amounts have been reclassified to conform with the current period’s presentation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. 8 Discontinued Operations During the third quarter of 2024, the Company sold its wholly-owned subsidiary Graphium Biosciences, Inc. In accordance with GAAP, assets and liabilities of discontinued operations are presented separately in the Consolidated Balance Sheets, and results of discontinued operations are reported as a separate component of consolidated net loss in the Consolidated Statements of Operations, for all periods presented, resulting in changes to the presentation of certain prior period amounts. Refer to Note 2 for additional discussion of discontinued operations and disposition of assets. All other notes to 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. The Company primarily invoices customers and recognizes 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 invoices customers and recognizes revenue for equipment mobilization fees and materials and supplies required to complete a project. The Company invoices for the sales of chemicals, stone and other products and recognizes revenue when the products are delivered to the customer’s designated site or when control of these products is transferred to its customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those products. Sales taxes and other taxes that the Company collects concurrent 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 invoices customers for the provision of environmental security services at an agreed-upon hourly rate for each project. All revenue is recognized at a point in time. The Company recognizes revenue on reclamation contracts over time as performance obligations are satisfied due to the continuous transfer of control to the customer. The Company’s contracts are generally accounted for as a single performance obligation since the Company is providing a significant service of integrating components into a single project. The Company recognizes revenue using a cost-based input method by which actual costs incurred relative to total estimated contract costs determine, as a percentage, progress toward contract completion. This percentage is applied to the contract price to determine the amount of revenue to recognize. The Company believes the cost-based input method is the most faithful depiction of performance because it directly measures the value of the services transferred to the customer. Contract Estimates Due to the nature of the Company’s performance obligations, the estimation of total revenue and cost at completion is subject to many variables and requires significant judgment. Since a significant change in one or more of these variables could affect the profitability of contracts, the Company reviews and updates contract-related estimates regularly through a review process in which the Company reviews the progress and execution of performance obligations and the estimated cost at completion. The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the 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 a portion of its 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 three and nine months ended September 30, 2024 and 2023. SCHEDULE OF REVENUE EARNED OVERTIME COMPARED TO A POINT IN TIME Three Months Ended September 30, 2024 Three Months Ended September 30, 2023 Earned over time $ 13,572 $ - Point in time 2,158,083 5,455,633 Total revenue 2,171,655 5,455,633 Nine Months Ended September 30, 2024 Nine Months Ended September 30, 2023 Earned over time $ 2,063,407 $ - Point in time 6,367,879 12,468,787 Total revenue 8,431,286 12,468,787 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 is typically included in our contract costs estimates (and by extension, in the contract price). Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. From time to time, the Company’s cash account balances exceed the balances covered by the Federal Deposit Insurance Corporation. The Company has never suffered a loss due to such excess balances. Accounts Receivable Included as a component of accounts receivable are contract receivables that represent the Company’s unconditional right, subject only to the passage of time, to receive consideration arising from performance obligations under reclamation contracts with customers. Billed contract receivables have been invoiced to customers based on contracted amounts. Contract receivables were $ 209,656 at September 30, 2024 and $ 2,100,255 as of December 31, 2023. Trade accounts receivable are stated at the amount management expects to collect from the balances outstanding as of September 30, 2024 or December 31, 2023 in the consolidated balance sheets. Based on management’s assessment, it has concluded that losses on balances outstanding as of those dates will be immaterial and therefore, no allowances were recorded for the nine months ended September 30, 2024 or the nine months ended September 30, 2023. Accounts receivable, including contract receivables, were $ 4,133,776 and $ 7,185,411 at September 30, 2024 and December 31, 2023, respectively. No credit loss expense was accrued in either the nine months ended September 30, 2024 or the nine months ended September 30, 2023 and there is no allowance for doubtful accounts as of September 30, 2024 or December 31, 2023. Contract Assets Billing practices are governed by the contract terms of each project based upon costs incurred, achievement of milestones or predetermined schedules. Billings do not necessarily correlate with revenue recognized over time using the percentage-of-completion method. Contract assets include unbilled amounts typically resulting from revenue under long-term contracts when the percentage-of-completion method of revenue recognition is utilized, and revenue recognition exceeds the amount billed to the customer. The Company’s contract assets are reported on a contract-by-contract basis at the end of each reporting period. The Company classifies contract assets as current or noncurrent based on whether the revenue is expected to be recognized sooner or later than one year from the balance sheet date. Details of contract assets arising from reclamation contracts in process as of September 30, 2024 and December 31, 2023 are as follows: SCHEDULE OF CONTRACT ASSETS September 30, 2024 December 31, 2023 Costs incurred on contracts in progress $ 2,208,920 $ 425,634 Estimated earnings 620,649 340,528 Revenue earned on contracts in progress 2,829,569 766,162 Less: Billings to date ( 2,132,530 ) ( 518,852 ) Total contract assets $ 697,039 $ 247,310 10 Inventory On May 1, 2024, Range Natural Resources, Inc. (“Range Natural”) contracted with a mining contractor (the “Contractor”) at the Fola mining site in West Virginia. Contractor subcontracted the mining work to a subcontractor (“Subcontractor”). As of June 30, 2024, Contractor failed to perform. On June 30, 2024, Range Natural agreed to assume the liability of $ 725,429 due from the Contractor to the Subcontractor in exchange for the ownership of the coal that had been mined by the Subcontractor. The inventory value of $ 725,429 at June 30, 2024 was the cost of the inventory to the Contractor. During the quarter ended September 30, 2024, that inventory was sold in the normal course and no inventory remains as of September 30, 2024. Property & Equipment Property and equipment is carried at cost. Expenditures for maintenance and repairs are charged to cost of services. Additions and betterments are capitalized. The cost and related accumulated depreciation of equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in the current year’s earnings. SCHEDULE OF PROPERTY AND EQUIPMENT September 30, 2024 December 31, 2023 Equipment $ 6,294,100 $ 13,835,929 Land 1,008,897 1,563,797 Buildings - 199,500 Property and equipment, gross Accumulated depreciation ( 2,717,762 ) ( 2,297,324 ) Net book value 4,585,235 13,301,902 Depreciation expense $ 1,594,152 $ 1,781,573 See Note 2 for more details on the change in buildings, property and equipment. The Company provides for depreciation of its buildings, property and equipment using the straight-line method for both financial reporting and federal income tax purposes over the estimated six-year useful lives of the assets. The Company assesses the recoverability of its property and equipment by determining whether the depreciation of the assets over their remaining lives can be recovered through projected future cash flows generated by the assets. There were no assets identified for impairment. Land Land is carried at cost. The Company assesses the recoverability of its land by determining whether the cost of the land can be recovered through projected future cash flows generated by the land. No land was identified for impairment. Delivery Costs Delivery costs are classified as cost of sales. Goodwill U.S. GAAP requires that goodwill be tested for