Company: RAIN
Filing Date: 2025-08-14
Form Type: 424B3
Source: 0001213900-25-076764
Chunk: 12

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 424B3
Chunk 12
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approximates the carrying amounts represented in the accompanying consolidated balance sheets, either because of the short-term nature
of the instruments or because the instrument is recognized at fair value.

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RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2025</div>

Fair Value Measurements

Fair value is defined as the price that would
be received for sale of an asset or paid for transfer of a liability in an orderly transaction between market participants at the measurement
date. GAAP establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy gives
the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and
the lowest priority to unobservable inputs (Level 3 measurements). These tiers include:

| ● | Level                                                                                                           
 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |

| ● | Level                                                                                                                                   
 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices 
 for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and     |

| ● | Level                                                                                                                                       
 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions,   
 such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |

In some circumstances, the inputs used to measure
fair value might be categorized within different levels of the fair value hierarchy. In those instances, the fair value measurement is
categorized in its entirety in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement.

Derivative Financial Instruments

The Company does not use derivative instruments
to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments to determine
if such instruments are derivatives or contain features that qualify as embedded derivatives, pursuant to FASB ASC Topic 480 “Distinguishing
Liabilities from Equity” (“ASC 480”) and FASB ASC Topic 815, “Derivatives and Hedging” (“ASC 815”).
The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as