Company: RAIN
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001213900-25-110062
Chunk: 15

Company: Rain Enhancement Technologies Holdco, Inc.
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 is recognized in the statements of operations and in the expense category that is consistent with the function of the intangible
assets.

Intangible assets with finite lives are tested
for impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. These conditions may include
a change in the extent or manner in which the asset is being used or a change in future operations. The Company assesses the recoverability
of the carrying amount by preparing estimates of future revenue, margins, and cash flows. If the sum of expected future cash flows (undiscounted
and without interest charges) is less than the carrying amount, an impairment loss is recognized. The impairment loss recognized is the
amount by which the carrying amount exceeds the fair value of the asset. Fair value of these assets may be determined by a variety of
methodologies, including discounted cash flow models. As of September 30, 2025 and December 31, 2024, the Company did not have any intangible
assets with indefinite useful lives.

Research and Development Expenses

Research and development costs are expensed as incurred. Research and development expenses consist of expenditures incurred in the discovery
and development of new products, processes or services and the improvement of existing products, processes or services and the cost of
conducting trials.

9

RAIN ENHANCEMENT TECHNOLOGIES HOLDCO, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS

SEPTEMBER 30, 2025

Leases

The Company follows the guidance of ASC 842, “Leases,”
which requires an entity to recognize a right-of-use (“ROU”) asset and a lease liability for virtually all leases. Operating
lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.
ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s
obligation to make lease payments arising from the lease. The Company determines the present value of lease payments utilizing its incremental
borrowing rate, as the implicit rate of interest in the respective leases is not readily determinable. The Company’s incremental
borrowing rate is a hypothetical rate based on its understanding of what its credit rating would be.

The Company has elected not to recognize ROU assets
and lease liabilities for short-term leases that have a lease term of 12 months or less. The Company recognizes the lease payments associated