impairment annually and more frequently if events or changes in circumstances indicate that it is more likely than not (i.e., a likelihood greater than 50%) that the reporting unit is impaired. During interim periods, ASC 350 requires companies to focus on those events and circumstances that affect the significant inputs used to determine the fair value of the reporting unit to determine whether an interim quantitative impairment test is required. The Company performed its quarterly impairment test for goodwill on September 30, 2024. The Company first assessed certain qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount, and whether it is therefore necessary to perform the quantitative impairment test. The qualitative analysis indicated that a quantitative impairment test was not necessary . 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 September 30, 2024, 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 of compensation expense for non-employees is in the same period and manner as if the Company had paid cash for the services. The Company recognizes the fair value of stock-based compensation within its Consolidated Statements of Operations with classification depending on the nature of the services rendered. 11 The fair value of the Company’s stock options is estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or restricted stock, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods. Basic and Diluted Income (Loss) Per Share Basic income (loss) per share is computed by dividing the net income (loss) applicable to common stockholders by the weighted average number of outstanding common shares during the period. Shares of restricted stock are included in the basic weighted average number of common shares outstanding from the time they vest. Diluted income (loss) per share is computed by dividing net income (loss) applicable to common stockholders by the weighted average number of common shares outstanding plus the number of additional common shares that would have been outstanding if all dilutive potential common shares had been issued. Diluted income (loss) per share excludes all potential common shares if their effect is anti-dilutive. The following potentially dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive: SCHEDULE OF ANTI-DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE September 30, 2024 December 31, 2023 Options 11,599,210 11,392,544 Warrants 3,166,667 3,313,335 Total 14,765,877 14,705,879 Anti-dilutive loss per share 14,765,877 14,705,879 Patents and Patent Application Costs Although the Company believes that its patents and underlying technology have continuing value, the amount of future benefits to be derived from the patents is uncertain. Accordingly, patent costs are expensed as incurred. Research and Development Research and development costs consist primarily of fees paid to consultants and outside service providers, patent fees and costs, and other expenses relating to the acquisition, design, development and testing of the Company’s treatments and product candidates. Research and development costs are expensed as incurred. Fair Value of Financial Instruments FASB ASC 825, “Financial Instruments” requires that the Company disclose estimated fair values of financial instruments. Financial instruments held by the Company include, among others, accounts receivable, accounts payable , line of credit and long-term debt. The carrying amounts reported in the balance sheets for assets and liabilities qualifying as financial instruments are a reasonable estimate of fair value. Segments As of September 30, 2024, the Company has five operating business segments: (i) Range Reclaim; (ii) Range Minerals; (iii) Range Water; (iv) Range Security; and (v) Range Land. Previously, beginning in October 2021, the Company began operating under two segments: (A) the Drug Development segment, which reports the operating results of the Company’s broad portfolio of glycosylated cannabinoid prodrugs operating under the name Graphium Biosciences, and (B) the Range Reclaim segment, which reports the operating results of our land reclamation, water restoration and incidental coal mining services to customers throughout Appalachia. The Range Water, Range Security and Range Land business segments began operations in 2023. Beginning in January 2024, Range Minerals, which was previously reported within the Range Reclaim operating business segment, was separately reported as its own operating business segment focused on coal mining, using subcontractors, and related reclamation activities, and the Drug Development segment was renamed Graphium Biosciences. Graphium Biosciences was sold in September 2024 and therefore the drug development business segment named Graphium Biosciences is no longer reported as an operating business segment of the Company. 