Company: RAIN
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076727
Chunk: 126

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 126
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 compensation and payments of any kind due and payable to Mr. Riley, we agreed to pay Mr. Riley an aggregate
of $124,500, payable in 18 monthly installments beginning in February 2025 in consideration for his past services. We recognized approximately
$21,000 and approximately $35,000 in connection with such agreement during the three and six months ended June 30, 2025, respectively,
within general and administrative expenses in the accompanying unaudited condensed statements of operations. Additionally, conditioned
on approval by the Compensation Committee of the Board, the Termination Letter provides that Mr. Riley will be granted 10,000 shares
of Class A Common Stock vesting one year from the date of grant. As of June 30, 2025, the stock has not been granted.

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Segments

We operate and manage the business as one reportable
and operating segment, which is the business of developing, manufacturing and commercializing ionization rainfall generation technology.
Our chief executive officer, who is the chief operating decision maker, or CODM, reviews financial information on an aggregate basis for
allocating resources and evaluating financial performance.

Off-Balance Sheet Arrangements 

We did not have off-balance sheet arrangements
as of June 30, 2025, and do not currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated
entities or financial partnerships, including entities sometimes referred to as structured finance or special purpose entities, that were
established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Critical Accounting Estimates 

The unaudited condensed consolidated financial
statements have been prepared in accordance with U.S. GAAP and pursuant to the rules and regulations of the SEC.

Preparation of the unaudited condensed consolidated
financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the
disclosure of contingent assets and liabilities. We also make estimates and assumptions on revenue generated and reported expenses incurred
during the reporting periods. Our estimates are based on our historical experience and on various other factors that it believes are reasonable
under the circumstances. The results of these estimates form the basis for making judgments about the carrying value of assets and liabilities
that are not readily apparent from other sources. Actual results may differ from these estimates.

While our significant accounting policies are
described in the notes to our unaudited condensed consolidated financial statements included elsewhere in this Annual