RANGE IMPACT, INC. SEC 10-K Report

Range Impact, Inc., a company focused on impact investing and land reclamation, has released its annual 10-K report. The report provides a comprehensive overview of the company's financial performance, business operations, strategic initiatives, and the challenges it faces in the economically disadvantaged Appalachian region.

Financial Highlights

Revenues: $9.01 million, a significant decrease from $19.35 million in 2023, primarily due to reduced mining activity and the absence of a non-recurring project from the previous year.

Gross Profit/(Loss): $(0.88) million, down from $6.23 million in 2023, driven by decreased revenues and increased costs.

Income (Loss) from Operations: $(3.54) million, compared to $2.21 million in 2023, reflecting higher operating expenses and lower gross profit.

Net Income (Loss): $(9.80) million, a significant decline from $3.13 million in 2023, influenced by reduced gross profit and asset impairments.

Business Highlights

Company Evolution: Originally formed as Legend Mining Inc. in 2007, the company has undergone several transformations, including a focus on stevia products and cannabinoid pharmaceuticals, before rebranding as Malachite Innovations, Inc. in 2021 and later as Range Impact Inc. in 2023. The current focus is on impact investing and land reclamation.

Business Focus: Range Impact, Inc. is dedicated to impact investing, particularly in acquiring, reclaiming, and repurposing mine sites in economically disadvantaged communities in Appalachia. This strategy aims to balance environmental, social, and economic needs while generating financial returns.

Operating Segments: The company operates five business segments: Range Reclaim, Range Minerals, Range Water, Range Security, and Range Land, each focusing on different aspects of land reclamation, environmental solutions, and security services.

• Range Reclaim: Acquired Range Environmental Resources, Inc. in 2022, providing land reclamation and water restoration services in Appalachia. The segment focuses on returning land to pre-mining conditions or repurposing it for various uses.
• Range Minerals: Previously engaged in mining and reclamation services at the Fola Mine, this segment is being discontinued in 2025 due to the cessation of direct operations and the sale of mined coal assets.
• Range Water: Terra Preta, LLC, started in 2022, focuses on developing biochar-based agricultural and water filtration products. Research and development are on hold pending additional funding.
• Range Security: Established in 2022, this segment provides eco-friendly security services to mine sites, focusing on transitioning locations from coal mining to next-generation industries.
• Range Land: Formed in 2023, this segment acquires former mine lands for reclamation and repurposing for non-fossil fuel uses, including renewable energy and commercial developments.

Geographical Focus: The company targets the Appalachian region, known for its economically disadvantaged communities, aiming to provide environmental and social solutions.

Future Outlook: The company plans to continue its impact investing strategy, focusing on environmental, social, and economic challenges, with an emphasis on technology-based solutions and sustainable financial returns.

Strategic Initiatives

Strategic Initiatives: The company is dedicated to improving health and wellness through impact investing, focusing on acquiring and repurposing undervalued land in economically disadvantaged communities. It sold its subsidiary Graphium Biosciences, Inc. and disposed of the Collins Building assets to streamline operations and focus on core business segments.

Capital Management: The company issued common stock to raise $1,000,000 and used proceeds to pay down $1,848,188 of long-term equipment debt and bank credit lines. It has a working capital of $749,437 as of December 31, 2024, and is actively seeking additional financing to support operations. The company has not declared or paid any dividends and intends to retain future earnings to support operations.

Future Outlook: The company anticipates net operating losses of approximately $500,000 over the next 12 months and is actively managing working capital to generate additional cash flow. It is seeking additional financing to fund operations and may face challenges if unable to raise necessary capital, potentially leading to scaling back or eliminating some operations.

Challenges and Risks

Challenges and Risks: The company faces substantial risks related to its business operations, including the need to raise additional capital to continue operations. There is a significant risk of not being able to continue as a going concern due to financial losses and limited cash reserves. The company's limited operating history and experience in impact investing pose challenges in effectively managing operations and responding to market trends.

Additionally, the company is exposed to risks related to environmental regulations, which could increase operational costs and liabilities. The potential for cyber incidents and attacks also poses a risk to the company's digital infrastructure.

The company's impact investing strategy is new and untested, with potential challenges in identifying and acquiring suitable businesses or assets. The strategy's reliance on sustainability and environmental criteria may limit business opportunities and expose the company to sectors that underperform the market. The company also faces risks related to the concentration of customers and projects, which could lead to financial exposure if key customers fail to meet contractual obligations.

Management acknowledges the challenges of operating in a highly competitive market with high price sensitivity and inflationary pressures. The company has experienced significant fluctuations in stock price and trading volume, which may be influenced by operational results and market conditions. The company is actively seeking additional financing to support its operations and strategic initiatives, but there is no assurance that such financing will be available on favorable terms.

The company has identified the need to improve operational efficiency and asset utilization as key drivers of profitability. Management is focused on expanding its customer base and exploring new business opportunities to enhance shareholder value. However, the success of these initiatives is uncertain, and the company may face difficulties in implementing its strategic plan due to various risks and uncertainties.

SEC Filing: RANGE IMPACT, INC. [ RNGE ] - 10-K - Mar. 28, 2025