12 In accordance with the “Segment Reporting” Topic of the ASC 280, the Company’s chief operating decision-maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers, and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in: economic characteristics; nature of products and services; and procurement, manufacturing, and distribution processes. Recent Accounting Pronouncements In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” This ASU enhances reportable segment disclosures on both an annual and interim basis primarily in regards to the disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and included within the reported measure(s) of segment profit or loss. In addition, the ASU requires disclosure, by segment, of other items included in the reported measure(s) of segment profit or loss, including qualitative information describing the composition, nature and type of each item. The ASU also expands disclosure requirements related to the CODM, including how the reported measure(s) of segment profit or loss are used to assess segment performance and allocate resources, and the method used to allocate overhead for significant segment expenses. All current required annual segment reporting disclosures under Topic 280 are now effective for interim periods. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is evaluating the impact of adopting this ASU. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU enhances income tax disclosures by providing information to better assess how an entity’s operations, related tax risks, tax planning and operational opportunities affect its tax rate and prospects for future cash flows. This ASU requires additional disclosures to the annual effective tax rate reconciliation including specific categories and further disaggregated reconciling items that meet the quantitative threshold. Additionally, the ASU requires disclosures relating to income tax expense and payments made to federal, state, local and foreign jurisdictions. This ASU is effective for fiscal years and interim periods beginning after December 15, 2024. The Company is evaluating the impact of adopting this ASU. 2. DISPOSALS AND DISCONTINUED OPERATIONS On August 22, 2024, substantially all assets of Collins Building were sold to its previous owner in exchange for the cancellation of all remaining debt owed by the Company to the previous owner arising from the Company’s acquisition of Collins Building in August 2023. Any projects related to Collins Building will be completed either by subcontractors or with equipment and resources of Range Environmental. The Company recognized a net loss on the Collins Building sale of $ 3,043,799 . This sale did not constitute a discontinued operation as the Company has ongoing business and is still operating with active contracts and completion of work in progress. Only certain assets were sold and debts forgiven. On September 30, 2024, the Company sold all of its common stock of Graphium Biosciences to a newly-formed entity, Placer Biosciences, Inc. (“Placer”) owned by two former officers of the Company, in exchange for a warrant to purchase 1,000 shares of Placer’s common stock (then representing 25 % of the outstanding shares of Placer) at $ .01 par value per share and cash proceeds of $ 100 , with the cash proceeds reflected within “Net proceeds from disposition of Graphium Biosciences” in the investing activities of the Consolidated Statements of Cash Flows, and recognized a gain on sale of $ 100 , included within “Loss from discontinued operations” on the Consolidated Statements of Operations. The warrant to purchase Placer’s shares expires September 30, 2034. During the quarter ended September 30, 2024, Range Environmental suffered a casualty loss on a piece of equipment. Insurance proceeds of $ 160,000 were received for this loss. In addition, several pieces of equipment no longer needed for current or foreseeable operations were sold for a net price of $ 270,000 . The proceeds from these transactions are shown within “Cash flows from investing activities” and the losses from these transactions are shown within “Cash flows from operating activities” on the Consolidated Statements of Cash Flows. During the quarter ended September 30, 2024, the biochar ovens owned by our wholly-owned subsidiary, Terra Preta, LLC, were dismantled since they were no longer being used for small batch biochar production. The resulting loss is included within “Cash flows from operating activities” on the Consolidated Statements of Cash Flows. Assets and Liabilities of Discontinued Operations As previously described, assets and liabilities of discontinued operations are presented separately in the Consolidated Balance Sheets for all periods presented. At September 30, 2024 and December 31, 2023, these balances consisted of current and long-term assets. The following table presents a reconciliation of the carrying amounts of the major classes of these assets and liabilities to the current and long-term assets and liabilities of discontinued operations as presented on the Company’s Consolidated Balance Sheets: SCHEDULE OF DISCONTINUING OPERATIONS BALANCE SHEET AND INCOME STATEMENT September 30, 2024 (unaudited) December 31, 2023 Assets Current Assets Cash and cash equivalents $ - $ 219 Current assets of discontinued operations $ - $ 219 Long-term Assets Long term assets of discontinued operations $ - $ 8,534 13 Loss from Discontinued Operations Discontinued operations for the three and nine months ended September 30, 2024 and three and nine months September 30, 2023 consists of results from Graphium Biosciences operations. The following table provides details about the major classes of line items constituting “Loss from discontinued operations” presented on the Company’s Consolidated Statements of Operations: 2024 2023 2024 2023 Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Operating expenses: Research and development 177,015 140,840 465,933 354,461 Total operating expenses 177,015 140,840 465,933 354,461 Loss from discontinued operations ( 177,015 ) ( 140,840 ) ( 465,933 ) ( 354,461 ) 3. ACQUISITION OF COLLINS BUILDING & CONTRACTING On August 31, 2023, the Company entered into a stock purchase agreement with the owner of Collins Building & Contracting, Inc. (“Collins Building”) pursuant to which the owner agreed to sell all of the outstanding common stock of Collins Building to the Company in exchange for (a) cash consideration of $1,000,000, (b) a five-year secured promissory note in the principal amount of $2,000,000, bearing interest at 7.0% per annum (the “First Promissory Note”), and (c) a two-year secured promissory note in the principal amount of $2,035,250, bearing interest at 8.25% per annum (the “Second Promissory Note”) . The First Promissory Note is secured by the acquired real property and quarry infrastructure, and the Second Promissory Note is secured by the acquired equipment. The Company accounted for the transaction as a business combination in accordance ASC 805 “Business Combinations”. The Company has performed an allocation of the purchase price paid for the assets acquired and the liabilities assumed. The fair values of the assets acquired are set forth below. Because the fair values exceeded the purchase price, a gain on the purchase of $ 1,875,150 was recognized. The allocation of the purchase price is based on management’s estimates and a third-party assessment of the fair value of the equipment purchased. SCHEDULE OF BUSINESS ACQUISITION ALLOCATION OF PURCHASE PRICE Fair value of assets acquired: Equipment $ 6,156,000 Land 554,900 Buildings 199,500 Total assets acquired 6,910,400 Less: Gain on bargain purchase price ( 1,875,150 ) Purchase price $ 5,035,250 Cash consideration 1,000,000 Long-term notes issued to the seller 4,035,250 Total purchase price $ 5,035,250 Acquisition transaction costs incurred $ 167,212 As discussed in Note 2, on August 22, 2024, almost all of the equipment, as well as the land and buildings acquired on August 31, 2023, were sold to the previous owner of Collins Building in consideration of the full and complete cancellation of the First Promissory Note and the Second Promissory Note. Collins Building’s operations contributed revenues of $ 0 and net loss of $ 8,136 to the Company’s consolidated revenues and net operating loss for the three months ended September 30, 2024. For the nine months ended September 30, 2024, Collins Building’s operations contributed no revenue and a net operating loss of $ 552,972 . The losses stem primarily from depreciation of equipment and buildings purchased as part of the Collins Building acquisition. Collins Building contributed no revenue to the Company’s consolidated revenues for the three months and nine months ended September 30, 2023. The Company recorded the revenue generated from reclamation services on abandoned mine land, which was historically the core business of Collins Building, as revenue of Range Environmental. A gain on bargain purchase of $ 1,875,150 offset by $ 88,271 of depreciation expense was recorded for Collins Building for the three and nine months ended September 30, 2023. 14 4. GOODWILL Goodwill is $ 751,421 at September 30, 2024 and at December 31, 2023. The goodwill as of both dates represents the value of the Range Reclamation Entities’ employee relations. Goodwill by reportable segment is as follows: SCHEDULE OF GOODWILL September 30, 2024 December 31, 2023 Environmental Services: Beginning Balance $ 751,421 $ 751,421 Acquisitions - - Adjustments - - Ending Balance $ 751,421 $ 751,421 5. STOCK OPTIONS Stock options issued during the three months ended September 30, 2024 and the three months ended September 30, 2023 No stock options were granted to directors, advisors, and employees during the three months ended September 30, 2024. During the three months ended September 30, 2023, the Company granted options to an outside advisor to purchase 100,000 shares of the Company’s common stock with exercise prices of $ 0.1337 per share that expire five years from the date of grant. Options to purchase all 100,000 shares vested upon grant. The fair value of that option award was estimated on the date of grant using the Black-Scholes-Merton Option Pricing model based on the following assumptions: (i) volatility rate of 273.24 %, (ii) discount rate of 4.27 %, (iii) zero expected dividend yield, and (iv) expected life of 5 years, which is the term of the options. The total fair value of the option grants at their grant dates was approximately $ 13,340 which was allocated to general and administrative expenses for the three months ended September 30, 2023. During the three months ended September 30, 2024, the Company recorded $ 4,490 in stock-based compensation expense. During the three months ended September 30, 2023, total stock-based compensation expense related to vested stock options was $ 17,830 . At September 30, 2024, there was $ 56,480 of unamortized cost of the outstanding stock-based awards. A summary of the Company’s stock option activity during the nine months ended September 30, 2024 is as follows: SUMMARY OF STOCK OPTION ACTIVITY Shares Weighted Average Exercise Price Balance outstanding at December 31, 2023 11,392,544 $ 0.47 Granted 250,000 0.38 Exchanged - - Exercised - - Expired ( 43,334 ) 3.63 Forfeited - - Balance outstanding at September 30, 2024 11,599,210 $ 0.45 Balance exercisable at September 30, 2024 11,374,210 $ 0.45 At September 30, 2024, the 11,599,210 outstanding stock options had $ 677,480 of intrinsic value. 15 A summary of the Company’s stock options outstanding as of September 30, 2024 is as follows: SCHEDULE OF STOCK OPTION OUTSTANDING Number of Options Weighted Average Exercise Price Weighted Average Grant- Date Stock Price Options Outstanding, September 30, 2024 100,000 $ 0.1337 $ 0.1337 3,050,000 $ 0.18 $ 0.18 1,550,000 $ 0.212 $ 0.212 1,150,000 $ 0.277 $ 0.277 750,000 $ 0.30 $ 0.30 2,000,000 $ 0.35 $ 0.35 250,000 $ 0.38 $ 0.38 1,664,542 $ 0.50 $ 0.50 128,000 $ 0.96 $ 0.96 350,834 $ 1.50 - 1.95 $ 1.50 - 1.95 597,500 $ 2.00 - 2.79 $ 2.00 - 2.79 8,334 $ 3.30 - 3.50 $ 3.30 - 3.50 11,599,210 A summary of the Company’s stock options outstanding and exercisable as of September 30, 2024 is as follows: SCHEDULE OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE Number of Options Weighted Average Exercise Price Weighted Average Grant- Date Stock Price Options Outstanding and Exercisable, September 30, 2024 100,000 $ 0.1337 $ 0.1337 2,950,000 $ 0.18 $ 0.18 1,550,000 $ 0.212 $ 0.212 1,150,000 $ 0.277 $ 0.277 750,000 $ 0.30 $ 0.30 2,000,000 $ 0.35 $ 0.35 125,000 $ 0.38 $ 0.38 1,664,542 $ 0.50 $ 0.50 128,000 $ 0.96 $ 0.96 350,834 $ 1.50 - 1.95 $ 1.50 - 1.95 597,500 $ 2.00 - 2.79 $ 2.00 - 2.79 8,334 $ 3.30 - 3.50 $ 3.30 - 3.50 11,374,210 6. WARRANTS A summary of warrants to purchase common stock issued during the nine months ended September 30, 2024 is as follows: SCHEDULE OF WARRANTS ACTIVITY Shares Weighted Average Exercise Price Balance outstanding and exercisable at December 31, 2023 3,313,335 $ 0.66 Granted - - Exercised - - Expired ( 146,668 ) 3.00 Balance outstanding and exercisable at September 30, 2024 3,166,667 $ 0.56 At September 30, 2024, the 3,166,667 outstanding stock warrants had no intrinsic value. 7. NOTES PAYABLE The Company had no notes payable outstanding as of September 30, 2024, or December 31, 2023. 8. LINE OF CREDIT In November 2022, the Company secured a bank line of credit with a limit of $ 1,000,000 . In November 2023, the Company amended and restated this line of credit. The line of credit, as amended, has a maturity date of November 30, 2024 , and bears interest at one percent ( 1 %) above the bank’s prime rate ( prime rate plus one percent margin equaled 9.00 % at September 30, 2024). The Company is currently in discussions to extend the maturity date. As of September 30, 2024, the balance due under the line of credit was $ 1,000,000 . As of December 31, 2023, the balance due under the line of credit was $ 1,000,000 . In June 2023, Range Environmental secured a bank loan with a limit of $ 1,000,000 . In November 2023, the loan amount was increased to $ 1,400,000 pursuant to which principal and accrued interest payments are required in March, June, September and December 2024. The loan has a maturity date of December 31, 2024 , and bears interest at the bank’s prime rate (prime rate equaled 8.00 % at September 30, 2024). The Company is currently in discussions to extend the maturity date. As of September 30, 2024, the balance due under the loan was $ 1,100,000 . As of December 31, 2023, the balance due under the loan was $ 1,400,000 . 16 9. LONG-TERM DEBT OBLIGATIONS Long-term debt consists of debt on vehicles and equipment, which serves as the collateral. Interest rates on the equipment financings range from 3.69 % to 9.95 % for 2024 and mature between 2025 through 2029 . A summary of payments due under the long-term debt by year is as follows: SCHEDULE OF MATURITIES OF LONG TERM DEBT Equipment Financing Collins Promissory Notes 2024 – due between October 1, 2024 and September 30, 2025 $ 1,458,215 $ - 2025 – due between October 1, 2025 and September 30, 2026 802,723 - 2026 – due between October 1, 2026 and September 30, 2027 789,266 - 2027 – due between October 1, 2027 and September 30, 2028 583,844 - 2028 and later – due on October 1, 2028 and thereafter 227,991 - Total long-term debt $ 3,862,039 $ - 10. MAJOR CUSTOMER AND CONCENTRATION OF CREDIT RISK Sales to the Company’s two largest customers constituted 31 % and 75 % of total sales for the three months ended September 30, 2024 and the nine months ended September 30, 2024, respectively. Sales to the Company’s largest customer were 95 % and 93 % of total sales for the three months ended September 30, 2023 and the nine months ended September 30, 2023, respectively. Accounts receivable from the same customers were 92 % of total accounts receivable as of September 30, 2024 and 70 % as of December 31, 2023. 11. EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per share. SCHEDULE OF BASIC AND DILUTED EARNINGS PER SHARE Three Months Ended September 30, Nine Months Ended September 30, 2024 2023 2024 2023 Earnings Per Share - Basic Net (loss)/income $ ( 4,920,338 ) $ 3,404,175 $ ( 7,359,859 ) $ 3,214,077 Weighted average shares of common stock outstanding - Basic 103,148,561 83,531,308 102,442,788 80,742,455 Earnings Per Share - Basic $ ( 0.05 ) $ 0.04 $ ( 0.07 ) $ 0.04 Earnings Per Share - Diluted Weighted average shares of common stock outstanding - Basic 103,148,561 83,531,308 102,442,788 80,742,455 Weighted average shares of common stock - Diluted 103,148,561 83,531,308 102,442,788 80,742,455 Earnings Per Share - Diluted $ ( 0.05 ) $ 0.04 $ ( 0.07 ) $ 0.04 12. COMMITMENTS AND CONTINGENCIES From time to time, the Company is involved in legal matters arising in the ordinary course of business. While the Company believes that such matters are currently not material, there can be no assurance that matters arising in the ordinary course of business for which the Company is, or could be, involved in litigation, will not have an adverse effect on its business, financial condition or results of operations. 13. SEGMENT INFORMATION ASC 280, “Segment Reporting” establishes standards for reporting information about operating segments on a basis consistent with the Company’s internal organizational structure as well as information about services, categories, business segments and major customers in financial statements. The Company has five reportable segments that are based on the following business units: (i) Range Reclaim; (ii) Range Minerals; (iii) Range Water; (iv) Range Security; and (v) Range Land. As described in Note 2, the Company’s Graphium Biosciences segment was reported as discontinued operations during the third quarter of 2024. As such, results of this segment are excluded from the table below, which only reflects continuing operations for all periods presented. In accordance with the “Segment Reporting” Topic of the ASC, the Company’s chief operating decision-maker has been identified as the Company’s Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company. Existing guidance, which is based on a management approach to segment reporting, establishes requirements to report selected segment information quarterly and to report annually entity-wide disclosures about products and services, major customers and the countries in which the entity holds material assets and reports revenue. All material operating units qualify for aggregation under “Segment Reporting” due to their similar customer base and similarities in (i) economic characteristics, (ii) nature of products and services, and (iii) procurement, manufacturing and distribution processes. The five reportable segments that result from applying the aggregation criteria are as follows: ● Range Reclaim – land reclamation, water restoration and land repurposing ● Range Minerals – subcontracted mining and reclamation activities ● Range Water – biochar product development and water solutions business ● Range Security – security services on mine land being reclaimed and repurposed for non-fossil fuel uses ● Range Land – mine land being acquired, reclaimed and repurposed for non-fossil fuel uses The Company had no inter-segment sales for the periods presented. 17 Summarized financial information concerning the Company’s reportable segments is shown as below: SCHEDULE OF FINANCIAL INFORMATION OF REPORTABLE SEGMENT By Categories For the Three Months Ended September 30, 2024 Range Reclaim Range Minerals Range Water Range Security Range Land Corporate Total Sales $ 723,932 $ 1,295,848 $ - 151,875 $ - $ - $ 2,171,655 Gross profit ( 865,643 ) 392,453 - 80,262 - - ( 392,928 ) Net income (loss) ( 4,964,461 ) 331,899 3,364 68,167 - ( 182,292 ) ( 4,743,323 ) Total assets 5,317,911 3,055,640 - 302,374 1,008,897 757,210 10,442,032 Depreciation 314,389 - - 2,891 - - 317,280 Interest expense 131,827 - - - - 23,577 155,404 Tax expense - - - - 2,955 2,955 Capital expenditures for long-lived assets $ - - $ - - $ - $ - $ - For the Three Months Ended September 30, 2023 Range Reclaim Range Water Range Security Range Land Corporate Total Sales $ 5,299,415 $ - $ 156,218 $ - $ - $ 5,455,633 Gross profit 2,784,912 - 72,854 - - 2,857,766 Net income (loss) 4,048,527 ( 15,376 ) 50,555 - ( 538,691 ) 3,545,015 Total assets 17,227,868 14,498 136,835 1,009,988 443,441 18,832,630 Depreciation 370,404 640 2,891 - - 373,935 Interest expense 93,933 - - - 41,534 135,467 Tax expense - - - - - - Capital expenditures for long-lived assets $ 349,898 $ - $ - $ 976,858 $ - $ 1,326,756 For the Nine Months Ended September 30, 2024 Range Reclaim Range Minerals Range Water Range Security Range Land Corporate Total Sales $ 4,280,872 $ 3,416,081 $ - $ 734,333 $ - $ - $ 8,431,286 Gross profit ( 1,698,174 ) 750,107 - 425,064 - - ( 523,003 ) Net income (loss) ( 6,590,761 ) 484,354 ( 35,372 ) 357,709 - ( 1,109,856 ) ( 6,893,926 ) Total assets 5,317,911 3,055,640 - 302,374 1,008,897 757,210 10,442,032 Depreciation 1,584,200 - 1,279 8,673 - - 1,594,152 Interest expense 286,000 - - - - 210,322 496,322 Tax expense - - - - 59,555 59,555 Capital expenditures for long-lived assets $ - $ - $ - $ - $ - $ - $ - For the Nine Months Ended September 30, 2023 Range Reclaim Range Water Range Security Range Land Corporate Total Sales $ 12,170,394 $ - $ 298,393 $ - $ - $ 12,468,787 Gross profit 4,213,178 - 138,691 - - 4,351,869 Net income (loss) 4,669,092 ( 53,656 ) 71,000 - ( 1,117,898 ) 3,568,538 Total assets 17,227,868 14,498 136,835 1,009,988 443,441 18,832,630 Depreciation 1,061,569 1,066 7,210 - - 1,069,845 Interest expense 199,744 - 224 - 44,133 244,101 Tax expense - - - - - - Capital expenditures for long-lived assets $ 1,066,389 $ 15,350 $ 52,674 $ 976,858 $ - $ 2,111,271 14. SUBSEQUENT EVENTS None. 18